UC-NRLF 


III 


^^ 


REPUBLICAN 

CAMPAIGN 
TEXT  -  BOOK 


1908 


^TRADES  H?B  ^  C  OU  NCTl> 


ISSUED   BY    THE 

REPUBLICAN  NATIONAL 
COMMITTEE 


EXTRACTS  FROM  THE  PUBLIC  UTTERANCES  OF  WM.  H.  TAFL 


"The  fundamental  objection  to  the  proposed 
(Democratic)  plan  to  guarantee  deposits  in  na- 
tional banks  is  that  it  puts  a  premium  on  reckless 
banking.  It  would  promote  speculation  at  the  ex- 
pense of  his  fellow-banker,  and  that  ultimately 
means  at  the  expense  of  the  depositors."— At  Hot 
Springs,  Va.,  August  25,  1908. 

"Never  in  the  history  of  this  country  has  there 
been  an  Administration  that  has  passed  more 
measures  directly  in  the  interest  of  the  laboring 
classes  than  has  the  present  Republican  Adminis- 
tration."—At  Athens,  Ohio,  August  29, 1908. 

"I  believe  that  equal  justice  to  all  men  and  the 
fair  and  impartial  enforcement  of  these  (the  Thir- 
teenth, Fourteenth  and  Fifteenth)  amendments  are 
in  keeping  with  the  real  American  spirit  of  fair 
play."— From  Address  of  Acceptance,  July  28, 
1908. 

"Evils  are  to  be  suppressed  by  definite  and  prac- 
tical measures— not  by  oratory  or  denunciation." 
—At  Greensboro,  N.  C,  July  9,  1906. 

"The  present  business  system  of  the  country 
rests  on  the  protective  tariff  and  any  attempt  to 
change  it  to  a  free  trade  basis  will  certainly  lead  to 
disaster."— At  Columbus,  Ohio,  August  19,  1907. 

"I  would  favor  a  provision  allowing  the  defend- 
ant in  contempt  proceedings  to  challenge  the 
judge  issuing  the  injunction  and  to  call  for  the 
designation  of  another  judge  to  hear  the  issue."— 
At  Cooper  Union,  N.  Y.,  January  10,  1908. 

"The  President  should  always  be  near  the  peo- 
ple In  thought  and  as  near  them  in  person  as  his; 
position  will  permit.  Once  convinced  that  he  has 
divined  and  is  carrying  out  their  real  wish,  neither 
elated  by  any  ephemeral  outburst  of  applause  n^ 
diverted  by  an  outburst  of  censure,  he  must  pr(k 
ceed  unwaveringly,  always  by  lawful  methods,  tol 
the  accomplishment  of  the  popular  will."— FronfRJ 
Mr.  Taft's  "Conception  of  the  Presidency,"  in  CoVli 
lier's.  ^ 


I 


REPUBLICAN 

CAMPAIGN 
TEXT  -  BOOK 

1908 


Issued  hy  the 

Republican  j  ^«^^ 

Natioftal 
Committee 


PRESS  OF   DUNLAP    PRIMING    CO.VIPAW 

ijj2-J4-36-?8  Cherry   Street  ami 
118-20-21-24-26  N.  Juniper  Street 

Philadelphia,   Pa. 


v//V-2Ss"2. 


OUTLINE  OF  CONTENTS. 


Pagb 

Mr.  Taft's  speech  accepting  nomination .,.....» ^ 

Regulation    of    Corporations 33 

Money  panic  of   1907 54 

Prosperity 81 

Tariff   »9 

Tariffs  of  the  world 121 

Reciprocity    130 

Iron  and  steel  industry  of  the  United  States 15f< 

Tin-plate  industry  of  the  United  States IBi' 

Textile  industry  of  the  United  States 16^ 

Agricultural    prosperity 191 

Labor,   wages,   and  prices •    208 

Union  labor,  Mr.  Taft's  relations  to 248 

Campaign  contributions,   publicity  of 272 

William*  Jennings    Bryan 282^ 

Colored  citizens :   attitude  of  two  parties  toward 297 

Guarantee  of  bank  deposits 307 

President   Roosevelt's    Administration 318 

Sixtieth  Congress,   outline  of  its  work 322 

Departments  :    Review  of  work  : 

State 331 

Justice    840 

War     344 

Navy     360 

Post   Office 370 

Interior    37? 

Agricultural     386 

Commerce   and   Labor 390 

Treasury     398 

Philippine    Islands     40:-; 

Hawaiian    Islands   42R 

Porto   Rico    42fi 

Panama   Canal    42H 

Cuba    442 

Merchant  marine    460 

-Republican    platform.    1908 461 

S)emocratic    platform,    1908 468 

Pryan's   speech  of  acceptance 478 

Statistical  statements   ,  .  .  i 48S 

Taft.  William  H..  sketch  of  life  of 52^ 

Mr.   Sherman's  speech    of  acceptance ^ 587 

.  Republican  National  and  Congressional   Oommitt«es 640    641 

-  • 


IV11118J)5 


IT/IOO  ^I(>   U'/ 


IINDEX. 


PA6B. 

Addystone  Pipe  aud  Steel  Company  case •  •  261 

Addystone  pipe  case  :  Judge  Tafts  declston  !n -  •  50 

Afro- Americans  in  Government  service .  •  801 

Afro-American  voters,  Bryan's  attitude  with  reference  to                      . .  290 

Agricultural  Department -  •  ^'^ 

Agricultural  products,   prices  of,  on  farms,  1892-1907 ..203 

Agricultural  prosperity  in  mfg.  and  non-manufacturing   section:           ..  191 

Agriculture,    pi'osperlty    of •  •  ^'^^ 

Animals,  farm,  value  of,  in  United  States,  1890-1907 ...  207 

Appropriations  by  first  session.  Sixtieth  Congress 328 

Appropriations,   record  of,  1890  to  1909 -  •  .  326 

Arbitration,  international,  Presidents  McKinley  and  Roosevflt  on 384 

"Assumed  risk"  decision  of  Judge  Taft -  •  250 


B 


Balance  of  trade  and  farmers. 


388 


487 

807 

19 


Balance  of  trade  under  McKinley,  Wilson,  and  Dingley  tariff? 

Bank  deposits,  guarantee  of 

Bank  deposits,  insurance  of 

Bank  deposits  in  United  States,  1875-1907 

Banks,   savings:   depositors  and  deposits,    1820-1 9<t7 ..  90 

Banks,  savings,  of  world,  deposits  in •  •  91 

Beet  and  cane  sugar  product  of  world,  1840-1907 IM 

Beet  sugar  in  United  States •  •  194 

Beet  sugar  production  in  United  States,  growth  ol . .  199 

Foots  and  shoes,  prices  of  under  Dingley  Act ..148 

Bryan  and  Taft  compared  and  contrasted 270 

Bryan,  New  York  World  on 270-7  :  286-8  ;  291 

Bryan  on  Government  ownership  of  railways .  282-285 

Bryan  on  retention  of  part  of  Philippines .  28ft 

Bryan,  Roger  C.  Sullivan  on,  in  1906 •  295 

Bryan's  attitude  with  reference  to  colored  voter.s .  290 

Bryan's  "Commoner"  on  Negro  problem .  30<$ 

Bryan's  corporation  campaign  fund  in  1896 .  276 

"Bryan's  n'omination  means  Taft's  election,"  from  New  York   World .  .  .  291 

Bryans  speech  of  acceptance 476 

Bryan's   trust  ratio ■  -  .  292 

Bryan,  Watterson's  view  of,  in  1896 .  293 

Building  associations  in  United  States .  94 

Bureau  of  Immigi'ation,  work  'of .  394 

Business  depression  of  1907 84 


Colonies,  British,  trade  with  United  Kingdom .441 

Colonies,  principal,  tariff  relations  with  governing  oountrif-s-  .  .    128 

Colored  citizen,  Mr.  Taft  on :  .  .      22 

Colored  citizens  in  Government  service .  .    301 

Colored  voters,  attitude  of  the  two  parties  toward      ....    297 

Colored   voters,    Bryan   on .  290,   297 

Commerce  and   Labor,   Department  of ...    890 

Commerce  of  the  United  States  by  grand  divisions  of  the  world  .\  .    BOO 

Commerce  of  United  States  by  great  groups,  1820-1908 170 

Commerce  under  each  President,  Washington  to  Roosevelt 152 

Commerce  under  McKinley,  Wilson,   and  Dingley   tariffs 487 

Commercial  failures  in  United  States .  ;'    .^    ....  194-95 

Commercial,  financial,  and  industrial  conditions  In  United  States,  1902-7     97 

"Commoner"   on   the   race   problem .  .  :  , ;  .  .'.    306 

Conditions,  financial,  commercial  and  industrial,  in  U.  S.,  1902-7'      .  .      97 

Congress,  Sixtieth,  review  of  first  session   of 322 

Conservation  policy    .  .  '. .  .    402 


V.  INDEX. 

Paok. 

<  Consular  service,  Improvement  of 3;'.7 

OHinpaIgn  contributions,  publicity  of :  Mr.  Taft  on 24 

OaiupalgD  contributions  publicity  bill 279 

Campaign  contributions,   publicity  of 272 

Centralization,  change  in  Demoeratic  s«ntlm6At  respecting 295. 

Cheap  freights,  effect  upon  protective  tariffs 107 

Circulation  of  money  In  United  States 68,  88 

Civil   service    408 

OloBo  States,  votes  in,  1880  to  1906 527 

Coal    production    and    consumption    fn    United    States,    Giermany,    and 

United  Kingdom 149 

Consumption  of  sugar  in  United  States  and  Stource  of  supply. .........  199 

Oontract   labor   excluded 395 

Contributions  to  campaigns,  publicity  of 24,  272 

Conventional  tariff  of  Germany,  example  of 127 

Conventional    tariff   systems 121 

Coyrporatlon,  Bureau  of  ;  its  w'orli 34 

Corporation  contributions  to  Bryan's  campaign  fund  In  1896 276 

Corporation  regulation:   Standard  Oil-Democratic  method 52 

Corporations  and  the  Courts 47 

Corporations,    regulation    of 31 

Corporations  :  work  of  Department  of  Justice 36 

Cortelyou,   Secretary,  on  panic  of  1907 60 

Cost  of  living  and  wages 238 

(Jottoa  manufacturing  in  United  States 164,  175 

Cotton  taken  by  northern  and  southern  mills,  respectively,  1884-1905.  176 

Countervailing  duties  on  petroleum  originated  with  Democrats. ......  146 

Courts   and   corporations 47 

Crops,  value  of,  1885  to  1907 491 

Cuba,  Mr.  Taf t's  part  in  pacification  of 443 

Cuba,   recent  government  of  by  United  States 442 

Carrency  Act   of    1908 72 

Currency,  Mr.  Taft  on 18 

^3ur^ency  of  the  world,   1873-1906 79-80 

Currency  of  the  United  States 68 

B 

[»ebt  of  tbo  United  States,  historical  analysis  of 503 

f »*»flcit,   Mr.    Taft  on 26 

Ooftcits  under  Protection  and  low  tariff,   respectively 151 

Democratic  and  Republican  record  on  publicity  of  campaign  contributions  272 
Democratic    plan   of  trust    regulation   that   proposed   by   Standard   Oil 

-  .      magnates 52 

Democratic  platform    468 

Democratic  eentiment  on  centralization  changing 295 

Democratic  tariff  platforms,  1860-1908 , 140 

Democrats  as   expansionists .^ 438 

Department    of    Agriculture 386 

Department  of  Commerce  and  Labor 390 

Department  of  Justice,  review  of  its  work 340 

Department  of  Justice,   work  of  regarding  corporations 36,  340 

Department  of  State,  review  of  its  work 331 

Department  of  the  Interior 373 

department  of  War,  review  of  its  work  under  Presidents  McKinley  and 

Roosevelt , 844 

>-posit8  in  banks  of  United  SUtes,  1876-1907 89 

ngley  tariff,  protests  against  and  effect  thereof  on  trade 120 


l<Jight-hour   law,   administration    of 243 

election   laws   in    South 297 

Elections  in  southern  States,  Bryan  ou 290 

mectoral  college,  1908 526 

pqual  Justice  to  all  men 297 

Wraergency  Currency  Act  of  1908 72 

Sogllsli  trusts  flourishing  despite  free  trade 3  08 

SKchange  value  of  farm  products,  1896-1907 182 

Sxpendltures  and  receipts  of  United  States,  1800-1908 ,-. 499 

Blxpendltures,  national  growth  of  compared  with  growth  of  wealth 327 

iJKpanslonlsts,  Democrats   as • 488 


INDEX.  vii 

Pagh:. 

SporT^rices,   reduction  of  in  foreign  countries 110 

Exports  and  Imports  of  the  United  States,  1790-1908 498 

Experts  of  manufactures 115 

Exports  to  countries  protesting  against  Dingley  tariff,  growth  in 120 

F 

Factory,  value  of  to  farmer 189 

Failures  in  United   States 94 

Farm  animals,  number  and  value  of  In  United  States,  1890-1908 207 

Farm  crops,    value  of,   1895-1907 491 

Farm  products,  exchange  value  of,  1896-1907 182 

Farm  products,  freight  rates  on,  1868-1907 205 

Farm  products,  growth  in  prices  of,   compared   with  prices  'of  articles 

of  farm  consumption 200 

Farm  products  exported  under  three  tariffs 489 

Farm  products,  prices  of,  1892-1907,  by  States  and  principal  articles..  203 

Farm  prosperity  fn  manufacturing  and  non-manufacturing  sections ....  191 

Farm  value,   principal  crops,  1885  to  1907 491 

Farmer,  value  of  factory  to 189 

Farmers   and   balance  of  trade 388 

Federal  courts  and  organized  labor 251 

Financial  panic  of  1907 54 

Freight  rates  on   farm  products,  1868-1907 205 

French  tariffs,  example  of 125 

Financial,  commercial,  and  industrial  conditions  in  U.  S.,  1902-7....  97 

Friar  lands,  Philippine  Islands 422 

G 

German    tariff    agreement. 115 

Oerman  tariff,  example  of  conventional 127 

German  tariff  system  ,described 121 

Government  'ownership,   Bryan  on ■t 282-285 

Growth  of  exports  to  countries  protesting  against  Dingley  tariff.  1896- 

1907 ^ 120 

Growth  of  sugar  production  in  United  States 199 

Guarantee  of  bank  deposits 307 

H 

Harbor  and  river  improvements 356 

Hawaiian   Islands,  conditions  in 425 

Hawaiian,  Philippine,  and  Porto  Rican  sugar  entering  United  States.  .  198 

•Hawaii :  Democratic  efforts  to  annex 438 

Hearst  on  Democratic  party  and  its  candidates :  .  .  .  292 

Hearst's  reply  to  Gorapers 292 

Hepburn  Act :  its  effect  on  control  of  railways 42 

I 

Immigration  Bureau,  work  of 394 

Immigration  'of  convict  labor  excluded 395 

Importation   and   exportations   of   manufactures   by   United   States   and 

United   Kingdom,    1870-1907 118 

Imports  and  exports  of  the  United  States,  1790-1908 498 

Income  tax,  Mr.  Taft  on 25 

Increase  of  offices  by  Sixtieth  Congress ....  326 

Industrial,  commercial,  and  financial  conditions  in  United  States,^02-7  97 

Injunctions  :    Mr.    Taft  on 15 .  256 

Injunctions  :   notice  and  hearings   before 15 

Insurance  of  bank  deposits,  Mr.  Taft  on •  .  19 

Interior   Department    37.^ 

International  arbitration.  Presidents  McKinley  and  Roosevelt  on 334 

International  peace,  work  of  Government  for 334 

Interstate  Commerce  Commission,   work  of 41 

Iron    and   steel   manufacturing   in    United   State.s ;    capital,    wages,    em- 
ployees,  etc.,   1870-1905 I77 

Iron  and  steel  industry  in  United  States,  1880-1907 176 

Iron  and  stepl  industry  of  United  States 156,  176 

Iron  ore,  selling  price,  1894-1908 118 

lion,   pig,   world's  production   of.    1800-1907 178 


v"i  INDEX. 

J 

Pagk. 

Jim  crow  cars  In  South 301 

.»U8tico,  Department  of ;  review  of  its  work 340 

Justice.  Department  of,  work  of  reRarding  corporations 340 


Labor  bureau   reports   In    various   States 234 

Labor  det;isions  tof  Judge  Taft 25G 

Labor  laws  in  Republican  and  Demociratic  States 234 

Labor    legislation,    RepublJc^in 239 

l>abor,  Taffs  relation  to 248 

I^abor.    wagps    and    prices 208 

M 

Manufactures,   exports   of IL^ 

Manufactures :    exports  of   from   United  States,   United  Kingdom,   and 

Germany,    1875-1907 1 J  ^ 

Manufactures :    importation    and   exportation   of  by   United   States   and 

United    Kingdom.    1870-1907 15  8 

Manufacturing  and  ^on-manufacturing  States,  prosperity  in 492 

Nfanufacturing    industries    of     United    States :     capital,     wage-earners, 

wages,    and    products 173 

Manufacturing,   progress  of  in  United  States   1850-1905 ^   493 

Maximum  and  minimum  tariff,  example  of 125 

Maximum  and  minimum  tariff  systems 122 

Most  favored  nation  clause,  relation  of  to  tariffs 123 

Meat  inspection  and  pure-fod(^laws 387 

Merchant  marine   / 450 

Militia  system,  new '  354 

Modem  tariff  systems  of  world 121 

Money  in  circulation  in  United  States 68,     88 

Money  in  circulation  in  United* States,  1800-1908. 88 

Money  of  the  world,  1872-1906 79-80 

Money  panic  of  1907 54 

Naval  expenditures  authorized  by  Sixtieth  Congress 363 

Naval  strength.  United  States  and  foreign  countries ^  .  .    365 

Navies  of   world,  principal 365-36d 

Navy,  cost  of  since  1883 367 

Navy  Department   360 

Navy,   reasons  for  large 360 

National  banks  of  the  United  States 92 

Nat  ional   expenditures,   growth  of,    compared   with  growth  of   national 

wealth .• :  .  . .   327 

Negro,  Bryan's  attitude  with  reference  to 290 

Negro,  Mr.  Taft  on.. 22 

Negro  voter,  attitude  of  two  parties  toward 297 

New  currency  law  of  1908 72 

New  militia  system 354 

New  navy,  cost  of  vessels 369 

New  York  World  on  Bryan 276-277  ;   286-288,   291 

Non -contiguous  territory  of  the  United  States 411 

Offices,  increase  of  by  Sixtieth  Congress 326 

Orient,  statesmanship  of  Mr.  Taft  in 2^ 

Our  n^  navy,  cost  of 367 

"Out-of-work    benefits"    under    Democratic    and    Republican    adminis- 
trations    •' 238 

P 

Panama  Canal,   conditions  on 429 

Panic,  money,  of  1907      54 

Paper  and   wood  pulp  investigation 327    \ 

Party  platforms  on  tariff 140 

Party  votes  in  close  States,  1880  to  1906 527    , 

Peace,  international,  work  of  Government  for 3.^4    , 


INDEX.  ix 

Pagk. 

Pension  laws  of  1907-8 386-387 

Pension  legislation    ^ ;»81 

Petroleum  dutiett,   countervailing,  originated  in  Wilson  Tariff  Act 146 

Phelan   contempt  case 260 

Philippine  Islands,  conditions  in 403 

Philippines :  Bryan  favors  retention  of  part  of. 288 

Philippines,  Mr.  Taft  on 20 

Philippines,  Taft's  labor  record  in 252 

Pig  iron  production  of  U.  S.,  Great  Britain,  and  Germany,  1880-1907 .  .    150 

Pig  iron,  world's  production  of.  1800-1907 178 

Platform   of  Democratic  party,   1908 ......J«.  «*/« 468 

Platform  of  Republican  party.   1908 .  .>  ^  ,-w\v.tJ5. 461 

Platforms  of  parties  on  tariff ■. 140 

Porto  Rlcan,  Hawaiian,  and  Philippine  sugar  entering  United  States..   198 

Porto  Rico,   conditions   in 426 

Postal     serv'ice , 370 

Post  Office  Department,   work  of 870 

Presidential  vote  by  States,  1864  to  1904 526 

President  Roosevelt,  public  services  of 318 

President,  vote  for,  by  States,   1864  to  1904 526 

Prices,  advance  of,  compared  with  advance  in  wages 208 

Prices  of  exports  in  foreign  countries 110 

Prices,  relative,  of  articles  of  farm  production  and  consumption 200 

Prices.    1880-1907    485 

Production  of  pig  Iron  in  U.  S.,  Great  Britain,  and  Germany,  1880-1907  156 

Pi-ogress  of  the  U.  S.  In  its  material  industries,  1850  to  1908 .507 

Prosperity 81 

Prosperity  :  comparison  of  conditions  in  1907   with  those  of  1897 85 

Pi-osperlty  In  manufacturing  and  non-manufacturing  States 493 

Prosperity  of  agricultural  population  of  United  States 179 

Protection   a   feature   of  early  tariffs .^.  .  ..  .....  ....      99 

Protection  and  the  textile  industry .-A-  do«e.-i»l>uu  '3ija»b  io«  ♦<>/*,  164 

Protection,  effect  of  cheap  freights  upon.  .  .!l'>}t'\K  ^a<liJ^)©i(rv> /if>f»ff»r- »vi.  107 

Protection  not  the  mother  of  trusts 108 

Protection   rendered  necessary  by  cheap   labor  and  cheap  freights 107 

Publicity  bill  regarding  campaign  Contributions 279 

Publicity  of  campaign  contributions .I'/W.  Pf-n?.  Hf.  ^372 

Protective  tariff,  effect  on  steel  rail  Industry ;  J"i  .J}. .''''. .  n!'.  .    l&I 

Publicity  of  campaign  contributions,   Mr! Taft  on 24 

Pure  food  and  meat  inspection  laws.  . ,  1'.'.  *']['l 387 


Railway  tabor  under  Republican  and  Democratic  Administrations 233 

Railway   regulation 41 

Railways,   Bryan  on  government  ownership  of viiiV«-.<^S^'i'*Y^82-285 

Railways  of  the  United  States,  capital,  earnings,  etc.  .  I'l  .itfl^.  Pi  .^\'^:/{  / .  50S 
Receipts  and  expenditures  of  United  States,  1800-1908'.  .. '.\  .i.  i'j  .■/'.  .  499 
Receipts     and     expenditures     under     each     President.     Washington     to 

Roosevelt .  :  i  .  ii .. .. ;;j;.  .,.,  154 

Reciprocity    ..;...'...  ..ii  .'.m .  .  .U\  aiQiimxa. aa . t'ioar.v'if.  Jo  .'n.  130 

Reciprocity,  effect  on  trade  of  United  StatesJli.*^  ^♦JaQU>y.lQ  j«ju»J!tBf07  .j,  136 
Reciprocity  experiences  of  United  States.  ...... .OQ.afO'jg^iisIq  .'ii.-taq.  ,^riai 

Regulation  of  corporations ;^J«ia  Jv»JUitJ .  at  antiUlve^  .0-  tSl 

Regulation   of   railways . '.'.  :.■.".: 41 

Relative  prices  of  articles  of  farm  production  and  consumption 200 

Republican  and  Democratic  record  on  publicity  of   c^mpaisn  CDDtrlbuitiiotis  27,2 

Republican  labor  legislation .o,  /i9^i,Y:t:iti.  '^UtJiiij.  .ilay^KooJI  .ifK>fk(,^l&9 

Republican    National   Committee .,,,.,,,,  .fsihia^i  .imioiQ-t  .no  .aAHii840 

Republican   Congressional   Committee.  ,?9.Vy{i.  J)i>;wi,>J  .ol.v,^.t8^b^ri  ^al.j    541 

Republican  platform,  1908 -.'ifHijU  .o.».  iiKvitiifi  ..'fil^uinU  .4t«lf.    461 

Republican  tariff  platforms,    1860-1908'.  : .  .  .....'.  .:...... 140 

Revenues  under  protection  and  low  tariff,  respectively 15 1 

Revisions  of  tariffs  In  United  States  history 101 

River  and  harbor  improvements 356 

Ryan's  contribution   to  Nebraska  campaign  fund 277 

S 

Savings  baulcs  deposits  of  world 91 

SaTings  banks  in  United  States,  deposits  and  depositors,  1820-1907...  9(> 
Secretary  of  Trea.'jury  on   money  panic  of  1907 60 


SPEECH,; 

OF 

HON.    WILLIAM    HOWARD    TAFT. 

At    Cinciiioiati,    O.,    July    28,    1908,    Accepting    the    Republican 
Nomination  for  tlie  Office  of  President  of  tlie  United  States. 


Senator  Wtirrtcr  and  Gentlemen  of  the  Committee: 

I  am  deeply  sensible  of  the  honor  which  the  Kepublican 
National  Convention  has  conferred  on  me  in  the  nomination 
which  you  formally  tender,  I  accept  it  with  full  appreciation 
of  the  responsibility  it  imposes. 

Republican    Strength    in    Maintenance    of    Roosevelt    PolicieB. 

Gentlemen,  the  strength  of  the  Kepublican  cause  in  the  cam- 
paign at  hand  is  in  the  fact  that  we  represent  the  policies  essen- 
tial to  the  reform  of  known  abuses,  to  the  continuance  of  liberty 
and  true  prosperity,  and  that  we  are  determined,  as  our  plat- 
form unequivocally  declares,  to  maintain  them  and  carry  them 
on.  For  more  than  ten  years  this  country  passed  through  an 
!  epoch  of  material  development  far  beyond  any  that  ever  occurred 
I  in  the  world  before.  In  its  course  certain  evils  crept  in.  Some 
prominent  and  influential  members  of  the  community,  spurred 
by  financial  siiccess  and  in  their  hurry  for  greater  wealth,  be- 
came unmindful  of  the  common  rules  of  business  honesty  and 
fidelity  and  of  the  limitations  imposed  by  law  up6n  their  actions. 
I  This  became  known.  The  revelations  of  the  breaches  of  trust, 
the  disclosures  as  to  rebates  and  discriminations  by  railways, 
the  accumulating  evidence  of  the  violation  of  the  anti-trust  law 
by  a  number  of  corporations,  the  overissue  of  stocks  and  bonds 
on  interstate  railways  for  the  unlawful  enriching  of  directors 
and  for  the  purpose  of  concentrating  control  of  railways  in  one 
management,  all  quickened  the  conscience  of  the  people,  and 
brought  on  a  moral  awakening  among  them  that  boded  well  for 
the  future  of  the  country. 

What    Roosevelt    Has    Done. 

The  man  who  formulated  the  expression  of  the  popular  con- 
science and  who  led  the  movement  for  practical  reform  was 
Theodore  Pvoosevelt.  He  laitl  down  the  doctrine  that  the  rich 
violator  of  the  law  should  be  as  amenable  to  restraint  and  pun- 
ishment as  the  offender  without  wealth  and  without  influence, 
and  he  proceeded  by  recommending  legislation  and  directing  ex- 
ecutive action  to  make  that'principle  good  in  actual  performance. 
He  seciu-ed  the  passage  of  the  so-called  rate  bill,  designed  more 
effectively  to  restrain  excessive  and  fix  reasonabfe  rates,  and  to 

1 


8  SPEECH  OF  HON,  W.  B,  TAFT. 

punish  sscret  rebates  aad  discriminations  which  had  been  gen- 
eral in  the  practice  of  the  railroads,  and  which  had  done  much  to 
enable  un^a'Arful  trusts  to  drive,  oiit  of  business  their  competitors. 
It  secured  much  closer  oupervision  of  railway  transactions  and 
brought  witnin  the  operation  of  the  same  statute  express  com- 
jmnies,  aleejjing  car  companies,  fast  freight  and  refrigerator 
lines,  terminal  railroads  and  pipe  lines,  and  forbade  in  future  the 
(tbmbi nation  of  the  transportation  and  shipping  business  under 
cne  control  in  order  to  avoid  undue  discrimination. 

President  Roosevelt  direeted  suits  to  be  brought  and  prosecu- 
tions to  be  instituted  under  the  anti-trust  law  to  enforce  its  pro- 
visions against  the  most  powerful  of  the  industrial  corporations. 
He  pressed  to  passage  the  pure  food  law  and  the  meat  inspection 
law  in  the  interest  of  the  health  of  the  public,  clean  business 
methods  and  great  ultimate  benefit  to  the  trades  themselves.  He 
recommended  the  passage  of  a  law,  which  the  Republican  con- 
vention has  since  specifically  approved,  restricting  the  future 
issue  of  stocks  and  bonds  by  interstate  railways  to  such  as  may 
be  authorized  by  Federal  authority.  He  demonstrated  to  the 
people  by  what  he  said,  by  what  he  recommended  to  Congress;, 
and  by  what  he  did  the  sincerity  of  his  efforts  to  command  re- 
spect for  the  law,  to  secure  equality  of  all  before  the  law,  and  to 
save  the  country  from  the  dangers  of  a  plutocratic  government* 
toward  which  we  were  fast  tending.  In  this  work  Mr.  Roosevelt 
has  had  the  support  and  sympathy  of  the  Republican  party,  and 
its  chief  hope  of  success  in  the  present  controversy  must  rest  oni. 
the  confidence  which  the  people  of  the  country  have  in  the  sin- 
cerity of  the  party's  declaration  in  its  platform  that  it  intends 
to  continue  his  policies. 

Necessary   to    Devise    Some    Means    of   Permanently    Secnring- 
Prof^ress   Made. 

Mr.  Roosevelt  has  set  high  the  standard  of  business  morality 
and  obedience  to  law.  The  railroad  rate  bill  was  more  useful 
possibly  in  the  immediate  moral  effect  of  its  passage  than  even 
in  the  legal  effect  of  its  very  useful  provisions.  From  its  enact- 
ment dates  the  voluntary  abandonment  of  the  practice  of  rebates; 
and  discriminations  by  the  railroads  and  the  return  by  their- 
managers  to  obedience  to  law  in  the  fixing  of  tariffs.  The  pure 
food  and  meat  inspection  laws  and  the  prosecutions  directed  by 
the  President  under  the  anti-trust  law  have  had  a  similar  moral 
effect  in  the  general  business  commtmity  and  have  made  it  now 
the  common  practice  for  the  great  industrial  corporations  to  con- 
sult the  law  with  a  view  to  keeping  within  its  provisions.  It  has 
also  had  the  effect  of  protecting  and  encouraging  smaller  com- 
petitive companies  so  that  they  have  been  enabled  to  do  a  profit- 
able business. 

But  we  should  be  blind  to  the  ordinary  working  of  human  na- 


SPEECH  OF  HON.  W.  H.  TAFT.  3 

tiire  if  we  did  not  recog-iii/.e  thit  tlie  moral  staudar;ls  set  by 
President  Roosevelt  will  not  continue  to  be  observed  5y  those 
whom  cupidity  and  a  desire  for  financial  power  may  tempt  unless 
the  requisite  machinei-y  is  introduced  into  the  law  which  shall  in 
its  practical  operation  maintain  these  standards  and  secure  the 
country  against  a  departure  from  them. 

Chief    Function    of   Next    Administration    to    Clincli    Wliat    Has 
Been    Done. 

The  chief  function  of  the  next  administration,  in  my  judg- 
ment, is  distinct  from,  and  a  progressive  development  of,  that 
M^hich  has  been  performed  by  President  Roosevelt.  The  c4iief 
function  of  the  next  administration  is  to  complete  and  perfect 
the  machinery  by  which  these  standards  may  be  maintained,  by 
which  the  lawbreakers  may  be  promptly  restrained  and  pun- 
ished, but  which  shall  operate  with  sufficient  accuracy  and  dis- 
patch to  interfere  with  legitimate  business  as  little  as  possible. 
Such  machinery  is  not  now  adequate,  tinder  the  present  rate 
bill,  and  under  all  its  amendments,  the  burden  of  the  Interstate 
Commerce  Commission  in  supervising  and  regulating  the  opera- 
tion of  the  railroads  of  this  country  has  grown  so  heavy  that  it 
is  utterly  impossible  for  that  tribunal  to  hear  and  dispose,  in 
any  reasonable  time,  of  the  many  complaints,  queries  and  issues 
that  are  brought  before  it  for  decision.  It  ought  to  be  relieved 
of  its  jurisdiction  as  an  executive,  directing  body,  and  its  func- 
tions should  be  limited  to  the  quasi-judicial  investigation  of  com- 
plaints by  individuals,  and  by  a  department  of  the  Government, 
charged  with  the  executive  business  of  supervising  the  opera- 
tion of  railways. 

Publicity    and   Supervision. 

There  should  be  a  classification  of  that  very  small  percentas'e 
of  industrial  corporations  having  power  and  opportunity  to  effect 
illegal  restraints  of  trade  and  monopolies,  and  legislation  either 
induciAg  or  compelling  them  to  subject  themselves  to  registry 
and  to  proper  publicity  regulations  and  supervision  of  the  De- 
partment of  Commerce  and  Labor. 

Constructive   Worl*;   of  Next    Administration   to  Organize    Sub- 
ordinate and  Ancillary  Machinery  to  Maintain   Standards 
on  One  Hand,  and  Not  to  Interfere  With   Business 
on    the    Other. 

The  field  covered  by  the  industrial  combinations  and  by  the 
railroads  is  so  very  extensive  that  the  interests  of  the  public  and 
the  interests  of  the  businesses  concerned  cannot  be  properly  sub- 
served except  by  reorganization  of  bureaus  in  the  Department  of 
Commerce  and  Labor,  of  Agrieidture  and  the  Department  of  Jus- 
tice, and  a  change  in  the  jurisdiction  of  the  Interstate  Commerce 
Commission.  It  does  not  assist  matters  to  prescribe  new  duties 
for  the  Interstate  Commerce  Commission,  which  it  is  practically 


4  ^  SPEECH  OF  now.  W.  H.  TAFT. 

impossible  for  it  to  perform,  or  to  denounce  new  offenses  with 
drastic  pimishnient,  unless  subordinate  and  ancillary  leg-islation 
shall  be  passed  making-  possible  the  quick  enforcement  in  the 
great  variety  of  cases  which  are  constantly  arising  of  the  prin- 
ciples laid  down  by  Mr.  Koosevelt,  and  with  respect  to  which 
only  typical  instances  of  prosecution  with  the  present  machinery 
ar^  possible.  Such  legislation  should  and  would  greatly  promote 
legitimate  business  by  enabliug  those  anxious  to  obey  the  Fed- 
eral s^tvites  to  know  just  what  are  the  bounds  of  their  lawful 
actioij,  Tli!^,  practical  constructive  and  difficult  work,  therefore, 
of  those  who  follow  Mr.  Koosevelt  is  to  devise  the  ways  and 
means  by  which  the  high  level  of  business  integrity  and  obedi- 
ence to  law  which  he  has  established  may  be  maintained  and  de- 
partures from  it  restrained  without  undue  interference  with  le- 
gitimate business. 

Rallf>'ay  Traffic  Agreements  Approved  by  Commission  Sbonld 
be    Valid. 

It  is  agreeable  to  note  in  this  regard  that  the  Republican 
platform  expressly,  and  the  Democratic  platform  impliedlj',  ap- 
prove an  amendment  to  the  interstate  commerce  law  by  which 
interstate  railroads  may  make  useful  traffic  agreements  if  ap- 
proved by  the  Commission.  This  has  been  strongly  recommended 
by  President  Koosevelt,  and  will  make  for  the  benefit  of  the 
business. 

Pbysieal    Valnation    of    RailTvays. 

Some  of  the  suggestions  of  the  Democratic  platform  relate 
really  to  this  subordinate  and  ancillary  machinery  to  which  I 
have  referred.  Take,  for  instance,  the  so-called  "physical  valua- 
tion of  ruil ways."  It  is  clear  that  the  sum  of  all  rates  or  receipts 
of  a  railway,  less  proper  expenses,  should  be  limited  to  a  fair 
profit  upon  the  reasonable  value  of  its  property,  and  that  if  the 
sum  exceeds  rhis  measuie  it  9ught  to  be  reduced.  The  difficulty 
in  eiifoi-cing  the  principle  is  in  ascertaining  what  is  the  reason - 
al>le  vjil'if  of  the  company  s  property,  and  in  fixing  what  is  a  fair 
profit.  It  is  clear  that  the  physical  value  of  a  railroad  and  its 
plant  is  an  element  to  be  given  weight  in  determining  its  full 
value;  but  as  Pi-esident  Koosevelt  in  his  Indianapolis  speech  and 
the  Supreme  Court  have  in  efl'ect  pointed  out,  the  value  of  the 
railroad  as  a  going  concern,  including  its  good  will,  due  to  effi- 
ciency of  service  and  many  other  circumstances,  may  be  much 
greater  than  the  value  of  its  tangible  property,  and  it  is  the 
former  that  measures  the  investment  on  which  a  fair  profit  must 
be  allowed.  Then,  too,  the  question  what  is  a  fair  profit  is  one 
involving  not  only  the  rate  of  interest  usually  earned  on  nor- 
mally safe  investments,  but  also  a  sufficient  allowance  to  make 
up  for  the  risk  of  loss  both  of  capital  and  interest  in  the  orig- 
inal outlay.  These  considerations  will  have  justified  the  company 
in  imposing  charges  high  enough  to  secure  a  fair  income  on  the 


SPEECH  OF  HON.  W.  H.  TAFT.  rg 

enterprise  as  a  whole.  'JPhe  securities  at  market  prices  will  have 
passed  into  the  hands  of  subsequent  purchasers  from  the  original 
investoi\s.  Such  circumstances  should  properly  affect  che  decision 
of  the  tribunal  engaged  in  determining  whether  the  totality  of 
rates  chai'ged  is  reasonable  or  excessive.  To  ignore  them  might 
so  seriously  and  unjustly  impair  settled  values  as  to  destroy  all 
hope  of  restoring  confidence,  and  forever  to  end  the  inducement 
for  investment  in  new  railroad  construction  which,  in  returning 
prosperous  tiniest  is  sure  to  be  essential  to  our  material  progress. 
As  Mr.  Roosevelt  has  said  in  speaking  of  this  very  subject: 

"The  effect  of  such  valuation  and  supervision  of  securities 
cannot  be  retroactive.  Existing  securities  should  be  tested  by 
laws  in  existence  at  the  time  of  their  issue.  This  nation 
would  no  more  injure  securities  which  have  become  an  important 
part  of  the  national  wealth  than  it  would  consider  a  proposition 
to  repudiate  the  national  debt." 

The  question  of  rates  and  the  treatment  of  railways  is  one 

0 

that  has  two  sides.  The  shippers  are  certainly  entitled  to  reason- 
able rates;  but  less  is  an  injustice  to  the  carriers.  Good  business 
for  the  railroads  is  essential  to  general  prosperit3\  Injustice  to 
them  is  aot  alone  injiistice  to  stockholders  and  capitalists,  whose 
further  investments  may  be  necessary  for  the  good  of  the  whole 
country,  but  it  directly  affects  and  reduces  the  wages  of  railway 
employees,  and  indeed  may  deprive  them  of  their  places  en- 
tirely. 

From  what  has  been  siiid  the  proper  conclusion  would  seem 
to  be  that  in  attempting  to  determine  whether  the  entire  schedule 
of  rates  of  a  raihvay  is  excessive  the  physical  valuation  of  the 
road  is  a  relevant  and  important,  but  not  necessarily  a  control- 
ling factor. 

Physical  Valuation  Properly  Used  Will  Not  Generally  Impair 
Securities. 

I  am  confident  that  the  fixing  of  rates  on  the  principles  sug- 
gested above  would  not  materially  impair  the  present  market 
values  of  railroad  securities  in  most  cases,  for  I  believe  that  the 
normal  increase  in  the  value  of  railroad  properties,  especially  in 
their  terminals,  will  more  than  make  up  for  the  possible  over- 
capitalization in  earlier  years.  In  some  cases,  doubtless,  it  will 
be  found  that  overcapitalization  is  made  an  excuse  for  excessive 
rates,  and  then  they  should  be  reduced.  But  the  consensus  of 
opinion  seems  to  be  that  the  railroad  rates  generally  in  this 
country  are  reasonably  low.  This  is  why,  doubtless,  the  com- 
plaints filed  with  the  Interstate  Commerce  Commission  against 
excessive  rates  are  so  few  as  compared  with  those  against  un- 
lawfiU  discrimination  in  rates  between  shippers  and  between 
places.  Of  cor.rae,  in  the  determination  of  the  question  whether 
discrimination  is  unlawful  or  not  the  physical  valuation  of  the 
whole  road  is  of  little  weight. 


•  SPEECH  OF  HON.  W.  H.  TAFT. 

Conclnalon    Tbut    There    Should    btt    I'hyitieiil    Viiluutlon. 

I  have  discussed  this,  with  some  degree  of  detail,  merely  to 
point  out  that  the  valiiution  by  tlie  interstate  Coiainerce  Commis- 
sion of  the  tang-ible  property  of  a  railroad  is  proper  and  maj' 
from  time  to  time  be  necessary  in  settling  certain  issues  whien 
may  come  before  it,  aud  that  no  evil  or  injustice  can  come  fi'oin 
valuation  in  such  cases,  if  it  be  understood  that  the  result  is  to 
be  used  for  a  just  purpose  and  the  right  to  a  fair  profit  under 
all  the  circumstances  of  the  investment  is  recognized.  The  Inter- 
state Commerce  Commission  has  now  the  power  to  ascertain  the 
value  of  the  physical  railroad  property  if  necessary  in  deter- 
mining the  reasonableness  of  rates.  If  the  machinery  for  doing 
so  is  not  adequate,  as  is  probable,  it  should  be  made  so. 

The  Republican  platform  recommends  legislation  forl)idding 
the  issue  in  the  future  of  interstate  railway  stacks  and  bonds 
without  Federal  authority.  It  may  occur  in  such  cases  that  the 
full  value  of  tke  railway,  and,  as  an  element  thereof,  the  value 
of  the  tangible  property  of  the  railway  would  l)e  a  relevant  and 
important  factor  in  assisting  the  proper  authority  to  determine 
whether  the  stocks  and  bonds  to  be  issued  were  to  have  proper 
security  behind  them,  and  in  such  case,  therefore,  there  should 
be  the  right  and  machinery  to  make  a  valuation  of  the  physical 
property. 

Natiomal    Control   of  lMter«ta.te    Commerce    Corporations. 

Another  suggestion  in  respect  to  subordinate  and  ancillary 
machinery  mccessary  to  carry  out  Republican  policies  is  that  of 
the  incorporatioH  under  national  law  or  the  licensing  by  national 
license  or  enforced  registry  of  companies  engaged  in  interstate 
trade.  The  fact  is  that  nearly  all  corporations  doing  a  commer- 
cial business  are  engaged  in  interstate  commerce,  and  if  they  all 
were  required  to  take  out  a  Federal  license  or  a  Federal  charter 
the  burden  up»m  the  interstate  business  of  the  country  would  be- 
come intolerable. 

Shonld    be    Limited    to     Small    PercentaKe    by    Classification. 

It  is  necessary,  therefore,  to  devise  some  means  for  classi- 
fying and  insuring  Federal  supervision  of  such  corporations 
as  have  the  power  and  temptation  to  effect  restraints  of  inter- 
state trade  and  monopolies.  Such  corporations  constitute  a 
very  small  percentage  of  all  engaged  in  interstate  business. 

Mr.    Roosevelt's    Proposed    Classification. 

With  such  classification  in  view,  Mr.  Roosevelt  recommended 
an  amendment  to  the  anti-trust  law,  known  as  the  Hepburn 
bill,  which  provided  for  voluntary  classification  and  created  a 
strong  motive  therefor  by  granting  immunity  from  prosecution 
for  roasonabl*  restraints  of  interstate  trade  to  all  corporations 
which  would  register  and  submit  themselves  to  the  publicity 
regulations  of  the  Department  of  Commerce  and  Labor. 


SPEECH  OF  HON.  W.  H.  TAFT.  t 

The    Democratic    Propose*    Classiflcation. 

The  Democratic  platform  suggests  a  requirement  that  cor- 
porations in  interstate  trade  having  control  of  25  per  cent  of 
the  products  in  which  they  deal  shall  cal:e  out  a  Federal 
license.  This  classification  would  probably  include  a  jfreat  many 
small  corporations  engag-ed  in  the  manufacture  of  special  arti- 
cles or  commodities  whose  total  value  is  so  inconisiderable  that 
tney  are  not  really  within  the  purview  or  real  evil  of  the  anti- 
trust law. 

It  is  not  now  necessary,  howerer,  to  discuss  the  relativa  oaerit 
of  such  propositions,  but  it  is  enoug-h  merely  to  affirm  the  ne- 
cessity for  some  method  by  which  greater  executive  super- 
vision can  be  given  to  the  Federal  Government  over  those  busi- 
nesses in  which  then-e  is  a  temptation  to  violations  of  the  anti-  ^ 
trust  law. 

Construction      of      Anti-Trust      La^r— Possible      Necessity      for 
Annendnient. 

The  possible  operation  of  the  anti-trust  law  under  existing 
rulings  of  the  Supreme  Court  has  given  rise  to  suggestions  for 
its  necessary  amendment  to  prevent  its  applicatlou  to  cases 
which  it  is  believed  were  never  in  the  conteHiplation  of  the 
f  ramers  of  the  statute.  Take  two  instances :  A  merchant  or 
manufacturer  engaged  in  a  legitimate  business  that  covered 
certain  states  wishes  to  sell  his  business  and  his  g^ood-will,  and 
so  in  the  terms  ©f  the  sale  obligates  himself  to  rhe  purchaser 
not  to  go  into  the  same  busineess  in  I  hose  states.  Such  a 
restraint  of  trade  has  always  been  enforced  at  common  law. 
Again,  the  employees  of  an  inter^tat'.?  railway  combine  and  enter 
upon  a  peaceable  and  lawful  strike  to  secure  better  wages.  At 
common  law  this  was  not  a  restialut  of  trade  or  commerce  or 
a  violation  of  the  rights  of  the  company  or  of  the  public.  Neither 
case  ought  to  be  made  a  violation  of  the  anti-trust  law.  Mj 
own  impression  is  that  the  Supreme  Court  would  hold  that 
neither  of  these  instances  are  within  its  inhibition,  but,  if  they 
are  to  be  so  regarded,  general  legislation  amending  the  law  is 
necessary. 

Democratic    Plank    to    Limit    Corporations     to     O'fvnersliip    of 
Fifty   Per    Cent    of    Plant    and    Prodnct    Faulty. 

The  suggestion  of  the  Democratic  platform  that  trusts  be 
ended  by  forbidding  corporations  to  hold  more  than  50  per 
cent  of  the  plant  in  any  line  of  manufacture  is  made  without 
regard  to  the  possibility  of  enforcement  or  the  real  evil  in 
trusts.  A  corporation  controlling  45  or  50  per  cent  of  the  prod- 
ucts may  by  well-known  methods  frequently  effect  monopoly 
I  and  stamp  out  competition  in  a  part  of  the  country  as  com- 
I  pletely  as  if  it  controlled  60  or  70  per  cent  thereof.  ' 


t  SPEECH  OF  HOW   W.  n.  TAFT. 

ConipnlHory    Snle   of   Proiliiotci    nt    Flx«*d    l»ri«e    Iniprncticable. 

The  proposal  to  compel  every  corporation  to  sell  Its  commodi- 
ties at  the  same  price  the  country  over,  allowing"  for  transporta- 
tion, is  utterly  impracticable.  If  it  can  be  shown  that  in  order  to 
drive  out  competition  a  corporation  owning  a  large  part  of  the 
plant  producing  an  article  i«  selling  in  one  part  of  the  country 
where  it  has  competitors,  at  a  low  and  unprofitable  price,  and  in 
another  part  of  the  country,  where  it  has  none,  at  an  exorbitant 
price,  this  is  evidence  that  it  is  attempting  an  unlawful  mo- 
nopoly, and  justifies  conviction  under  the  anti-trust  law ;  but  the 
proposal  to  supervise  the  business  of  corporations  in  such  a 
way  as  to  fix  the  price  of  commodities  and  compel  the  sale  at 
such  price  is  as  absurd  and  socialistic  a  plank  as  was  ever 
inserted  in  a  Deniocratic   political  platform. 

Difference  BetTt-een  Republican  and   Democratic  Policies  and 
Platforms;    Fonner   ProgreHMive    and    Regnlatlve;    Latter 
"  Radical    and    Destrnctli^e. 

The  chief  difference  between  the  Republican  and  the  Demo- 
cratic platforms  is  the  difference  which  has  heretofore  been  seen 
between  the  policies  of  Mr.  Roosevelt  and  those  which  have  been 
advocated  by  the  Democratic  candidate,  Mr.  Bryan.  Mr.  Roose- 
velt's policies  have  been  progressive  and  regulative ;  Mr.  Bryan's 
destructive.  Mr.  Roosevelt  has  favored  regulatiom  of  the  busi- 
ness in  which  evils  have  grown  up  so  as  to  stamp  out  the 
evils  and  i)ermit  the  business  to  continue.  The  tendency  of 
Mr.  Bryan's  proposals  hare  generally  been  destructive  of  the  busi- 
ness with  respect  to  which  he  is  demanding  reform.  Mr.  Roose- 
velt would  compel  the  trusts  to  conduct  their  business  in  a  law- 
ful majiner  and  secure  the  benefits  of  their  operation  and  the 
maintenance  of  the  prosperity  of  the  country,  of  which  they 
are  an  important  part ;  while  Mr.  Bryan  would  extirpate  and 
destroy  the  entire  business  in  order  to  stamp  out  the  evils  which 
they  have  practiced. 

Advantase  of   Combination    of   Capital. 

The  combination  of  capital  in  large  plants  to  manufacture 
goods  with  the  greatest  economy  is  just  as  necessary  as  the 
assembling  of  the  parts  of  a  machine  to  the  economical  and 
more  rapid  manufacture  of  what  in  old  times  was  made  by 
hand.  The  government  should  not  interfere  with  one  any  more 
than  the  other,  when  such  aggregations  of  capital  are  legiti- 
mate and  are  properly  controlled,  for  they  are  then  the  natural 
results  of  modern  enterprise  and  are  beneficial  to  the  public. 
In  the  proper  operation  of  competition  the  public  will  soon 
share    with    the    manufacturer    the    advantage    in    economy    of 

nr>f>rat,inTJ     nrirl     Inwp-r    r>T*ir»oo 


SPEECH  OF  HON.  W.  H.  TAFT.  9 

What    Is    an    Unlawful    Trnst? 

When,  however,  such  combinations  are  not  based  on  any 
economic  principle,  but  are  made  merely  for  the  purpose  of  con- 
trolling the  market,  to  maintain  or  raise  prices,  restrict  out- 
put and  drive  out  competitors,  the  public  derives  no  benefit 
and  we  have  a  monopoly.  Thece  must  he  some  use  by  the  com- 
pany of  the  comparatively  great  size  of  its  capital  and  plant  and 
extent  of  its  output,  either  to  coerce  persons  to  buy  of  it  rather 
than  of  some  competitor  or  to  coerce  those  who  would  com- 
pete with  it  to  give  up  their  business.  There  must  usually, 
in  other  words,  be  shown  an  element  of  duress  in  the  con- 
duct of  its  business  toward  the  customers  in  the  trade  and 
its  competitors  before  mere  aggregation  of  capital  or  plant  be- 
comes an  unlawful  monopoly.  It  is  perfectly  conceivable  that 
in  the  interest  of  economy  of  production  a  great  number  of 
plants  may  be  legitimately  assembled  under  the  ownership  of 
one  corporation.  It  is  important,  therefore,  that  such  large 
aggregations  of  capital  and  combination  should  be  controlled, 
se  that  the  public  may  have  the  advantage  of  reasonable  prices 
and  that  the  avenues  of  enterprise  may  be  kept  open  to  the 
individual  and  the  smaller  corporation  wishing  to  engage  in 
business. 

Mere    AK^re^atlon    of   Capital    Not    a   Violation    of    Anti-Trust 

L>aw. 

In  a  country  like  this,  where,  in  good  times,  there  is  an 
enormous  floating  capital  awaiting  investment,  the  period  be- 
fore which  eifective  competition  by  construction  of  new  plants 
can  be  introduced  into  any  business  is  comparatively  short, 
rarely  exceeding  a  year,  and  is  usually  even  less  than  that.  Ex- 
istence of  actual  plant  is  not,  therefore,  necessary  to  potential 
competition.  Many  enterprises  have  been  organized  on  the 
theory  that  mere  aggregation  of  all,  or  nearly  all,  existing 
plants  in  a  line  of  manufacture,  without  regard  to  economy 
of  production,  destroys  competition.  They  have,  most  of  them, 
gone  into  bankruptcy.  Competition  in  a  profitable  business 
A^ill  not  be  affected  by  the  mere  aggregation  of  many  existing 
plants  under  one  company,  unless  the  company  thereby  effects 
great  economy,  the  benefit  of  which  it  shares  with  the  public, 
or  takes  some  illegal  method  to  avoid  competition  and  to  per- 
petuate a  hold  on  the  business. 

Proper   Treatment   of   Trnsts. 

Unlawful  trusts  should  be  restrained  with  all  the  efficiency 
of  injunctive  process,  and  the  persons  engaged  in  maintaining 
them  should  be  punished  with  all  the  severity  of  criminal  prose- 
cution, in  order  that  the  methods  pursued  in  the  operation 
of  their  business  shall  be  brought  within  the  law.  To  destroy 
them  and  to  eliminate  the  wealth  they  represent  from  the  pro- 


10  srEKcn  OF  now  w.  h.  taft. 

diK'iiifr  onpiial  of  thr  coiiiilry  woiikl  entail  enormous  loss  and 
AvoiiUI  throw  out  of  rniployinent  myriads  of  workingmen  and 
working-women.  SiK-h  a  result  is  wholly  unnecessary  to  the  ac- 
complishment of  the  needed  reform,  and  will  inflict  upon  the 
inuoct'iit   far  jjx-euter  punishment  than  upon  the  guilty. 

Uentructive    Policy    of    Democratic    Platf«rm. 

The  Demmratic  platform  does  not  propose  to  destroy  the 
plants  of  the  trusts  physidally,  -but  it  proposes  to  do  the  same 
thing-  in  a  different  way.  The  business  of  this  couatry  is  largely 
dependent  on  a  protective  system  of  tariffs.  The  business  done 
by  many  of  the  so-called  "trusts,"  is  protected  with  the  other 
businesses  of  the  country.  The  Democratic  platform  proposes 
to  take  off  the  tariff  en  all  articles  c©ming  into  competition 
with  those  produced  by  the  so-called  "trusts,"  and  to  put  them 
on  the  free  list.  If  such  a  course  would  be  utterly  destructive 
of  their  business,  as  is  intended,  it  would  not  only  destroy 
the  trusts,  but  all  of  their  smaller  competitors.  The  ruthless 
and  impracticable  chai-acter  of  the  proposition  grows  plainer 
as  its  effects  upon  the  whole  commimity  are  realized. 

Bffect.  of   Denaocratic   Plans    on    Buaiaess. 

To  take  the  course  suggested  by  the  Democratic  platform 
in  these  matters  is  to  involve  the  entire  community,  innocent 
as  it  is,  in  the  punishment  of  the  guilty,  while  our  policy  is 
to  stamp  out  the  specific  evil.  This  difference  between  the  poli- 
cies of  the  two  great  parties  is  of  especial  importaace  in  view 
of  the  present  condition  of  business.  After  ten  years  of  the 
most  remarkable  material  development  and  prosperity,  there 
came  a  financial  stringency,  a  panic,  and  an  industrial  depression. 
This  was  brought  about  not  only  by  the  enormous  expansion 
of  business  plants  and  business  investments  which  could  not 
be  readily  converted,  bwt  als«  by  the  waste  of  capital,  in  ex- 
travagance of  living,  iM  wars  and  other  catastrophes.  Tke  free 
cenvertible  capital  was  exhausted.  In  addition  to  this,  the  con- 
fidence of  the  lending  public  in  Europe  amd  in  this  country 
bad  been  affected  by  the  revelations  of  irregularity,  breaches 
of  trust,  overissues  of  stock,  violations  of  law,  and  lack  of  rigid 
State  or  National  supervision  in  the  management  of  our  largest 
corporations.  Investors 4  withheld  what  loanable  capital  re- 
mained available.  It  became  impossible  for  the  soundest  rail- 
roads and  other  enterprises  to  borrow  money  enough  for  new 
construction  or  reconstruction. 

M'^ill  Delay  Restoration  of  Prosperity. 

Gradually  business  is  acquiring  a  healthier  tone.  Gradually 
all  wealth  which  was  hoarded  is  coming  out  to  be  used.  Con- 
fidence in  security  of  business  investments  is  a  plant  of  slow 
growth  and  is  absolutely  necessary  in  order  that  our  factories 


SPEECH  OF  HON.  W.  H.  TAFT.  11 

may  all  open  ag-ain,  in  order  that  our  unemployed  may  become 
employed,  and  in  order  that  we  may  ag-ain  kave  the  prosperity 
which  blessed  us  for  ten  years.  The  identity  of  the  interests 
of  the  capitalist,  the  farmer,  the  business  man,  and  the  wage- 
earner  in  the  security  and  profit  of  investments  cannot  be  too 
greatly  emphasized.  I  submit  to  those  most  interested,  to  wage- 
earners,  to  farmers,  and  to  business  men,  whether  the  intro- 
duction into  power  of  the  Democratic  party,  with  Mr.  Bryan 
at  its  head,  and  with  the  business  destruction  that  it  openly 
advocates  as  a  remedy  for  present  evils,  will  bring  about  the 
needed  confidence  for  the  restoration  of  prosperity. 

Republican    Doctrine    of    Protection. 

The  Eepublican  doctrine  of  protection,  as  definitely  announced 
by  the  Republican  convention  of  this  year  and  by  previous  con- 
ventions, is  that  a  tariff  shall  be  imposed  on  all  imported 
products,  whether  of-  the  factory,  farm,  or  mine,  sufficiently 
great  to  equal  the  difference  betweea  the  cost  of  production 
abroad  and  at  home,  and  that  this  difference  should,  of  course, 
include  the  dlffer^ice  between  the  higher  wages  paid  in  this 
country  and  the  wages  paid  abroad  and  embrace  a  reasonable 
profit  to  the  American  producer.  A  system  of  protection  thus 
adopted  and  put  in  force  has  led  to  the  establishment  of  a  rate 
of  wages  here  that  has  greatly  enhanced  the  standard  of  living 
of  the  laboring  man.  It  is  the  policy  of  the  Republican  party 
permanently  to  continue  that  standard  of  living.  In  1897  the 
Dingley  tariff  bill  was  passed,  under  which  we  hare  had,  as 
already  said,  a  period  of  enormous  prosperity. 

Neceaaity   for   Revision   of   TariC. 

The  consequent  material  development  has  greatly  changed 
the  conditions  under  which  many  articles  described  by  the  sched- 
iiles  of  the  tariff  are  now  produced.  The  tariff  in  a  number 
of  the  schedules  exceeds  the  difference  between  the  cost  of  pro- 
duction of  such  articls  abroad  and  at  home,  including  a  reason- 
able profit  to  the  American  producer.  The  excess  over  that 
difference  serves  no  useful  purpose,  but  offers  a  temptation 
to  those  who  wou^d  monopolize  the  production  and  the  sale  of 
such  articles  in  this  country  to  profit  by  the  excessive  rate. 
On  the  other  hand,  there  are  some  few  other  schedules  in  which 
the  tariff  is  not  sufficiently  high  to  give  the  measure  of  pro- 
tection which  they  should  receive  upon  Republican  principles, 
and  as  to  those  the  tariff  should  be  raised.  A  revision  of  the 
tariff  undertaken  upon  this  principle,  which  is  at  the  basis 
of  our  present  business  system,  begun  promptly  upon  the  in- 
coming of  the  new  administration  and  considered  at  a  special 
session  with  the  preliminary  investigations  already  begun  by 
the  appropriate  committees  of  the  House  and  Senate,  will  make 
the  disturbance  of  business  incident  to  such  a  change  as  little 
as  possible. 


sI'EECll    or   //o\.    \V.   II.   TAFT. 
Dritiiicrntio    TnrltT    I'liin    niid    Hh    Hud    KfYeet    on    Bnslneia 

COIKlidOflK. 

Thf  Doino.i  :it  i  •  piitv  in  its  platform  has  not  had  the  cour- 
age of  its  previous  com  ictions  on  the  subject  of  the  tariff,  de- 
nounced by  it  in  1904  as  a  system  pf  the  robbery  of  the  many 
for  tlie  benefit  of  the  few,  but  it  does  declare  its  intention  to 
( hangie  the  tariff  with  a  view  to  reaching  a  revenue  basis  and 
thus  to  depart  from  the  protective  system.  The  introduction  into 
power  of  a  party  with  this  avowed  purpose  cannot  but  halt 
the  gradual  recovery  from  our  recent  financial  depression  and 
produce  busiiiess  disaster  compared  witli  which  bur  recent  panic 
and  depression  will  seem  small  indeed. 

The    Farmer   and    tlie   Republican    Party. 

As  the  Kepublican  platform  says,  the  welfare  of  the  farmer 
is  vital  to  that  of  the  whole  country.  One  of  the  strongest  hopes 
of  returning  prosperity  is  baseti^pn^thelwsines^  which  his  crops 
are  to  afford.  He  is  vitally  interested  in  the  restraining  of 
excessive  and  unduly  discriminating  railroad  rates,  in  the  en- 
forcement of  the  pure  food  laws,  in  the  promotion  of  scientific 
agriculture,  and  in  increasing  the  comforts  of  country  life, 
as  by  the  extension  of  free  rural  delivery.  The  policies  of  the 
present  administration,  which  have  most  industriously  promoted 
all  these  objects,  cannot  fail  to  commend  themselves  to  his 
approval ;  and  it  it  difficult  to  see  how  with  hi^  intelligent 
appreciation  of  the  threat  to  business  prosperity  involved  in 
Democratic  success  at  the  polls  he  can  do  otherwise  than  give 
his  full  and  hearty  support  to  the  continuation  of  the  policies 
of  the  present  administration  under  Republican  auspices. 

Labor   and    A^liat    the    Republican    Party   Has    Done   for   it. 

We  come  now  to  the  question  of  labor.  One  important  phase 
of  the  policies  of  the  present  administration  has  been  an  anxiety 
to  secur?'  for  the  weage-earner  an  equality  of  opportunity  and 
such  positive  statutory  protection  as  shall  place  him  on  a  level 
in  dealing  with  his  employer.  The  Republican  party  has  passed 
an  employers'  liability  act  for  interstate  railroads,  and  has 
established  an  eight-hour  law  for  government  employees  and 
on  government  construction.  The  essence  of  the  reform  effected 
by  the  former  is  the  abolition  of  the  fellow-servant  rule  and 
the  introduction  of  the  comparative  negligence  theory  by  which 
an  employee  injured  in  the  service  b!^  his  employer  does  not 
lose  all  his  right  to  recover  because  of  slight  negligence  on 
his  part.  Then  there  is  the  act  providing  for  compensation 
for  injury  to  government  employees,  together  with  the  various 
statutes  requiring  safety  appliances  upon  interstate  commerce 
railroads  for  the  protection  of  their  employees,  and  limiting 
the  hours  of  their  employment.     These  are  all  instances  of  the 


SPEECH  OF  HON.  W.  H.  TAFT.  ^3 

desire  of  the  Republican  party  to  do  justice  to  the  wage-earner. 
Doubtless  a  more  comprehensive  measure  for  contpensation  of 
g-overnnient  employees  will  be  adopted  in  the  future ;  the  prin- 
ciple in  such  cases  has  been  recognized,  and  in  the  necessarily 
somewhat  slow  course  of  legislation  will  be  more  fully  embodied 
in  definite  statutes. 

Interests    of  Employer  and   Employee   Only   Differ   in   Respeet 
to  Terms  of  Employment. 

The  interests  of  the  employer  and  the  employee  never  differ" 
except  when  it  comes  to  a  division  of  the  joint  profit  of 
labor  and  capital  into  dividends  and  wages.  This  must  be  a 
constant  source  of  periodical  discussion  between  the  emploj^er 
and  the  employee,  as  indeed  are  the  other  terms  of  the  employ- 
ment. 

Advantage   of  L'nlon. 

To  give  to  employees  their  proper  position  in  such  a  con- 
troversy, to  enable  them  to  maintain  themselves  against  em- 
ployers having  great  capital,  they  may  well  unite,  because  in 
union  there  is  strength,  and  without  it  each  individual  laborer 
and  employee  would  be  helpless.  The  promotion  of  industrial 
peace  through  the  instrumentality  of  the  trade  agreement  is 
often  one  of  the  results  of  such  union  when  intelligently  con- 
ducted. 

Other  Labor. 

There  is  a  large  body  of  laborers,  however,  skilled  and  un- 
skilled, who  are  not  organized  into  unions.  Their  rights  before 
the  law  are  exactly  the  same  as  those  of  the  union  men,  and  are 
to   be   protected  with  the   same   care   and    watchfulness. 

Ri^lits   of  Labor. 

In  order  to  induce  their  employer  into  a  compliance  with 
their  request  for  changed  terms  of  emploipnent,  workmen  have 
the  right  to  strike  in  a  body.  They  have  a  right  to  use  such 
persuasion  as  they  may,  provided  it  does  not  reach  the  point 
of  duress,  to  lead  their  reluctant  co-laborers  to  join  them  in 
their  union  against  their  employer,  and  they  have  a  right,  if 
they  choose,  to  accumulate  funds  to  support  those  engaged  in 
a  strike,  to  delegate  to  officers  the  power  to  direct  the  action 
of  the  union,  and  to  withdraw  themselves  and  their  associates 
from  dealing  with  or  giving  custom  to  those  with  whom  they 
are  in  controversy. 

Wliat    Labor    Cannot    La^vfully    Do. 

What  they  have  not  the  right  to  do  is  to  injure  their  em- 
ployers' property,  to  injure  their  employers'  business  by  use 
of  threats  or  methods  of  physical  duress  against  those  who 
would  work  for  him,  or  deal  with  him.  or  bj"^  carrying  on  what 
is  sometimes  known  as  a  secondary  boycott  against  his  cus- 
tomers or  those    with  whom  he   deals   in  business.      All   those 


14  SPEECH  OF  HON.  W.  H.  TAFT. 

who  sympathize  with  them  may  unite  to  aid  thera  in  their 
strtllg^le,  bnt  they  may  not  throuffh  the  instrumentality  of  a 
threatened  or  actual  boycott  compel  third  persons  against  their 
will  and  having  no  interest  in  their  controversy  to  come  to 
their  assistance.  These  principles  have  for  a  great  many  years 
been  settled  by  the  courts  of  this  country. 

Threatened  unlawful  injuries  to  business^  like  those  described 
above,  can  only  be  adequately  remedied  by  an  injunction  to  pre- 
vent them.  The  jurisdiction  of  a  court  of  equity  to  enjoin  in 
such  cases  arises  from  the  character  of  the  injury  and  the 
method  of  inflicting  it  and  the  fact  that  suit  for  damages 
offers  no  adequate  remedy.  The  unlawful  injury  is  not  usually 
done  by  one  single  act,  which  might  be  adequately  compen- 
sated for  in  damages  by  a  suit  at  law,  but  it  is  the  result  of 
a  constantly  recurring  eeries  of  acts,  each  of  which  in  itself 
might  not  constitute  a  substantial  injury  or  make  a  suit  at 
law  worth  while,  and  all  of  which  would  require  a  multiplicity 
of  suits  at  law.  Injuries  of  this  class  have  since  the  foundation 
of  courts  of  equity  been  prevented  by  injunction. 

It  has  been  claimed  that  injunctions  do  not  issue  to  protect 
anything  but  property  rights,  and  that  business  is  not  a  prop- 
erty right;  but  such  a  proposition  is  wholly  inconsistent  with 
all  the  decisions  of  the  courts.  The  Supreme  Court  of  the 
United  States  says  that  the  injunction  is  a  remedy  to  protect 
property  or  rights  of  a  pecuniary  nature,  and  we  may  well 
submit  to  the  considerate  judgment  of  all  laymen  whether 
the  right  of  a  man  in  his  business  is  not  as  distinctly  a  right 
of  a  pecuniary  nature  as  the  right  to  his  horse  or  his  house 
or  the  stock  of  goods  on  his  shelf ;  and  the  instances  in  which 
injunctions  to  protect  business  have  been  upheld  by  all  courts 
are  so  many  that  it  is  futile ,  further  to  discuss  the  proposition. 

It  is  difficult  to  tell  the  meaning  of  the  Democratic  plat- 
form upon  this  subject.     It  says : 

"Questions  of  judicial  practice  have  arisen  especially  in  con- 
nection with  industrial  disputes.  We  deem  that  the  parties 
to  all  judicial  proceedings  should  be  treated  with  rigid  impar- 
tiality, and  that  injunctions  should  not  be  issued  in  any  cases 
in  which  injunctions  would  not  issue  if  no  industrial  dispute 
were  involved." 

This  declaration  is  disingenuous.  It  seems  to  have  been  loosely 
drawn  with  the  especial  purpose  of  rendering  it  susceptible 
to  one  interpretation  by  one  set  of  men  and  to  a  diametrically 
opposite  interpretation  by  another.  It  does  not  aver  that  in- 
junctions should  not  issue  in  industrial  disputes,  but  only  that 
they  should  not  issue  merely  because  they  are  industrial  dis- 
putes, and  yet  those  responsible  for  the  declaration  must  have 
known  that  no  one  has  ever  maintained  that  the  fact  that  a 
dispute  was  industrial  gave  any  basis  for  issuing  an  injunction 
in  reference  thereto. 


SPEECH  OF  HON.  W.  H.  TAFT.  15 

The  declaration  seems  to  be  drawn  in  its  present  vag-ue 
and  ambig-uous  shape  in  ordei  to  persuade  some  people  that  it 
is  a  declaration  against  the  issuing-  of  injunctions  in  any  indus- 
trial dispute,  while  at  the  same  time  it  may  be  possible  to  explain 
to  the  average  plain  citizen  who  objects  to  class  distinctions  that 
no  such  intention  exists  at  all.  Our  position  is  clear  and  un- 
equivowal.  We  are  anxious  to  prevent  even  an  appearance  of 
any  injustice  to  labor  in  the  issuance  of  injunctions,  not  in  a 
spirit  of  favoritism  to  one  set  of  our  fellow  citizens,  but  of 
justice  to  all  of  our  fellow  citizens.  The  reason  for  exercising 
or  refusing  to  exercise  the  power  of  injunction  must  be  found 
in  the  character  of  the  unlawful  injury  and  not  in  the  char- 
acter or  class  of  the  persons  who  inflict  this  injury. 

The  man  who  has  a  business  which  is  being  unlawfully  in- 
jured is  entitled  to  the  remedies  which  the  law  has  always  given 
him,  no  matter  who  has  inflicted  the  injuries.  Otherwise  we 
shall  have  class  legislation  unjust  in  principle  and  likely  to  sap 
tke  foundations  of  a  free  government. 

Notice    and    Hearing    Before    Injunction. 

I  come  now  to  the  question  of  notice  before  issuing  an  in- 
junction. It  is  a  fundamental  rule  of  general  jurisprudence  that 
no  man  shall  be  affected  by  a  judicial  proceeding  without  notice 
and  hearing.  This  rule,  however,  has  some  times  had  an  ex- 
ception in  the  issuing  of  temporary  restraining  orders  co«i- 
manding  a  defendant  in  effect  to  maintain  the  status  quo  until 
a  hearing.  Such  a  process  should  issue  only  in  rare  cases 
where  the  threatened  change  of  the  status  quo  wotild  inflict 
irreparable  injury  if  time  were  taken  to  give  notice  and  a 
summary  hearing.  The  unlawful  injury  usual  in  industrial 
disputes,  such  as  I  have  described,  does  not  become  formi- 
dable except  after  sufficient  time  in  which  to  give  the  defendants 
notice  and  a  hearing.  I  do  not  mean  to  say  that  there  may 
not  be  cases  even  in  industrial  disputes  where  a  restraining 
order  might  properly  be  issued  without  notice,  but,  generally, 
I  think  it  is  otherwise.  In  some  State  courts,  and  in  fewer  Fed- 
eral courts,  the  practice  of  issuing  a  temporary  restraining  order 
w^ithout  notice  merely  to  preserve  the  status  quo  on  the  theory 
that  it  won't  hurt  anybody  has  been  too  common.  Many  of  us  recall 
:that  the  practice  has  been  pursued  in  other  than  industrial  dis- 
putes, as  for  instance  in  corporate  and  stock  controversies,  like 
those  over  the  Erie  railroad,  in  which  a  stay  order  without  notice 
■was  regarded  as  a  step  of  great  advantage  to  the  one  who  secured 
it,  and  a  corresponding  disadvantage  to  the  one  against  whom  it 
was  secured.  Indeed,  the  chances  of  doing  injustice  on  an  ex- 
parte  application  are  much  increased  over  those  when  a  hear- 
ing is  granted,  and  there  may  be  circumstances  under  which 
it  may  affect  tjie  .defendant  to  his  detriment.     In  the  c€we  of 


16  SPEECH  OF  HON.  W.  H.  TAFT. 

.a  lawful  strike  the  sending  of  a  formidable  document  restraining 
a  number  of  defendants  from  doing  a  great  many  different  th/ngs 
which  the  plaintiff  avers  they  are  threatening  to  do  often  so  .dis- 
eoiirag'es  men,  always  reluctant  to  go  into  a  strike,  from  con- 
tinuing what  is  their  lawful  right.  This  has  made  the  laboring 
man  feel  that  an  injustice  is  done  in  the  isuing  of  a 
writ  without  notice.  I  conceive  that  in  the  trt*atment  of  this 
.question  it  is  the  duty  of  the  citizen  anjd  the  legislator  to 
view  the  subject  from  the  standpoint  of  the  man  who  believes 
himself  to  be  unjustly  treated,  as  well  as  from  that  of  the 
community  at  large.  1  have  suggested  the  remedy  of  returning 
in  such  cases  to  the  original  practice  under  the  old  statute  of 
the  United  States  and  the  rules  in  equity  adopted  by  the  Su- 
preme Court,  which  did  not  permit  the  issuing  of  an  injunetion 
without  netice.  In  this  respect  the  Kepubiioan  convention  has 
adopted  another  remedy,  that,  without  going  so  far,  promises 
to  be  efficacious  in  securing  proper  consideration  in  such  cases 
by  courts  by  formulating  into  a  legislative  act  the  best  present 
practice. 

Under  this  recommendation,  a  statute  may  be  framed  which 
shall  define  with  considerable  particularity  and  emphasize  the 
exceptional  character  of  the  cases  in  which  restraining  orders 
may  issue  without  netice,  and  which  shall  also  provide  that  when 
they  are  issued  they  shall  cease  to  be  operative  beyond  a  short 
period,  during  which  time  notice  shall  be  served  and  a  hearing 
had  unless  the  defendant  desires  a  postponement  of  the  hear- 
ing. By  this  provision  the  injustice  which  has  sometimes  oc- 
curred by  which  a  preliminary  restraining  order  of  widest  ap- 
plication has  been  issued  without  notice,  and  the  hearing  of  the 
motion  for  the  injunction  has  been  fixed  weeks  and  months 
after  its  date,  could  not  recur. 

'Small    Namber    of    Cases    Furnishing;    Grounds    for    Complaint 
in  Federal   Court. 

The  number  of  instances  in  which  restraining  orders  without 
notice  in  industrial  disputes  have  issued  by  Federal  courts  is 
small,  and  it  is  urged  that  they  do  not  therefore  constitute  an 
■evil  to  be  remedied  by  statutory  amendment.  The  small  number 
of  cases  complained  of  above  shows  the  careful  manner  in  which 
most  Federal  judges  Jjave  exercised  the  jurisdiction,  but  the 
belief  that  such  cases  are  numerous  has  been  so  widespread 
and  has  aroused  such  feeling  of  injustice  that  more  definite 
specification  in  procedure  to  prevent  recurrence  of  them  is  justi- 
fied if  it  can  be  effected  without  injury  to  the  administration 
of  the   law. 

No    Provision    in    Denioeratic    Platform    as    to    Noticej    Only 
Recontmendation    Trial    by   Jury. 

With    respect    to    notice,    the    Democratic    platform    contains 

no  recommendation.     Its  only  intelligible  declaration  in  regard 


SPEECH  OF  HON.  W.  H.  TAFT.  17 

^^hij^mction  suits  is  a  i-eiteration  of  the  plank  in  the  platform 
of  1896  and  1904  providing-  that  in  prosecutions  for  con- 
tempt in  Federal  courts,  where  the  violation  of  the  order  con- 
stituting" the  contempt  charge  is  indirect,  i.  e.,  outside  of  the 
presence  of  the  court  there- shall  be  a  jury  trial. 

Dangeruus    Attack    on    Power    of    Courts. 

This  provision  in  the  platform  of  1896  was  reg-arded  then  as 
a  most  dangerous  attack  upon  the  power  of  the  courts  to  en- 
force their  orders  and  decrees,  and  it  was  one  of  the  chief  reasons 
fpr ,  the  .  defeat  of  the  Democratic  party  in  that  contest,  as  it 
ought  to  have  been.  The  extended  operation  of  such  a  pro- 
vision to  weaken  the  power  of  the  courts  in  the  enforcement 
of  their  lawfid  orders  can  hardly  be  overstated. 

Elfect    of  Jury   Trial. 

Under  such  a  provision  a  recalcitrant  witness  who  refuses 
to  obey  a  subpoena  may  insist  on  a  jury  trial  before  the  court 
can  determine  that  he  received  the  subpoena.  A  citizen  sum- 
moned as  a  juror  and  refusing"  to  obey  the  writ  when  broug"ht 
into  court  must  be  tried  by  g,nother  jury  to  determine  whether 
he  g-ot  the  summons.  Such  a  provision  applies  not  alone  to  in- 
junctions, but  to  every  order  which  the  court  issues  ag"ainst 
persons.  A  suit  may  be  tried  in  the  court  of  first  instance  and 
carried  to  the  court  of  appeals  and  thence  to  the  Supreme 
Court,  and  a  judg-ment  and  decree  entered  and  an  order  issued, 
and  then  if  the  decree  involves  the  defendants'  doing"  any- 
thing" or  not  doing"  anything",  and  he  disobeys  it,  the  plaintiff, 
who  has  pm-sued  his  remedies  in  lawful  course  for  years,  must, 
to  secure  his  rights,  undergo  the  uncertainties  and  delays  of  a 
jury  trial  befere  he  can  enjoy  that  which  is  his  rfght  by  the 
decision  of  the  highest  court  of  the  land.  I  say  without  hesi- 
tation that  such  a  change  would  greatly  impair  the  indispensable 
power  and  authority  of  the  courts.  In  securing  to  the  public  the 
benefits  of  the  new  statutes  enacted  in  the  present  administra- 
tion the  ultimate  instrumentality  to  be  resorted  to  is  the  courts 
of  the  United  States.  If  now  their  authority  is  to  be  weakened 
in  a  manner  never  known  in  the  history  of  the  jurisprudence 
of  England  or  America,  except  in  the  Constitution  of  Oklahoma, 
how  can  we  expect  that  such  statutes  will  have  efficient  en- 
forcement? Those  who  advocate  this  intervention  of  a  jury 
in  such  cases  seem  to  suppose  that  this  change  in  some  way 
will  inure  only  to  the  benefit  of  the  poor  worklngman.  As  a 
matter  of  fact,  the  j^erson  who  will  secure  chief  advantage 
from  it  is  the  wealthy  and  unscrupulous  defendant,  able  to 
employ  astute  and  cunning  counsel  and  anxious  to  avoid  jus- 
tice. 

I  have  been  willing,  in  order  to  avoid  a  popular  but  unfounded 

B 


Tfl  rn^WECH  OF  HON.  W.  H.  TAFT. 

impression  that  a  Jiwlj^e.  in  punishing  for  contempt  of  his  own 
orcJiT.  may  be  afFected  by  personal  feeling,  to  approve  a  law 
\\  hic'li  should  enable  the  contemnor  upon  his  application  to 
have  another  judge  sit  to  hear  the  charge  of  contempt,  but 
this,  with  so  many  judges  as  there  are  available  in  the  Federal 
eourts  would  not  constitute  a  delay  in  the  enforcement  of  the 
piocess.  The  character  and  efficiency  of  the  trial  would  be  the 
sanu'.  It  is  the  nature  and  the  delay  of  a  jury  trial  in  such 
<ases  that  those  Who  would  wish  to  defy  the  order  of  the  court 
would  rely  u])on  as  a  reason  for  doing  so. 

Maintenance    uf    Fnll    Povi^er    of    Courts    Necesaary    to    Avoid 
Anarchy. 

The  administration  of  justice  lies  at  the  foundation  of  gov- 
ernment. The  maintenance  of  the  authority  of  the  courts  is 
essential  unless  we  are  prepared  to  embrace  anarchy.  Never 
in  the  history  of  the  country  has  there  been  such  an  insidious 
attack  upon  the  judicial  system  as  the  proposal  to  interject  a 
jury  trial  between  all  orders  of  the  court  made  after  full  hear- 
ing and  the  enforcement  of  such  orders. 

The  Currency  Syatem. 

The  late  panic  disclosed  a  lack  of  elasticity  in  our  financial 
system.  This  has  been  provisionally  met  by  an  act  of  the  pres- 
ent Congress  permitting  the  issue  of  additional  emergency  bank 
notes,  and  insuring  their  withdrawal  when  the  emergency  has 
passed  by  a  high  rate  of  taxation.  It  is  drawn  in  conformity 
with  the  present  system  of  bank-note  currency,  but  varies  from 
it  in  certain  respects  by  authorizing  the  use  of  commercial  paper 
and  bonds  of  good  credit,  as  well  as  United  States  bonds,  as 
securitj'^  for  its  redemption.  It  is  expressly  but  a  temporary 
measure  and  contains  a  provision  for  the  appointment  of  a 
currency  commission  to  devise  and  recommend  a  new  and  re- 
formed system  of  currency.  This  inadequacy  of  our  present 
currency  system,  due  to  changed  conditions  and  enormous  ex- 
pansion, is  generally  recognized.  The  Republican  platform  well 
states  that  we  must  have  a  "more  elastic  and  adaptable  system 
to  meet  the  requirements  of  agriculturists,  manufacturers,  mer- 
chants, and  business  men  generally,  must  be  automatic  in  op- 
eration, recognizing  the  fluctuations  in  interest  rates,"  in 
which  every  dollar  shall  be  as  good  as  gold  and  which  shall 
prevent  rather  than  aid  financial  stringency  in  bringing  on  a 
panic. 

Postal    Savint^s    Bank   and    Its    Advantagres. 

In  addition  to  this,  the  Republican  platform  recommends  the 
adoption  of  a  postal  savings  bank  system  in  which,  of  course,  the 
(iovernment  would  become  responsible  to  the  depositors  for  the 
payment  of  principal  and  interest.  It  is  thought  that  the  gov- 
ernment guaranty  will  bring  out  of  hoarding  places  much  money 


SPEECH  OF  HON.  W.  H.  TAFT.  19 

which  may  be  turned  into  wealth-producing-  capital,  and  that  it 
will  be  a  great  incentive  for  thrift  in  the  many  small  places  in 
the  country  having-  now  no  saving's  bank  facilities  which  are 
reached  by  the  Post  Office  Department.  It  will  bring  to  every 
one,'  however  remote  from  financial  centers,  a  place  of  perfect 
safety  for  deposits,  Avith  interest  return.  The  bill  now  pending 
in  Congress,  which,  of  course,  the  Republican  convention  had  in 
mind,  provides  for  the  investment  of  the  money  deposited  in 
national  banks  in  the  very  places  in  which  it  is  gathered,  or  as 
near  thereto  as  may  be  practicable.  This  is  an  answer  to  the 
criticism  contained  in  the  Democratic  platform  that  under  the 
system  the  money  g-athered  in  the  country  will  be  deposited  in 
Wall  street  banks.  The  system  of  postal  savings  banks  has  been 
tried  in  so  many  countries  successfully  that  it  cannot  be  re- 
garded longer  as  a  new  and  untried  experiment. 

Olijectfons    to    Democratic    PropoBal   to    ESnforce    Injiinrance    of 
Bank   Deposits. 

The  Democratic  platform  recommends  a  tax  upon  national 
banks  and  upon  such  State  ba»ks  as  may  come  in,  in  the  nature 
of  enforced  insurance,  to  raise  a  guaranty  fund  to  pay  the  de- 
positors of  any  bank  which  fails.  How  State  banks  can  be  in- 
cluded in  such  a  scheme  under  the  Constitution  is  left  in  the 
twilight  zone  of  State's  rights  and  federalism  so  frequently  dim- 
ming the  meaning  and  purpose  of  the  promises  of  the  platform. 
If  they  come  in  imder  such  a  system,  they  must  necessarily'  be 
broug-ht  within  the  closest  national  control,  and  so  they  must 
really  cease  to  be  State  banks  and  become  national  banks. 

The  proposition  is  to  tax  the  honest  and  prudent  banker  to 
make  up  for  the  dishonesty  and  imprudence  of  others.  No  one 
can  foresee  the  burden  which  under  this  system  would  be  imposed 
\ipon  the  sound  and  conservative  bankers  of  the  country  by  this 
obligation  to  niake  good  the  losses  caused  by  the  reckless,  specu- 
lative and  dishonest  men  who  would  be  enabled  to  secure  de- 
posits under  svich  a  system  on  the  faith  of  the  proposed  insur- 
ance;  as  in  its  present  shape  the  proposal  would  remove  all  safe- 
guards against  recklessness  in  banking,  and  the  chief,  and  in 
the  end  probably  the  only,  benefit  would  accrue  to  the  speculator, 
who  would  be  delighted  to  enter  the  banking  business  when  it 
was  certain  that  he  could  enjoy  any  profit  that  would  accrue, 
while  the  risk  would  have  to  be  assumed  by  his  honest  and 
hard-working  fellow.  In  short,  the  proposal  is  wholly  impracti- 
cable unlesss  it  is  to  be  accompanied  by  a  complete  revolution 
in  our  banking  system,  with  a  supervision  so  close  as  practically 
to  create  a  government  bank.  If  the  proposal  were  adopted  ex- 
actly as  the  Democratic  platforin  suggests  it  would  bring  the 
whole  banking  system  of  the  country  down  in  ruin,  and  this 
proposal  is  itself  an  excellent  illustration  of  the  fitnesss  for  na- 


20  SPEECH   OF  HOS.    W.  H .   TAFT. 

tional  control  of  a  party  which  will  commit  itself  to  a  scheme 
of  this  nature  without  the  slightest  sense  of  responsibility  for 
the  practical  operation  of  the  law  proposed. 

I'untal    ShvIiikn    HaiikH    Much    to    be    Preferred. 

The  Democratic  party  annoimces  its  adhesion  to  this  plan^ 
and  only  recommends  the  tried  system  of  postal  savings  banks 
as  an  ajter native  if  the  new  experimental  panacea  is  not  avail- 
able. The  Republican  party  prefers  the  pQstal  savings  banks  as 
one  tried,  safe  and  known  to  be  effective,  and  as  reaching  many 
more  people  now  without  banking  facilities  than  the  new  system 
proposed. 

Voluntary' Plan   for  Guaranty. 

A  plan  for  a  guaranty  of  deposits  by  the  voluntary  act  of 
the  banks  involved  has  been  favorably  reported  to  the  House  of 
Kepresentatives.  This  is,  of  course,  entirely  different  from  the 
scheme  in  the  Dethocratic  platform,  omitting,  as  it  does,  the  feat- 
ures of  compulsory  participation  arid  governmental  guaranty. 
This  proposition  will  unquestionably  receive  the  thoughtful  con- 
sideration of  the  national  monetary  commission. 

Republican    Policies    as    to    DependencicH. 

The  Republican  party  has  pursued  consistently  the  policy 
originally  adopted  with  respect  to  the  dependencies  which  came 
to  us  as  the  result  of  the  Spanish  war. 

Porto   Rico. 

The  material  prosperity  of  Porto  Rico  and  the  progress  of  its 
inhabitants  toward  better  conditions  in  respect  to  comfort  of  liv- 
ing and  education  should  make  every  American  proud  that  this 
nation  has  been  an  efficient  instrument  in  bringing  happiness  to 
a  million  people. 

Cuba. 

In  Cuba  the  provisional  government  established  in  order  to 
prevent  a  bloody  revohition  has  so  administered  affairs  and  initi- 
ated the  necessary  laws  as  to  make  it  possible  to  turn  back  the 
island  to  the  lawfully  elected  officers  of  the  Republic  in  February 
next. 

Pbilippines. 

In  the  Philippines  the  experiment  of  a  national  assembly  has 
justified  itself,  both  as  an  assistance  in  the  government  of  the 
islands  and  as  an  education  in  the  practice  of  self-government 
to  the  people  of  the  islands.  We  have  established  a  government 
with  effective  and  honest  executive  departments,  and  a  clean  and 
fearless  administration  of  justice ;  w^e  have  created  and  are 
maintaining  a  comprehensive  school  system  which  is  educating, 
the  youth  of  the  islands  in  English  and  in  industrial  branches; 
we  have  constructed  great  government  public  works,  roads  and 


SPEECH  OF  HON.  W.  E.  TAFT.  215 

har})or.s ;  we  have  induced  the  private  construction  of  eight  hun- 
dred miles  of  railroads;  we  have  policed  the  islands  so  that  their 
condition  as  to  law  and  order  is  better  now"  than  it  ever  has  been 
in  thedr  history.  It  is  quite  nnlikely  that  the  people,  because  ot 
the  dense  ignorance  of  90  per  cent,  will  be  ready  for  complete 
self-government  and  independence  before  two  g-enerations  have 
passed,  but  the  policy  of  increasing  partial  self-government  step 
by  step  as  the  people  shall  show  themselves  fit  for  it  should  be 
continued.  * 

Proposition    of   Democratic    Platform    Means    Chaos. 

The  proposition  of  the  Democratic  platform  is  to  turn  over 
the  islands  as  soon  as  a  stable  government  is  established.  This 
has  been  established.  The  proposal  then  is  in  effect  to  turn  them 
over  at  once.  Such  action  will  lead  to  ultimate  chaos  in  th^ 
islands  and  the  progress  among  the  ignoi-ant  masses  in  edu- 
cation and  better  living  will  stop.  We  are  engaged  in  the  Philip- 
pines in  a  great  missionary  work,  that  does  our  nation  honor, 
and  is  certain  to  promote  in  a  most  effective  way  the  influence 
of  Christian  civilization.  It  is  cowardly  to  lay  down  the  burden 
until  our  purpose  is  achieved. 

Hope    of    Prosperity    in    Clianjfe    in    Tarill"    Rccommentleti     by 
Republican  Platform. 

Many  unfortunate  circumstances  beyond  huinafi  outrol  have 
delayed  the  coming  of  business  prosperity  to  the  islanls.  Much 
may  be  done  in  this  regard  by  increasing  the  trade  between  the 
islands  and  the  United  States,  under  tariff  laws  permitting  re- 
ciprocal free  trade  in  the  respective  products  of  the  two  cQi^in- 
tries,  with  such  limitations  as  to  sugar  and  tobacco  imported 
into  the  United  States  as  will  protect  domestic  interests.  The 
admission  of  350,000  tons  of  sugar  from  the  Philippine  Islands 
in  a  foreign  importation  of  1.600,000  tons  will  have  no  effect 
whatever  upon  the  domestic  sugar  interests  of  the  United  States, 
and  yet  such  an  importation  from  the  Philippine  Islands,  not 
likely  to  be  reached  in  ten  years,  will  bring  about  the  normal 
state  of  prosperity  in  these  islands  in  reference  to  sugar  culture. 

The  same  thing  is  true  of  a  similar  limitation  on  the  impor- 
tation of  tobacco.  It  is  not  well  for  the  Philippines  to  develop 
the  sugar  industry  to  such  a  point  that  the  business  of  tiie 
islands  shall  be  absorbed  by  it,  because  it  makes  a  society  in 
which  there  are  wealthy  landowners,  holding  yary  lar.^e  estates, 
with  valuable  and  expensive  plants  and  a  large  population  of  un- 
skilled labor.  In  such  a  community  there  is  no  farming  or  mid- 
dle class  tending  to  build  up  a  conservative,  self-respecting  com- 
munity capable  of  self-government.  There  are  many  other  prod- 
ucts, notably  that  of  Manila  hemp,  to  which  the  energy  of  the 
islands  can  be  and  is  being  directed,  the  cultivation  of  which  de- 
velops the  class  of  small  and  intelligent  farmers. 


B9  SPEECH  OF  flOX.   W.  II.  TAFT. 

Mlsconceiition    nn    to    Annual     Cuitt    of    l^hiliiiptnes. 

One  misconception  of  fact  with  respect  to  our  Philippine 
policy  is  that  it  is  costing-  the  people  of  the  United  States  a 
vast  annual  sum.  The  expenses  of  the  war  in  the  Philippines 
from  1898  to  1902  involved  the  g-overninent  in  an  expenditure  of 
less  than  $175,000,000.  This  was  incident  to  war.  The  fact  is 
that  since  the  close  of  the  war  in  1902  and  the  restoration  of  or- 
der in  the  islands  the  extra  cost  of  the  American  troops  of  the 
regular  army  in  the  islands,  together  with  that  of  maintaining- 
about  4,000  Philippine  scouts  as  a  part  of  the  I'egiilar  army,  does 
not  exceed  $6,000,000  annually.  This  is  all  the  expense  to  whicn 
the  United  States  has  been  put  for  five  or  six  years  last  past. 
The  expenses  of  the  civil  government  in  the  islands  since  its  es- 
tablishment have  been  met  entirely  from  the  proceeds  of  taxes 
collected  in  the  islands,  with  but  one  notably  generous^  and 
commendable  exception,  when  the  Congress  of  the  United  States 
appropriated  $3,000,000  in  1902  to  relieve  the  inhabitants  of  the 
islands  from  the  dangers  of  famine  and  distress  caused  by  the 
death  from  rinderpest  of  three-fourths  of  the  cattle  of  the 
islands. 

Veterans   of   Country's   "Wars. 

Both  platforms  declare,  as  they  should,  in  favor  of  generous 
pensions  for  the  veterans  of  the  civil  and  Spanish  wars.  I  stop 
to  note  the  p^sence  here  of  a  body  of  veterans  of  Ohio,  and  to 
express  my  thanks  for  the  honor  they  do  me  in  coming.  I  am 
lacking  in  one  qualification  of  all  Eepublican  Presidents  since 
Lincoln,  that  of  having  been  exposed  to  danger  and  death  on  the 
field  of  battle  in  defense  of  our  country.  I  hope  that  this  lack 
will  not  make  the  veterans  think  I  am  any  less  deeply  thrilled 
by  the  memory  of  their  great  comrades  gone  before — Grant, 
Hayes,  Garfield,  Harrison  and  McKinley,  all  sons  of  Ohio,  who 
left  records  reflecting  glory  upon  their  State  and  nation — or  that 
my  sympathies  with  the  valor  and  courage  and  patriotism  of 
those  who  faced  death  in  the  country's  crises  are  any  less  earnest 
and  sincere  than  they  would  be  had  T  the  right  to  wear  a  button 
of  the  Grand  Army  or  of  the  veteran  association  of  any  of  our 
country's  wars. 

The   Rliirhts    anil    Progress    of    tlie    fiegro. 

The  Republican  platform  refers  to  those  amendments  to  the 
Constitution  that  were  passed  by  the  Eepublican  party  for  the 
protection  of  the  negro.  The  negro,  in  the  forty  years  since  he 
was  freed  from  slavery,  has  made  remarkable  progress.  He  is 
becoming  a  more  and  more  valuable  member  of  the  communities 
In  which  he  lives.  The  education  of  the  negi'o  is  being  expanded 
and  improved  in  every  way.  The  best  men  of  both  races,  at  the 
North  as  well  as  at  the  South,  ought  to  rejoice  to  see  growing  up 
among  the  Southern  people  an  influential  element   disposed  to 


SPEECH  OF  nON.  W.  E.  TAFT.  23 

encoxirag-e  the  negro  in  his  hard  struggle  for  industrial  inde- 
pendence and  assured  political  status.  The  Kepublican  platform, 
adopted  at  Chicago,  explicitly  demands  justice  for  all  men  with- 
out regard  to  race  or  color,  and  just  as  explicitly  declares  for 
the  enforcement,  and  without  reservation,  in  letter  and  spirit,  of 
the  thirteenth,  fourteenth,  and  fifteenth  amendments  to  the  Con- 
stitution. It  is  needless  to  state  that  I  stand  with  my  party 
squarely  on  that  plank  in  the  platform,  and  believe  that  equal 
justice  to  all  men  and  the  fair  and  impartial  enforcement  of 
these  amendments  are  in  keeping  with  the  real  American  spirit 
of  fair  play.  > 

Army  and  Navy. 

Mr.  McKinley  and  Mr.  Roosevelt  and  the  Republican  party 
have  constantly  advocated  a  policy  with  respect  to  the  army  and 
na\y  that  will  keep  this  republic  ready  at  all  times  to  defend 
her  territory  and  her  doctrines,  and  to  assure  her  appropriate 
pai't  in  promoting  permanent  tranquillity  among  the  nations.  1 
welcome. from  whatever  motive  the  change  in  the  Democratic  at- 
titude toward  the  maintenance  and  support  of  an  adequate  navy, 
and  hope  that  in  the  next  platform  the  silence  of  the  present 
platform  in  respect  to  the  army  will  be  changed  to  an  acqui- 
escence in  its  maintenance  to  the  point  of  efficiency  in  connec- 
tion with  the  efficiently  reorganized  militia  and  the  national  vol- 
unteers, for  the  proper  defense  of  the  country  in  times  of  war, 
and  the  discharge  of  those  duties  in  times  of  peace'  for  which  the 
'army,  as  at  present  constituted,  has  shown  itself  so  admirably 
adapted  in  the  Philippines,  in  San  Francisco,  in  Cuba  and  else- 
where. We  are  a  world  power  and  cannot  help  it,  and  although 
at  peace  with  all  the  world  and  secure  in  the  consciousness 
that  the  American  people  do  not  desire  and  will  not  provoke  a 
\yar  with  any  other  country,  we  must  be  prudent  and  not  be 
lulled  into  a  sense  of  security  which  would  possibly  expose  us 
to  national  humiliation.  Our  best  course,  therefore,  is  to"  insist 
on  the  constant  improvement  in  our  navy  and  its  maintenance 
at  the  highest  point  of  efficiency. 

Protection   of   Citizens  Abroad. 

The  position  which  our  country  has  won  under  Republican  ad- 
ministrations before  the  world  should  inure  to  the  benefit  of 
every  one,  even  the  humblest,  of  those  entitled  to  look  to  the 
American  flag  for  protection,  without  regard  to  race,  creed  or 
color,  and  whether  he  is  a  citizen  of  the  United  States  or  of  any 
of  our  dependencies.  In  some  countries  with  which  we  are  on 
friendly  terms  distinctions  are  made  in  respect  to  the  treatment 
of  our  citizens  traveling  abroad  and  having  passports  of  our  ex- 
ecutive, based  on  considerations  that  are  repugnant  to  the  prin- 
ciples of  our  government  and  civilization.    The  Republican  party 


24  SPfJKCH  OF  HON.  W.  H.  TAFT. 

and  administration  will  continue  to  make  every  proper  endeavor 
to  secnre  the  abolition  of  such  distinctions,  which  in  our  eyes  are 
both  needless  and  oi)})robrious. 

ANlutie    Iiiiu>i(4i'utiun. 

In  the  matter  of  the  limitation  upon  Asiatic  immigration,  re- 
ferred to  in  the  Democratic  platform,  it  is  sufficient  to  say  that 
the  present  Kepublican  administration  has  shown  itself  able,  by 
diplomatic  negotiations  and  without  unnecessary  friction  with 
self-respecting  governments,  to  minimize  the  evils  suggested,  and 
a  subsequent  Kepublican  administration  may  be  counted  on  to 
continue  th«  same  policy. 

Conaervatlon    of   National   Resoarces. 

The  conservation  of  national  resources  is  a  subject  to  which 
the  present  administration  has  given  especial  attention.  The 
necessity  for  a  comprehensive  and  systematic  improvement  of 
our  waterways,  the  preservation  of  our  soil  and  of  our  forests, 
the  securing  from  private  appropriation  the  power  in  navigable 
streams,  the  retention  of  the  undisposed  of  coal  lands  of  the  Gov- 
ernment from  alienation,  all  will  properly  claim  from  the  next 
administration  earnest  attention  and  appropriate  legislation. 

» 

National    Health   Bureau. 

I  have  long  been  of  opinion  that  the  various  agencies  of  the 

national    government    established    for   ^he    preservation    of    the 

national   health   scattered   througt   severial   departments   should 

be  rendered  more  efficient  by  uniting  them  in  a  bureau  of  the 

Government  under  a  competent  head,  and  that  I  understand  to  be 

in  efPect  the  recommendation  of  both  parties. 

Publicity   of  Campaign    Contributions   and   Expenditures. 

Another  plank  of  the  Democratic  platform  refers  to  the  fail- 
ure of  the  Republican  convention  to  express  an  opinion  in  favor 
of  the  publicity  of  contributions  received  and  expenditures  made 
in  elections.  Here  again  we  contrast  our  opponents'  promises 
with  our  own  acts.  Great  improvement  has  taken  place  under 
Republican  auspices  in  respect  to  the  collection  and  expenditure 
of  money  for  this  purpose.  The  old  and  pernicious  system  of 
levying  tax  on  the  salaries  of  government  employees  in  order  to 
')av  the  expenses  of  the  party  in  control  of  the  administration 
has  been  abolished  by  statute.  By  a  law  passed  by  the  Republi- 
can Congress  in  1907,  contributions  from  corporations  to  in- 
fluence or  pay  the  expenses  connected  with  the  election  of  Presi- 
dential electors  or  of  members  of  Congress  are  forbidden  under 
penalty. 

A  resident  of  New  York  has  been  selected  as  treasurer  of 
the  Republican  National  Committee,  who  was  treasurer  of  the 
Republican  State  Committee  when  Governor  Hughes  was  elected 


SPEECH  OF  HON.  W.  H.  TAFT.  25 

in  New  York,  and  who  made  a  complete  statement  within 
twenty  days  after  the  election,  as  required  by  the  New  York 
law,  of  the  contributions  received  by  him  and  the  expenditures 
made  by  him  or  under  his  authority  in  connection  with  that  elec- 
tion. His  residence  and  the  discharge  of  his  duties  in  the  State 
of  New  York  subject  him  to  the  law  of  that  State  as  to  all  re- 
ceipts of  the  treasury  of  the  national  committee  from  whatevej* 
source  and  as  to  all  its  disbursements.  His  returns  will  be  under 
the  oblig-ations  and  penalties  of  the  law,  and  a  misstatement  by 
him  or  the  filing  of  a  false  account  will  subject  him  to  prosecu- 
tion for  perjury  and  violation  of  the  statute.  Of  course,  under 
the  Federal  law,  he  is  not  permitted  to  receive  any  contributions 
from  corpoi'ations. 

If  I  am  elected  President  I  shall  urge  upon  Congress,  with 
every  hope  of  success,  that  a  law  be  passed  requiring  a  filing  in  a 
Federal  office  of  a  statement  of  the  contributions  received  by 
committees  and  candidates  in  elections  for  members  of  Congress, 
and  in  such  other  elections  as  are  constitutionally  within  the 
control  of  Congress.  Meantime  the  Republican  party  by  the  se- 
lection of  a  New  York  treasurer  has  subjected  all  its  .receipts 
and  expenditures  to  the  compulsory  obligation  of  such  a  law. 

Income  Tax. 

The  Democratic  platform  demands  two  constitutional  amend- 
ments, one  providing  for  an  income  tax  and  the  other  for  the 
election  of  Senators  by  the  people.  In  my  judgment  an  amend- 
ment to  the  Constitution  for  an  income  tax  is  not  necessary.  1 
believe  that  an  income  tax,  when  the  protective  system  of  cus- 
toms and  the  internal  revenue  tax  shall  not  furnish  income 
enough  for  governmental  needs,  can  and  should  be  devised 
which  under  the  decisions  of  the  Supreme  Court  will  conform  to 
the  Constitution. 

E]lectton  of   Senators. 

With  respect  to  the  election  of  Senators  by  the  people,  per- 
sonally I  am  inclined  to  favor  it,  but  it  is  hardly  a  party  ques- 
tion. A  resolution  in  its  favor  has  passed  a  Republican  House  of 
Eei:)resentatives  several  times,  and  has  been  rejected  in  a  Re- 
publican Senate  by  the  vottes  of  Senators  from  both  parties.  It 
has  been  approved  by  the  legislatures  of  many  Republican  States. 
In  a  number  of  States,  both  Democratic  and  Republican,  substan- 
tially such  a  system  now  prevails. 

Inacenracy  and  Insincerity  of  Democratic  Cliarses  of  E^xtrav- 
agance  in  Increase  of  Offices  and  Expenditures. 

Our  opponents  denounce  the  Republican  party  for  increasing 

the  number  of  offices  23,000,  at  a  cost  of  $16,000,000,  during  the 

last  year.     Such  denunciation  is  characteristic  of  the  Democratic 

platform.    It  fails  to  specify  in  any  w:ay  what  the  offices  ar.%  and, 

leaves  the  inference  that  the  increase  was  resisted  by  the  repre- 


26  ^  SPEECH  OF  HON.  W.  H.  TAFT. 

sentatives  of  Democracy  in  Congress.  As  a  matter  of  fact,  the 
net  number  of  offices  increased  was  just  about  half  the  number 
stated ;  the  increase  was  due  chiefly  to  the  enlarg'ement  of  the 
nav3%  the  construction  of  the  Panama  canal,  the  extension  of  the 
rural  free  delivery  and  to  the  new  offices  necessary  in  the  en- 
forcement of  the  pure  food  meat  inspection,  railroad  rate  regu- 
lation, arid  land  reclamation,  forest  preservation  and  other 
measures  which  Congress  passed  with  almost  unanimous  popular 
approval.  The  Democratic  platform,  so  far  from  attacking  any 
of  this  legislation,  specifically  approves  much  and  condemns  none 
of  it,  and  it  is,  of  course,  disingenuous  to  claim  credit  for  ap- 
proving legislation  and  yet  to  denounce  the  expenditures  neces- 
sary to  give  it  effect. 

Chargre  of  Deficit. 

Again,  it  charges  that  a  deficit  of  sixty  millions  of  dollars 
between  the  receipts  and  expenditures  during  the  fiscal  year 
ending  June  30,  1^8,  occurred.  As  explained  by  the  Secretary 
of  the  Treasury,  at  least  half  of  this  deficit  is  only  an  apparent 
one.  The  falling  off  in  receipts  was,  of  course,  occasioned  by  the 
unusual  panic,  but  there  is  ample  free  money  in  the  Treasury  to 
meet  the  difference,  and  the  difference  itself  is  not  half  of  it 
properly  a  deficit,  because  involved  in  it  was  the  retirement  of 
some  thirty-three  millions  of  the  bonds  of  the  Government. 

During  the  past  seven  years  the  income  and  expenditures  of 
the  Government  have  been  nearly  equal,  some  years  showing  a 
surplus  and  others,  fewer  in  number,  a  deficit.  Taking  one  year 
with  another,  including  this  year,  there  has  been  an  average  sur- 
plus. The  surplus  last  year,  for  instance,  was  greater  than  the 
deficit  this  year;  so  that,  in  fact,  under  the  present  administra- 
tion there  has  been  no  deficit,  but  a  surplus  which  is  actually  in 
the  Treasury. 

The  Democratic  platform  nowhere  points  out  the  expendi- 
tures which  might  be  reduced  or  avoided.  It  would  be  found 
generally  that  to  the  increases  which  have  occurred.  Democratic 
Representatives  in  Congress  made  no  opposition,  but  rather  sup- 
ported the  measures  providing  them,  and  now  the  party  has 
not  the  courage  to  indicate  what  part  of  government  cost  it 
would  end.  It  joins  the  Kepublican  party  specifically  in  approv- 
ing the  outlay  of  $150,000,000  as  pensions.  It  expressly  favors 
also  the  cost  of  greatly  increased  river  and  harbor  improvements, 
the  cost  of  doubling  the  navy  and  of  many  other  enterprises  to 
which  it  urges  the  Government.  Its  attack,  therefore,- has  noth- 
ing in  it  of  fairness  or  sincerity. 
/^ 

Hlsli    Character    and    Efficiency    of   Administration. 

The  truth  Is  that  it  is  known  of  all  fair-minded  men  that 
there  never  has  been  an  administration  in  the  Government  more 
efficiently  conducted,  more  free  from  scandal,  and  in  which  the 


SPEECH  OF  HON.  W.  H.  TAFT.  27 

standard  of  official  duty  has  been  set  higher  than  in  the  present 
Republican  administration,  which  the  Democratic  platform  has 
thus  denounced.  It  has  had  to  meet  the  problems  arising  from 
the  enormous  expansion  of  government  functions  under  new 
legislative  measures,  as  well  as  in  the  new  dependencies,  and  in 
the  greatest  constructive  work  of  modern  times,  the  Panama 
canal,  and  its  members  may  well  feel  a  just  pride  in  the  excep- 
tional record  for  efficiency,  economy,  honesty  and  fidelity  which 
it  has  made.  We  may  rely  upon  our  record  in  this  regard  in  an 
appeal  to  the  American  people  for  their  approval. 

The  foreign  policy  of  this  country  under  the  present  adminis- 
tration has  greatly  contributed  to  the  peace  of  the  world.  The 
important  part  the  administration  took  in  bringing  about  an 
end  of  the  Russian-Japanese  war  by  a  treaty  honorable  to  both 
parties  and  the  prevention  of  w^rs  in  Central  America  and  Cuba 
are  striking  instances  of  this.  .The  arbitration  tri'aties  signed 
with  all  the  important  nations  of  the  world  mark  a  great  step 
forward  in  the  development  of  the  usefulness  of  The  Hague 
tribunal.  The  visit  of  Secretary  Root  to  South  America  empha- 
sized our  friendship  for  our  sister  republics,  which  are  making 
such  strides  in  the  south  hemisphere,  and  met  with  a  most 
cordial  and  gratifying  response  from  our  Latin-American  col- 
leagues. The  assistance  which  we  are  rendering  in  Santo  Do- 
mingo to  enable  that  government  to  meet  its  obligations  and 
avoid  anarchy  is  another  instance  of  successful  work  of  this  ad- 
ministration in  helping  our  neighbors. 

This  administration  has,  by  the  promptness,  skill  and  energy 
of  its  negotiations,  secured  dominion  in  the  Canal  Zone  of  the 
Isthmus  of  Panama,  without  which  the  construction  of  the  canal 
w^ould  have  been  impossible.  It  has  subriued  the  heretofore  in- 
surmountable obstacle  of  disease  and  made  the  place  of  work 
healthy.  It  has  created  such  an  organization  that  in  six  years 
certainly,  and  pi'obably  in  less,  the  Atlantic  and  Pacific  will  bo 
united,  to  the  everlasting  benefit  of  the  world's  commerce  and 
the  effectiveness  of  our  navy  will  be  doubled. 

The  mere  statement  of  the  things  actually  done  by  this  ad- 
ministration at  home,  in  our  dependencies  and  in  foreign  aifairs, 
shows  a  marvel  of  successful  accomplishment,  and  if  ever  a  party 
has  entitled  itself  to  the  approval  of  its  works  by  a  renewed  man- 
date of  power  from  the  people  whom  it  served  it  is  the  Repul>li- 
oan  party  in  the  present  campaign. 

The  only  respect  in  which  nothing  has  been  done  is  in  the 
development  of  our  foreign  marine.  As  long  as  we  uphold  the 
system  of  protection  for  our  home  industries  we  must  recognize 
that  it  is  inapplicable  to  assist  those  of  our  citizens  engaged  in 
the  foreign  shipping  business,  becaiise  there  is  no  feasible 
means  of  excluding  foreign  competition,  and  that  the  only  other 
method  of  building  up  such  a  business  is  by  direct  aid  in  the 


28  SPEECH  OP  HON.  W.  H.  TAFT. 

form  of  a  mail  subsidy.  I  am  in  favor  of  the  bill  considered  in 
the  last  Congress  as  a  tentative  step.  The  establishment  of  direct 
steamship  lines  between  our  Atlantic  ports  and  South  America 
would  certainly  do  much  to  develop  a  trade  that  might  be  made 
far  greater.  On  the  Pacific  the  whole  shipping  trade  threatens 
to  pass  into  the  control  of  Japan.  Something  ought  to  be  done, 
and  the  bill  which  failed  was  a  step  in  the  right  direction. 

Independent  Democrats. 

The  Democratic  party  under  its  present  leadership  in  previous 
campaigns  has  manifested  a  willingness  to  embrace  any  doctrine 
which  would  win  votes,  with  little  sense  of  responsibility  for  its 
practical  operation.  In  its  striving  for  success  it  has  ignored  the 
business  prosperity  of  the  country,  has  departed  from  sound  eco- 
nomic and  governnxental  principles,  and  has  reversed  its  own  tra- 
ditional views  of  constitutional  construction.  Patriotic  members 
of  the  party  have  refused  to  be  controlled  by  party  ties,  and  have 
either  refrained  from  voting  or  have  supported  the  Ilepublican 
candidate.  May  we  not  appeal  to  these  courageous  and  inde- 
pendent citizens  again  to  give  us  their  support  in  this  campaign, 
because  the  reasons  for  their  breaking  the  bonds  of  party  are 
stronger  to-day  than  ever  before? 

Length    of   Speech    Made   Necessary   by   Nnmerons   Issues. 

I  have  now  reviewed  at  great  length  the  principles  at  issue 
between  the  two  parties.  When  I  began  the  preparation  of  this 
speech  of  acceptance  I  had  hoped  to  make  it  much  briefer  than 
it  is,  but  I-  found  on  an  examination  of  the  platform  and  on  a  con- 
sideration of  the  many  measures  passed  during  the  present  ad- 
ministration and  the  issues  arising  out  of  them  that  it  was  im- 
possible to  deal  with  the  subjects  comprehensively  with  proper 
explanation  and  qualification  in  a  short  discussion.  This  is  my 
excuse. 

Dllfereiiee     Between     Parties:    Prosperity    W^itli    Republican 
Success;     Business     Disaster    tVitb     Democratic     Victory. 

I  have  pointed  out  that  the  attitude  of  the  Republican  party 

with  reference  to  evils  which  have  crept  in,  due  to  the  euorinous 

material  expansion  of  this  country,  is  to  continue  the  Koosevelt 

policies   of   progress   and   regulation,  while   the   attitude   of   the 

Democratic  party  under  its  present  leadership  is  the  change  for  : 

the  sake  of  change  to  the  point. of  irresponsible  destruction,  and 

that  there  is  no  hope  whatever  of  a  restoration  of  prosperity  in 

returning  it  to  power.     As  said  in  our  platform,  we  Republicans 

go  before  the  country  asking  the  support,  not  only  of  those  who 

have  acted  with  us  heretofore,  but  of  all  our  fellow-citizens  who, 

regardless   of   past  political   differences,   unite   in   the    desire   to 

maintain  the  policies,  perpetuate  the  blessings,  and  make  secure, 

the  achievements  of  a  greater  America. 


FOREWORD. 

The  purpose  of  this  book  is  to  furnish  in  concis:-  and  con- 
venient form  for  reference  such  information  as  is  likely  to  be  re- 
quired by  speakers,  writers,  and  others  participating'  m  the  Uis 
cussions  of  the  Presidential  campaign  of  1908.  However  well  ad- 
vised the  sj)eaker  or  writer  may  be  upon  the  topics  of  the  cam- 
paign, he  will  reqviire  for  reference  many  facts  and  figures  which 
can  only  be  had  by  consulting  numeroLis  pjblications,  many  of 
them  so  bulky  as  to  be  practicable  for  desk  use  only.  This  work 
is  intended  to  present  in  concise  and  portable  form  the  n  ore  im- 
portant of  these  facts  and  figures,  so  condensed  and  arranged  as 
to  be  convenient  for  ready  reference  in  the  field,  on  the  stump, 
upon  the  train,  or  wherever  they  may  be  desired.  The  arrange- 
ment of  the  book  will  be  apparent  upon  an  examination  of  the 
table  of  contents  which  occupies  the  opening  page.  Each  of 
the  subjects  likely  to  require  discussion  is  treated  ur.der  its 
proper  title  and  followed  by  such  statistical  state. aents  as  may 
be  required  for  further  reference,  A  copious  index  which  fol- 
lows the  table  of  contents  will  enable  those  utilizing  the  volume 
readily  to  find  the  detailed  facts  which  they  may  require  for  in- 
stant reference.  The  statistical  and  historical  statements  pre- 
sented in  the  discussions  have  been  carefully  verified  and  the 
authority,  in  the  more  important  statements,  cited,  while  the 
tables  are  in  most  cases  from  official  publications  of  the  Gov- 
ernment or  from  accepted  authorities. 

It  has  been  .deemed  proper  to  present  as  fully  as  practicable 
information  upon  subjects  likely  to  receive  especial  attention, 
and  the  space  allotted  to  the  chapters  on  Control  of  Corpor- 
ations, the  Money  Panic,  and  the  relief  afforded  by  the  Treasury 
Department,  Wages  and  Prices,  Tariff,  the  Philippines,  and 
the  Work  of  the  Army  has  been  adjusted  to  the  possible  re- 
quirements of  those  desiring  information  upon  these  subjects. 
Much  unfounded  criticism  has  been  offered  by  the  Democrats 
with  reference  to  the  enlargement  of  the  Army  and  the  expen- 
ditures under  its  operations,  and  it  has  therefore  been  deemed 
proper  to  present  somewhat  in  detail  information  regarding  the 
work  which  it  has  so  successfully  accomplished  both  in  war 
and  in  the  development  of  conditions  at  home.  The  criticisms 
of  the  work  of  the  party  in  regard  to  the  Philippines,  coming 

.  from  a  party  which  has  already  the  record  of  having  hauled 
down  the  American  flag  in  islands  of  the  Pacific,  suggest  die  im- 
portance of  a  full  presentation  of  the  splendid  work  done  in  those 

,  islands.  The  constant  but  imfounded  assertions  that  cost  of 
living  has  advanced  more  than  wages  justifies  the  detailed  dis- 
cussion of  this  subject  which  will  be  found  in  the   chapter  en- 

Jiitled  "Labor,  Wages,  and  Prices."  and  especial  attention  is 
called  to  the  information  there  presented  which  fully  »..isproves 
these  assertions. 

EXTRACTS  FROM  THE  CONGRESSIONAL  RECORD. 

Another  volume,  entitled  "Extracts  from  the  Congressional 
Record."  contains  brief  extracts  from  speeches  delivered  in 
Congress  upon  subjects  likely  to  be  discussed  in  the  present 
campaign.  It  contains  the  best  utterances  of  the  party  leaders 
during  its  entire  history  upon  t'he  great  subjects  likely,  to  be 
considered  in  this  campaign.  Regulation  of  Corporations,  the 
Money  Panic,  Protection,  Reciprocity,  Trusts.  Prices,  Republi- 
can Prosperity,  Democratic  Adversitv.  the  Worki'^g^  an,  the 
Farmer,  the  Soldier,  Rural  Free  Delivery,  the  Post-Office  In- 
vestigation. Panama.  Cuba,  the  Philippir.es  and  the  Pacific, 
Shipping,  the  Navy,  and  the  Record  of  President  Roosevelt  are 
discussed  in  these  concise  extracts  from  the  public  utterances 
of  party  leaders  past  and  present.  The  volume  may  readily  be 
used  as  a  pocket  companion,  in  the  field  or  on  the  train,  and  will 
prove  a  valuable  suppleinentary  work  in  connection  with  this 
text  book.' 

Both  volumes  may  be  obtained  upon  application  to  the  Na- 
tional Committee. 


29 


ii 


FOUR  GREAT  FACTS. 


"Four  great  facts  seem  to  Justify  the  Kepublicau  party  in  ask- 
ing the  Yoters  of  the  United  States  to  continue  it  in  control  of  the  affairs 
of  the  Government.  First,  the  promptness  with  which  It  has  fulfilled  the 
pledges  of  Its  plutform  upon  which  It  successfully  appealed  to  the  people 
in  1896  ;  second,  the  prosperity  which  has  come  to  all  classes  of  our 
citizens  with,  and  as  a  result  of,  the  fulfillment  of  those  pledges;  third, 
the  evidence  which  that  prosperity  furnishes  of  the  fallacy  of  the  prin- 
ciples offered  by  the  opposing  parties  in  1896,  and  still  supported  by  them  ; 
and,  fourth,  the  ad-'antages  to  our  country,  our  commerce,  and  our  people 
in  the  extension  oi"  area,  commerce,  and  international  influence  which 
have  unexpectedly  come  as  an  incident  of  the  fulfillment  of  one  of  the 
important  pledges  of  the  platform  of  1896,  and  with  it  the  opportunity  for 
benefiting  the  people  of  the  territory  affected." — From  the  Republican 
Campaign  Text-Book  of  1900. 

The  above  quotation  from  the  opening  pages  of  the  Repub- 
lican Campaign  Text  Book  of  1900  applies  with  equal  force  to 
conditions  in  the  present  campaign.  The  four  great  facts  which 
justified  the  party  in  asking  the  .support  of  the  public  in  1900 
were :  First,  that  its  pledges  of  1896  had  been  redeemed ;  second, 
that  prosperity  had  come  as  a  result ;  third,  that  developments 
since  1896  had  shown  the  fallacy  of  the  principles  upon  which 
tlie  Democracy  then  appealed  for  public  support ;  and,  fourth, 
the  conditions  which  had  come  to  other  parts  of  the  world  and 
their  people  as  a  result  of  promises  fulfilled  by  the  Kepublican 
party  in  the  United  States.  These  assertions  made  in  the  Text 
Book  of  1900  have  been  fully  justified  by  the  added  experiences 
of  another  eight  years.  The  pledges  of  1896  and  those  made  in 
1900  and  1904  have  been  redeemed.  The  Protective  Tariff  has 
been  restored ;  the  Gold  Standard  made  permanent;  Cuba  freed, 
given  independence,  protected  from  internal  troubles  and  about 
to  be  again  made  a  Republic ;  the  Panama  Canal  assured  under 
the  sole  ownership  and  control  of  the  United  States ;  a  Depart- 
ment of  Commerce  and  Labor  established ;  Rural  Free  Delivery 
given  to  millions  of  the  agricultural  community ;  the  laws  for 
the  proper  regulation  of  trusts  and  great  corporations  strength- 
ened and  enforced ;  prosperity  established :  commerce  devel- 
oped ;  labor  protected  and  given  ample  employment  and  reward ; 
intelligence,  prosperity,  and  good  government  established  in  dis- 
tant islands ;  and  the  flag  of  the  United  States  made  the  em- 
blem of  honor  in  every  part  of  the  world. 

All  of  these  great  accomplishments  have  been  the  work  of 
the  Republican  party.  In  each  of  them  it  has  met  the  discourage- 
ment, the  opposition,  and  the  hos.tilities  of  the  Democracy.  The 
Protective  Tariff  was  fought  at  every  step,  and  denounced  by 
the  platform  of  the  Democrats  as  a  "robbery."  The  act  estab- 
lishing the  Gold  Standard  was  opposed  and  the  Democratic  vote 
cast  almost  solidly  against  it,  and  that  party  in  its  conventions 
and  platforms  of  1904  and  1908  deliberately  refused  to  retract 
in  the  slighest  degree  its  advocacy  of  the  free  and  unlimited 
coinage  of  silver.  In  the  war  for  the  freedom  of  Cuba,  the 
work  of  the  Republicans  was  met  with  harsh  criticism.  In 
the  efforts  to  establish  peace  and  good  government  in  the 
newly  acquired  territory,  each  step  met  with  opposition  and 
false  charges  and  with  the  demand  that  the  territory  and  its 
millions  of  people  be  abandoned  to  internal  strife  or  control 
by  a  monarchial  government.  The  acquirement  of  the  right  to 
construct  the  Panama  Canal  was  met  with  opposition  and  ob- 
struction. The  enforcement  of  law  against  trusts  and  other 
great  corporations  was  denounced  as  ineffective  and  designed  to 
deceive  the  public.  The  establishment  of  rural  free  delivery 
was  discouraged.  The  splendid  prosperity  which  followed  the 
restoration  of  the  protective  tariff  was  decried  and  denounced 
as  fictitious  and  temporary,  and  an  attempt  made  to  sow  the 
seeds  of  dissatisfaction  and  discord  among  the  people  by  com- 
plaints of  the  higher  cost  of  food  which  came  as  the  natural  re- 
sults of  the  increased  demand  accompanying  general  prosperity 
and  high  wages. 

It   is  upon   the  evidence  of  the  past   twelve  years,   evidence 
that    the    Republican    party    is    a    party    of    progress,    and    the 
Democracy    a   party   of   inaction,    retardment,   and   fault-f' 
that  the  Republican  party  again  confidently  appeals  for   public 
supp^t  in  the  Presidential  and  Congressional  elections  of  1908. 

30 


REGULATION  OF  CORPORATIONS. 


Regrulation   of   Corporations. 

The  last  eight  years  have  been  momentous.  They  havef 
brought  us  the  problem  of  industrial  and  commerciar  honesty ; 
the  proper  control  of  our  vast  industrial  forces.  The  most 
conspicuous  and  important  part  of  the  work  of  the  present  lie- 
publican  administration  has  been  given  to  this  problem — thu 
"sqiiare  deal"  in  business. 

Our  national  prosperity  has  in  itself  brought  this  business 
questipn  to  the  acute  stage  of  a  national  crisis.  We  ai^  as- 
sured of  our  enormous  national  resources,  of  our  power  to  de- 
velop them.  We  have  accumulated  great  national  and  individual 
wealth.  Now  the  country  is  taking  up  the  question  of  the 
methods  by  which  such  resources  have  been  developed  and  wealth 
acquired,  recognizing  that  no  industrial  system,  however  ap- 
parently successful,  can  peiynanently  endure  unless  it  is  based  on 
fair  competitive  methods  and  equal  opportunity  for  all  men. 

The  enormous  concentration  of  commercial  power  in  a  few 
hands  has  been  one  of  the  marked  characteristics  of  the  past 
decade.*  It  has  formed  part  of  this  problem  and  has  aroused  the 
country  to  a  consideration  of  the  industrial  and  economic  facts 
involved  therein. 

The  Administration  holds  that  the  efficient  business  man 
should  be  fully  rewarded  for  the  great  services  he  renders  to  the 
public.  Tt  desires  in  every  way  to  support  and  foster  honest 
business.  There  is  no  quarrel  with  corporations  themselves,  or 
with  the  acquisition  of  wealth,  but  only  with  certain  forms  of 
corporate  organization  and  management,  and  certain  methods  by 
which  such  wealth  is  acquired.  Corporations  are  the  proper  and 
necessary  machinery  of  modern  business.  We  cannot  carry  on 
our  commerce  without  them.  Therefore  it  is  necessary  that  we 
so  supervise  and  regulate  them  that  their  obvious  evils  and  de- 
fects be  cut  away,  and  the  essential  part  of  our  business  ma- 
chinery be  preserved  for  the  work  for  which  it  is  absolutely 
necessary.  The  community  has  created  corporations;  they  are 
artificial  things,  wholly  due  to  the  act  of  the  state.  The  state 
is  therefore  responsible  for  them  and  has  not  only  the  right, 
but  also  the  imperative  duty,  of  requiring  their  proper  organiza- 
tion and  management. 

The  Administration  has  therefore  given  its  attention  es- 
pecially to  the  Dusiness  methods  of  corporations,  to  put  an  end 
to  those  methods  that  are  against  public  interest,  and  to  pre- 
serve the  essential  good  in  the  system. 

In  so  far  as  corporations  engage  in  interstate  commerce  they 
are  subject  to  Federal  law.  Most  of  OTir  large  companies  are 
interstate  in  their  operations  and  national  in  their  scope,  so 
the  only  power  competent  to  regulate  them  is  the  National 
Government.  The  jurisdiction  must  be"  commensurate  with  the 
scope  of  the  subject-matter.  Our  financial  and  industrial  leaders 
have  deliberately  made  our  businesses  national  by  their  combina- 
tions, blotting  off  the  business  map  the  lines  between  corpora- 
tion and  corporation,  between  State  and  State.  They  cannot  • 
therefore  justly  be  heard  to  complain  if  the  legal  control  of 
these  businesses  be  also  made  national,  to  meet  the  conditions 
they  themselves  have  created. 

Our  present  sj^stem  of  combination,  concentrating  business 
in  the  hands  af  a  few  men,  has  entrusted  to  the  corporate  mana- 
ger vast  powers.  He  can  apply  these  forces  at  any  given  point, 
in  favor  of  one  man  or  another ;  he  can  bargain  for  special  favors 
and  privileges;  he  can  use  its  powers  and  its  crodV.  for  his  own 
private  benefit;  he  can  affect  the  agencies  of  public  opinion  at  a 
thousand  points. 

These  powers  have  in  certain  instances  been  wrongly  ujed! 
The  credit  of  coi'porations  has  been  made  the  tool  of  orivate 
gain,  to  the  loss  of  the  stockholder  and  the  public.     Power  over 


32  Rl'JCULATlON  OF  CORPORATIONS. 

trartk-  lias  brt-ii  usod  to  buy  unfair  advaiitug^es,  t«j  secure  from 
railroads  rcluilcs  aiul  sccrot  private  lates,  favors  in  car  distrib  i- 
tioii.  terminal  and  dock  facilities.  The  sheer  vveif>ht  of  capii/xl 
has  been,  used  to  crush  competitors  by  ruijious  Ipcal  prico-cut- 
tin<^,  simply  to  destroy  the  bjisiness  of  otheiis.  Skillfnl  advau- 
tage  has  been  taken  of  the  confusion  of  our  corporation  laws  to 
obsoire  and  defeat  the  rights  of  minority  stockholders  and  boud- 
holders. 

The  Kepublican  party  has  taken  vig-orou-s  action  on  these  ques- 
tions. It  is  trying  to  save  and  promote  business,  to  maintain  an 
industrial  machinery  Avhich  shall  be  capable  of  standing  up  to 
the  work  of  an  industrial  nation.  That  niachinery  must  be  built 
on  merit  and  not  on  fraud  or  favor.  It  proposes  to  see  that  capi- 
tal and  energy,  and  labor  and  brains,  have  a  fair  cbance.  it 
[)roposes  to  see  that  man  win  who  is  a  good  manufacturer,  a 
good  railway  man,  a  good  salesman,  who  g"t.<^^  good  business  be- 
cause he  gives  good  service,  and  not  that  man  win  who  5§  cnly 
^ood  at  getting  an  unfair  advantage  or  at  preventing  any  on<» 
else  from  doing  business. 

The  business  men  of  the  country  disive  honest  methods.  T  hey 
desire  to  succeed  simply  by  giving  the  best  service  and  the  lowest 
prices,  and  such  success  benefits  the  public  also.  These  men  have 
ihe  supp<;rt  of  the  Administration,  and  they  need  it  agan.wti  the 
unfair  business  methods  of  that  small  but  active  class  of  men 
Vvho  succeed  merely  by  crippling  the  efficiency  of  competitors, 
by  denying  them  equal  opportunity.  Such  success  means  the  in- 
jury of  our  whole  business  system. 

The  President  has  again  and  again  stated  the  principles  of 
the  Administration  in  this  matter  in  addresses  and  messages  to 
Congress. 

"It  fs  an  absurdity  to  expect  to  eliminate  abuses  in  great  corporations 
by  State  action.  *  *  ♦  The  National  Government  alone  can  deal  ade- 
quately with  these  great  corporations."  *******  "Our  aim 
Is  to  help  every  honest  man,  every  honest  corporation,  and  our  policy  means. 
In  its  ultimate  analysis,  a  healthy  and  prosperous  expansion  of  the  busi- 
ness activities  of  honest  business  men  and   honest  corporations."      *      *      * 

"A  combination  should  not  be  tolerated  if  it  abuses  ,^the  power  ac- 
quired by  combination  to  the  public  detriment.  *  *  *  Among  the  points 
to  be  aimed  at  sjiould  be  the  prohibition  of  unhealthy  competition,  such  as 
rendering  service  at  an  actual  los.s  for  the  purpose  of  crushing  out  com- 
petition." 

Led  by  President  Koosevelt,  the  National  Administrati-jn  has 
therefore  been  dealing  with  corporations  along  the  lines  of 
a  consistent  policy  which  has  never  changed  in  principle.  It 
has  enforced  the  laws  that  make  for  fair  competition  and  equal 
opj)ortunity  and  has  made  them  essential  parts  of  our  cominer- 
cial  system ;  equal  rates  from  the  railroads,  the  highways  of 
commerce,  have  be«n  afforded  to  all  shi])pers  as  never  before. 
Railroad  rebates  and  discriminations,  which  are  the  deadliest 
attacks  on  equality  in  business,  have  been  exposed  and  punished, 
so  that  there  is  to-day  less  of  railroad  discrimination  bein.g 
practiced  than  at  any  time  since  the  passage  of  the  Interstate 
Commerce  Law^  in  1887.  The  Standard  Oil  Company  has  had  its 
system  of  unfair  railway  discriminations  laid  open  in  detail  to 
the  public,  has  been  indicted  in  six  diiferent  judicial  districrs, 
including  thirty  indictnu^nts  with  a  total  of  9,704  offenses  enum- 
erated therein ;  in  the  Northern  District  of  Illinois  it  has  been 
convicted  of  1,463  offenses  and  a  fine  imposed  of  $29,240,000. 

As  the  result  of  the  exposure  of  this  system  of  railway  re- 
bates by  the  Bureau  of  Corporations  in  1906,  and  through  the  in- 
•  fluence  of  publicity,  the  railroads  have  cancelled  long-standing 
illegal  and   unfair  rates,  covering  almost  the  entire  country. 

T»ailroad  companies  have  been  indicted,  convicted  and  fined 
For  giving  railway  concessions,  as  well  as  shippers  who  had  ac- 
cepted such  illegal  discriminations.  As  a  result,  the  public  and 
the  railroads  and  the  shippers  of  freight  have  coiue  to  under- 
stand that  the  Elkins  Law,  which  forbids  railway  discriminations, 
means  what  it  says ;  that  it  is  the  determination  of  the  Adminis- 
tration that  the  railroads  of  the  country  shall  be  kept  open  by 
fair  and  equal  rates  for  the  benefit  of  all  shippers  alike,  and 
I  hat  those  secret  discriminations  which  have  built  up  certain 
favored  businesses  upon  the  ruin  of  many  competitors,  shall 
cease  and  be  no  more  hereafter  a  part  of  our  commercial  system. 
There   have   been,   of   course,   the   usual  protests   against  these 


REGULATION  OF  CORPORATIONS.  33 

fines.  It  is  urged  that  only  the  individual  who  did  the  act  should 
be  punished  and  not  the  corporation  i'or  whose  benefit  it  was 
done.  Siich  counsels  of  perfection  are  futile.  The  imprisoning 
of  a  clerk  does  not  stop  railway  rebates  (and  the  clerk  is 
usually  the  highest  man  ag-ainst  whom  legal  evidence  is  obtain- 
able). Industrial  crimes  by  which  a  corporation  benefits  are 
rightly  chargeable  to  that  corporation.  If  the  corporation  is 
punished  the  crime  will  stop. 

The  Site rman  Anti-trust  Law  has  also  been  wisely  used  by  the 
Administration  to  put  an  end  to  those  forms  of  combination 
which  are  directed  either  at  total  suppi^ession  of  proper  competi- 
tion or  at  the  destruction  of  competitors  by  unfair  means.  Th\i 
Administration  has  recognized  that  combination  to  a  certain 
extent  is  necessary  and  proper,  but  that  on  the  other  hand  cer- 
tain forms  of  combination,  from  their  peculiar  purposes  and 
effects,  are  clearly  against  the  public  interest.  The  Northern 
Securitiies  case  established  certain  great  basic  leg-al  principles  as 
to  the  power  of  the  Federal  Government  over  corporations,  as 
did  also  various  other  cases  tried  under  the  Sherman  Law.  The 
result  has  been  to  make  clear  as  never  before  the  positive  powers 
granted  by  the  interstate  commerce  clause  of  the  Constitution, 
and  to  point  out  to  the  country  the  lines  along  which  these 
powers  may  be  used  for  the  regulation  of  corporations.  On  the 
other  hand,  in  the  case  now  pending  under  the  Shi^rman  Law 
against  the  Standard  Oil  Company,  this  law  has  been  applied 
to  a  system  of  unfair  methods  of  competition  and  the  abuse  of 
corporate  powers.  All  of  these  cases  have  had  the  important  re- 
sult of  bringing  to  the  attention  of  the  public  in  concrete  shape 
the  great  problems  involved,  and  of  arousing  and  educating  pub- 
lic opjnion  thereon. 

Again,  the  Reijublican  party  has,  during  this  period,  placed 
upon  the  statute  books  a  number  of  fundamental  acts  greatly 
strengthening  the  ]jower  of  the  Administration  to  carry  out  the 
policies  above  outlined.  The  so-called  Elkins  Law  of  1903  gave 
a  piitctical  means  of  destroying  railway  discriminations.  It 
made  the  crime  the  same  in  the  case  of  the  shipper  as  in  that 
of  the  railroad.  It  set  up  a  definite  standard  of  the  published 
rate  by  which  discriminations  can  be  judged.  It  is  under  the 
Elkins  Act  that  all  the  p7-esei>t  indictments  and  .convictions  for 
railway  discriminations  have  been  secured. 

In  Jtine.  1906,  the  so-called  Rate  Bill  became  a  law.  It  es- 
tablished the  great  principle  of  the  right  of  the  Federal  Govern- 
ment through  the  Interstate  Commerce  Commission  to  regulate 
railway  rates  so  that  the  same  shall  be  reasonable.  It  brought 
also  under  the  jurisdiction  of  that  body  additional  classes  of 
common  carriers,  such  as  express  companies,  sleeping-car  com- 
panies, pipe  lines,  etc..  not  theretofore  covered  bj^  Federal  legis- 
lation. It  made  complete  and  final  the  power  of  the  Government 
to  inspect  railway  accounts,  and  prescrilae  their  form. 

In  1903  there  was  also  created  the  new  Department  of  Com- 
merce and  Labor,  and  in  that  Department  there  was  established 
the  Bureau  of  Corporations.  The  Commissioner  of  Corporations 
is  given  compulsory  power  to  investigate  into  the  organization, 
conduct  and  management  of  the  so-called  industrial  corporations 
engaged  in  interstate  commerce.  He  does  for  industrial  cor- 
porations, to  a  certain  extent,  what  the  Interstate  Commerce 
Commission  does  for  the  railroads.  The  information  he  thus  ac- 
quires is  transmitted  to  the  President  only ;  and  made  public  as 
he  directs.  This  provision  safeguards  the  iise  of  this  informa- 
tion, which  may  cover  matters  of  private  business  which  .should 
be  made  public  only  upon  the  responsibility  of  a  high  officer  of 
the  Government.  The  work  of  this  Bureau  has  been  that  of 
"efficient  pvblicity"— -of  setting  before  the  public,  after  very 
careful  investigation,  summarized  statements  and  brief  con- 
clusions showing  the  important  facts  of  corporate  operations. 
This  gives  the  concise  infoi-mation  that  the  citizen  will  read  and 
upon  which  he  can  form  an  intelligent  and  clear  opinion  on  these 
paramount  questions  of  the  present.  Complex  corporate  ques- 
tions are  thus  reduced  to  their  simple  factors  of  right  and  wrong, 
and  in  this  shape  the  people  can  settle   them  promptly. 

It  has  been  the  established  policy  of  the  Administration 
to  get  the  help  of  the  public  in  settling  these  great  questions. 


34  REQVLATION  OF  CORPORATIONS, 

Many  of  the  most  serious  evils  in  corporate  organization  and 
management  can  be  reached  only  by  public  opinion.  Many 
forms  of  unfair  competition  and  morally  fraudulent  business 
nevertheless  are  within  the  strict  meaning  of  law  and  cannot  \>e 
attacked  by  judicial  process.  The  only  way  in  which  they  can 
be  reached  is  by  the  ordinary  standards  of  business  honesty  as 
understood  by  the  average  citizen.  It  has  been  encouraging  to 
see  the  effect  of  such  a  definite  policy.  Mere  general  den\incia- 
tion  carries  little  weight.  But  when  improper  conduct-has  been 
authoritatively  set  forth,  with  the  specific  details  of  time,  place, 
person  and  amount,  there  are  few  managers  of  business  in  this 
counti'v  who  dare  stand  up  against  the  weight  of  public  criti- 
cism thus  dii'ect-ed  at  such  transactions.  Further,  this  is  pre- 
ventive ;  it  operates  beforehand.  The  business  manager  who 
knows  that  his  transactions  are  liable  to  be  examined  and  ex- 
posed by  expert  Government  officers  hesitates  long  before  doing 
that  which  he  knows  will  meet  with  public  condemnation.  The 
eft:'ect  of  this  restraint,  therefore,  is  general  throughout  busi- 
ness, and  not,  like  the  isolated  result  of  a  single  court  finding, 
effective  only  upon  the  particular  parties  to  the  suit  and  after 
the  evil  has  been  done. 

Furthermore,  this  process  educates  public  opinion.  Our  in- 
dustrial system  is  the  most  complex  thing  in  modern  life. 
The  average  citizen  has  no  time  to  investigate  its  details  so 
as  to  draw  reliable  conclusions  therefrom.  The  ignorance  of 
the  many  is  always  the  unfair  advantage  of  the  unscrupulous 
few.  If  there  is  anything  which  the  voter  is  entitled  to 
demand  from  his  Government  it  is  information  in  regard 
to  such  subjects.  He  must  have  it  in  such  shape  and  with  such 
authority  that  he  will  understand  and  accept  these  conclusions  as 
a  reliable  basis  for  his  views  on  commercial  affairs.  The  busi- 
ness question  is  by  far  the  most  important  now  before  the 
country.  It  is  therefore  clear  that  this  business  education  of 
the  public  should  be  carried  on  as  fully  and  as  carefully  as  any 
work  of  the  Government,  and  that  the  public  standards  of  busi- 
ness morals  be  made  as  definite  and  effective  as  possible.  This 
it  has  been  the  consistent  policy  of  the  Administration  to  do, 
and  it  has  gone  far  toAvard  doing  it. 

.  Thus  the  Government  by  simple  exposure  wiped  off  the  busi- 
ness map  the  greatest  system  of  railway  rebates  that  ever  ex- 
isted, the  one  exj)osed  by  the  Bureau  of  Corporations  in  its  re- 
port of  May,  1900.  Immediately  upon  the  publication  of  that 
report  the  railroads  canceled  every  illegal  rate  criticised  there- 
in, as  well  as  many  others  that  were  not  illegal  but  nevertheless 
unfair.  Similar  action  on  the  part  of  the  Government  in  regard 
to  certain  operations  in  cotton  exchanges  has  resulted  already 
in  the  introduction  of  reforms  in  the  methods  of  those  exchanges. 
Numerous  other  instances  have  occurred  where  unfair  methods 
of  competition  have  been  abandoned  through  fear  of  publicity 
and  the  small  and  independent  competitors  in  a  great  industry 
have  been  relieved  from  the  ruinous  pressure  of  secret  andv  un- 
fair methods  on  the  part  of  large  corporations.  So  great  has 
been  the  progress  in  public  opinion,  and  so  heavy  its  pressure, 
that  the  great  corporations,  hitherto  against  publicity,  are  now 
themselves  openly  advocating  and  adopting  it.  The  most  far- 
sighted  business  leaders  are  urging  it,  for  the  protection  of  their 
own  businesses.  There  has  been  a  sweeping  change  in  public 
opinion  that  is  one  of  the  greatest  advances  ever  seen  in  this 
nation. 

This  whole  work  of  the  Republican  Administration  has  dealt 
with  a  matter  of  the  highest  importance  to  the  nation.  Upon  its 
successful  outcome  depends  the  permanent  welfare  of 'this  coun- 
try, the  permanent  protection  of  property  rights,  the  standards 
of  business  morals  that  are  and  will  be  current  among  us,  the 
establishment  of  law  as  against  those  that  set  at  nought  the  law. 

As  the  President  has  said  in  his  message  to  Congress  of 
January  31,    1908: 

"It  is  not  a  movement  to  be  completed  in  one  year,  or  two  or  tliree 
years.  It  is  a  movement  whicli  must  be  persevered  in  until  the  spirit 
that  lies  behind  it  sinks  deep  into  the  heart  and  conscience  of  the  whole 
people.  It  is  always  important  to  choose  the  right  end  to  achieve  our 
purpose,  but  it  is  even  more  important  to  keep  this  purpose  clearly  be- 
fore us ;  and  this  purpose  is  to  secure  national  honesty  in  business  and 
politics." 


REGULATION  OF  CORPORATIONS.  35 

By  the  slow  process  of  education,  by  the  testing  of  present 
methods  available  and  by  suggesting  new  ones,  the  work  of  the 
Administration  has  thus  been  leading  up  toward  that  logical 
advance  in  the  system  of  dealing  with  corporations  which  it  [^ 
clear  must  soon  come.  The  final  solution  of  this  question  must 
be  some  efficient  system  of  regulation,  some  control  of  corpora- 
tions which  shall  be  positive  and  active.  The  Administration 
has  consistently  stood  for  such  an  advance,  believing  that  the 
present  commercial  machinery  is  too  complex  to  be  adjusted  by 
the  inflexible,  occasional  remedy  of  judicial  procedure.  It  holds 
that  corjiorate  business  must  be  regulated  in  the  future  by  ad- 
ministrative action  on  the  part  of  the  Government  through  a 
ix-rmanent  office  supervising  interstate  corporations,  making 
tiieir  accounts  subject  to  inspection  at  will,  publishing  the  im- 
portant facts  of  corporate  business  in  concise  form,  and  ])rovid- 
Mag  also  for  that  protection  of  law-abiding  corporations  that  is 
the  correlative  of  regulation. 

No  such  system  can  be  reached  until  the  public  believes  that 
it  is  necessary.  Such  public  opinion  is  rapidly  growing  and  will, 
in  time,  bear  fruit  in  such  a  system,  but  when  this  system  comes, 
as  it  ultimately  will,  it  will  be  largely  the  results  of  the  process 
of  education  and  intelligent  publicity  that  for  the  last  eigjit  years 
has  been  carried  on  by  the  Eepublican  Administration  in  con- 
nection with  corporate  affairs. 

Bureau    of     Corporations. 

The  Bureau  of  Corporations,  a  part  of  the  Department  of 
Commerce  and  Labor,  was  created  in  February,  1903,  by  the  act 
establishing  that  Department.  It  is  charged  with  the  duty  of 
investigating  into  the  organization,  conduct  ami  management  of 
corporations  engaged  in  interstate  and  foreign  commei'ce  (other 
than  common  carriers  subject  to  the  jurisdiction  of  the  Inter- 
state Commerce  Commission)  and  of  reporting  the  results  there- 
of to  the  President,  for  the  information  of  Congress  and  the 
public. 

Two  ideas  lie  at  the  basis  of  its  work :  Its  object  is  the  pro- 
motion of  fair  and  honest  business  methods ;  its  means  "efficient 
publicit3\"  Its  Commissioner  has  compulsory  powers  of  obtain- 
ing information.  It  has  in  its  employ  men  of  expert  training 
IE  corporate  affairs.  With  these  forces  at  its  disposal,  it  gathers 
minutely  and  accurately  information  in  regard  to  the  opera- 
tions of  the  corporations  representing  the  great  staple  iiidus- 
tries  of  the  country,  and  reduces  the  vast  mass  of  this  informa- 
tion to  such  shape  that  "the  man  in  the  street"  will  read  it.  It 
sets  before  the  President,  Congress,  and  the  public  reliable  in- 
formation as  to  the  operations  of  the  great  interstate  corpora- 
tions in  such  brief  and  clear  form  as  to  show  the  important 
tendencies  and  conditions  of  corporate  business.  With  such  in- 
.formation  as  a  basis,  the  great  corrective  foi'ce  of  public  opinion 
can  be  intelligently  and  effectually  directed  at  those  industrial 
evils  that  constitute  the  most  important  of  our  present  prob- 
lems. The  pubuc  will  not  read  great  masses  of  statistics  or  of 
industrial  facts.  These  must  be  collected,  it  is  true,  in  vast 
masses,  but  when  presented  to  the  public  they  must  take  the 
shape  of  brief  conclusions,  absolutely  reliable,  w^holly  impartial, 
and  dealing  only  with  the  significant  tendencies  of  the  business 
or  corporation  in  question.  This  is  the  sort  of  information  that 
the  citizen  demands,  and  has  a  right  to  demand,  from  his  Govern- 
ment. 

On  these  lines  the  work  of  the  Bureau  has  been  consistently 
carried  on.  In  1905  it  issued  its  first  report  on  the  beef  in- 
dustry. In  1906  it  issued  its  report  on  the  Transportation  of 
Petroleum,  setting  forth  detailed  facts  in  regard  to  a  large 
number  of  railway  discriminations  in  favor  of  the  Standard  Oil 
Company  and  its  subsidiary  concerns,  many  of  these  illegal, 
others  not  illegal  but  unfair.  Numerous  indictments  presented 
'by  the  Department  of  Justice  against  these  concerns  were  based 
ion  this  report,  manj'-  of  which  are  now  pending,  two  of  which 
"lave  been  tried,  and  one  of  which  resulted  in  the  fine  of  $29,- 
10,000  imposed  on  the  Standard  Oil  Company  at  Chicago  in 
p90T.     In  all  30  indictments  have  been  brought  under  this    re- 


3C  REGUI.ATIOX  OF  COliroh'ATlOXS. 

port  oCthr  Hureaii.  inriutliug   U,7()4  oftenses  in  ;ill,  unci  coveriu'.' 
a  larjre  portion  of  the  fOUnLrv. 

While  the  criiiiiiial  prosecution  of  this  long-established  and 
elVeetive  system  of  railway  diseriniinations  is  very  important. 
a  nuK'h  more  important  result  fiom  tlie  work  of  the  Bureau  was 
the  s\\ee|;iiii>-  elTeet  of  simple  publicity  on  this  system.  Almost 
immedisiiely  upon  1  he  issuance  of  this  report  in  1906,  the  rail- 
roads canceled  e\ery  illcf^al  rate  criticised  in  the  report,  as  well 
as  many  other  rates  not  illej^ai  Ijut  unfair,  and  it  is  safe  to  say 
that  never  since  the  pas.saj^e  of  the  Interstate  Commerce  Act  in 
IS87  has  the  g-iving-  of  railway  discriminations  been  so  mucli 
'  iirtailed  as  it  has  l)een  since  the  publication  of  this  report- 
In  May,  1907,  the  liureau  [)ublished  a  re})ort  on  the  Position 
of  the  Standard  Oil  Company  in  the  l^etroleum  Industry,  showing 
the  additional  methods  used  by  the  Standard  Oil  Company  lo 
secure  and  maintain  domination  in  that  industry.  In  August. 
1907,  the  Hureau  pid)Iishcd  a  report  on  the  Prices  and  I'rofits 
in  the  Peti-oleum  Indu.stry,  setting-  forth  mainly  the  pri(( 
methods  of  the  Standard  Oil  Company  and  their  effect  on  com- 
petitors and  consumers.  This  series  of  reports  has  gone  far  to 
lay  before  the  public  the  essential  facts  necessai-y  for  it  to  form 
a  fair  and  effective  opinion  on  the  operations  of  the  domii\uiii 
corjjoration  in  one  of  our  greatest  industries,  and  has  largely 
relie\ed  both  the  public  and  independent  competitors  of  the  un- 
fair pressure  of  an  almost  controlling  system  of  railway  dis- 
criminations. 

In  May,  1908,  the  Bureau  published  a  report  on  certain  fea 
tui'es  of  the  operations  of  cotton  exchanges,  showing  the  injuri- 
ous effects  upon  that  industry  of  certain  regulations  and  forms 
on  those  exchanges,  and  pointing  the  way  toward  improvement 
therein. 

Tt  also  has  now  under  investigation  the  lumber,  tobacco,  and 
iron  and  steel  ind\istries,  the  harvester  industry,  inland  and 
coastwise  water  transportation,  and  a  further  inquiry  into  the 
operations  of  the  cotton  exchanges.  •  * 

The  beneficial  results  of  the  Bureau's  work  have  appeared  in 
the  marked  diminution  of  railway  rebates,  the  eliminating  of 
many  forms  of  oppressive  and  unfair  competition,  and  ©specially 
in  a  great  advance  in  the  intelligent,  effective,  and  actively  ex- 
pressed opinion  of  the  country  as  to  corporate  operations,  as 
well  as  a  far  better  understanding  of  our  entire  commercial 
system. 


WORK     OF     THE     DEPARTMENT     OF     JUSTICE     ON     CONTROL 
OF    CORPORATIONS. 

Prosecutions    under    Sliernian    Act    and    Interstate    Commerce 

Ija^vN. 

It  has  been  the  duty  of  the  Department  of  Justice  to  defend 
the  soundness  of  the  positions  takea  by  it  in  matters  relating 
to  prosecutions  under  the  Sherman  Anti-Trust  Act,  so-called, 
and  also  under  the  Interstate  Commerce  Act,  by  carrying  pro- 
ceedings thus  inaugurated  through  the  various  courts  and  to  a 
final  determination  in  the  Supreme  Court  of  the  United  States. 
It  has  been  the  constant  endeavor  of  the  Department  to  have  the 
material  qi;estions  involved  settled  as  soon  as  practicable,  and 
to  this  end  it  has  moved  to  advance  cases,  and  has  been  insist- 
ent upon  the  prosecution  of  the  various  appeals  and  interme- 
diate steps  involved.  The  result  has  been  a  definition  by  the 
Supreme  Court  of  many  aspects  of  the  Sherman  Law,  and  a 
series  of  decisions  imder  which  further  proceedings  in  enforce- 
ment of  this  law  can  be  taken  with  reasonable  hope  of  success; 
the  facts  in  each  case  being  determined  by  a  thorough,  and  fre- 
quently expensive,  examination  by  the  Department  of  Justice. 
The  following  very  brief  statement  of  the  cases  so  far  decided, 
and  the  particular  aspect  of  the  law  decided  in  each,  will  be 
found  to  be  of  value  as  noting  the  progress  of  the  work  of  re- 
straining unlawful   combinations : 


I 


REGULATION  OF  CORPORATIONS.  37 

U.  S.  V.  E.   C.  Knight  Co. — Sugar  Trust  Case — 156  U.  S.  1. 

This  was  the  first  case  under  the  Anti-trust  act  taken  to  the  Supreme 
Court  of  the  United  States.  This  was  a  suit  instituted  by  the  Government 
against  the  "Sugar  Trust."  The  Circuit  Court  and  the  Circuit  CDurt  of  Ap- 
peals decided  against  the  Government,  and  their  decisions  were  affirmed  by 
the  Supreme  Court,  which  heJd  that  the  acts  denounced  by  the  Act  of  July 
2,  1890,  are  a  monopoly  in  interstate  and  international  trade  or  com- 
merce, and  not  a  monopoly  in  the  manufacture  of  a  necessity  of  life. 

U.   S.  V.   Trans-Missotiri  Freight  Association,   166   U.    S.    290. 

This  was  a  suit  to  enjoin  the  operations  of  a  combination  of  railroads 
engaged  in  interstate  commerce  alleged  to  have  formed  for  the  purpose  of 
maintaining  just  and  reasonable  rates,  and  preventing  unjust  discriminations. 
The  Circuit  Court  and  Circuit  Court  of  Appeals  both  decided  against  the 
Government,  but  their  decisions  were  reversed  by  the  Supreme  Court, 
which  held  that  the  Anti-trust  act  applied  to  railroad  carriers  and  embraced 
all  contracts  in  restraint  of  trade  and  commerce  among  the  several  States 
and  with  foreign  nations,  and  was  not  confined  to  those  in  which  the 
restraint  was  unreasonable. 

U.  S.   V.  Joint  TraiHc  Association,   171    U.    S.   505. 

This  was  a  bill  in  equity  to  enjoin  the  alleged  violation  of  the  Anti- 
trust law  by  a  combination  of  thirty-one  railroads  engaged  in  transporta- 
tion between  Chicago  and  the  Atlantic  coast,  which  had  formed  themselves 
into  a  combination  to  control  competitive  traffic,  fix  rates,  etc.  The  Circuit 
Court  and  Circuit  Court  of  Appeals  decided  against  the  Government,  which 
decisions,  however,  were  reversed  by  the  Supreme  Court,  that  court  reaf- 
firming the  case  of  U.  S.  v.  The  Trans-Missouri  Frcii/ht  Association  and 
holding  that  the  Traffic  Association  was  an   illegal  combination. 

U.  S.  V.  Hopkins    et  al.,  171  U.  S.  578. 

This  was  a  bill  to  restrain  the  operations  of  the  Kansas  City  Live 
Stock  Exchange.  An  injunction  was  granted,  but  the  Supreme  Court  re- 
versed the  decree  of  the  Circuit  Court,  holding  that  the  bu.-iness  of  a 
Live  Stock  Exchange  did  not  constitute  interstate  commerce,  and  was  not 
covered  by   the  Anti-trust  act. 

Anderson    v.    U.    S.,    171    U.    S.    604. 

This  was  a  proceeding  to  restrain  the  operations  of  The  Traders'  Live 
Stock  Exchange,  of  Kansas  City,  an  association  formed  for  the  purpose  of 
buying  cattle  on  the  market.  A  temporary  injunction  wa«  granted  and  an 
appeal  taken  to  the  Circuit  Court  of  Appeals,  which  certified  certain  ques- 
tions to  the  Supreme  Court  for  Instructions.  The  Supreme  Court  decided 
that  the  rules  of  the  Live  Stock  Exchange  were  not  in  violation  of  the 
Anti-trust   act. 

U.  8.  V.  Addyston  Pipe  and  Steel  Co.,  175  U.  S.  211, 

This  was  a  suit  by  the  Government  to  enjoin  the  operations  of  the 
cast-iron  pipe  trust,  which  attempted  to  enhance  the  price  of  such  pipe 
by  controlling  and  parceling  out  the  manufacture  and  sale  thereof  through- 
out the  several  States  and  Territories  to  the  corporations  forming  the  com- 
bination. The  Government's  bill  was  dismissed  by  the  Circuit  Court, 
which  decision,  however,  was  reversed  by  the  Circuit  Court  of  Appeals, 
affirmed  by  the  Supreme  Court  of  the  United  States.  That  court  held  the 
combination  to  be  a  violation  of  the  act,  indicating  wherein  it  came  with- 
in the  prohibitive  power  of  the  Congress  and  distinguishing  the  case  from 
the  non-violative  acts  in  the  case  of  the  United  States  v.  E.  C.  Knight 
Company. 

U.  8.  V.  Northern  Securities  Co.   et  al.,  193  U.  S.  197. 

This  was  a  suit  instituted  by  the  Government  to  enjoin  the  Northern 
Securities  Co.  from  purchasing,  acquiring,  receiving,  holding,  voting,  or  in 
any  manner  acting  as  the  owner  of  the  shares  of  the  capital  stock  of  the 
Great  Northern  Railway  Company  and  Northern  Pacific  Railway  Company, 
and  to  restrain  the  railway  companies  from  permitting  the  Securities  Com- 
pany to  vote  any  of  the  stock  of  the  said  railway  companies,  or  from 
exercising  any  control  whatsoever  over  the  corporate  acts  of  either  of 
said  railway  companies,  it  being  charged  that  the  Securities  Company  was 
formed  for  the  purpose  of  acquiring  a  majority  of  the  capital  stock  of  the 
two  railway  companies  named  in  order  that  it  might  in  that  way  effect 
practically  a  consolidation  of  the  two  companies  by  controlling  rates  and 
restricting  and  destroying  competition,  in  violation  of  the.  Sherman  Anti- 
trust act.  The  Circuit  Court  deqided  in  favor  of  the  Government,  and  thib 
decision  was   afiirmed  by   the  Stipreme  Court  of  the   United   States. 

U.   8.   V.    Sicift   &    Co.     et   al.,    196    U.    S.    375. 

This  was  a  suit  brought  by  the  United  States  against  the  "Beef 
Trust"  to  enjoin  the  carrying  out  of  an  unlawful  conspiracy  entered  into 
between  Swift  &  Co.  and  other  defendants  and  with  various  railway  com- 
panies to  suppress  competition  and  to  obtain  a  monopoly  in  the  purcha-e 
of  live  stock  and  the  selling  of  dressed  meats.  The  Circuit  Court  decided 
in  favor  of  the  Government,  and  this  decision  was  affirmed  by  the  Supreme 
Court,  which  held  that  it  does  not  matter  if  a  restrictive  combination  em- 
braces restraint  and  monopoly  of  trade  within  a  single  State  if  it  also 
embraces  and  is  directed  against  commerce  among  the  States  and  that 
the  effect  of  such  a  combination  was  direct  upon  interstate  commerce. 

Hale  V.  Henkel,  201  U.  S.  43;  McAlister  v.  Henkel,  id.  90  (Tobacco 
Trust    Cases). 

These  cases  grew  out  of  an  investigation  by  a  Federal  grand  jury 
in    the  Southern   District  of   New    York  of   the    American    Tobacco   Co.    and 


38  REGULATION  OF  CORPORATIONS. 

the  MacAndrews  and  Forbes  Co.,  who,  it  was  believed,  were  violating  the 
Anti-trust  laws.  Hale  and  McAllster,  officers  of  the  companies,  refused 
to  produce  books  and  papers  and  to  testify.  The  Circuit  Court  adjudged 
them  in  contempt.  Writs  of  habeas  corpus  were  sued  out,  which,  after 
hearing,  were  discharged.  The  Supreme  Court  affirmed  the  orders  denying 
the    writs. 

Nelaon  v.  V.  S.  (and  two  other  cases),  201  U.  S.  92;  Alexander  v. 
V.  S.  (and  four  other  cases),  201  U.  S.  117.  (Paper  Trust  Ca.ses.) 
I  This  was  a  bill  in  equity  filed  by  the  Government  against  The  General 
Paper  Co.  and  twenty-three  other  corporations  engaged  in  the  manufac- 
ture and  sale  of  paper,  alleging  that  the  defendants  bad  entered  into  a  com- 
bination and  conspiracy  to  control,  regulate,  monopolize,  and  restrain 
trade  and  commerce  in  the  manulaclure  ol  news-print,  manila,  fiber,  and 
other  papers  in  violation  of  the  Anti-trust  act,  by  making  the  General 
Paper   Co.    their   general   sales   agent. 

In  the  Nelson  ca»es  the  United  States  petitioned  the  Circuit  Court 
for  an  order  requiring  the  production  before  a  special  examiner  of  certain 
books,  documents,  and  paper.s,  and  requiring  defmdants  to  answer  certain 
questions.  Refusing  to  .obey  the  orders,  the  defendants  were  adjudged 
guilty  of  contempt.  The  Supreme  Court  affirmed  the  decision  of  the 
lower  court. 

The  Alexander  cases  were  similar  to  the  Nelson  cases,  except  that 
there  were  no  proceedings  in  contempt,  appeals  having  been  taken  on  be- 
half of  the  separate  deundants  to  the  Supreme  Court  from  the  order  of 
the  Circuit  Court  requiring  them  to  produce  the  books,  papers  and  docu- 
ments requested  and  to  answer  the  questions  put  to  them.  The  Supreme 
Court  declined  to  entertain  the  appeals  on  the  ground  of  writ  of  jurisdic- 
tion. 

With  regard  to  the  latter  case  it  may  also  be  stated  that  on 
May  11,  1906,  judgment  was  ordered  In  favor  of  the  Government 
by  the  Circuit  Court  for  the  District  of  Minnesota,  dissolving  the 
combination  and  affording  the  Government  all  relief  pra3'ed  for 
in  its  bill.  A  number  of  other  cases  l»a\e  been  successfully  prose- 
cuted by  the  Department  of  Justice,  but  which  did  not  reach 
the  Supreme  Court,  including  the  case  against  the  Federal  Salt 
Co.,  The  Nome  Retail  Grocers'  Association,  The  Otis  Elevator  Co., 
The  National  Association  of  Retail  Druggists,  and  others,  the 
details  of  which  are  given  in  a  statement  as  to  the  civil  and 
criminal  cases  instituted  by  the  United  States  under  the  Sherman 
Act  and  the  Act  to  Regulate  Commerce,  and  which  may  be  had 
upon  application  to  the  Department  of  Justice.  Important  pro- 
ceedings in  similar  cases  are  now  being  carried  on  in  the  courts 
by  the  Department  of  Justice,  including  a  proceeding  agaln.st  the 
Standard  Oil  Company  in  consequence  of  a  bill  in  equity  filed  in 
the  Eastern  District  of  Missouri,  alleging  that  the  Company  is 
maintaining  a  combination  in  restraint  of  trade  in  the  manufac- 
ture and  sale  of  petroleum ;  the  case  against  the  Reading  Com- 
pany and  others  to  dissolve  a  combination  among  the  anthracite 
coal  carrying  roads :  the  case  against  the  American  Tobacco  Com- 
pany and  others  ;  the  case  against  the  Powder  Trust,  so-called, 
in  all  of  which  cases  the  Department  oi  Justice  is  actually  en- 
gaged, either  in  investigation  of  evidence  in  support  of  the  alle- 
gations of  the  bill  or  is  actually  taking  testimony  in  connection 
therewith.  It  ayipears  from  the  records  of  the  Department  of 
Jvi.stice  that  sixteen  bills  in  equity  have  been  brought  under  the 
Sherman  act  during  the  administration  of  President  Roosevelt, 
as  against  eleven  bills  during  the  entii'e  time  of  the  previous  ad- 
ministrations ;  that  eighteen  indictments  have  been  bro^^ght 
under  the  same  act,  as  against  five  indictments  previously;  that 
seven  convictions  in  criminal  cases  have  been  secured,  as  against 
a  single  conviction  in  the  previous  history  of  the  administration 
of  this  law.  A  total  of  $96,000  has  been  collected  in  fines  from 
the  violators  of  the  Anti-trust  enactment. 


Enforcement   of  Act  to   Rej^ulate   Commerce. 

The  following  statement  of  the  proceedings  undertaken  to 
enforce  the  Act  to  Regulate  Commerce,  with  the  Elkins  and  Hep- 
burn amendments,  indicates  the  activity  with  which  the  De- 
pai'tment  of  Justice,  under  the  administration  of  President 
Roosevelt,  has  been  proceeding  in  this  important  aspect  of  its 
duties. 

12  petitions  to  enjoin  departure  from  published  tariff: 
8  temporary  injunctions  granted  and  answers  filed. 
3  injunctions  granted. 
1  pending. 


REGULATION  OF  CORPORATIONS.  39 

11  petitions  to  enforce  order  of  Commission  : 

1  defendant   complied   and    ijetition    dismissed. 

4  petitions  dismissed. 

2  injnnctions  granted. 

1  discontinued.  , 

3  pending. 

4  petitions  to  compel  filing  of  annual  reports: 

1  dismissed. 

3  discontinued. 

2  proceedings  .to    compel    defendants   to    give    testimony    before 
Commission : 
Granted. 

1  petition  to  test  law  with  reference  to  issuance  of  franks  by  ex- 
press companies : 
Pending. 
7  indictments  for  charging  less  than  established  rates: 

2  nol-prossed. 

5  pending. 

4  indictments  for  pooling : 
1  dismissed. 

3  nol-prossed. 

52  indictments  for  receiving  rebates : 
18  convictions. 
1  acquittal. 

1  dismissed. 

2  demurrers  sustained. 
30  pending. 

59  indictments  for  granting  rebates: 

13  convictions;  fines  imposed  aggregating  $697,000. 

1  dismissed. 

2  nol-prossed. 
43  pending. 

6  indictments  for  conspiring  to  obtain  rebates : 

2  convictions;  1  case,  2  defendants  fined  $1,025  each;  1  case, 
defendants  fined  in  the  aggregate  $25,000.     Total  fines  im- 
posed, $27,050. 
1  nol-prossed. 

1  acqiiittal. 

2  pending. 

1  indictment  for  conspiring  to»grant  rebates: 
Demurrer  filed  and  sustained. 

1  indictment  for  failure  to  file  schedules : 

Conviction ;'  fined  $15,000. 
1  indictment  for  discrimination  in  distribution  of  cars : 

Demurrer  filed  and  sustained. 

1  indictment  charging  conspiracy  to  violate  Interstate  Commerce 
Laws : 

Demurrer  filed  and  sustained. 

Total:  129  indictments,  34  convictions,  2  acquittals,  8  nol- 
prossed,  5  demurrers  sustained,  3  indictments  dismissed, 
and  77  pending. 

In  connection  with  the  foregoing,  important  results  have 
been  obtained  in  the  Supreme  Court,  the  law  having  been  finally 
tested  in  the    following  cases : 

Great  Northern  RailiDay  Company  v.  United  States,  decided 
at  the  present  term.  This  case  involved  a  question  of  the  proper 
construction  of  section  10  of  the  Hepburn  law  of  June  29.  1906, 
It  was  contended  by  the  Railroad  Ctmipany  that  said  section 
should  be  construed  as  showing  an  intention  on  the  part  of  Con- 


40  lU'J.l  LAlKiX  Of  COUrORATIONS. 

press  to  rcloaso  from  future  prosecMition  all  offenses  committed 
ajrainst  the  Klkins  Aet  whieli  oceurrccl  prior  to  the  J29th  day  of 
June.  190().  exeopt  sueh  eases  as  were  at  that  time  actually  pend- 
ing in  the  court-!.  The  Supreme  Court  followed  the  contention 
of  the  (Joverninent  and  held  that  all  ojTenses  which  were  com- 
mitted against  the  Elkins  Act  niif>fht  be  prosecuted  at  any  time 
within  the  statute  of  liniit'itions  even  though  such  prosecutions 
were  instituted  after  the  29th  day  of  June,  1906. 

Jl'he  Armour  Packing  (Jornimfiy  v.  United  States,  decided  at 
the  present  term  of  the  Supreme  Court.  This  case  involved  the 
determination   of  two  important  questions  of  law  : 

First.  It  sustained  the  contention  of  the  Govel-nment  that  a 
prosecution  for  g-ranting-  a  concession  in  violation  of  the  Inter- 
state Commerce  Law  with  respect  to  the  transportation  of  mer- 
chandise in  interstate  commer^'e,  might  be  instituted  and  prose- 
cuted in  any  district  through  which  the  transportation  was 
carried.  It  was,  in  effect,  held  by  the  court  that  in  such  an 
offense  one  of  the  essential  elements  of  the  crime  was  trans- 
portation,     i        ?    .  .  ^ 

Second.  The  court  also  said  that  a  contract  betw^een  the 
carrier  and  the  shipper  for  the  transportation  of  freight  for  a 
reasonable  length  of  time  at  the  then  established  legal  rate 
wo\dd  not  protect  either  the  carrier  or  the  shipper  from  future 
prosecutions  under  the  law  in  case  the  common  carrier  changed 
the  rate,  as  pi-ovided  by  law,  and  the  shipper  and  the  carrier 
should  still  continue  to  observe  the  old  rate  as  provided  for  in 
the  contract. 

Stcift  &  Co.  V.  United  States. 

Cuclahy  Packing  Company  v.  United  States. 

Nelson    Morris  &  Co.  v.  United  States. 

Chicago,  Burlington  &■  Quincy  R.   R.  Co.  v.  United  States. 

Each  of  the  above  cases  decided  in  favor  of  the  Government, 
following  the  decisions  in  the  Armour  case. 

Interstate  Commerce  Gomymissioii  r.  Baird  et  ah 
Baird  and  other  agents  of  certain  coal  carrying  roads  de- 
clined to  give  testimony  before  the  commission  in  the  anthracite- 
coal-rate  investigation.  On  June  12,  1903,  the  Circuit  Court  for 
the  Southern  District  of  New  York  denied  the  motion  to  require 
the  defendants  to  answer  the  questions.  On  April  4,  1904,  the 
Supreme  Court  reversed  the  Circuit  Court  and  remanded  the  case 
for  fui'ther  proceedings,  holding  that  tue  questions  propounded 
were  proper  and  should  have  been  answered.  In  this  case  fur- 
ther construction  of  the  Elkins  Law^  was  made. 

United  States  v.  Chespeake  d  Ohio  Raihoay  Company  et  al. 
In  this  case  a  petition  was  filed  under  the  Interstate  Commerce 
Act  of  the  Elkins  Law  to  restrain,the  Chespeake  &  Ohio  Railway 
Company  from  giving  preferences  and  rebates  in  coal  rates  to  the 
New  York,  New  Haven  and  Hartford  Eailroad  Company.  On 
February  19,  1904,  an  injunction  was  granted  in  the  United 
States  Circuit  Court  for  the  Western  District  of  Virginia.  On 
February  19,  1906,  the  Suj^reme  Court  affirmed  the  judgment  of 
the  Circuit  Court. 

The  following  cases  pending  in  the  Stipreme  Court  of  the 
United  States  and  undecided  : 

The  Chicago  d  Alton  Railway  Company  et  al.  v.  United 
States.  On  December  13,  1905,  an  indictment  was  returned 
charging  a  violation  of  the  Act  of  F'ebruary  4,  1887,  as  amended 
by  the  Elkins  Act,  for  offering,  granting  and  giving  rebates  to 
Schwartzchild  &  Sulsberger  Company.  Defendants  wei'e  con- 
victed. On  December  13,  1905,  an  indictment  was  returned  under 
the  Elkins  Act  for  granting  and  giving  rebates  on  freight.  July 
6,  1906:  verdict  of  guilty.  July  11,  1906:  the  defendant  corpora- 
tion fined  $40,000.00,  and  individuals  fined  $10,000.00  each.  Case 
appealed  to  the  Circuit  Court  of  Apr)eals  of  the  Seventh  Circuit 
on  April  16,  1907.  The  judgment  vas  affirmed  by  the  Circuit 
Court  of  Appeals  on  January  27,  190S,  and  a  Writ  of  Certiorari 
was  allowed  to  the  Supreme  Court  of  the  United  States.  The 
point  involved  in  this  case  is  whether  the  allowance  by  the 
Railroad  Company  of  $1.00  a  car  to  the  Schwartzchild  &  Suls- 


REGULATION  OF  CORPORATIONS.  41 

berger  Company,  at  Kansas  City,  as  and  for  a  pretended  rental 
and  use  of  the  Schwartzchild  &  Sulsberger  tracks  constituted  a 
rebate  to  said  company  from  the  Alton  Jiailway  Company. 

The  New  York  Central  dc  Hudson  River  Railway  Coinimny  v. 
United  States.  On  March  14,  1906,  an  indictment  was  returned 
under  the  Interstate  Commerce  and  the  Elkins  Laws  for  grant- 
ing rebates.  On  November  15,  1906,  the  Kailroad  Company  was 
found  guilty  and  sentenced  to  pay  a  fine  of  $18,000.00.  The  case 
was  brought  to  the  Supreme  Court  on  a  Writ  of  Error.  This 
case  involves  numerous  questions  of  law  arising  xinder  the  Elkins 
Act. 

New  York  Central  &  Hudson  River  Railway  Comimny  et  al.  v. 
United  States;  indicted  on  May  4,  1906;  convicted  October  17, 
1906;  the  railway  company  sentenced  to  pay  a  fine  of  $108,000.00. 
The  case  was  brought  to  the  Supreme  Court  on  a  Writ  of  Error. 

New  York  Central  &  Hudson  River  Railway  Company  v.  United 
States.  Indictment  returned  August  10,  1906,  for  violation  or 
the  Elkins  Act  in  offering,  granting,  and  giving  rebates.  De- 
murrer sustained  to  the  indictment  upon  the  ground  that  the 
railway  company,  although  a  party  to  the  joint  rate,  did  not 
file  and  publish  this  rate,  as  required  by  law.  The  case  was 
appealed  by  the  Government  to  the  Supreme  Court  of  the  United 
States  and  has  been  advanced  for  hearing  early  n/^xt  terai. 

Important  cases  have  been  decided  in  the  lower  courts  under 
this  law,  and,  in  addition,  there  are  now  pending  on  appeal, 
cases  in  which  very  large  sums  of  money  have  been  imposed  as 
fines,  including  the  fine  of  over  twenty-nine  millions  of  dollars 
imposed  on  the  Standard  Oil   Company    in  the   following  case : 

United  States  v.  Standard  Oil  Company  (District  Court, 
Nortliern  Illinois).  August  27,  1906,  indictment  returned  charg- 
in:'-  a  violation  of  the  Elkins  Act  in  receiving  rebates.  November 
10.  1906,  demurrer  filed.  January  3,  1907,  demurrer  overruled. 
March  4  to  April  12,  1907,  trial.  April  13,  1907,  verdict  of  guilty. 
August  3,  1907,  sentenced  to  pay  fine  of  $29,240,000.  Appeal  to 
Circuit  Court  of  Api^eals  for  the  Seventh  Circuit.* 

Further  cases  against  the  same  company  are  jjending. 
Another  imposition  of  a  heavy  fine  was  that  in  the  following 
case  against  the  Atchison,  Topeka  and  Sante  Fe  Kailroad  Com- 
pany: 

United  States  v.  Atchison,  Topeka  and  Santa,  Fe  Railway  Com- 
pany (District  Court,  Southern  California).  January  9.  1907,  in- 
dictment returned  charging  a  violation  of  the  Elkins  Act  in 
granting  and  giving  rebates.  April  17,  1907.  demurrer  filed. 
April  26,  1907,  demurrer  overiruled.  September  30,  1907,  trial — 
verdict  of  guilty  on  all  counts.  November  7,  1907,  sentenced  to 
pay  a  fine  of  $330,000. 

Prosecutions  arising  out  of  these  and  other  transactions  have 
been  begun  against  a  considerable  number  of  defendants,  the 
full  list  of  such  proceedings  being  given  in  detail  in  the  publica- 
tion of  the  Department  of  Justice  before  cited. 


RAILWAY   REGULATION. 
"Work:  of   tlie  Interstate   Commerce   Commission. 

The  railways  of  the  country  are  the  main  highways  of  com- 
merce. Their  ability  to  transport  traffic  measures  the  profitable 
production  of  this  vast  country.  Next  to  personal  liberty  and 
security  the  right  to  use  these  highways  on  equal  terms  is 
the  most  primary  and  fundamental  right  which  the  individual 
can  possess.  Upon  this  depends  his  ability  to  engage  success- 
fully in  any  undertaking  requiring  the  interchange  of  commod- 

♦  The  opinion  of  the  Circuit  Court  of  Appeals  was  filed  July  29  and 
reversed  the  judgment  of  the  District  Court  and  remanded  the  case  for  a 
new  trial  on  the  ground  that  certain  errors  of  law  were  committed  by  the 
trial  court.  The  Attorney-General  will  apply  for  rehearing  in  the  Court 
of  Appeals  and,  failing  that,  will  seek  to  have  its  judgment  reviewed  and 
reversed  or  modified  by  the  Supreme  Court  of  the  United  States    (see  p.  49). 


42  REQULATION  OF  CORPORATIONS. 

ities.  The  marvelous  growth  of  our  railways,  their  iucompar- 
uble  utility,  the  indispensable  service  they  perforin,  the  vast 
eiipital  they  represent,  and  the  enormous  amount  of  labor  they 
employ,  all   require  their  subjection  to  adequate  public  control. 

IliMtory    of    lieiriMlatiuii    to    Control    Railways     in    tlie    L'nited 

States. 

The  first  serious  attempt  at  Federal  railway  control  was  the 
passage  of  the  Act  to  reg-ulate  commerce,  commonly  known  as 
I'.ie  Interstate  Commerce  Law,  in  1887.  The  administration  of 
this  law  was  committed  to  a  Commission  of  five  members,  of 
whom  not^more  than  three  should  belong  to  the  same  political 
party.  The  number  was  increased  in  1906  to  seven  members, 
with  the  requirement  that  not  more  than  four  should  be  of  the 
same  political  party.  The  Commission  was  intended  to  be, 
and  in   fact  has  always  been,   strictly  non-partisan. 

Under  the  original  law  and  its  various  amendments  the 
Commission  exercised  such  authority  as  was  conferred  upon  it 
by  the  Cong-ress,  and  the  results  were  in  the  main  highly  satis- 
factory. The  original  law  did  not  remedy  all  existing  evils, 
but  it  did  bring  gi-eat  relief.  The  publicity  secured  in  respect 
of  rates,  contracts,  and  practices  was  alone  sufficient  to  wipe 
out  niany  of  the  worst  existing  transportation  abuses,  and 
the  cases  decided  by  the  courts  furnished  the  legal  groundwork 
for  a  more  perfect  superstructure.  Far  from  producing  the 
disastrous  results  said  to  be  inherent  in  Government  regulation, 
the  best  interests  of  both  railroads  and  shippers  were  subserved. 
Between  1887  and  1907  the  railroads  increased  by  about  80,- 
000  miles,  more  than  three  times  the  distance  around  the  earth, 
and  their  operations,  facilities,  and  equipment  were  augmented 
in  an  unprecedented  manner,  while  the  prosperity  and  wealth 
of  the  country  challenged  the  admiration  of  the  world. 

Liuler  the  scrutiny  of  the  courts  it  was  found  that  the  orig- 
inal law  was  defective,  not  in  its  promulgation  of  fundamental 
rights  and  duties  so  much  as  in  the  plans  for  its  enforcement, 
and  the  experience  of  the  Commission  brought  to  light  abuses 
and  certain  methods  of  circumventing  the  law  which  were  not 
contemplated,  or  even  known,  at  the  time  of  its  passage.  It 
was  found,  for  instance,  that  although  it  was  unlawful  to  charge 
an  uni-easonable  or  discriminatory  rate,  and  the  Commission 
could  award  damages  for  such  charge,  it  was  without  authority 
to  require  reduction  of  the  rate  for  the  future.  Discrimina- 
tions were  foimd  to  exist  in  collateral  services  rendered  by  the 
carriers,  such  as  icing,  refrigeration,  elevation,  storage  and 
switching  charges;  and  from  the  standpoint  of  sound  public 
policy  there  was  perhaps  nothing  more  offensive  or  destructive 
to  private  enterprise  than  the  unfair  and  deadly  competition 
engendered  when  the  railroad  exceeded  its  duty  as  a  carrier 
and  became  also  a  purchaser  and  shipper  over  its  own  line — 
a  frequent  occurrence  in  the  case  of  such  staple  commodities  as 
grain,  coal,  and  lumber.  This  practice,  if  allowed  to  exist,  would 
easily  have  created  in  the  railroads  an,  absolute  monopoly  in  the 
purchase  and  sale  as  well  as  in  the  transportation  of  all  com- 
modities in  which  they  might  choose  to  become  dealers. 

The    Hepbnrn    Act. 

Recogni/.ing  these  defects  and  the  necessity  for  their  re- 
moval, the  Kepublican  Congress  passed,  and  the  Eepublican 
President  approved,  in  June,  1906,  the  so-called  Hepburn  law. 
This  enactment  may,  as  applied  to  the  general  business  interest 
of  the  country,  including  both  consumer  and  producer,  be  termed 
without  exaggeration  the  most  fundamental,  beneficial,  and  pro- 
gressive legislation  adopted  since  the  Constitutional  amendments 
which  followed  the  Civil  War.  It  is  most  emphatically  the  an- 
noi^ncement  in  the  law  of  the  land  of  the  doctrine,  not  only 
of  the  gi-eatest  good  to  the  greatest  number,  but  of  absolute 
and  complete  justice  to  all.  Justice  may  be  attained  in  two 
ways— by  prevention  or  by  prosecution.  Any  law  designed  to 
benefit  the  public  at  larjre  must  look  to  prevention  rather  than 
prosecution,  and  although  the  Hepburn  law  provides  penalties 
sufficient    to    act    both    as    a    deterrent  and  a  punishment  its 


REGULATION  OF  CORPORATIONS.  43 

purpose  is  to  provide  for  the  prevention  of  abuses  rather  than 
their  punishment  after  discovery.  Damages  will  seldom  com- 
pensate a  man  whose  business  has  been  destroyed  by  rebates 
allowed  to  a  competitor.  His  safety  lies  in  the  absolute  pro- 
hibition of  those  rebates.  With  these  prefatory  remarks  in 
mind,  the  leading  provisions  of  the  Hepburn  law  may  be  briefly 
summarized  as  follows : 

1.  It  amended  the  Elkins  law  so  as  to  restore  the  imprison- 
ment penalty  for  rebating,  made  the  receiver  of  the  rebate 
equally  guilty  with  the  giver,  and  provided  for  the  recovery 
of  threefold  damages  in  case  of  acceptance  of  rebates. 
Even  before  this  addition  to  the  law,  such  vigorous  prosecution 
of  rebate  cases  had  been  conducted  by  the  Republican  Attorney- 
General,  that  the  practice  had  become  decidedly  dangerous,  and 
the  statute  was  shown  to  be  an  effective  instrument  for  the 
punishment  and  prevention  of  the  crime.  Through  the  enforce- 
ment of  this  Act  many  fines  have  been  imposed  upon  carriers 
and  shippers.  As  compared  to  rebates,  nothing  in  the  past  had 
so  powerfully  aided  the  aggressions  of  industrial  trusts,  nothing 
connected  with  these  combinations  had  been  so  offensive  and 
destructive  to  the  independent  dealers.  Within  the  past  four 
years  this  evil  has  been  thoroughly  suppressed.  This  is  per- 
haps the  greatest  benefit  that  could  be  conferred  upon  the 
general  business  interests  of  the  country.  It  gives  each  man 
the  same  opportunity  and  puts  the  small  dealers  on  a  footing 
of  equality  with  their  largest  rivals  so  far  as  transportation 
charges  are  concerned.  The  salutary  provisions  of  this  law 
and  the  resolute  and  persistent  efforts  of  the  Attorney-General 
during  the  present  administration  have  practically  removed 
this  greatest  and  gravest  of  railroad  abuses. 

2.  The  Hepburn  law  gives  the  Commission  power  to  reduce 
a  rate  found  to  be  unreasonable  or  discriminatory.  The  primary 
necessity  is  equality  of  charges,  but  if  an  established  sched- 
ule of  rates,  though  actually  observed  in  all  cases  and  applied 
uniformly  to  everybody,  is  unreasonable  because  excessive,  or 
unfair  because  it  is  discriminatory  as  between  different  locali- 
ties or  different  articles  of  traffic,  then  there  must  be  some 
efficient  way  of  changing  the  schedule  so  that  it  shall  be  reason- 
able and  free  from  discrimination.  Any  remedy  in  the  courts 
by  way  of  an  action  is,  in  the  nature  of  the  case,  impracticable, 
for  it  can  only  relate  to  the  past  and  does  not  act  as  a  pro- 
tection for  the  future.  The  amount  involved  in  a  particiilar 
transaction  and  the  pecuniary  consequences  to  a  single  individual 
are  frequently  so  small  in  comparison  with  the  cost  of  pro- 
tracted litigation  in  the  courts,  that  any  known  civil  remedy 
to  right  offenses  of  that  description  has  proved  futile  and  in- 
adequate ;  and  even  if  the  person  injured  could  secure  damages 
for  past  transactions,  the  offensive  rate  would  still  remain  iji 
eltistence.  Clearly  the  adequate  remedy  is  a  change  in  the  rate 
itself,  and  this  remedy  is  provided  in  the  Hepburn  law.  To 
any  shipper,  large  or  small,  it  provides  relief  by  a  simple  and 
inexpensive  method,  and  not  only  allows  him  the  damage  he 
has  suffered  but  also  provides  against  a  recurrence  of  similar 
offenses  in  the  future.  And  as  the  free  and  equal  u^se  of  rail- 
ways is  a  political  right  which  it  is  the  duty  of  the  sovereign 
to  enforce,  under  the  procedure  now  in  force  the  individual 
shipper  is  relieved  of  the  burden  of  expensive  and  protracted 
litigation  and  that  task  is  placed  where  it  belongs — upon  the 
public  at  large  as  represented  by  the  Government. 

All  the  shipper  is  required  to  do  is  to  show  the  fault  to  the 
Commission.  The  Commission  enters  its  order  of  relief,  and 
faihn-e  of  the.  carrier  to  comply  therewith  becomes  an  offense, 
not  against  the  shipper  who  instituted  the  action,  but  against 
the  United  States  itself ;  and  if  further  legal  proceedino-s  are 
necessary  the  strong  arm  of  the  Government,  backed  by  its 
unlimited  resources,  proceeds  to  enforce  the  shipper's  rights. 
As  a  practical  matter,  however,  every  order  the  Commission 
has  entered  since  the  adoption  of  the  Hepburn  law  has  been  and 
is  now  being  obeyed  by  the  carriers.  That  its  remedies  are 
appreciated  and  applied  by  the  shipping  public  plainly  appears 
from  the  fact  that  the  number  of  formal  proceedings  instituted 
before  the  Commission  since  June,  1906,  almost  equals  the  total 
number  instituted  between  1887  and  1906. 


44  REGULAriOy  OF  CORPORATIONS. 

."5.  'llie  oorrective  orders  of  the  Commission  are  now  self-ot)- 
erative.  Under  the  former  procedure  if  a  carrier  elected  not 
to  comply  with  an  order  it  was  necessary  to  bring-  suit  to  require 
I'nforciMiiont,  and  the  litigation,  inehuiinf>-  a[)jx'als,  might  con- 
sume several  years,  diirini''  all  of  which  time  the  party  injured 
was  without  relief,  aiul  perhaps  if  the  I'elief  souj^ht  was  finally 
obtained  it  came  too  late  to  be  available.  Under  the  Hepburn 
law  if  a  carrier  believes  that  an  order  is  not  just  and  lawful 
it  must  assume  the  burden  of  securing-  its  abrogation  by  tne 
courts;  but  it  is  to  be  assumed  that  under  the  administration 
of  the  law  by  an  intelligent,  expert,  and  non-partisan  Com- 
mission very  few  cases  will  arise  in  which  the  carrier  could 
convince  the  courts  that  the  Connnission's  order  of  relief  is 
unjust.     As  stated  above,  no  such  case  has  yet  appeared.  n) 

4.  By  requiring-  thirty  days'  notice  oX  cnanges  in  rates,  th4' 
Hepburn  law  has  abolished  the  so-called  "midnight  tariffs," 
whereby,  under  legal  forms,  favored  shippers  were  g-iven  advaii- 
tag-es  in  rates  which  really  amounted  to  rebates.  All  incidental 
services,  such  as  icing,  storage,  refrig-eration,  elevation,  and  the 
like,  are  subject  to  the  same  restrictions  as  the  transportation 
itself,  and  abuses  in  the  use  of  these  incidental  services  can 
no  longer  exist  after  they  are  discovered.  T^Ioreover.  express 
companies,  sleeping  car  companies,  and  pipe  lines  have  been  made 
subject  to  the  law  and  removed  fi-om  tne  liekl  ot  private  uai-- 
gain.  So  far-i'eaching  is  the  application  of  this  general  prin- 
ciple that  even  where  the  shipper  performs  some  part  of  the 
transportation  service,  or  furnishes  some  instrument.iiity  in  con- 
nection therewith,  such  as  private  cars  or  elevation  of  grain, 
the  Commission  may  reduce  the  compensation  allowed  by  the 
railroad  in  case  it  is  found  to  be  excessive. 

5.  The  Commission  is  authorized  to  prescribe  the  fornix  of 
any  and  all  accounts,  records,  and  memoranda  kept  by  carriers 
subject  to  the  Act,  and  to  employ  special  examiners  who  sxiaii 
have  authority  to  inspect  and  examine  any  and  all  of  such  ac- 
counts. The  work  involved  in  prescribing  a  uniform  system  of 
accounting  has  not  yet  been  completed,  but  it  is  possible  to 
make  a  more  or  less  accurate  prediction  of  the  benefits  expected 
to  accrue  from  this  provision.  The  right  to  examine  the  car- 
riers' accounts  at  any  and  all  times  is  perhaps  the  most  adequate 
means  yet  suggested  for  the  prevention  and  detection  of  re- 
bating and  other  illegal  practices.  The  provision  opens  to  the 
Government  some  degree  of  administrative  supervision  over  the 
manner  in  which  the  carriers  comply  with  the  duties  imposed 
by  the  law  and,  by  localizing  the  responsibility  for  rigid  en- 
forcement of  the  accounting  system  prescribed,  correct  applica- 
tion of  funds  would  seem  to  follow  almost  automatically.  It  is 
further  to  be  expected  that  a  uniform  and  absolutely  truthful 
system  of  accounts  will  not  only  make  railroad  reports  reliable 
information  for  investors  but  will  also  produce  a  stability  iti 
railroad  securities  hitherto  unknown.  In  other  words,  the 
market  value  of  railroad  securities  will  automatically  adjust 
itself  to  the  actual  commercial  value  of  the  property,  and  cease 
to   be   a   barometer  of  questionable   operations   of   high   finance. 

6.  The  Hepburn  law  absolutely  prohibits  a  railroad  from 
acting  as  a  dealer  in  the  commodities  it  transports.  The  mere 
.statement  of  this  provision  indicates  its  fundamental  necessity, 
justice,  and  importance.  It  restricts  the  railroad  to  its  proper 
sphere  of  action — -trans])ortation,  and  relieves  the  })ublic  of  tnat 
peculiarly  unfair  and  destructive  competition  which  results  when 
the  railroad  becomes  at  once  buyer,  carrier,  and  seller. 

Perhaps  no  more  honest  and  unbiased  tribute  has  yet  been 
paid  to  the  wisdom  of  the  administration  which  placed  this 
law  upon  our  statute  books  than  is  found  in  the  Commission's 
report  to  the  Congress  for  1907,  summarizing  the  improvements 
which  ha\e  resulted  from  the  rate  law.  The  portion  of  the 
report  referred  to  reads  as  follows : 

It  is  likewise  true  that  the  substantial  and  permanent  benefits  of 
this  law  are  indirect  and  frequently  unperceived  even  by  those  who  in  fact 
profit  by  its  observance.  It  means  much  for  the  present  and  more  for 
the  fi'tiire  that  the  principles  of  this  law  have  gained  greatly  in  general 
undrstanding  and  acceptance.  The  injustice  of  many  practices  which 
were  once  almost  characteristic  of  railway  operations  is  now  clearly  ap- 
prehended, and  an  insistent  public  sentiment  supports  every  effort  for  their 
suppression.     By  railway   managers   almost  without  exception  the  amended 


REGULATION  OF  CORPORATIONS.  45 

law  has  been  accepted  in  good  t'aitii,  and  they  exhibit  for  the  most  part 
a  sincere  and  earnest  disposition  to  conform  their  methods'  to  its  re- 
quirements. It  was  not  to  be  expected  that  needed  reforms  could  be 
brought  about  withbut  more  or  less  difficulty  and  delay,  but  it  is  unques- 
tionably the  fact  that  great  progress  has  been  made  and  that  further 
improvement  is  clearly  assured.  To  a  gratifying  extent  there  has  been 
readjustment  of  rates  and  correction  of  abuses  by  the  carriers  themselves. 
Methods    and   usages   of  one   sort   and   another   which  operated   to    individual 

I  advantage  have  been  voluntarily  changed  and  it  is  not  too  much  to  say 
that  there  is  now  a  freedom  from  forbidden  discriminations  which  la 
actual  and  general  to  a  degree  never  before  approached.  As  this  process 
goes  on,  as  special  privileges  disappear,  and  favoritism  ceases  to  be  even 
I  suspected,  the  indirect  but  not  less  certain  benefits  of  the  law  will  become 
-more  and  more  apparent. 

An   incidental  respect  in  which  equality  of  treatment  has  been  greatly 

promoted    is    in    such    matters    as    switching,    terminal,    demurrage,    recon- 

j   signmcnt,    elevation,   and    other    charges   making   up    the   aggregate    cost    of 

,    tran.'portaticn.     In    the    past    it   was   often    within   the   power    of    a    carrier 

i    to    waive    charges    of    this    nature    in    favor    of    particular    shippers    while 

1    collecting   them   from   business    rivals.      Now    the   law  and    the    rules   of    the 

I   Commission    require   all   charges  of  this   description   to   be   plainly    stated   in 

the  tariffs  and  to  be  applied  with  the  same  exactness  and  uniformity  as  the 

transportation  rate   itself.     This   is  only   one  of  the  ways   in  which  distinct 

advance  has   been  made  toward  placing  competing   shippers  in   each   locality 

upon   a  basis  of  equality  in  the   enjoyment  of  public  service. 

It  is  this  general  and  marked  improvement  in  transportation  con- 
ditions that  the  Commission  observes  with  special  gratification.  The 
amended  law  with  its  enforceable  remedies,  the  wider  recognition  of  its 
fundamental  justice,  the  quickened  sense  of  public  obligation  on  the  part 
of  railway  managers,  the  clearer  perception  by  shippers  of  all  classes  that 
any  individual  advantage  is  morally  as  well  as  legally  indefensible,  and 
the  augmented  influence  of  the  Commission  resulting  from  its  increased 
authority,  have  all  combined  to  materially  diminish  offensive  practices  of 
every  sort  and  to  signally  promote  the  purposes  for  which  the  law  was 
enacted.  _, 

The  so-called  hours-of-labor  law,  restricting  the*  hours 
of  labor  of  employees  eng-aged  either  as  trainmen  or  as  tele- 
graph operators,  became  effective  March  4,  1908,  in  spite  of  the 
earnest  entreaties  of  railroad  counsel  for  postponement  of  its 
effective  date.  The  Commission  is  authorized  to  execute  and  en-' 
force  the  provisions  of  this  law.  Although  the  great  object  of 
the  Act  is  to  promote  the  safety  of  travelers  \ipon  railroads,  by 
limiting  the  hours  of  service  of  employees  within  reasonable 
bounds,  it  is  none  the  less  true  that  in  actual  operation  it 
enforces  humane  and  considerate  treatment  to  employees  as  well 
as  greater  safety  to  the  public.  Upon  the  courage,  fidelity,  and 
accuracy  of  these  employees  depends  the  life  of  every  one  who 
travels  by  railroad.  The  propriety  of  this  legislation,  in  respect 
either  of  the  traveler  or  employee,  needs  no  demonstration, 
but  its  enactment  does  furnish  additional  evidence  of  the  desire 
of  the  Republican  administration  to  enforce  the  rights  of  the 
employee  so  far  as  they  fall  within  its  jurisdiction. 

For  enforcement  of  the  criminal  sections  of  the  law  the  Com- 
mission must  depend  upon  the  cooperation  of  the  Department  of 
Justice.  In  this  quarter  the  Commission  has  been  sustained  and 
encouraged  in  its  difficult  work  and  the  law  has  been  enforced 
with  a  degree  of  ability  and  success  never  before  approached. 
Between  the  Department  and  the  Commission  the  most  cordial 
relations  constantly  obtain,  and  they  have  acted  together  in 
harmonious  effort  and  with  a  common  purpose  to  promote  the 
public  welfare.  The  last  report  of  the  Commission,  submitted 
to  the  Congress  in  December,  1907,  contains  this  significant  state- 
ment : 

In  connection  with  this  work  of  enforcement  of  the  law  by  means  of 
criminal  prosecutions,  the  Department  of  Justice  and  its  various  District 
Attorneys  have,  throughout  the  year,  been  active  and  eflecfcive.  Almost 
without  exception  those  prosecutions  brought  to  trial  have  resulted  in  con- 
victions ;  also  a  number  of  highly  important  cases  have  been  won  in  the 
appellate  courts. 

This  tribute  from  an  independent  and  non-partisan  board  to 
a  Eepublican  Attorney-General  carries  its  own  comment. 

During  the  past  four  years  the  safety  appliance  laws  have 
also  been  the  subject  of  many  judicial  decisions  which  materially 
strengthen  and  reinforce  their  requirements.  This  humane  leg- 
islation has  proved  of  incalculable  benefit  to  railroad  employees 
and  the  public  generally.  It  safeguards  their  dangerous  and  re- 
sponsible work,  and  at  the  same  time  gives  added  security  to 
millions  of  travelers.  These  are  immense  benefits  to  the  public 
and  to  hundreds  of  thousands  of  the  most  intelligent  and  de- 
serving workingmen   in  the  country. 


46  REGULATION  OF  CORPORATIONS. 

The   IlesaltH   ObtnintMl. 

The  total  number  of  prosecutions  broug-ht  i;i  the  courts  lo 
enforce  the  Interstate  Commerce  hivv  under  the  six  years  ot 
President  Roosevelt's  administration  ending  December  31,  1907, 
iunounted  to  50  per  cent,  more  than  the  total  number  brought 
in  the  fourteen  years  prior  to  his  administration  diriug  which 
the  Interstate  Commerce  law  was  in  force.  In  detail  the  prose- 
cutions under  i'residcnt  Koosevclt's  u(iiuiTiistratioii  and  tiie  re- 
sults thereof  are  as  follows:  The  iJejKirtmeut  of  Justice  has 
secured  126  indictments,  upon  which  there  have  been  34  con- 
victions, 2  acquittals,  2  suits  nolle  prossed.  demurrers  sustained 
in  5,  indictments  dismissed  in  3,  and  74  are  pending. 

The  foregoing  summary  includes  all  acti-)ns  brought  during 
President  Roosevelt's  administration,  both  prior  and  subsequeni 
to  the  enactment  of  the  Elkins  law  in  1903.  As  indicating  the 
efficiency  of  that  legislation,  it  appears  that  120  of  the  126  in- 
dictments mentioned  have  been  secured  since  the  passage  of  that 
Act.  Of  these  indictments  49  were  for  receiving  rebates;  of 
that  number  27  are  still  pending  and  convictions  have  been 
secured  in  18  out  of  the  remaining  22  cases ;  the  aggregate  fines 
imposed  were  $29,520,075,  or  a  total  of  $280,075  if  the  recent 
Standard  Oil  fine  of  $29,240,000  be  eliminated  from  the  list.  For 
the  granting  of  rebates  56  indictments  have  been  secured,  of 
which  40  are  still  pending.  Convictions  have  been  secured  in 
13  out  of  the. remaining  16  cases,  and  the  fines  imposed  aggregate 
$697,000.  Six  indictments  have  been  secured  for  conspiring  to 
obtain  webates.  Two  cases  are  pending  and  two  convictions  have 
been  secured  in  which  the  fines  imposed  amount  to  $27,050.  One 
conviction  has  been  secured  for  failure  to  file  tariff  schedules 
and  a  fine  of  $15,000  imposed. 

A  fair  conception  of  the  work  performed  by  the  Commission 
in  the  field  of  regulation  is  not  possible  without  reference  to 
the  results  attained  in  respect  to  these  cases  in  which  formal 
complaint  is  not  filed,  nor  proceedings  of  a  formal  nature  pur- 
sued by  the  complainant.  The  public  is  not  advised  of  the  full 
extent  of  the  work  accomplished  in  securing,  through  correspond- 
ence, the  voluntary  adjustment  by  carriers  of  questions  in 
dispute  relating  to  interstate  transportation,  nor  is  the  public 
cognizant  of  the  extreme  importance  and  value  of  the  results 
attained. 

Through  the  medium  of  correspondence  is  secured  the  settle- 
ment of  many  matters  extremely  vexatious  to  shippers.  The 
questions  thus  amicably  adjusted  are  not  alone  questions  affect- 
ing the  interest  of  individuals ;  on  the  contrary,  the  effect  of  the 
action  taken  by  carriers  in  the  adjustment  of  these  complaints 
is  often  of  widespread  interest  and  advantage  to  large  communi- 
ties, if  not  indeed  of  vital  importance  to  considerable  sections 
of  country.  Controversies  arising  out  of  the  relations  between 
the  carriers  themselves  are  likewise,  in  many  instances,  pre- 
sented to  the  Commission  for  arbitration.  The  Commission  is 
also  called  upon  frequently  by  traffic  officials  of  carriers  to  in- 
dicate what  is  considered  to  be  the  proper  and  lawful  course  to 
be  pursued  in  respect  to  the  application  of  rates  or  regulations 
affecting  transportation.  Thus  it  will  be  seen  that  many  great 
benefits  result  from  the  adjustment  or  settlement,  through  cor- 
respondence, of  questions  informally  submitted  for  investigation. 

During  *1907  more  than  4,300  complaints  of  this  character 
were  filed  with  the  Commission,  as  against  503  in  the  year  1905, 
and  1,002  in  the  year  1906,  shoAving  an  increase  of  more  than 
400  per  cent,  over  the  preceding  year.  Upon  such  complaints 
reparation  was  allowed  to  injured  shippers  in  561  cases,  aggre- 
gating about  $104,700.  All  of  the  adjustments  involved  have 
been  seciired  as  the  result  of  friendly  intervention  and  corre- 
spondence by  the  Commission  with  the  parties  interested.  These 
Informal  complaints  relate  to  every  conceivable  subject  connecte'd 
with  the  rates,  methods,  practices,  and  service  of  interstate  car- 
riers. 

Perhaps  no  part  of  the  Commission's  work  since  the  passage 
of  the  Hepburn  law  has  been  of  more  far-reaching  importance, 
or  will  be  more  productive  of  equality  of  treatment  and  charges, 
than  the  reforms  which  have  been  instituted  in  respect  to  the 


REGULATION  OF  CORPORATIONS.  47 

publication  and  filing-  of  tariffs.  In  the  past  many  tariff  publi- 
cations were  so  vokuninous,  intricate,  and  complex  that  it  was 
difficult  even  for  an  expert  to  determine  a  particular  rate.  Op- 
poi-tunities  to  get  business  were  met  by  the  issuance  of  tariffs 
"expiring-  with  this  shipment;"  by  quotation  of  rates  found  in 
some  other  carrier's  tariffs  and  applicable  via  another  route ;  by 
quotation  of  rates  not  found  in  any  tariff";  by  forwarding-  under 
regular  tariff  rates  and  refunding  an  agreed  upon  proportion 
thereof,  and  by  forwarding  under  regular  tariff  rates  and  agree- 
ing to  "protect"  the  rate  of  any  competing  carrier.  Joint 
through  rates  were  frequently  in  excess  of  the  sums  of  the  local 
rates  between  the  same  points,  and  the  tariffs  contained  nota- 
tions that  if  lower  combinations  could  be  made  upon  given 
points,  such  lower  combinations  would  apply.  Ttie  net  result 
of  this  situation  was  that  no  absolute  rate  was  stated.  The 
large  shipper  with  a  force  of  tariff'  experts  at  his  command  by 
means  of  his  special  knoVledge  of  the  possibilities  of  combi- 
nations, rates  via  competing  routes,  reconsignment  and  other 
practices  could  secure  rates  lower  than  those  which  appeared 
on  the  face  of  the  tariff's  to  be  in  force,  and  perhaps  the  only 
person  who  paid  the  full  tariff  rate  was  the  si*iall  shipper  with- 
out the  expert  "knowledge  necessary  to  manipulations  of  this 
sort. 

Definiteness,  clearness,  and  simplicity  in  stating  transpor- 
tation charges,  uniformity  in  api^lying  rates  so  stated,  and  stable 
conditions  are  the  ends  aimed  at  in  the  law  and  enforced  by 
the  Commission.  The  rules  which  the  Ctymmission  has  promul- 
gated have  eliminated  the  complexities  and  contradictions  which 
in  the  past  have  characterized  tariff  construction  and  have  re- 
sulted in  securing  the  publication  of  a  single  rate  for  a  given 
service  applicable  to  the  shipper  without  expert  knowledge  as 
well  as  to  the  industrial  combination  with  a  force  of  trained 
men  at  his  command.  Perhaps  more  than  individual  reductions 
of  excessive  rates,  or  convictions  for  rebate,  this  reform  has 
brought  about  absolute  equality  between  shippers  large  and  small 
in  the  payment  of  freight  charges.  Generally  speaking  the 
exis.tence  of  a  joint  through  rate  in  excess  of  the  sums  of  the 
Ideals  was  indefensible,  and  the  Commission's  rale^  upon  this 
subject  have  resulted  in  the  actual  reduction  of  such  higher 
through  rates  in  thousands  of  instances.  The  magnitude  of  the 
work  is  suggested  by  the  fact  that  in  the  12  months  ended  No- 
vember 30,  1907,  there  were  filed  with  the  Commission  220,982 
tariff  publications,  all  containing  changes  in  rates  and  rules 
governing  transportation,  and  about  400,000  notices  of  concur- 
rence in  tariffs.  It  cannot  be  doubted  that  the  reformation  of 
the  railroad  tariffs  of  the  country  in  such  shape  that  the  legal 
rate  can  be  easily  ascertained  by  a  person  of  ordinary  intel- 
ligence will  be  perhaps  of  as  much  benefit  to  the  carriers  and 
their  agents  as  it  is  to  the  public  at  large. 


THE    COURTS    AND    TJIE     CORPORATIONS. 

The  work  of  the  Department  of  Justice  and  of  the  Inter- 
state Commerce  Commission  with  reference  to  corporations  is 
stated  in  the  chapters  relating  to  those  branches  of  the  Govern- 
ment, but  the  following  summarization  of  the  important  cases 
acted  upon  by  the  courts  during  the  past  four  years  will  be  of 
additional  value  in  this  connection. 

The  Act  of  June  29,  1906,  known  as  tjie  Hepburn  Eate  Law, 
amended  and  strengthened  the  Interstate  Commerce  laws  re- 
specting rebates  in  interstate  transportation,  and  in  many  other 
important  particulars,  embracing  within  those  laws  oil  pipe  lines, 
express  companies,  and  sleeping  car  companies  as  common  car- 
riers in  interstate  transportation,  prohibiting  interstate  passes 
or  free  transportation,  prohibiting  railroads  to  transport  from 
one  State  or  Territory  to  another,  or  to  a  foreign  country,  com- 
modities in  the  production  or  manufacture  of  which  they  are 
interested  directly  or  indirectly,  giving  the  Interstate  Commerce 
Commission  power  to  determine  and  enforce  just  and  reasonable 
maximum   rates,   and  enlarging  the  powers  of  the   Commission 


48  REl.lLATHiS  OF  COlirOKATIONS. 

i(>  elicit  and  compel  information  from  rij,ilroad  carriers  as  to 
iiieir  capitali/ation.  in(lel)to(liies.s,  etiriiing',  opfration,  el'. 

Important  eases  are  now  pending  in  the  courts  I'elative  to  va- 
rious features  oi"  this  Uiw,  especially  the  eonnnodity  clause,  the 
power  of  the  Commission  to  lix  rates  and  to  compel  the  pro- 
duction of  information.  These  eases  are  under  the  special  con- 
trol and  direction  of  the  Attorney-General,  and  will  receive  his 
personal  attention  in  the  argument  in  the  Supreme  Court  when 
they  reach  that  tribunal. 

In  the  Jicof  'fnt.st  Catie  the  Supreme  Court  held  that  a  conv- 
bination  of  a  dominant  proportion  of  the  dealers  in  fresh  meat 
throufyhout  the  i;uit..*d  States,  in  order  to  regulate  prices  and  re- 
strict shipmeuts.  is  an  illegal  combination  within  the  prohibition 
of  the  Sherfiian  Anti-Trust  law.  (Decided  January  30,  1905; 
196   U.    S..  375.) 

In  the  cases  against  the  Ncic  York,  New  Haven  d  Hartford 
and  the  ChcHupeah'e  tt-  Ohio  RailwayiJompanies,  the  important 
point  decided  by  the  Supreme  Court  was  that  a  carrier  under 
the  interstate  Commerce  Acti.  cannot  contract  to  sell  and  trans- 
port and  deliver  a  certain  commodity  when  the  transaction 
amounts  to  granting  indirectly  a  less  rate  than  the  pid^lished 
rate  for  the  transportation ;  that,  whatever  the  device  or  method, 
Ni.ch  a  contract  is  illegal  under  the  Interstate  (.'ommerce  laws  if 
the  amount  charged  for  ti-ansportation  is  less  than  the  pub- 
lished rates,      (Decided  February  19,  1906;  200  U.  S.,  361.) 

In  the  recent  case  of  the  Great  Northern  RaUwaii  Comjmuii  v. 
United  States  (decided  February  24,  1908,  208  U.  S.,  452),  the 
Supreme  "I'ourt  adopted  the  Government's  construction  of  section 
10  of  the  Hepburn  law,  and  held  that  the  provision  therein  con- 
tained relating  to  pending  prosecutions  was  only  intended  to  save 
methods  of  procedure  provided  for  bj'  the  old  law,  and  did  not 
operate  to  release  prior  offenders  from  prosecution.  The  resnlt 
of  this  decision  enabled  the  Government  to  prosecute  all 
olVenses  which  had  been  committed  against  the  Elkins  Law 
prior  to  the  passage  of  the  Hepburn  Law,  provided,  only, 
sich  oft'enses  were  not  barred  by  the  statute  of  limitations 
when    instituted.  , 

'n  the '  other  recent  eases  of  the  packing  companies  (de- 
cided March  6,  1908.  209  U.  S.,  56),  several  important  ques- 
tions   were    decided    in    favor   of    the    Government. 

1.  It  was  held  that  a  "device"  to  obtain  rebates,  in  order 
to  come  within  the  prohibition  of  the  Interstate  Commerce 
Law,  including  the  Elkins  Act,  need  not  necessarily  be  fraud- 
ulent, but  that  the  term  "'device"  includes  any  plan  or  con- 
trivance whereby  merchandise  is  transported  for  less  than  the 
published  rate,  or  whereby  any  other  advantages  may  be  given 
to  or  discriminations   practiced   in  favor  of  the  shii^per. 

2.  It  w-as  held  that  the  shipper  and  the  carrier  could  not 
make  a  "contract"  for  the  transportation  of  freight  at  the 
legal  rate  and  for  a  reasonable  length  of  time  which  woxdd 
])rotect  the  shipjier  from  a  prose ution  at  the  instance  of  the 
Government  on  the  charge  of  receiving  a  rebate  in  the  event 
that  the  carr\ev  subsequently ^Sixid  during  the  life  of  the  con- 
tract advanced  the  rate  as  provided  by  law  and  notwithstanding 
such  advance  the  shipper  still  continued  to  ship  under  his 
contract  rate. 

3.  It  was  also  held  in  this  case  that  in  prosecutions  for 
violations  of  the  Elkins  Act  the  Government  could  prosecute 
either  the  carrier  or  the  shipper  in  any  judicial  district  through 
which  the  transportation  was  conducted;  in  other  words,  that 
the  carriage  of  the  Tuerchandise  was  a  necessary  and  indis- 
pensable element  of  the  offense  defined  by  the  law.  This 
was  a  most  important  question  to  have  settled  for  our  guidance 
with   respect   to    future    prosecutions. 

In  the  case  of  the  Government  against  the  Standard  Oil 
Company  of  New  Jersey  as  an  illegal  combination  in  re- 
straint of  trade,  a  pivlimlnary  victory  was  won  bf  the  Gov- 
ernment respecting  jurisdiction,  the  power  of  Congress  to  au- 
thorize the  process  of  a  Federal  Court  to  run  outside  its  dis- 
^irict,  and  other  related  questions,,  by  a  decision  of  the  Cir- 
'cuit  Court  in  the  Eastern  District  of  Missouri,  March  7,  1907. 
^'(U.  S.  V.  Standard  Oil  Co.,  Fed.  Eep.,  290) 


REGULATION  OF  CORPORATIONS.  49 

This  case,  which  is  the  usual  suit  in  equity  under  the  Sher- 
man law  to  dissolve  an  illegal  combination  is  steadily  proceed- 
ing on  the  taking  of  testimony,  and  it  is  expected  will  be 
heard  by  the  Circuit  Court  within  the  next  six  months.  The 
Government  is  also  conducting-  other  proceedings  against  the 
Standard  Oil  Company,  including  a  prosecution  for  taking-  re- 
bates on  shipments  of  oil  from  the  Western  Pennsylvania  and 
New  York  oil  fields  to  New  England  points,  which  is  pending 
and  will  soon  be  tried  in  the  Circuit  Court  of  the  United 
States  for  the  Western  District  of  New  York. 

In  the  case  of  the  United  States  against  the  Standard  Oil 
Company  of  Indiana,  in  which  a  fine  of  $29,240,000  was  imposed, 
the  United  States  District  Court  for  the  Northern  District  of 
Illinois  held  that  under  contracts  by  a  shipper  for  through 
interstate  shipments  solely  with  one  railroad  company,  although 
such  shipments  passed  over  the  lines  of  other  companies,  a 
common  arrangement  between  the  carriers  for  a  continuous  car- 
riage is  sufficiently  proved,  and  that  under  such  a  contract  and 
arrangement,  where  the  shipper  obtained  a  concession  from  the 
lawful  published  rates  in  interstate  shipments  in  violation  of 
the  Federal  law,  the  fact  that  another  railroad  or  route'  may 
have  had  a  published  rate  about  as  low  is  immaterial,  the  • 
shipper  is  chai'geable  with  knowledge  of  the  lawful  rate  where 
it  has  been  published  and  filed  in  accordance  with  law  and 
is  accessible  to  the  public,  unless  he  is  misled  after  using 
proper  diligence  to  ascertain  the  rate ;  and,  finally,  that  under 
the  provisions  of  the  Elkin.?  Act  forbidding  the  giving  or  re- 
ceiving of  rebates,  where  a  shipper  has  been  continuously  re- 
ceiving rebates  the  Government  is  not  limited  to  a  prosecution 
for  a  single  offense,  but  each  shipment  made  at  the  illegal  rate 
constitutes  a  separate  offense,  and  under  established  rates  on 
car  lots,  each  car  constitutes  a  separate  shipment.  (Decided 
August  3.   1907;    155   Fed.   Eep.,   305.) 

The  judgment  in  this  case  was  reversed  in  the  Circuit  Court 
of  Appeals  and  the  case  remanded  with  instructions  to  grant  a 
new  trial  by  an  opinion  filed  July  22,  1908.  on  the  gi'ounds 
that  the  trial  court  erred  in  its  rulings  on  the  admission  and 
exclusion  of  evidence  bearing  on  the  shipper's  intent  and  its 
actual  knowledge  of  the  lawful  published  rate ;  that  the  trial  . 
court  also  erred  in  making  each  carload  and  not  an  entire  ship- 
ment the  unit  or  integer  to  determine  the  number  of  offenses,  and 
abused  the  discretion  vested  in  the  court  in  imposing  the  fine. 

It  is  the  earnest  contention  of  the  Government  that  the 
Court  of  Appeals  mistook  the  state  of  the  case  shown  by  the 
record  as  to  the  admission  and  exclusion  of  evidence,  and  ad- 
judged the  other  propositions  of  law  incorrectly  in  view  of 
the  authorities.  Immediate  steps  will  be  taken  to  have  this 
decision  reconsidered  and  reviewed  in  all  the  ways  known  to 
the  law. 

On  July  29,  the  Attorney-General  issued  the  following  state- 
ment regarding  the  case  : 

"The  Government  will  make  every  effort  in  its  power  to  secure  a 
revision  of  the  recent  decision  and  opinion  of  the  Circuit  Court  of  Appeals 
for  the  Seventh  Circuit  in  the  cape  of  the  Standard  Oil  Company  of 
Indiana,  either  by  the  Court  of  Appeals  itself,  or,  if  necessary,  by  the 
Supreme  Court  of  the  United  States.  The  gentlemen  who  have  been  in 
consultation  with  me  all  unite  in  my  opinion  that  in  the  interest  of  the 
impartial  and  effective  administration  of  our  laws,  such  action  on  the 
part  of  the  Government  is  imperatively  demanded  by  the  circumstances 
of  the  case  and  the  possible  consequence  if  this  opinion  should  stand  as 
authority   without    question   by  the   government. 

"To  this  end  an  application  for  a  reargument  of  the  case  and  a 
motion  for  a  modification  of  the  opinion  will  be  submitted  to  the  Circuit 
Court  of  Appeals  in  bphalf  of  the  United  States  at  the  earliest  possible 
moment.  Other  appropriate  steps  will  be  taken  afterward,  their  character 
to  be  determined  by  the  Court's  action  upon  this  application. 

"The  pending  prosecutions  in  which  the  giving  or  receiving  of  rebates 
or  offenses  of  like  character  are  charged  will  be  pressed  to  trial  and 
judgment  by  the  government  with  all  possible  energy  and  as  promptly  as 
may  be  practicable. 

"In  the  view  of  the  Government's  legal  advisers  the  reversal  of  the 
judgment  in  the  case  recently  decided  in  no  way  affects  the  merits  of 
that  controversy  or  the  necessity  and  duty  of  bringing  to  punishment 
if  possible  in  this  and  any  other  cases  any  individual  or  corporation  shown 
to  have  evaded  or  defied  the  laws." 

In  United  States  v.  Mc Andrews  &  Forhes  Co.,  an  indictment 
under    sections    1    and    2    of    the    Sherman    Anti-Trust    law    of 


60  REOULATION  OF  iJOBPORATIONS. 

one  of  the  constituent  members  of  the  Tobacco  Trust,  it  waa 
decided  on  demurrer,  among  other  points,  that  a  corporation 
may  be  liable  criminally  for  conspiracy,  and  that  an  indict- 
ment under  the  anti-trust  law  may  charge  all  who  aid  in  the 
commission  of  the  ofTenses  as  principals,  and  a  corporation  and 
its  officers  who  personally  participated  in  committing-  the  offenses 
may  be  joined  as  defendants,  although  their  acts  may  be  sep- 
arate and  not  done  at  the  same  tiane,  and  that  to  bring  any 
yiven  case  or  scheme  within  the  law,  the  restraint  of  trade 
need  not  amount  to  a  total  suppression,  nor  the  attempt  at 
monopoly  to  a  complete  monopoly,  but  it  is  sufficient  if  the 
necessary  operation  tends  to  restrain  interstate  commerce  and 
to  deprive  the  public  of  the  advantages  flowing  from  free  com- 
petition. (Decided  December,  1906;  149  Fed.  Kep,,  823.)  The 
case  is  now  pending  in  the  Supreme  Court,  having  been  taken 
there  on  a  writ  of  error  by  the  defendants,  who  were  convicted 
in  the  trial  court. 

In  the  proceedings  preliminary  to  the  Paper  Trust  suit  and 
the  Tobacco  Trust  prosecution,  the  United  States  won  a  very 
important  victory  by  compelling  certain  witnesses  to  testify  under 
personal  immunity,  without  protecting  other  persons  or  corpo- 
rations, with  the  result  that  in  the  Paper  Trust  case  the  final 
decree  provided  for  its  dissolution,  and  the  Tobacco  Trust  prose- 
cutions are  proceeding,  along  with  a  suit  in  equity  to  dissolve 
that  combination,  with  the  aid  of  the  testimony  and  infor- 
mation of  which  the  Government  compelled  the  production. 
(Paper  Trust  Cases,  201  U.  S.,  92,  117;  decided  March  12,  1906; 
Tobacco  Trust  cases,  id.,   43,  90,  decided  same  day.) 

In  the  suit  in  equity  to  dissolve  the  Tohacco  Trust  the  testi- 
mony has  all  been  taken,  and  the  argument  before  the  Cir- 
cuit Court  has  just  been  completed.  May,  1908. 

The  suit  against  the  Anthracite  Coal  Trust  is  now  ready  to 
be  pressed  vigorously,  and  active  proceedings  will  be  under- 
taken forthwith  and  maintained  in  the  Federal  Court  for  the 
Eastern  District  of  Pennsylvania,  where  the  bill  to  dissolve  the 
combination  was  filed. 

In  the  case  of  the  United  States  v.  The  New  York,  New 
Haven  and  Hartford  Railroad  Company  et  al.,  recently  insti- 
tuted in  the  United  States  District  Court  for  the  District  of 
Massachusetts,  the  Government  seeks  to  enjoin  that  company 
from  exercising  further  control  through  stock  ownership  over 
the  Boston  and  Maine  Railroad  Company  and  to  prevent  the 
New  Haven  road  from  controlling  the  various  trolley  lines 
paralleling  said  road  in  the  States  of  New  York,  Connecticut, 
Rhode  Island  and  Massachusetts.  The  bill  charges  the  New 
Haven  road  with  combining  and  attempting  to  combine  under 
one  common  control  the  various  railroad  systems  and  electric 
railway   systems  in   New  England. 

It  will  thus  be  seen  that,  in  obedience  to  the  demand  of 
the  people  and  the  legal  and  economic  policy  reflected  in  the 
Sherman  law,  the  Republican  administration,  legislative  and 
executive,  has  been  steadily  proceeding  during  the  last  four 
years  to  maintain  its  record  of  uncompromising  prosecution 
against  the  great  combinations  which  are  violating  the  law. 
It  is  clear  that  the  Government  polioA^  and  efforts  have  been 
to  reach  the  strong  and  vast  aggregations  of  power  and  cap- 
ital, rather  than  to  avoid  enforcement  of  the  law  against  them 
and  proceed  against  minor  and  less  culpable  defendants,  and 
the  foregoing  review  shows  also  that  the  results  achieved  have 
been  commensurate  with  the  importance  of  the  subject  and  with 
the  efforts  of  the  Government. 


THE    CAST-IRON    PIPE    CASE. 

Jnd^^e     Taft's     Decision     and     its     Important    Relation    to     tbe 
Trust    Q,uestion. 

No  list  of  judicial  decisions  declaring  the  power  of  Congress 
over  combinations  in  restraint  of  trade  is  complete  without 
naming  the  Addyston  Pipe  &  Steel  Co.  case.  It  was  one  of 
the  early  and  most  important  successes  of  the  Federal  Govern- 
ment  in    attempting    to    enforce    the    Sherman    Anti-trust    Act, 


REGULATION  OF  CORPORATIONS.  51 

and  was  a  signal  judicial  victory  for  Judge  William  H.  Taft, 
for  the  Supreme  Court  in  deciding  the  case  affirmed  the  Cir- 
cuit Court  of  Appeals  and  adopted  the  reasoning  •  and  quoted 
a  considerable  portion  of  Judge  Taft's  opinion  in  deciding  the 
case  in  the  lower  court.  The  Circuit  Court  had  decided  the 
case  against  tlie  Government  in  a  long  "and  exhaustive  opinion, 
so  that  the  decision  of  the  Appelate  Court,  delivered  by  Judge 
Taft,  which  the  Supreme  Court  held  was  the  law  was  a  path- 
breaking  one  and  blazed  the  way  for  later  decisions  which  have 
settled  beyond  all  dispute  the  wide-reaching  power  of  Congress 
under  the  Interstate  Commerce  clause  of  the  Constitution.  When 
the  case  was  first  tried,  over  eleven  years  ago,  the  power  of 
Congress  was  not  clearly  understood,  even  in  the  minds  of  law- 
yers and  court. 

The  history  of  the  case,  briefly  stated,  is  as  follows :  The 
Attorney-General  of  the  United  States  filed  a  bill  in  equity 
against  six  corporations  engaged  in  the  manufacture  of  cast- 
iron  pipe,  charg'ing  them  with  a  combination  and  conspiracy 
in  unlawful  restraint  of  interstate  commerce  in  such  pipe  in 
violation  of  the  "Anti-trust  Law."  The  companies  manufactured 
iron  pipe  in  four  different  States  and  they  divided  their  sales 
territory  into  six  districts,  and  agreed  not  to  bid  against  each 
other,  though  fictitious  bids  were  put  in  at  prices  higher  than 
was  bid  by  the  member  of  the  combination  in  whose  territory 
the  particular  contract  to  be  bid  on  was  located.  The  Circuit 
Court  dismissed  the  bill,  basing  its  decision  mainly  on  the  case 
of  United  States  vs.  E.  C.  Knight  Company,  wherein  the  United 
States  Supreme  Court  dismissed  a  bill  filed  under  the  anti-trust 
law,  which  sought  to  enjoin  the  defendants  from  continuing  a 
union  of  substantially  all  the  sugar  refineries  of  the  country  for 
the  refining  of  raw  sugars.  The  Supreme  Court  held  the  monop- 
oly thus  effected  was  not  within  the  law,  because  the  contract  or 
trust  agreement  related  only  to  the  manufacture  of  sugar  and 
not  to  its  sale,  and  it  was  not  within  the  power  of  Congress  to 
regulate  manufacture  within  a  State.  The  trial  court  held  the 
cast-iron  pipe  case  was  governed  by  the  reasoning  in  the  sugar 
trust  case,  and  decided  against  the  Government.  The  case  was  ap- 
pealed to  the  Circuit  Court  of  Appeals,  and  was  heard  by  Mr.  Jus- 
tice Harlan,  of  the  Supreme  Court,  and  Circuit  Judges  Taft  and 
Lurton.  This  court  held  the  combination  was  unlawful,  both  at 
common  law  and  under  the  Sherman  act  of  1890  against  trusts 
and  monopolies. 

Judge  Taft's  opinion,  delivered  February  8,  1898,  was  hailed 
by  the  Government  as  a  great  victory  in  its  fighl?  against  monopo- 
lies, and  on  December  4,  1899,  the  Supreme  Court  affirmed  Judge 
Taft's  decision  and  adopted  his  reasoning  and  the  very  language 
in  his  opinion. 

The  closing  paragraph  of  Judge  Taft's  opinion  is  worth  quot- 
ing entire :  "Much  has  been  said  in  .argument  as  to  the  enlarge- 
ment of  the  Federal  Government  functions  in  respect  of  all  trade 
and  industry  in  the  States  if  the  view  we  have  expressed  of  the 
application  of  the  anti-trust  law  in  this  case  is  to  prevail,  and  as 
to  the  interference  which  is  likely  to  follow  w^ith  the  control 
which  the  States  have  hitherto  been  understood  to  have  over  con- 
tracts of  the  character  of  that  before  us.  We  do  not  announce 
any  new  doctrine  in  holding  either  that  contracts  and  negotia- 
tions for  the  sale  of  merchandise  to  be  delivered  across  State 
lines  are  interstate  commerce,  or  that  burdens  or  restraints  upon 
such  commerce  Congress  may  pass  appropriate  legislation  to  pre- 
vent, and  courts  of  the  United  States  may  in  proper  proceedings 
enjoin.  If  tliis  extends  federal  jurisdiction  into  fields  not  before 
occupied  by  the  general  government,  it  is  not  because  such  juris- 
diction is  not  within  the  limits  allowed  by  the  Constitution  of 
the  United  States." 

Not  one  of  the  least  of  Judge  Taft's  services  to  his  coimtry 
was  his  illuminating  and  record-making  decision  in  the  Addy- 
ston  Pipe  and  Steel  Company  case. 

One  vital,  floiiilnatlngr  fact  confronts  the  Democratic 
party  Tvhicli  no  oratory,  ^Tliicli  no  eIo«inence,  >vliicli  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
EliECTION.— New    York    World. 


5S  REGULATION  OF  CORPORATIONS. 

THE     DEMOCRATIC    PLAN    OF    TRl  ST     REGULATION     IS     THE 
PLAN     PROPOSED     BY     STANDARD    OIL     MAGNATES. 

The  plan  which  the  Democ-ratio  national  platform  of  1908 
proposes  for  the  control  and  reg-ulation  of  trusts  and  corpora- 
tions engaged  in  interstate  commerce  is  precisely  that  proposed 
and  publicly  recommended  by  the  Standard  Oil  Presicitint  and 
Vice-President.  Moreover,  it  is  certified  to  by  Mr.  Bryan's  paper, 
the  "Commoner,"  as  the  genuine  Standard  Oil  plan. 

The  "Commoner,"  in  its  issue  of  October  31,  1902,  says: 

The  plan  of  vesting  In  the  Federal  Government  exclusive  control  ol 
trusts  was  not  originated  by  the  present  leaders  of  the  Republican  party. 
John  D.  Rockefeller  in  his  testimony  before  the  industrial  commission, 
when  asked  what  legislation  would  be  advisable,  said  :  "First,  federal  legisla- 
tion under  which  corporations  may  be  created  and  regulated,  if  that  were 
possible."  Vice-President  Archbeld,  of  the  Standard  Oil  Company,  said : 
"The  next  great  and,  to  my  mind,  inevitable  step  of  progress  in  the  direc- 
tion of  our  commercial  development  lies  in  the  direction  of  national  or 
federal  corporations."  Henry  H,  Rogers,  a  Standard  Oil  magnate,  indorsed 
Mr,  Archbold's  suggestion. 

The    Plan    Proposed   by    Standard    Oil    Magrnates    in    1899. 

The  recommendations  of  the  Standard  Oil  magnates  referred 
to  by  Mr.  Bryan's  "Commoner"  and  aj)parently  followed  in  the 
Democratic  platform  of  1908,  will  be  found  in  detail  in  Vol.  1 
of  the  Report  of  the  Industrial  Commission.  On  page  797  Mr, 
Rockefeller  is  asked :  "What  legislation,  if  any,  would  you 
suggest  regarding  industrial  combinations?"  His  answer  is: 
"First,  Federal  legislation  under  which  corporations  may  he 
created  and  regulated,  if  that  be  possible ;  second,  in  lieu 
thereof,  State  legislation  as  nearly  uniform  as  possible  encour- 
aging combinations  of  persons  and  capital  for  the  purpose  of 
carrying  on  industries,  but  permitting  State  supervision,  not 
of  a  character  to  hamper  industries,  but  sufficient  to  prevent 
frauds  upon  the  public." 

(Signed)         JOHN  D.  ROCKEFELLER. 

On  page  565  of  the  same  volume,  Mr.  Archbold,  Vice-Presi- 
dent of  the  Standard  Oil  Company,  says :  "If  you  should  ask 
me,  gentlemen,  what  legislation  can  be  imposed  to  improve  the 
present  conditions,  I  answer  that  the  next  great,  and  to  my 
mind,  inevitable  step  of  progress  in  flie  direction  of  our  com- 
mercial development  lies  in  the  direction  of  National  or  Fed- 
eral corporations,  *  *  Lack  of  uniformity  in  the  laws  of 
various  States,  as  affecting  corporations,  is  one  of  the  most  vex- 
atious features  attending  the  business  life  of  any  great  corpor- 
ation today,  and  I  suggest  for  your  most  careful  consideration, 
the  thought  of  a  Federal  Corporation  law." 

Tlie  Plan  Proposed  by  tbe  Democratic  Platform  in  1908. 

The  portion  of  the  Deitiocratic  national  platform  of  1908 
which  offers  the  plan  of  the  Democratic  party  with  reference 
to  trust  regulation  is  as  follows : 

"We  faver  the  vigorous  enforcement  of  the  criminal  law 
against  guilty  trust  magnates  and  officials,  and  demand  the  en- 
actment of  such  additional  legislation  as  may  be  necessary  to 
make  it  impossible  for  a  private  monopoly  to  exist  in  the 
United  States.  Among  the  additional  remedies  we  specify  three : 
First,  a  law  preventing  a  duplication  of  directors  among  com- 
peting corporations;  second,  a  license  system  which  will,  with- 
out abridging  the  right  of  each  State  to  create  corporations, 
or  its  right  to  regulate  as  it  will  foreign  corporations  doing 
business  within  its  limits,  make  it  necessary  for  a  manufac- 
turing or  trading  corporation  engaged  in  interstate  comnicrce 
to  take  out  a  Federal  license  hefore  it  shall  he  permitted  to 
control  as  much  as  twenty-live  per  cent  of  the  product  in  which 
it  deals,  the  license  to  protect  the  public  from  watered  stock 
and  to  prohibit  the  control  by  svich  corporation  of  more  than 
fifty  per  cent  of  the  total  amount  of  any  product  consumed  in  \ 
the  United  States ;  and,  third,  a  law  compelling  such  licensed  ' 
corporations  to  sell  to  all  purchasers  in  all  parts  of  the  coun- 
try on  the  same  terms,  after  making  due  allowance  for  cost  of 
transportation." 


REGULATION  OF  CORPORATIONS.  '        53 

The  Republican  platform,  instead  of  proposing  to  give  special 
favors  to  certain  corporations  in  the  form  of  Federal  licenses 
as  proposed  by  the  Standard  Oil  magnates  and  the  Democratic 
party,  proposes  uniform  and  equal  enforcement  against  all  cor- 
porations, great  or  small,  of  existing  law  and  such  further 
laws  as  may  be  necessary.  The  plank  of  the  Republican  platforni 
of  1908  is  as  follows: 

"The  Republican  Party  passed  the  Sherman  Anti-trust  law 
over  Democratic  opposition  and  enforced  it  after  Democratic 
dereliction.  It  has  been  a  wholesome  instrument  for  good  in 
the  hands  of  a  wise  and  fearless  administration.  But  experience 
has  shown  that  its  effectiveness  can  be  strengthened  and  its  real 
objects  better  attained  by  such  amendments  as  will  give  to  the 
Federal  Government  greater  supervision  and  control  over  and 
secure  greater  publicity  in  the  management  of  that  class  of 
corporations  engaged  in  interstate  commerce  having  power  and 
opportunity  to   effect  monopolies." 

It  must  be,  at  least,  a  pleasing  surprise  to  the  Standard 
Oil  Company,  after  its  recent  experience  with  Republican  offi- 
cials in  enforcement  of  existing  laws,  to  find  the  Democratic 
platform  declaring  for  the  very  legislation  publicly  recom- 
mended by  its  President  and  Vice-President  in  1899  and  certified 
to  by  Mr,  Bryan's  "Commoner"  in  1902,  as  the  genuine  Standard 
Oil  plan  in  behalf  of  corporations. 


The  bigr^est  corporation,  like  the  humblest  private  eitl- 
ean,  innst  be  held  to  strict  compliance  Tvlth  the  Trill  of  the 
people  as  expressed  in  the  fundamental  laTV. — President 
Roosevelt    at    Cincinnati,    Ohio,    September   20,    1902. 

The  tariff  aifects  trnsts  only  as  it  affects  all  other  inter- 
ests. It  makes  all  these  Inte'rests,  largre  or  small,  profitable) 
and  its  benefits  can  be  taken  from  the  larjre  only  under  pen- 
alty of  takinK'  them  from  the  small  also. — President  Roosevelt 
at    Minneapolis,    April    4,    1903. 

Under  present-day  conditions  it  is  as  necessary  to  have 
corporations  in  the  business  world  as  it  is  to  have  orgraniza- 
tions — unions — among:  Ti^agre-workers.  We  have  a  right  to 
ask  in  each  case  only  this;  that  ^ood,  and  not  harm,  shall 
foUov^.— President  Roosevelt  at  Providence,  R.  I.,  August  23, 
1902. 

Mr.  Bryan's  whole  system  of  remedies  for  the  evils  that 
both  Mr.  Roosevelt  and  he  and  many  others  recot^nlxe,  is 
ba«ed  on  his  distrust  of  the  honesty,  couragre  and  impar- 
tiality ef  the  indiA'idual  as  an  agent  on  behalf  of  the  people 
to  carry  on  any  part  of  government  and  rests  on  the  propo- 
sition that  our  present  system  of  representative  govern- 
ment is  a  failure.  He  Tt'ould  have  government  ownership 
of  railways  because  he  does  not  bplleve  it  is  possible  to 
secure  an  interstate  commerce  commission  that  the  "money 
poTver"  cannot  and  Trill  not  ultimately  own.  He  vronld  have 
the  initiative  and  referendum  because  he  distrusts  repre- 
sentative government  and  has  no  confidence  in  the  abili'ty 
of  the  people  to  find  men  T%ho  vrill  conscientiously,  and 
free  from  the  Influence  of  the  "money  poTver,"  represent  them 
in  preparing  and  voting  legislation.  He  would  take  aTvay 
from  courts,  because  he  distrusts  the  ability  of  judges  to 
resist  the  malign  influence  of  the  "money  poTver,"  the  poTver 
to  enforce  their  own  orders  until  a  jury  is  called  to  tell 
the  court  Tvhether  the  order  has  been  disobeyed,  and  thus, 
in  practice,  though  not  in  theory,  the  jury  -would  come  to 
pass  on  the  correctness  and  justice  of  the  court's  order. 
—Hon.  Wm.  H.   Taft,  at   Columbus,  Ohio. 

The  Democrats  are  a  party  having  no  solidarity,  uniting 
elements  that  are  as  nnmlxable  as  oil  and  water,  and  Trhen 
Ihey  come  to  make  a  government,  should  they  ever  be  elected 
to  poTPer,  flie  admiitistration  Troulrt  become  as  nerveless 
as  a  man  stricken  with  paralysis,  because  the  radical  dif- 
fei-ence  bet^veen  the  elements  necessary  to  make  up  the 
party  tj^ouUI  be  so  great  as  to  produce  perfect  stagnation 
in  legislative  provision  for  the  emergencies  -which  might 
arise.  The  Democratic  party  today,  as  organized,  is  nothing 
but  organized  incapacity.  Neither  element  of  the  party 
^vould  have  a  sense  of  responsibility  strong  enough  to  over- 
come its  antagonism  to  the  principles  upheld  by  the  other 
♦'net  ion,  ^vere  it  to  come  into  po^ver. — Hon.  "Wm.  H.  Taft,  at 
Montpelier,   Vermont. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  vrhich  no  oratory,  Tvhich  no  eloquence,  Avhich  no 
rhetoric  can  obscui-e:  BRYAN'S  NOMINATION  MEANS  TAPT'S 
ELECTION.— New    York    World. 


THE  MONEY  PANIC  OF  1907. 


The  panic  of  1907  was  financial,  not  industj-ial  or  coiumercial. 
The  country  was  at  the  high  tide  of  industrial  and  commercial 
activity.  The  g-reat  manufac-twriug-  industries  and  those  related 
thereto  were  making-  their  highest  i-ecords.  The  value  of  manu- 
factures shown  by  the  census  of  1905  (including-  its  estimate  for 
customs  work  and  repairinjj)  ai>greguted  ueariy  17  bil  ion  dollars, 
against  13  billions  iu  1900,  a  1-3  billions  in  1890\  and  5  1-3  billions 
in  1880.  The  imports  of  manufacturers'  materials  in  the  fiscal 
years  190G  and  1907  so  much  exceeded  those  of  1905  as  to  niake  it 
perfectly  apparent  that  the  manufacturing-  activities  of  those 
years  were  still  in  excess  ©f  those  recorded  by  the  census  of  1905. 
Not  only  were  imports  of  manufacturers'  materials  higher  in  1907 
than  ever  before,  but  exports  of  manufactures  wei*e  also  in  excess 
of  any  former  year,  thus  again  indicating-  unusual  activity  in 
manufacturing;  while  the  fact  that  the  quantity  of  pig  iron  pro- 
duced, the  quantity  of  coal  mined,  tlie  quantity  of  fi-cights  car- 
ried on  the  Great  Lakes  aud  on  railroads,  the  quantity  of  grain, 
flour,  cotton,  live  stock,  meats  and  other  commercial  staples  ar- 
riving at  the  great  interior  centers  and  departing  therefrom  was 
also  greater  than  ever  before,  gives  further  evidence  that  the 
commercial  as  well  as  industrial  conditions  of  the  early  and  mid- 
summer months  of  1907  were  at  high-water  mark.  The  railroads, 
with  all  their  greatly  increased  facilities  in  trackage,  in  cars  and 
equipment,  were  unable  to  respond  to  the  business  activity,  and 
James  J.  Hill,  a  distinguished  Democrat,  who  had  declared  in 
November,  190G,  that  the  trafTic  congestion  exceeded  imagination, 
and  that  there  was  neither  money  enough  nor  rails  enough  in  the 
world  to  build  track  enough  to  carry  the  trafTu*  offered,  declared 
again  in  1907  that  the  railroads  would  need  1.100  million  dollars 
yearly  for  five  years  for  construction  work. 

The  demands  for  money  for  conducting  and  enlarging  these 
great  industrial,  commercial,  and  transportation  enterprises  grew 
apace.  In  January,  1907,  the  Chicago  and  Alton  sold  $6,000,000  of 
notes,  the  Western  Indiana  $5. 000^000,  the  Southern  .$15,000,000, 
New  Yoi-k  Central  $50,000,000,  and  the  Chicago  and  Northwestern 
voted  to  issue  $25,000,000  of  stock.  In  February  the  Kock  Island 
sold  $6,500,000  of  notes,  the  Lackawanna  Steel  Com})any  $5,000,- 
000.  the  Interborough  Eapid  Transit  Company  of  New  York  $10,- 
000,000.  the  Pennsylvania  $60,000,000,  the  Tidewater  Hailroad 
$10,000,000.  New  York  city  sold  $30,000,000  of  bonds  and  the 
New  Haven  road  $28,000,000  of  bonds.  In  the  succeeding  months 
the  issues  of  securities  of  this  character  continued  until  by  the 
middle  of  the  year  the  total  thus  issued  in  sums  sufficiently  large  to 
be  easily  noted  aggregated  more  than  a  thousand  million  dollars  of 
securities  thus  placed  upon  the  market,  and  this  continued  into 
August  and  September,  despite  the  fact  that  the  scarcity  of 
money  resulted  in  the  actual  issue  of  but  one  billion  dollars' 
worth  of  railway  notes,  stocks  and  bonds  out  of  a  total  of  more 
than  iy2  billions  authorized.  But  the  world's  losses  of  capital  by 
wars,  coupled  with  the  speculative  investment,  rendered  loans 
more  and  more  difficult 

The  amount  of  money  in  circulation  in  the  United  States  was 
nearly  three  billion  dollars,  and  including  the  money  in  the 
Treasury  exceeded  three  billions,  and  the  amount  of  per  capita 
circulation  was  larger  than  ever  before,  being  over  $32,  as  against 
a  little  over  $21  in  1896.  Nine-tenths  of  the  business  was  as  usual 
in  times  of  financial  peace,  being  transacted  by  the  use  of  checks, 
script,  notes  and  other  financial  paper.  ^Millions  of  holders  of  sur- 
plus money  had  deposited  the  surplus  in  banks,  which  in  turn  had 
loaned  the  legitimate  proportion  of  their  deposits,  and  these  had 
been  in  turn  deposited  by  tho.'se  to  whom  the  loans  were  made  or 
by  other.s,  so  that  the  aggregate  record  of  deposits  in  all  banks 
and  loan  and  trust  companies  of  the  country  was  in  1907 
over  13  billions  of  dollars,  while  the  actual  amount  of  money  in 

54 


THE  MONEY  PANIC  OF  1907.  65 

the  country  was,  as  above  shown,  but  abont  three  billion  dollart\ 
It  goes  without  saying-  that  any  sudden  incident  which  would 
startle  and  alarm  these  millions  of  depositors  whose  bank  records 
showed  an  ag-g-reg-ate  of  13  billions  of  dollars  would  cause  them 
suddenly  to  rush  to  the  banks  and  demand  their  money,  thus  cre- 
ating not  merely  a  panic,  but  rendering  the  banks  physically  un- 
able to  meet  their  demands,  since  the  credits  to  depositors 
amounted  to  more  than  four  times  the  amount  of  money  actually 
in  the  country,  including  both  that  in  circulation  and  the  amount 
held  by  the  Treasui-y. 

In  October  occurred  a  series  of  incidents  suflRcient  to  cause 
just  the  sort  of  alarm  indicated.  The  three  Heinze  Brothers,  large 
operators  in  Wall  street,  failed  in  an  attempt  to  manijAilate  cer- 
tain copper  stocks,  and  this  resulted  in  a  run  upon  the  Mercantile 
National  Bank,  of  which  one  of  the  brothers  was  president.  The 
collapse  of  the  copper  pool  and  the  resulting  less  of  confidence  in 
the  Heinze  Mercantile  National  Bank  led  to  a  distrust  of  certain 
other  banks,  and  this  being  followed  by  the  compulsory  resigna- 
tion of  certain  bank  officers  increased  the  alarm  of  depositors, 
and  runs  were  begun,  resulting  in  demands  which  were  far  in  ex- 
cess of  the  ability  of  banks  instantly  to  meet.  As  the  panic  spread 
to  other  parts  of  the  country  other  millions  of  depositors  de- 
manded their  hundreds  of  millions  of  deposits,  and  again  in  ex- 
cess of  the  immediate  ability  of  the  banks  to  respond,  althoug-h 
practically  all  of  them  would  have  been,  under  ordinary  condi- 
tions, able  to  meet  the  ordinary  calls  from  their  depositors.  This 
condition  was  met  in  part  by  additional  deposits  of  public  moneys 
in  national  banks,  as  shown  by  extracts  on  subsequunt  pages  from 
the  report  of  the  Secretary  of  the  Treasury  to  Congress,  appended 
hereto ;  in  part  by  the  issuance  of  clearing--house  certificates,  in 
part  by  the  refusal  of  banks  to  pay  oh  any  one  day  more  than  a 
small  perceatage  of  the  sum  due  each  depositor,  and  in  other 
cases  by  the  declaration  of  a  two  weeks'  holiday  by  the  governors 
of  certain  States,  thus  holding-  in  check  the  momentary  alarm, 
and  by  January  the  banks  of  the  country  had  returned  to  a  cash 
basis  and  to  full  cash  payment  of  such  calls  as  were  made  upon 
them  by  their  depositors.  f 

The  President  in  his  message  of  December,  1907,  recommended 
legislation  providing  for  a  more  elastic  currency  by  issuing  emer- 
gency circulation,  secured  by  State  and  municipal  bonds.  This 
recommendation  gave  rise  to  the  introduction  of  various  financial 
bills,  among  which  were  the  Aldrich  bill,  introduced  in  the  Sen- 
ate, and  the  American  Bankers'  Association  b'ill,  the  Fowler  bill, 
the  Vreeland  bill,  and  many  other  bills,  introduced  in  the  House. 
There  was  a  spirited  discussion  in  both  houses  of  Congress,  and 
wide  differences  of  opinion  prevailed  as  to  the  merits  of  the 
various  plans.  This  resulted  at  the  close  of  the  session  in  a 
compromise  bill,  which  was  signed  by  the  President  on  May 
30.  This  bill  vras  designed  to  prevent  the  recurrence  of  the 
financial  troubles  experienced  in  the  autumn  of  1907,  among 
which  was  the  need  of  additional  currency  for  emergency  pur- 
poses. The  bill  as  passed,  stated  briefly,  provides  for  the  issu- 
ance of  emergency  currency  on  State  and  municipal  bonds  at  90 
per  cent  of  the  unimpaired  capital  and  surplus  of  the  bank,  and 
other  securities  at  75  per  cent  of  their  cash  value.  The  applications 
for  the  issue  of  emergency  currency  are  to  be  made  to  the 
Comptroller  of  the  Currency  and  submitted  by  him  to  the  Sec- 
retary of  the  Treasury,  the  securities  pledged  for  the  issue  of 
such  currency  to  be  guaranteed  by  the  national  currency  asso- 
ciations. This  legislation  marks  a  very  liberal  and  progressive 
step  forward  in  the  securing  of  an  elastic  currency.  At  the 
same  time  the  Treasury  is  amply  safeguarded  by  the  guaranty 
of  the  associations,  which  practically  eliminates  all  hazard  as 
to  the  soundness  of  the  security.  The  high  rate  of  5  per  cent 
to  10  per  cent  per  annum  is  expected  to  retire  the  circulation 
when  the  emergency  is  past. 

The  able  management  of  the  Secretary  of  the  Treasury  in  util- 
izing public  funds  to  stay  the  incipient  panic  of  March,  1907,  and 
his  timely  preparation  for  anticipating  the  need  of  money  for 
crop  moving  purposes  by  depositing  fimds  early  in  the  national 
banks  to  prevent  a  tig-htness  in  the  money  market,  deserves 
high  commendation.    It  was  an  action  of  prevention,  instead  of 


ft6  THE  MONET  PANIC  OF  1907. 

waiting  for  a  cure,  which  latter  always  involves  cost  and  dis- 
aster. When  the  panic  reached  most  dangerous  proportions  in 
New  York  the  Secretary  of  the  Treasury  hastened  there,  and 
with  the  prompt  cooperation  of  the  bankers  $150,000,000  were 
pledged  to  stay  the  progress  of  the  panic.  Of  this  sinn  about 
$40,000,000  wei'e  pledged  in  a  temporary  way  by  the  United  States 
Treasury.  Further  aid  was  extended  by  the  Secretary  of  the 
Treasury  issuing  3  per  cent  certificates  of  indebtedness  and 
Panama  bonds.  He  permitted  the  banks  to  take  out  circulation  on 
these  securities,  and  also  allowed  them  to  substitute  bonds  ac- 
ceptable for  savings  bank  investments  for  Government  bonds 
pledged  for  public  deposits,  provided  the  released  bonds  were  used 
for  securing  additional  bank  note  circulation.  In  this  way  some 
$86,000,000  in  national  bank  notes  were  issued  from  October  1, 
1907,  to  January  1,  1908.  This  action  was  severely  criticised  by 
many  who  did  not  understand  the  conditions  that  required  it. 
His  remarkable  reply  to  Congress,  giving  reasons  to  justify  the 
steps  he  had  taken  to  relieve  the  situation,  won  the  approbation 
of  Congress  as  well  as  that  of  the  country. 

In  addition  to  emergency  legislation,  a  commission  was  ap- 
pointed, known  as  the  "National  Monetary  Commission,"  com- 
pose^d  of  nine  members,  to  inquire  into  and  report  to  Congress 
at  the  earliest  practicable  date  what  changes  are  necessary  or 
desirable  in  the  monetary  system  of  the  United  States,  or  in  the 
laws  relating  to « banking  and  currency,  which  should  enable 
Congress  to  legislate  intelligently  and  to  assure  the  country  a 
sound,  scientific,  and  elastic  currency  to  meet  all  the  conditions 
of  our  modern  business  life. 

Discussing  the  panic  and  its  causes,  Secretary  Taft  in  an  ad- 
dress before  the  Merchants  and  Manufacturers'  Association  of 
Boston,  on  December  30,  1907,  said:  "The  world  generally  has  a 
certain  amount  of  loanable  capital  available  for  new  enterprises 
or  the  enlargement  of  old  ones.  In  periods  of  prosperity  this 
capital,  with  the  instrumentalities  for  enlarging  its  potentiality 
by  credits,  is  put  into  new  enterprises  which  are  profitable,  and 
the  increase  in  free  capital  goes  on  almost  in  arithmetical  pro- 
gression. ^  After  a  time,  however,  expenses  of  operation  and 
wages  increase  and  the  profit  from  the  new  enterprises  grows 
smaller.  The  loanable  capital  gradually  changes  its  form  into 
investments  less  and  less  convertible.  Much  of  that  which  might 
be  capital  is  wasted  in  unwise  enterprises,  in  extravagance  in  liv- 
ing, in  wars  and  absolute  destruction  of  property,  until  the  avail- 
able free  capital  becomes  well  nigh  exhausted  the  world  over,  and 
the  progress  of  new  enterprises  must  await  the  saving  of  more. 
Men  continue  to  embark  in  new  enterprises,  however,  the  capital 
fails  them  and  disaster  comes. 

"For  eight  or  nine  months  last  past  there  were  many  indica- 
tions that  the  loanable  capital  of  the  world  was  near  exhaustion. 
This  result  was  brought  about  not  only  by  the  enormous  expan- 
sion of  business  plants  and  business  investments,  which  could  not 
be  readily  converted,  but  also  by  the  waste  of  capital  in  extrava- 
gance of  living  and  by  the  Spanish  war,  the  Boer  war,  and  the 
Russian-Japanese  war,  and  in  such  catastrophes  as  Baltimore 
and  San  Francisco.  It  became  impossible  for  the  soundest  rail- 
roads and  other  enterprises  to  borrow  money  for  new  construc- 
tion or  reconstruction.  The  condition  was  not  confined  to  this 
country,  but  extended  the  world  over,  and  was  made  manifest  in 
the  countries  of  Europe  even  before  it  was  felt  here. 

"Secondly,  the  conclusion  cannot  be  avoided  that  the  revela- 
tions of  irregularities,  breaches  of  trust,  stock  jobbing,  over- 
issues of  stock,  violations  of  law,  and  lack  of  rigid  State  or  Na- 
tional supervision  in  the  management  of  some  of  our  largest  in- 
surance companies,  railroad  companies,  traction  companies,  and 
financial  corporations  shocked  investors  and  made  them  withhold 
what  little  loanable  capital  remained  available.  Such  disclosures 
had  much  more  effect,  probably,  abroad  than  they  had  here,  be- 
cause here  we  are  able  to  make  distinctions,  while  there,  at  a 
remote  distance,  the  revelations  created  distrust  in  our  whole 
business  fabric. 

"When,  therefore,  two  or  three  institutions,  banks  and  trust 
companies,  supposed  to  be  solid,  were  found  to  have  their  capital 
impaired  by  stock  jobbing  of  their  officers,  the  public  were  easily 


THE  MONET  PANIC  OF  1907.  57 

frig-htened  and  the  run  upon  the  banks  began.  The  question  then 
became  not  one  of  loanable  capital,  but  of  actual  money  to  be 
used  in  the  transaction  of  the  day,  a  very  different  question, 
though  of  course  closelj^  related, 

"It  would  seem  that  our  system  of  currency  is  not  arranged  so 
as  to  permit  its  volume  to  be  increased  temporarily  to  counteract 
the  sudden  drain  of  money  by  the  hoarding  in  a  panic.  It  is 
probable  that  the  stringency  which  reached  its  height  on  that 
dark  day  of  October  24  might  in  part  have  been  alleviated  had  we 
had  a  cvirrency  which  could  automatically  enlarge  itself  to  meet 
the  tremendous  demand  of  a  day  or  a  week  or  a  month  while 
public  confidence  was  being  restored.  The  National  Administra- 
tion, together  with  many  of  the  large  capitalists  of  New  York 
and  elsewhere,  put  their  shoulders  under  the  load,  and  by  various 
devices  of  an  unusual  character  have  brought  about  the  pi-esent 
condition  of  gradually  increasing  confidence. 

"The  injurious  consequences  to  follow  from  this  panic  are  not 
likely  to  be  so  long  drawn  out  or  to  result  in  such  disastrous  in- 
dustrial depression  as  the  panic  of  1893  or  the  panic  of  1873,  and 
this  for  the  reason  that  the  condition  of  the  country  makes  it  so 
much  easier  to  resume  business  gradually,  to  accumulate  capital, 
and  then  to  renew  those  enterprises  which  had  to  be  abandoned 
for  the  lack  of  it." 

W.  B.  Ridgely,  who  was  Comptroller  of  the  Currency  during 
the  financial  troubles  of  19§7,  says :  "As  long  ago  as  the  date  of 
the  San  Francisco  catastrophe  there  has  been  no  lack  of  warning 
indications  of  financial  troubles  and  possible  business  disaster. 
For  at  least  10  or  12  years  there  has  been  an  era  of  advancing 
prices  and  great  industrial,  commercial,  and  speculative  activity  in 
all  countries  of  the  world.  Credits  have  increased  and  miiltiplied 
uiitil  the  limit  has  been  reached  in  the  amount  of  reserve  money 
on  which  it  must  be  based.  *  *  *  These  conditions  have  been 
world-wide  and  by  no  means  confined  to  the  United  States. 
Crises  of  more  or  less  severity  have  arisen  in  several  important 
countries,  and,  as  is  always  the  case  when  there  is  a  demand  for 
liquidation,  it  first  manifested  itself  in  the  stock  market." 

Eepresentative  Hill  of  Connecticut,  discussing  the  subject, 
said:  "The  panic  of  1907  began  with  the  distrust  of  individual 
credit  and  a  profound  suspicion  of  the  banks  managed  by  the  men 
whose  credit  was  so  distrusted.  The  causes  lay  deeper,  but  they 
were  manifested  in  the  weakest  spot.  The  conditions  which 
brought  the  panic  were  world-wide  and  not  confined  to  the 
United  States." 

Kepresentative  Vreeland  of  New  York  said  in  a  speech  in  Con- 
gress upon  this  subject :  "On  the  first  day  pf  October  the  Ameri- 
can people  were  blest  with  great  prosperity.  Everywhere  the 
millions  of  our  people  were  engaged  in  gainful  occupation.  Our 
mills  and  factoris  were  uable  to  fill  their  orders.  The  consuming 
power  of  our  people  had  never  been  greater.  The  railroads  of 
the  country  could  not  furnish  sufficient  cars  to  move  the  products 
of  farm  and  factory.  The  people  of  New  York  citj^  took  fright 
and  commenced  drawing  their  deposits  from  other  banks.  The 
bankers  clear  across  the  continent  became  alarmed,  and  all  tried 
to  draw  their  money  from  New  York  in  cash  at  one  time.  The 
result  was  that  the  New  York  banks  were  obliged  to  refuse  pay- 
ment, and  a  general  suspension  of  cash  payment  took  place 
throughout  the  United  States."  ' 

Representative  Weeks  of  Massachusetts,  discussing  this  ques- 
tion in  the  House  of  Representatives,  said :  "The  reasons  for 
this  panic  were,  generally  speaking,  overspeculation,  overcapitali- 
zation, overexpenditures  by  the  Government,  States  and  munici- 
palities, as  well  as  by  individuals,  the  tying  up  of  large  amounts 
of  capital  in  permanent  fixtures  instead  of  retaining  it  as  liquid 
capital,  the  carrying  of  excessive  stocks  of  goods,  the  abnormal 
development  of  business  in  every  branch,  all  of  which  led  to  the 
credit  expansion  of  the  dollar  to  the  breaking  point.  Credit  hav- 
ing been  broken  down,  the  natural  and  usual  result  followed." 

Representative  Overstreet  of  Indiana,  in  discussing  this  sub- 
ject in  the  House  of  Representatives,  said :  "The  recent  panic  fol- 
lowed unusual  and  startling  disclosures  of  fraud  and  mismanage- 
ment in  some  of  the  great  insurance  companies  and  other  leading 
enterprises  of  the  country.     It  followed  the  further  disclosure  of 


58  THE  MONEY  PANIC  OF  1901. 

unprincipled  financiering-,  as  illustrated  in  the  Alton  Railway  deal 
and  as  practiced  by  sprculatire  bankers  of  the  type  of  the  Hcinze 
syndicate  of  banks  in  New  York.  Overspeculation,  uuwarraiitcd 
extension  of  cretiits,  and  a  disregard  of  honest  niethoils  in  busi- 
ness transactions  aiaruied  the  country.  These  disclosures  devel- 
oped a  lack  of  contidencc  and  trust  in  men  and  not  in  business. 
With  all  these  forces  couibijied,  the  onslaugh]^  overthrew  public 
confidence,  money  went  into  hiding,  loans  were  called,  factories 
were  closed,  and  liquidation  ajet'in.  It  was  impossible  to  foresee 
these  conditions,  and  they  came  without  warning-  and  at  a  time 
when  the  business  conditions  of  the  country  were  at  high  tide." 

Senator  J.  W.  Bailey  of  Texas  (Democrat)  said,  in  discussing 
this  subject  in  the  Seaate  :  "1  have  my  ojiiuion,  and  it  is  a  very 
definite  one,  as  to  what  produced  th«  recent  financial  stringency. 
*  *  *  It  was  due  immetliately  to  the  overuse  of  bank  credits 
in  the  city  of  New  York.  It  came  when  the  country  had  the  least 
reason  to  expect  it.  Our  crops  had  been  abundant  and  the  price 
of  almost  every  fai-in  product  was  more  than  satisfactory.  A 
recent  statement  made  by  the  Secretary  of  Agriculture  shows 
that  the  products  of  American  farms  last  year  exceeded  in  value 
any  previous  year  in  our  history.  There  had  been  neither  war 
nor  pestilence,  the  balance  of  trade  was  largely  in  our  favor,  and 
there  was  absolutely  no  question  as  to  the  value  of  our  money.  1 
do  not  overlook  the  fact  that  it  has  been  charged  that  the  trouble 
was  due  to  the  persistent  demand  of  the  President  of  the  United 
States  for  the  enactment  of  new  laws  and  the  enforcement  of  old 
laws  to  regulate  and  control  our  railroads ;  but  that  charge  has 
been  made  by  men  whose  minds  are  heated  with  resentment,  and 
it  will  not  bear  a  close  analysis.  The  President  has  demanded 
only  that  the  railroads  of  this  country  should  be  requii-ed  to  deal 
justly  with  the  people,  and  he  has  evinced  no  disposition  to  harass 
or  to  oppress  them." 

Hon.  J.  A.  M.  Adair  of  Indiana,  in  discussing  this  subject  in  a 
speech  in  the  House  of  Kepreseutatives  on  January  23,  1908,  said: 
"ThijB  panic  came  on  us  at  a  time  of  unprecedented  prosperity. 
The  products  of  the  farm  brought  extremely  high  prices.  The 
ag-rioulturists  were  more  prosperous  than  they  had  ever  been  be- 
fore. Our  great  mills  and  manufacturing  establishments  were  run- 
ning day  and  night,  with  orders  six  months  in  advance ;  labor 
was  universally  employed ;  the  banks  throughout  the  country 
wei'e  bursting  with  deposits;  our  splendid  railroad  system  was 
unable  to  handle  the  freight  offered  for  transportation.  *  *  * 
With  not  a  cloud  in  the  sky,  we  were  hurled  into  the  chasm  of  one 
of  the  worst  panics  our  nation  ever  experienced.  The  holders  of 
watered  stock  were  panic  stricken ;  depositors  were  frightened 
lest  they  could  not  get  their  money.  Banks  and  trust  comj)anies 
closed  their  doors  in  the  face  of  their  depositors ;  there  was  no 
money  to  handle  the  business  of  the  country,  and  the  people 
looked  with  suspicion  on  checks  and  drafts  offered  in  payment  of 
obligations.  The  manufacturing  industries  were  unable  to  pro- 
cure money ''to  pay  labor.  Orders  placed  with  our  manufacturers 
were  canceled,  and  this  forced  the  factories  to  cancel  orders  for 
material.  *  *  *  I  do  not  believe  our  present  financial  crisis 
is  due  to  our  financial  system,  but  to  a  lack  of  confidence  in  our 
business  fabric,  brought  about  by  disclosures  of  dishonesty,  cor- 
ruption and  crookedness  in  many  of  our  great  corporations." 

M.  Paul  Leroy-Beaulieu,  a  distinguished  French  writer  and 
economist,  discussing  the  American  crisis  in  the  p]conomiste 
Francaise,  says :  "It  is  true  that  lack  of  currency  elasticity  may 
have  helped  on  the  troubles,  but  the  principal  cause  of  the  crisis 
now  raging  in  the  United  States  and  which  has  in  a  less  degree 
touched  Germany  is  the  complete  disregard  of  the  well  established 
rule  of  political  economy,  that  capital  limits  industry.  *  *  * 
New  enterprises  had  been  started  or  old  enterprises  enlarged  far 
beyond  the  sum  total  of  available  capital — that  is,  beyond  the 
amount  of  capital  actually  produced  by  the  savings  of  the  whole 
civilized  world.  Reserves  of  capital  have  fallen  short  of  the  re- 
quirements of  extravagant  American  demands.  The  industrial 
megalomania  in  the  United  States  took  no  account  of  Avhat  was 
possible.  It  merely  devoted  itself  to  pushing  up  everything.  The 
debauch  of  extravagance  was  particularly  indulged  by  the  con- 
structing companies  and  by  the  great  American  railways.     Con- 


THE  MONEY  PANIC  OF  1907.  59 

tracts  were  placed  for  the  construction  in  the  single  year  of  1907 
of  vast  amounts  of  work,  and  the  companies  prepared«for  such 
excesses  by  issues  of  securities  to  a  simply  stupendous  amount. 
The  truth  of  the  whole  matter  is  that  in  this  panic  the  United 
States  is  simply  paying-  the  penalty  for  its  extravagant  expan- 
sion at  a  time  when  credit  conditions  were  merely  nominal." 

Mr.  Seymour  Bell,  the  British  Commercial  Agent  in  the 
United  States,  in  a  letter  to  the  British  Government,  presented  in 
Parliament  and  pi-inted  by  the  authority  of  that  body,  says : 

"During  the  earlier  months  (of  1907)  all  industries  were  ex- 
ceedingly busj^  and  naills  were  working-  at  their  utmost  capacity. 
Many  unfilled  orders  had  been  carried  over  from  the  previous 
year,  and  buyers  were  experiencing-  great  difficulty  in  getting  de- 
livery of  their  goods.  The  railway  lines  were  cwngested,  wages 
were  at  their  highest,  and  the  hiyh  price  of  commodities  raised 
the  price  of  living  to  an  extreme  point.  Money  was  becoming 
scarce,  and  the  railways  and  other  corporations  were  encounter- 
ing great  difficulties  in  obtaining  the  capital  necessary  to  carry 
on  the  improvements  and  extensions  which  were  in  process  of 
being  carried  out.  Speculation  in  mining  and  real  estate  had 
been  rife  and  personal  extravagance  was  at  its  height. 

"The  situation  was  peculiar.  On  the  one  hand  there  were  tin: 
manufacturers  with  more  orders  than  they  could  fill  and  busy  en- 
larging their  plant*,  merchants  selling  large  quantities  of  goods 
at  satisfactory  prices,  labor  in  auch  demand  that  even  with  the 
addition  of  the  1,200,000  immigrants  it  was  necessary  to  employ 
inefficient  workers  at  good  wages.  On  the  other  hand,  there  was 
dear  money,  owing  t©  scarcity. 

"When,  owing  to  a  failure  in  New  York,  light  was  thrown 
on  the  management  of  some  of  the  large  financial  concerns  in  the 
city,  public  confidence,  which  had  previously  been  undermined  by 
certain  investigations,  gave  way  completely,  resulting  in  an  acute 
money  panic. 

"The  panic  was  entirely  financial.  It  has.  it  is  true,  brought 
about  a  widespread  suspension  of  trade  and  industry  through- 
out the  country,  but  there  has  been  no  throwing  on  the  market  of 
merchandise  at  ruinoiis  prices.  The  manufacturers  without  delay 
proceeded  to  curtail  the  supply  and  thus  reduce  such  chances  as 
there  might  have  been  of  g-lutting  the  market  with  unsalable  arti- 
cles. It  must  not  be  forgotten  that  the  farmers,  who  form  the 
b&ckbone  of  American  prosperity,  have  not  been  affected  by  the 
financial  situation.  A  country  that  produces  crops  valued  at 
nearly  £1,500.000,000  ($7,300,000,000)  is  unlikely  to  suffer  long 
from  industrial  stagnation.  Farmers  have  had  nine  years  of  al- 
most \ininterrupted  prosperity,  their  buying  power  is  high,  and 
the  towns  dependent  upon  them  will  remain  prosperous. 

"The  farmers  who  a  few  years  ago  owed  money  now  own 
money,  and  have  an  assured  outlet  for  their  products,  as  there 
is  no  oversupply.     , 

"The  cloud  of  uncertainty  is  now  passing  away,  and  the  worst 
of  the  storm  has  now  passed.  *  *  *  It  is  expected  that  b«fore 
many  months  have  passed  business  will  be  on  a  safer  and  more 
normal  basis." 

Hon.  C.  M.  Depew,  discussing  this  subject  in  the  United  States 
Senate,  says :  "A  chain  is  no  stronger  than  its  weakest  link,  and 
the  weak  lii^k  in  the  recent  situation  was  the  trust  companies, 
with  their  enormous  deposits  and  limited  reserves.  There  is  no 
question  about  their  soundness  and  their  possession  of  a  large 
surplus  beyond  all  their  obligations  to  their  stockholders  and  de- 
positors. Nevertheless,  while  doing  a  banking  business,  they 
were  not  equipped  for  a  banking  emergency.  A  run  was  started 
on  the  Knickerbocker.  Trust  Conipany,  whose  stock  was  selling  at 
twelve  himdred  dollars  for  a  hundred-dollar  share.  The  spectacle 
of  millionaires  jostling  clerks  and  bank  messengers  in  the  rush  to 
get  to  the  window  for  their  money  before  the  cash  was  exhausted 
was  illuminating.  It  showed  that  in  a  panic  human  nature 
works  the  same  with  rich  and  poor.  *  *  *  Then  ]Nfr.  Cortel- 
you  came  to  the  rescue  and  deposited  available  money  in  the  na- 
tional banks  ^^vt\]  the  balance  in  the  Treasury  was  down  to  about 
five  millions.  The  action  of  the  Government  in  placiucr  $240,000.- 
000  with  the  banks,  and  this  letter  of  the  President,  ringing  like 
a  clarion  note  of  confidence  in  every  office,  workshop,  store,  farm- 


60  THE  MONET  PANIC  OF  1001. 

house  and  dwelling-  of  the  country,  tog-ether  with  the  couragfeous 
action  o*  the  New  York  bankers  and  banks  in  importing'  gold  and 
helping  institutions  assailed,  stopped  the  panic  and  saved  the 
country." 

Secretary     Cortelyou     on     the     Banks. 

The  following  are  extracts  from  the  response  of  the  Secretary 
of  the  Treasury,  Hon.  George  B.  Cortelyou,  to  a  resolution  of  the 
Senate  of  the  United  States  calling  for  information  regarding  the 
operation  of  the  Treasury  during  the  panic  period : 

Extracts    from    Report    of    Secretary    Cortelyou  on  Jtfiventa  of 

Panic. 

In  view  of  the  importance  of  the  subject  and  the  wide  discussion 
which  has  occurred  in  regard  to  it,  it  seems  proper  to  summarize  as 
briefly  as  possible  the  operations  of  the  Treasury  for  the  past  year,  and 
to  follow  this  by  a  statement  more  in  detail  of  the  methods  and  reasons 
for  some  of  the  steps  taken   during  the  financial  panic   of  1907. 

In  March,  1907,  business  conditions  were  becoming  unsettled,  and 
there  shortly  developed  a  period  of  acute  stringency  in  th«  money  markets 
which  called  for  prwmpt  and  effective  measures.  Various  relief  nteasures 
were  taken,  and  while  this  stringency  was  quite  promptly  relieved,  sig- 
nificant Indications  of  still  further  financial  disturbance  were  apparent, 
and  the  Department  therefore  kept  In  very  close  touch  with  the  situation 
in  all  parts  of  the  country. 

It  was  decided  in  the  latter  part  of  August  to  make  each  week  sub- 
stantial deposits  of  public  moneys  in  national  banks,  with  a  view  to  facil- 
itating the  movement  of  the  crops  In  various  sections  of  the  country.  The 
Treasury  was  at  that  time  in  good  condition  to  render  substantial  aid 
in  this  direction.  The  nominal  cash  balance  on  July  31,  1907.  was 
$:'38  574,188.  Of  this  amount  $150,990,204  was  on  deposit  in  national 
bank  depositaries  to  the  credit  of  the  Treasurer  of  the  United  States 
or  to  the  credit  of  disbursing  offices.  The  net  excess  of  cash  above 
deposits  stood,  therefore,  before  this  distribution,  at  about  $81,500,000, 
affording  a  considerable  margin  above  the  amount  required  for  a  con- 
venient working  balance. 

Beginning  on  August  28,  and  continuing  each  week  until  October 
14.  this  plan  of  weekly  deposits  was  followed,  a  total  of  about  $28,- 
000,000  being  allotted  to  various  banks.  These  banks  w«re  located  in 
each  of  the  46  States,  in  the  Territories,  and  in  the  District  of  Columbia. 
Every  endeavor  was  rnade,  from  the  information  and  requests  at  hand, 
so  to  distribute  this  fund  that  it  would  meet  actual  needs  in  sections 
where  business  activity  was  at  the  maximum  and  currency  was  most  ur- 
gently required. 

About  the  middle  of  October  events  occurred  which  indicated  that 
a  monetary  stringency  had  arisen  much  more  severe  than  that  which 
experience  has  shown  usually  occurs  in  the  autumn  in  connection  with 
the  movement  of  the  crops.  Rumors  were  current  concerning  many 
manufacturing  establif^^hmcntR  and  others  interested  in  large  projects,  who 
were  embarrassed  by  inability  to  raise  ready  cash  to  continue  their 
opei'ations.  In  New  York  City  this  condition  was  brought  to  a  head 
by  the  appeal  of  several  national  banks  to  the  clearing  house  committee 
for  aid,  which  was  quickly  followed  by  the  suspension  on  October  22 
of  the  Knickerbocker  Trust  Company,  after  the  payment  of  about  $8,000,- 
000  in  cash  to  depositors.  Almost  immediately  runs  began  upon  two  other 
large  trust  companies,  deposits  were  reduced  in  many  other  institutions, 
money  began  to  be  hoarded  by  individuals,  and  on  October  26  the  New 
Yerk  banks  decided  to  Issue  clearing  house  certificates. 

Before  the  decision  of  the  New  York  clearing  house  to  issue  clearing 
house  certificates,  the  Treasury  transferred  to  the  national  banks  within 
a  few  days  the  sum  of  about  $35,000,000.  These  deposits,  with  the 
aid  given  to  those  banking  Institutions  which  were  severely  assailed  by 
those  which  were  less  disturbed,  tended  to  stay  the  panic  which  was  other- 
wise Imminent. 

In  order  to  meet  the  demand  for  currency  by  the  in.'?tltutions  which 
were  subjected  to  pressure,  the  Treasury  Department  forwarded  to  New 
York  within  three  days  about  $36,000,000  in '  small  bills.  While  these 
were  not  in  all  cases  used  in  making  direct  deposits  of  public  moneys, 
they  were  available  at  the  sub-treasury  for  any  banking  institution  which 
desired  to  obtain  them  in  exchange  for  bills  of  larger  denomination  or 
for  coin.  At  a  later  date,  gold  coin  was  paid  In  many  cases,  at  the 
request  of  certain  institutions,  because  they  found  that  payment  of  coin 
to  depositors  tended  In  a  measure  to  discourage  runs.  It  was  not  be- 
cause the  coin  was  preferred  to  notes ;  on  the  contrary,  it  was  because 
depositors  did  not  desire  to  be  burdened  with  taking  away  the  cein,  and 
preferred  notes  of  large  denominations.  It  Is,  Indeed,  a  source  of  grati- 
fication that  at  no  period  of  the  crisis  was  there  the  slightest  suspicion 
of  the  Integrity  of  the  currency  Issued  either  by  the  Government  or  by 
national  banks.  The  effect  of  the  law  of  March  14,  1900,  in  creating 
an  adequate  gold  reserve  and  providing  necessary  measures  to  replenish 
the  reserve  In  case  of  need,  so  completely  set  at  re5;t  any  distrust  of  the 
exchangeability  of  all  forms  of  paper  for  gold  that  the  subject  was  hardly 
mentioned  anywhere,  except  as  a  cause  of  congratulation  upon  the  effects 
of  the  gold  standard  act.  The  transfer  of  large  amounts  of  gold  from 
the  Treasury  to  the  banks  made  it  necessary  to  run  the  mints  at  high  pres- 
sure in  order  to  comply  with  the  requirements  of  the  Act  of  March 
14,  1900,  that  not  more  than  $50,000  000  of  the  legal  gold  reserve  of 
$150,000,000  should  be  kept  in  buljion.  There  was  at  no  time  any  dis- 
position to  convert  any  form  of  Government  paper  into  gold  because  of 
any  question  as  to  safety  of  the  paper,  nor  was  there  any  disposition  ta 
present  gold   certificates    for   redemption   in  gold  coin. 


THE  MONET  PANIC  OF  WOT.  61 

While  the  action  of  the  Department  in  placing  large  sums  in  the 
national  banks  in  New  York  was  subjected  to  some  criticism,  it  was 
amply  justified  by  the  conditions  as  they  then  existed  and  as  they  have  been 
disclosed  in  th«  light  of  subsequent  events.  Figures  given  further  along 
will  show  that  the  national  banks  in  New  York  did  not  retain  in  their 
own  keeping  the  public  moneys  received,  but  were  enabled  through  their 
extended  relations,  as  to  reserve  depositaries  with  banks  of  all  classes 
throughout  the  country,  to  employ  these  moneys  to  meet  a  large  pro' 
portion  of  the  calls  made  upon  them. 

An  examination  of  the  deposits  made  by  the  Treasury  in  the  banks, 
from  time  to  time,  commencing  in  the  middle  of  October,  will  show  that 
as  the  stringency  progressed  the  Treasury  gave  relief  in  every  important 
locality  where  assistance  seemed  to  be  required.  Some  of  the  more  im- 
portant deposits  were  as  follows  :  Chicago,  $3,000,000  ;  Pittsburg,  $1,500,- 
000  ;  Cincinnati,  $1,500,000  ;  Minneapolis  and  St.  Paul,  $500,000  ;  and  in 
many  places  in  the  South  and  West,  the  public  revenues,  which  ordinarily 
would  be  remitted  to  the  various  sub-treasuries,  and  thus  taken  out  of 
circulation,  were  allowed  to  accumulate    in  national  bank  depositories. 

After  the  spectacular  events  in  New  York,  however,  which  culminated 
in  runs  upon  three  important  trust  compaaies,  the  demand  for  money 
became  .so  intense  that  the  banks  in  the  large  cities  were  obliged  to 
issue  clearing  house  certificates  to  use  in  place  of  currency  in  settling 
balances  among  themselves  ;  and  in  many  places  outside  of  New  York 
certificates  of  small  denominations  printed  in  a  form  for  general  circulation 
were  largely  used.  Thus  each  city  endeavored  to  avoid  the  shipment  of 
currency,  and  to  retain  for  its  own  use  such  cash  as  might  still  be  within 
its  control.  It  appears  that  in  New  York  City  alone  clearing  house  cer- 
tificates were  issued  in  excess  of  $100,000,000. 

By  the  middle  of  November  the  Treasury  had  met  the  demand  for 
relief  to  the  extent  that  it  had  deposited  with  the  banks  all  accumu- 
lated funds  not  needed  for  the  immediate  purposes  of  meeting  Govern- 
ment expenditures,  and  had  redticed  the  actual  working  balance  to  ap- 
proximately $5,000,000.  To  allow  the  balance  to  fall  below  that  figure 
was  not  considered  prudent,  as  much  difficulty  was  experienced  in  bring- 
ing into  the  Treasury  public  moneys  actually  collected  at  sub-treasuries 
and  other  revenue  offices.  The  public  revenues  also  were  falling  off, 
owing  in  part  to  the  scarcity  of  currency,  which  prevented  the  payment  in 
the  form  required  by  law  of  internal  revenue  taxes  and  of  duties  on 
imports. 

In  the  meantime,  and  as  apparently  no  further  deposits  could  safely 
be  made  from  the  diminished  cash  resources  of  the  Treasury,  national 
banks  were  notified  that  they  would  be  permitted  to  substitute  bonds 
suitable  for  savings  bank  investments  for  Government  bonds  which  were 
held  as  security  against  public  deposits.  The  purpose  of  this  measure 
was  to  enable  the  banks  to  employ  the  Government  bonds,  which  were 
thus  released  as  eecurity  for  additional  banknote  circulation,  in  conformity 
with  law.  To  this  offer  the  banks  rsesponded  promptly,  and  as  a  result 
many  millions  of  additional  banknotes  were  taken  out  and  were  employed 
in  meeting  the  currency  famine. 

As  usual  in  emergencies,  the  difficulty  of  obtaining  bonds,  and  other 
obstructions  of  detail,  prevented  the  increase  in  circulation  becoming 
effective  to  the  full  amount  until  some  time  after  the  need  for  it  had 
passed.  Just  before  the  acute  stage  of  the  crisis,  the  national  banknote 
circulation  stood  (on  October  15)  at  $607,118,741'.  While  strenuous  efforts 
were  made,  especially  by  some  of  the  large  banks  in  New  York  and 
Chicago,  to  comply  with  the  expressed  wishes  of  the  Department  and  of 
the  Comptroller  of  the  Currency  to  increase  circulation,  the  amount  out- 
standing had  risen  on  November  1  only  to  $611,822,676,  and  on  November 
15  to  $631,344,943.  The  most  important  increase  in  the  circulation 
took  place  after  the  announcement,  about  to  be  referred  to,  of  the  Govern- 
ment issues  of  Panama  bonds  and  one-year  Treasury  certificates,  so  that 
the  circulation  attained  on  December  1  the  amount  of  $656,218,196  ;  on 
December  15,  $676,914,235  ;  and  finally,  on  December  31,  $69T). 130,895.  By 
the  latter  date  the  urgent  pressure  for  currency  had  practically  ceased 
and  yet  notes  continued  to  be  issued  in  compliance  with  orders  previously 
received,  until  the  outstanding  circulation  on  June  5,  1908,  last,  was  $698,- 
511,588. 

The  fact  that  the  national  banks  were  exerting  themselves  to  increase 
circulation,  and  that  the  Treasury  by  these  new  issues  placed  at  their 
command  means  of  doing  so,  undoubtedly  had  a  moral  effect  which  tended 
to  check  the  panic  and  reduce  the  premium  on  currency.  The  banks 
were  hampered,  however,  before  the  announcement  of  the  new  Govern- 
ment issues,  by  the  rapid  advance  in  the  price  of  2  per  cent  bonds. 
These  bonds  sold  as  high  as  110,  and  even  at  this  price  the  supply  in 
the  market  obtainable  by  national  banks  was  extremely  limited  in  quan- 
tity. 

It  was  with  a  view  to  relieving  this  situation,  and  counteracting  the 
premium  on  currency,  which  was  itself  a  stimulus  to  hoarding  and  which 
practically  interrupted  exchanges  between  different  cities,  that  it  was 
decided  on  November  17  to  receive  apnlications  for  subscriptions  for 
$50,000,000  in  Panama  Canal  bonds,  under  the  Act  of  June  28.  1902, 
and  $100,000,000  in  3  per  cent  certificates  of  indebtedness,  under  the 
Act  of  June  18,  1898.  One  of  the  direct  effects  of  the'^e  issues  was 
to  afford  to  the  banks  the  means  of  increasing  their  circulation.  If  the 
proceeds  of  these  issues  had  been  retained  in  entirety  in  the  Treasury, 
the  increase  in  bank  circulation  would  have  been  offset  by  the  amouut 
paid  by  the  banks  for  the  bonds.  By  providing,  however,  for  the  transfer 
to  the  banks  of  a  part  of  the  purchase  money  as  an  addition  to  their  holdings 
of  public  deposits  at  the  time,  a  very  considerable  net  increase  in  circu- 
lation became  possible. 

In  order  to  afford  this  relief,  the  banks  to  which  awards  were  made 
on  Panama  bonds  were  allowed  to  retain  90  per  cent  of  the  purchase 
price  as  a  deposit,  and  those  to  which  allotments  were  made  of  the  one- 
year  certificates  were  allowed  to  retain  75  per  cent  of  the  purchase  price. 
Thus  an   inducement  was    offered   for   subscriptions   to   the   new    issues,    as 


6t  THE  MONEY  PANIC  OF  1907. 

well  as  a  means  of  increasing  banknote  circulation.  It  was  the  deliberate 
intent  also  that  the  offer  was  made  more  attractive  in  the  case  of  the 
bonds  than  in  the  case  of  the  certificates,  after  it  became  evident  that 
the  issue  of  the  entire  amount  of  the  latter  first  proposed  woiJTtl  not 
be  required  to  restore  confidence.  Ultimately  the  results  of  these  offers 
on  the  part  of  the  Treasury  were  s\ich  that  it  was  found  necessary  to 
issue  only  $24,631,980  in  the  Panama  bonds  and  $15,430,500  in  the 
certificates  of  indebtedness.  Practically  all  of  both  classes  of  obligations, 
excepting  $91,820  in  bonds,  were  used  as  the  basis  for  increasing  the 
banknote   circulation   or  securing   public   deposits. 

The  Comptroller  of  the  Currency  refrained  at  the  height  of  the  panic 
from  calling  on  the  national  banks  for  th«  report  of  condition  usually 
required  during  November,  but  he  issued  such  a  call  for  reports  of 
condition  on  December  3.  The  result  of  the  call  revealed  what  was 
expected  in  well-informed  quarters — that  much  of  the  currency  with- 
drawn from  New  York  had  been  added  to  the  reserves  of  interior  banks, 
and  that  their  position  was  execeptionally  strong.  The  fact  that  the 
call  had  been  made  and  the  report  submitted  contributed  another  favor- 
able factor  to  the  situation  immediately  afterwards,  by  enabling  the 
banks  to  release  a  part  of  this  accumulated  cash  to  meet  the  pressing 
needs  of  their  clients,  with  the  knowledge  that  they  would  probably  be 
able  fully  to  reinstate  their  reserves  before  another  call  was  made  by  the 
Comptroller. 

The  announcement  of  the  issues  of  new  sacurities  by  the  Treasury, 
accompanied  by  the  publication  of  a  letter  by  the  President  to  the  Sec- 
retary of  the  Treasury,  marked  in  some  degree  the  turning  point  of  the 
panic.  The  deficit  in  the  reserves  of  the  New  York  clearing  house 
banks  which  on  November  16  was  $53,669,950,  increased  in  the.  next 
week  less  than  $500,000,  and  in  the  following  weeks  turned  rapidly 
downward,  until  the  amount  on  December  28,  1907,  was  only  $20,170,350, 
and  by  January  18  had  been  converted  into  a  surplus  of  $22,635,475. 
The  cash  holdings  of  these  banks,  which  had  touched  a  mininum  on 
Nbvember  2-3,  1907,  of  $215,851,100,  rose  on  January  18,  1908,  to  $295,- 
182,600.  No  further  steps  were  considered  necessary  by  the  Treasury 
except  to  continue  deposits  of  public  moneys  for  a  time  where  they  were 
available,  and  early  in  December  it  became  possible  to  replenish  the  cash 
In  the  Treasury  by  the  withdrawal  of  about  $6,000,000  from  national 
banks  in  New  York  City.  The  premium  on  currency  did  not  wholly  dis- 
appear until  about  the  beginning  of  the  new  year,  but  remained  only 
nominal  during  the  latter  part  of  December  as  the  panic  subsided  and  as  the 
funds  withdrawn    from   banks    for    hoarding   were   gradually    restored 

So  rapidly  did  the  money  market  improve  after  the  tide  had  once 
turned  that  the  call  made  by  the  Department  upon  the  banks  early  in 
December  for.  the  return  of  $6  000,000  was  followed  on  January  24 
by  another  call  for  about  $10,000,000  from  New  York  banks,  and  this 
was  followed  on  February  25  by  a  call  for  about  $29,000,000,  each 
bank  having  an  available  excess  of  $50,000  or  over  being  called  upon 
for  the  payment  of  25  per  cent  of  its  holdings  of  public  money.  Voluntary 
payments  from  New  Yprk,  Philadelphia,  Baltimore,  and  Boston,  in  the 
meantime  had  brought  nearly  10  millions  back  into  the  Treasury.  On 
April  28,  1908,  a  call  was  issued  for  the  payment  of  approximately  $45,- 
000,000,  and  this  amount  was  overpaid  by  several  hundred  thousand  dol- 
lars. 

In  Europe,  also,  conditions  began  to  improve  rapidly  with  the  pass- 
ing of  the  crisis  in  America.  The  percentage  of  the  reserve  at  the 
Bank  of  England  rose  from  35.62  per  cent  on  January  2,  1908,  to  52.69 
per  cent  on  January  16,  and  the  directors  felt  justified  in  reducing  the 
official  discount  rate  from  7  per  cent  to  6  per  cent  on  January  2,  and  two 
weeks  later  (on  January  16)  to  5  per  cent.  The  gold  stock  of  the  bank, 
which  had  been  rcdrced  on  November  7  to  £27,725.225,  rose  on  January 
2,  1908,  to  £32r543.666,  and  on  January  16  to  £35,791,425.  The  Imperial 
Bank  of  Germany,  which  had  been  under  severe  pressure,  benefited  by  an 
Increase  in  its  cash  by  about  $20,000,000  in  the  single  week  of  January 
17,  and  a  decrease  in  its  note  issue  by  $43,875,000,  and  under  these  con- 
ditions felt  justified  in  reducing  its  discount  rate  from  71^  to  6V2  per  cent, 
and  later  (on  January  25)  to  6  per  cent.  The  Bank  of  France  also 
greatly  increased  its  cash  resources  and  reduced  its  discount  rate  early 
in  the  year. 

The  Secretary  did  not  feel  called  upon  at  any  stage  of  the  crisis  to 
interfere  directly  with  the  normal  movement  of  gold  between  international 
markets.  The  movement  of  foreign  exchange  was  very  irregular  in  the 
early  stages  of  the  crisis,  beranse  of  some  demand  for  remittances  to 
London  in  settlement  for  maturing  finance  bills  and  in  payment  for  Ameri- 
can securities  which  were  being  remitted  by  disturbed  foreign  holders 
to  the  United  States.  The  sum  of  $1,500,000  in  gold  was  actually  engaged 
for  export  to  Germany  on  October  19,  but  was  explained  as  being  a  special 
transaction. 

After  a  short  period  of  uncertainty,  however,  exchange  turned  strongly 
In  favor  of  imports  of  gold  into  the  United  States,  and  by  the  end  of  October 
engagements  of  over  $24  000,000  were  announced,  which  were  eventually 
swelled  during  the  next  two  months  to  more  than  $100,000,000.  None  of 
this  gold  arrived  until  November,  but  the  moral  effect  of  the  engage- 
ments was  felt  as  soon  as  they  were  announced.  The  metal  was  dis- 
tributed, chiefly  through  the  channel  of  the  New  York  clearing  house  banks, 
to  threatened  points  throughout  the  country.  It  is  a  striking  proof  of 
the  energy  with  which  the  banks  of  New  York  extended  aid  to  those  of 
other  parts  of  the  country  that  the  national  bank  returns  s^ow  a  reduc- 
tion in  soecie  in  the  national  banks  of  New  York  from  $173,221,007 
on  August  22,  1907,  to  $147,974,918  on  December  3,  1907.  Thus,  not 
only  did  the  entire  volume  of  gold  imported  between  these  two  dates  pass 
through  New  York  to  other  places,  except  so  far  as  a  part  was  hoarded 
by  individuals,  but  the  New  York  banks  gave  up  $25,000,000  of  their 
usual    and   normal    reserves. 


THE  MONEY  PANIC  OF  1901.  63 

Magnitude    of   the    Crisis. 

The  justification  for  taking  vigorous  action  to  arrest  panic  is  found 
io  tbe  remark-able  flgures  of  ttie  disapppearance  of  carrency  during  the 
period  of  about  six  weeks  from  ttie  suspension  of  tiie  Knickerbocker 
Trust  Company  on  October  22  until  confidence  was  partially  restored 
early  in  December.  The  amount  of  currency  which  disappeared  from 
sight  during  this  period,  as  nearly  as  can  be  ascertained  from  the  national 
bank  reports  and  other  sources  of  information,  was  about  $296,000,000, 
as  follows  : 

Cash  absorbed  in  United  States  during  the  panic. 

Reduction  in  cash  in  national  banks,  August  22  to  December  3   $40,838,786 

Net  imports  of  gold,   November  1   to   December  31 106,403,770 

Increase   in    public   deposits,    August   22     to    December    3 79,834,689 

Increase  in  bank  circulation,  Augu-st  22  to  December  3 49,856,524 

Decrease  in  cash  in  State  banks  and  Trust  Companies  of  New 

York  City,  August  22   to   December  19 19,191,700 

Total 296,125,469 

Of  this  great  absorption  of  currency,  amounting  substantially  to  one- 
tenth  of  the  entire  estimated  money  in  circulation  in  the  United  States, 
more  than  two-thirds  of  the  burden  fell  upon  New  York.  This  was 
almost  inevitable  from  the  fact  that  New  York  is  the  financial  distrib- 
uting center  of  the  country.  The  figures  show  that  more  than  the  entire 
net  loss  in  national  bank  reserves  fell  upon  the  national  banks  of  New 
York  City.  The  national  banks  outside  of  New  York  City,  in  spite  of 
heavy  demands  upon  them,  were  able  by  the  aid  of  New  York  to  main- 
tain an  amount  of  cash  actually  larger  by  a  small  amount  on  December 
3  than  they  held  at  the  date  of  the  previous  report  to  the  Compteroller 
on  A-gust  22,  when  conditions  were  relatively  tranquil.  The  national 
banks  of  New  York  City  not  only  met  th9  demand  for  currency  until 
their  reserves  were  reduced  $54,103,600  below  the  legal  limit,  but  in  ad- 
dition they  imported  and  distributed  $95,000,000  in  gold,  and  distributed 
also,  in  order  to  meet  the  demands  of  their  depositors  and  banking  cor- 
respondents, all  of  the  money  of  the  Government  deposited  with  them. 
The  result  was  that  of  the  $296,000,000  currency  absorbed  throughout  the 
country,  $218,275,304  was  provided  by  the  banks  of  New  York  City.  The 
amount  thus  disposed  of  by  New  York  banks  and  trust  companies  is  shown 
in  the   following  table : 

Currency   absorbed   through   Neto    York   banks. 

Reduction  in  cash  in  national  banks,  August  22  to  December  3   $41,692,312 

Net  imports  of   gold,   November   1   to  December  31 94,095,48 1 

Increase   in  public  deposits,    August   22   to  December   3 47,576,o56 

Increa'^e  in  banknote  circulation,  August   22  to  December  3...      15,719,455 
Reduction  In  cash  in  State  banks  and  tru^t  companies,   August, 

22    to    December    19 19,191,700 

Total 218,275,304 

The  gravity  of  the  situation  was  enhanced  by  the  fact  that  the  pres- 
sure upon  the  money  market  was  not  localized  in  the  United  States.  The 
fir.«!t  engagemepts  of  gold  were  from  London  and  were  met  by  a  prompt 
increa-^e  of  the  Bank  of  England  discount  rate  from  41/2  to  5Vi»  per  cent 
on  Oct'-ber  31,  which  was  followed  on  November  4  by  an  advance  to  6 
per  cent,  and  on  Thursday,  November  7,  to  7  per  cent — the  highest  rnte 
fixed  at  the  bank  since  1873.  In  Germany,  also,  severe  pressure  was  felt 
and  the  bank  rate,  after  having  been  fir=t  advanced,  on  October  29,  from 
5^2  to  6'4  per  cent,  was  further  advanced  on  November  8  to  "¥2  per 
cent- -the  highe'=-t  rate  charged  by  the  Imperial  Rank  .=-ince  iti=r  organizatiin 
in  1873.  The  Bank  of  France,  in  spite  of  its  immense  holdings  of  gold, 
advanced  its  rate  from  Sli  to  4  per  cent  for  commercial  discounts.  So 
serious  was  the  situation  in  London  that  aid  was  involved  from  the  Ban\ 
of  France,  and  prudent  American  ban^'ers  felt  It  necessary  to  limit  demands 
for  gold  v;r)  m  London  for  fear  that  if  tbey  brcame  exce<=  ive  a  commerc'al 
crisis  woiild  occir  thers  which  would  intensify  the  danger  of  the  general 
situation  in  all  international  markets.  Arrangements  for  imports  of  gold 
into  ■  New  York  were  made  not  only  in  Europe,  but  from  the  Argentine 
Republic,  aiid  Cuba,  and  the  reaction  of  the  American  crisis  upon  Canada 
led   to   some   importntions    into   that   country 

The  energy  wMth  which  the  economic  resources  of  the  country  were 
devoted  to  the  relief  of  the  situation  is  indicated  by  the  manner  in  which 
expertation  of  merchandise  was  expedited  by  the  railways  and  by  dealers 
in  foreign  exchange.  The  figurrc  nf  the  movement  of  merchandise  are 
among  the  most  striking  ever  exhibited  in  the  history  of  the  country.  ' 
They   are    briefly    indicated    in    the    foliowiug    table  : 

Foreign  trade  movement,  August  1  to  December  31,  1907. 


Month. 

Import-:  of    1     Exor'sof 
meichandise.i  meichandlse. 

EScess  of 
exports. 

August --J-    _- 

$125,806,043 
10^,305,180 
111,912,621 
110.9*2,916 
92,288,771 

$127,270,447 
13=1,318.312 
180,256,035 
204,474,217 
207,179.436 

$1,464,404 
2S, 953, 162 
68,343,464 
93,531,301 
114,890,665 

September 

October  - 

November  

December 

64  THE  MONEY  PANIC  OF  1901. 

The    ItiMUf    of   UuikIm    uiid    Treasury    Certiflcate*. 

The  issue  of  new  securities  by  the  Treasury  Department  was  influ- 
enced by  the  conclusion  that  it  was  advisable  to  take  some  strong  and 
resolute  step  which  would  convince  the  public,  both  at  home  and  abroad, 
that  the  Government  was  thoroughly  alive  to  the  situation  and  determined 
to  give  its  aid  in  every  possible  legal  and  proper  form.  The  most  potent 
weapon  at  such  times  in  bringing  a  crisis  to  an  end  is  often  as  much  one 
of  moral  effect  as  of  the  definite  action  taken.  It  has  been  the  hi.story 
of  many  great  crises  in  Europe  as  well  as  in  this  counti'y  that  the  knowl- 
edge that  adequate  resources  existed  to  avoid  distaster  was  often  sufficient 
to  obviate  the  necessity  for  employing  such  resources  to  their  utmost 
limit.  An  illustration  in  point  is  the  action  of  the  Chancellor  of  the 
Exchequer  in  Great  Britain  in  the  panic  of  1866,  when  the  announce- 
ment that  he  had  authorised  the  Bank  of  England  to  disregard  the  bank 
act  and  to  issue  its  notes  to  any  necessary  limit  promptly  arrested  pres- 
sure upon  the  banks.  So  prompt  was  the  response  of  public  feeling  to 
this  action  Ln  suspending  the  demand  for  discounts  and  the  withdrawal 
of  deposits  that  the  bank  did  not  find  it  necessary  to  avail  itself  of  the 
authority  to  issue  additional  notes.  The  fear  that  accommodation  could 
not  be  obtained  by  solvent  bu.^lness  men  was  completely  allayed  and  the 
panic  almost  immediately  subsided. 

The  fact  that  the  Treasury  was  in  a  strong  position  in  respect  to 
its  normal  cash  balance  made  the  situation  much  more  easy  of  control  In 
some  respects  than  after  the  panic  of  1893,  when  the  cash  balance  was  al- 
most completely  exhausted  and  the  reaction  of  this  inflncnce  was  felt  in  de- 
pleting the  gold  reserve.  At  that  time  the  first  issue  of  $50,000,000  in  5  per 
cent  bonds  was  not  announced  until  the  cash  reserve  had  been  depleted 
below  $50  000,000.  And  the  same  depletion  took  place  before  the  second 
issue  of  bonds  in  the  autumn  of  1894.  In  the  recent  crisis  it  seemed 
advisable  to  the  Department,  in  view  of  the  much  sounder  condition  of 
general  business  and  of  the  Treasury  than  in  1894,  to  announce  a  strong 
measure  of  relief  without  waiting  for  the  crisis  to  become  more  acute. 

It  was  with  this  view  of  the  situation  that  the  Secretary  of  the 
Treaeury,  in  proposing  to  the  President  an  announcement  of  an  issue 
of  $50,000,000  in  2  per  cent  bonds  for  the  construction  of  the  Panama 
Canal  and  $100,000,000  in  3  per  cent  Treasury  certificates  for  one  year, 
made  the  qualification  that  these  amounts  should  be  issued  only  "if  nec- 
essary." 

While  the  pressure  upon  the  bariks  was  not  allayed  at  once  by  this 
measure,  confidence  was  so  far  restored  that  the  premium  on  currency 
fell  immediately,  and  bids  were  received  in  such  volume  for  both  classes 
of  issues  that  it  was  not  considered  necessary  to  allot  even  half  of  the 
total  amoijnt  of  the  two  issues. 

The  Panama  Canal  bonds  were  issued  under  authority  of  the  Act  of 
June  2i8,  1902,  as  amended  by  the  Act  of  December  21,  1905,  authorizing 
the  Secretary  of  the  Treasury  "to  borrow  on  credit  of  the  United  States  from 
time  to  time  as  the  proceeds  may  be  required  to  defray  expenditures  au- 
thorized by  this  act  (^uch  proceeds  when  received  to  be  used  only  for  the 
purpose  of  meeting  such  expenditures),  the  sum  of  $130,000,000,  or  as 
much  thereof  as  may  be  necessary. " 

It  would  seem  to  be  obvious  from  this  language  that  it  was  In- 
tended to  construct  the  canal  entirely  from  the  proceeds  of  loan.s  issued 
for  the  purpose  and  not  to  charge  any  part  "of  the  cost  of  construction 
upon  the  current  ordinary  receipts  of  the  Government.  As  the  entire 
pipceeds  of  the  bonds  which  were  actually  issued  under  this  offer,  amount- 
ing to  $24,631,980,  have  been  expended  on  the  canal  work,  it  would  seena 
that  no  question  of  the  legality  or  propriety  of  such  an  issue  of  bonds 
could  be  raised. 

The  one-year  certificates  were  issued  under  authority  of  the  Act  of 
June  13,  1898,  authorizing  such  issues  when  necessary  to  meet  the  ex- 
penses of  the  Treasury.  The  criticism  has  been  made  that  with  a 
nominal  cash  balance  of  some  $200,000,000  in  the  Treasury  the  occasion 
contemplated -by  the  act  did  not  arise  and  the  power  therefore  did  not 
accrue  to  the  Secretary  to  make  an  issue  of  su»h  securities  to  meet  cur- 
rent expenses.  From  a  strictly  legal  point  of  view  there  is  probably 
no  question  that  the  determination  of  the  occasion  for  making  such  an 
issue  is  within  the  discretion  of  the  Secretary  of  the  Treasury.  Indeed, 
it  is  expressly  made  so  by  the  statutes.  From  a  financial  point  of  view 
the  Secretary  felt  justified  in  exercising  this  discretion  with  due  regard 
to  the  amount  of  cash  actually  in  the  Treasury  as  well  as  to  the  amount 
shown  upon  the  balance  sheet,  including  deposits  in  national  banka  It 
seemed  to  him  that  it  would  be  a  strained  construction  of  the  Act  of 
1898.  and  of  his  official  responsibility,  to  hold  that  it  was  his  duty,  in 
order  to  meet  the  current  needs  of  the  Treasury,  to  invoke  a  financial 
disaster  by  attempting  to  withdraw  funds  on  deposit  with  national  banks 
at  a  time  when  they  were  subject  to  severe  strain  in  meeting  the  busi- 
ness requirements  of  the  country,  and  when  any  additional  act  or  policy 
^tending  to  subject  them  to  further  pressure  might  make  absolutely  im- 
possible, if  it  were  not  alr«ady  so,  the  return  to  the  Treasury  of  the  funds 
required  for  meeting  its  obligationp. 

With  a  balance  of  only  about  $5,000,000  in  actual  cash  in  the  Treas- 
ury, after  setting  off  the  necessary  amounts  against  outstanding  checks 
and  other  similar  liabilities,  Treasury  operations  could  not  be  carried 
on  with  ease  and  safety  without  additional  funds.  If  measures  to  ob- 
tain such  funds  could  be  taken  in  such  a  manner  as  to  restore  confidence 
to  the  financial  situation  as  well  as  to  perform  the  more  direct  service 
of  keeping  the  Treasury  balance  adequate,  it  .seemed  to  the  Secretary 
that  the  adoption  of  a  policy  calculated  to  achieve  these  eads  was  not 
only  within  the  strict  limits  of  his  legal  powers,  but  was  within  his 
duty  as  responsible  in  some  degree,  rnder  our  existing  fl'^cal  system,  for 
the  .soundness  and  security  of  the  monetary  situation.  While  the  entire 
economic  resources  of  the  country  were  being  devoted  to  the  relief  of  the 
monetary  stringency,  not  only  on  the  part  of  domestic  bankers,  but  by 
foreign  exchange  houses   and  by  the  railways  in  the  prompt  movement  of 


THE  MONET  PANIC  OF  1907.  65 

freight  for  export,  it  seemed  iiuidvisable  for  the  Secretary  of  the  Treas- 
ury to  take  any  step  which  would  teud  to  counteract  these  efforts  by 
withdrawing  funds  from  the  banks  and  thereby  adding  to  the  evils  which 
It  was  his  earnest  desire  to  alleviate  and  bring  to  an  end. 

Allotment   of   tUe   New    iHwne   of    Secnrlties. 

The  character  of  the  new  issues  of  securities  offered  for  subscription 
on  the  19th  of  November  last  was  such  that  it  was  anticipated  that 
most  of  the  subscriptions  would  come  from  national  banks.  The  2  per 
cent  bonds  afford  such  privileges  to  national  banks  as  a  basis  of  note 
circulation  that  there  are  strong  inducements  to  the  banks  to  outbid  pri- 
vate investors,  who  would  find  in  the  bonds  nothing  more  than  the  best 
form  of  security  paying  only  2  per  cent  per  annum.  It  was  expected — 
and  this  expectation  was  fulfilled — that  the  bonds  would  be  used  largely 
as  a  basis  for  additional  banknote  circulation  and  that  such  circulation 
would  contribute  its  share  to  relieving  the  acute  pressure  for  currency 
which  existed  throughout  the  country.  Even  if  there  had  been  no  other 
justification  for  limiting  subscriptions  to  national  banks,  this  consideration 
— that  the  bonds  would  be  used  to  meet  the  pressure  for  currency — would, 
in  the  opinion  of  the  Department,  have  justified  an  absolute  restriction  of 
the  awards   to  national   banks. 

The  legal  right  of  the  Department  to  make  allotments  of  the  bonds 
and  securities  to  such  persons  and  banks  and  in  such  amounts  as  it 
might  see  fit  can  hardly  be  called  in  question,  in  view  of  the  fact  that 
reservations  on  these  points  were  made  when  subscriptions  were  invited. 
Thus  the  circular  offering  the  Panama  bonds  contained  this  distinct  pro- 
vision :  "The  Department  also  reserves  the  right  to  reject  any  or  all 
bids,  if  deemed  to  be  to  the  interests  of  the  United  States  so  to  do." 

Obviously,  so  far  as  the  offer  of  securities  was  influenced  by  the  desire 
to  prevent  distress  in  the  money  market,  it  would  have  failed  of  this 
purpose  if  the  awards  had  been  made,  even  to  bona  fide  bidders,  which 
would  have  resulted  in  large  drafts  upon  the  reserve  money  of  the  banks 
and  would  not  have  aided  in  drawing  money  from  private  hoards.  After 
careful  analysis  of  the  bids  received,  the  conclusion  was  reached  by  the 
Department  that  if  bids  were  awarded  to  individuals  in  large  sums  it 
would  have  the  tendency  to  cause  still  further  withdrawals  of  money 
from  the  savings  banks,  which  usually  carry  relatively  small  reserves  ip  cur- 
rency, and  in  case  of  heavy  demands  upon  them  would  have  been  corifpelled 
to  draw  upon  the  national  banks  and  trust  companies.  It  was,  therefore, 
decided  in  the  case  of  the  Panama  bonds  to  make  no  awards  to  individ- 
uals in  excess  of  $10,000.  It  was  also  decided  to  accept  the  highest 
bids  of  national  banks  for  the  remainder  of  the  issue,  after  these  mini- 
mum allotments  to  individuals. 

There  was  another  consideration,  however,  which  it  was  felt  cast 
more  or  less  suspicion  on  offers  for  the  bonds  coming  from  individuals. 
This  was  the  fact  that  the  low  rate  of  interest  paid  upon  the  bonds  and 
their  obvious  advantage  to  the  national  banks  made  it  probable  that  indi- 
vidual offers  would  be  made  for  speculative  purposes — in  other  words, 
for  the  purpose  of  selling  the  right  of  subscription  as  promptly  as  pos- 
sible to  the  banks.  If  there  were  any  doubt  of  the  correctness  of  this 
anticipation  it  was  removed  by  the  character  and  amounts  of  bids  which 
were  received.  The  total  bids  for  the  Panama  Canal  bonds  amounted 
to  $2,220,604,580,  or  more  than  44  times  the  amount  offered.  This 
fact,  not  heretofore  made  public,  would  have  stamped  the  loan  as  an  even 
more  remarkable  success  than  it  was,  if  all  these  bids  could  have  been 
regarded  as  made  in  good  faith  by  responsible  parties.  Examination 
of  the  bids  shows,  however,  that  many  of  them  were  not  only  speculative 
in  character,  but  that  they  were  made  in  many  cases  for  very  large 
amounts  by  those  who  were  personally  irresponsible  and  incapable  of 
having  made  even  the  smallest  preliminary  payment  if  such  payment 
had  been  required.  When  the  awards  were  made,  therefore,  the  bonds 
were  awarded  without  hesitation  to  national  banks  in  those  cases  where 
the  prices  offered  were  102^^  or  higher,  and  where  the  bid  appeared  in 
other  respects  to  be  made  in  good  faith  and  with  full  capacity  on  the 
part  of  the  bidder  to  execute  his  contract.  The  amount  thus  awarded  to 
national   banks    was   $24,998,040. 

The  awards  made  to  individuals  were  limited  to  those  cases  where 
the  amounts  subscribed  for  were  for  $10,000  or  Ij^s,  because  such  bids 
had  at  least  a  prima  facie  appearance  of  good  faith.  Even  upon  this 
modest  basis  the  payments  made  after  the  allotment  of  the  bonds  showed 
that  a  considerable  portion  of  these  small  bids  were  speculative  and 
more  or  less  irresponsible.  While  the  national  banks  to  which  awards 
were  made  actually  took  up  and  paid  for  $24,478,860,  and  left  unpaid 
for  $519,180,  or  only  a  little  more  than  2. per  cent  of  the  awards,  the 
$325,660  .awarded  to  individuals  were  taken  up  and  paid  for  only  to 
the  amount  of  $153,120,  and  $172,450,  or  considerably  more  than  half, 
were  not  paid  for  and  remain  on  the  hands  of  the  Treasurer.  Even  of 
the  amount  taken  up  and  paid  for,  only  $91,820  were  issued,  in  con- 
formity with  the  instructions  of  the  bidders,  directly  to  them.  In  other 
cases,  to  the  amount  of  $61,300,  directions  were  given  to  deliver  the  bonds 
to  national  banks,  who  made  the  actual  payments.  Hence,  of  the  small 
amount  awarded  to  individuals  only  about  28  per  cent  proved  to  be  bids 
to  obtain  bonds  for  investment. 

There  was  less  margin  for  speculation  in  the  case  of  the  3  per  cent 
certificates,  because  their  term  of  one  year  did  not  allow  for  any  con- 
siderable premium  without  extinguishing  the  amount  of  the  interest. 
They  were  issued  at  par,  and  this  made  them  immediately  available,  as 
it  was  not  necessary  to  secure  bids  as  in  the  case  of  the  Panama  bonds. 
They  therefore  afforded  a  convenient  means  to  the  banks  at  once  to  in- 
crease their  circulation.  For  this  reason  the  Secretary  of  the  Treasury 
thought  proper  to  announce  at  an  early  date  that  offers  from  individuals 
would  no  longer  be  received.  While  a  number  of  such  offers  had  been 
received  prior  to  this  notice,  it  was  ultimately  decided  to  make  no  allot- 
ments   except    to    national    banks.        This    decision    was    dictated    by    two 


M  THE  MONEY  PANIC  OF  1007. 

cuiisidevations— flrs-t  tbe  desire  to  stimulate  the  iM5\ie  of  banknote  cir- 
culation for  a  period  which  would  relieve  the  crlsJB ;  and,  second,  the 
fact  that  the  announcement  of  the  issue  of  the  new  securities  had  already 
to  a  largo  extent  accomplished  its  intended  purpose  and  had  made  it  un- 
necessary to  Issue  more  than  a  fraction  of  the  full  amount.  The  issue 
of  these  securities  was  suspended  therefore  before  the  date  first  named  for 
closing  the  receipt  of  subscriptions,  the  total  amount  of  the  subscriptions 
having  reached  $(53,959,500.  The  amount  issued  was  only  $15  4:}K,500. 
As  all  of  these  were  registered  and  issued  to  national  banks  with  the 
understanding  that  they  should  be  used  as  a  basis  for  increasing  their 
circulation,  or  to  secure  public  deposits,  they  are  all  on  deposit  with  the 
Treasurer  of  the  United  States  for  these  purposes.  The  statement  of  the 
Comptroller  of  the  Currency,  as  of  December  31,  1907,  shows  that  $14,- 
944,500  were  deposited  to  secure  circulation  and  $492,000  temporarily  to 
secure  deposits,  pending  the  issue  of  circulation.  The  entire  amount, 
$15,436,500,    is   now    deposited   to    secure   circulation. 

One  advantage  in  the  issue  of  the  one-year  certificates  as  a  basis 
for  circulation  is  that  this  circulation  may  be  retired  v/ithin  one  year. 
It  is  provided  by  the  Act  of  March  4,  1907,  that  not  more  tljan  $9,000,000 
of  banknotes  shall  be  retired  in  any  one  month,  but  this  restriction  does 
not  apply  to  obligations  called  for  redemption.  As  the  3  per  cent  cer- 
tificates will  at  maturity,  in  November  next,  fall  under  the  latter  ex- 
emption, the  notes  based  upon  them  can  be  retired  without  restriction  as 
to  amount  if  they  are  found  unnecessary  for  the  purposes  of  business. 
Moreover,  in  those  cases  where  the  Secretary  has  arranged  by  mutual 
agreement  with  the  buyers  that  tlie  certificates  may  be  called  and 
paid  off  within  a  less  period  than  one  year,  it  will  be  possible  to  contract 
the  circulation,  if  it  appears  to  be  redundant,  without  even  waiting  for 
the  expiration  of  the  year  from  the  issue  of  the  certificates  and  without 
limitation    as    to    amount. 

While  the  awards  of  2>  per  cent  bonds  were  made  primarily  to  the 
highest  bidders  among  national  banks,  the  effect  of  the  awards  was  to 
distribute  the  bonds  among  banks  in  40  of  the  46  States  of  the  Union. 
The  one-year  certificates  were  distributed  less  widely,  because  it  was 
found  practicable  to  limit  the  issue  before  the  time  originally  set  for 
ceasing  to  receive  sub.'-criptions.  The  certificates  were  taken,  however, 
by  institutions  in  at  least  18  States  in   dift'erent  parts  of  the  Union. 

It  was  properly  pointed  out  in  some  quarters,  wben  two  issues  were 
proposed,  aggregating  $150,000,000,  that  they  might  tend  to  an  inflation 
of  the  banknote  circulation  which  would  be  disturbing  if  the  demand  for 
currency  should  be  diminished  by  tlie  cessation  of  business  activity.  It 
was  in  consideration  of  this  factor  that  the  Secretary  felt  justified  in  re- 
stricting the  issues  in  botli  cases  as  soon  as  it  appeared  that  their  an- 
nouncement had  produced  the  desired  effect  upon  public  confidence.  The 
issue  of  the  Panama  bonds  would  have  been  required  In  any  case  within 
a  short  time  to  meet  the  expenses  of  constructing  the  canal,  and  the  Sec- 
retary of  the  Treasury  can  hardly  be  held  responsible  for  the  effect  of 
such  issues  upon  the  volume  of  the  banknote  circulation,  whatever  may 
be  his  opinion  as  to  the  desirability  of  the  infiation  which  might  result. 
Practically,  therefore,  the  responsibility  resting  upon  him  relates  only 
to  the  $15,436,500  in  the  one-year  certificates  and  will  terminate  with 
their  maturity  and  redemption  on  November  30  of  the  current  year.  If 
currency  is  at  that  time  redundant  in  amount  and  there  is  a  tendency 
to  the  exportation  of  gold,  the  fact  that  at  least  this  portion  of  the 
circulation  might  be  retired  by  operation  of  law,  unless  secured  by  the 
deposit  of  other  existing  bonds  for  longer  terms,  may  have  a  salutary 
effect  upon  the  exchanges. 

Distribution  of  Public  Moneys. 

Obviously  when  the  pressure  was  focused,  to  the  extent  which  has 
been  set  forth,  on  the  financial  center  of  the  country,  it  seemed  advis- 
able to  focus  relief  there  also.  The  national  banks  of  New  York  City 
held  on  August  22  only  $28,253,386  in  deposits  of  public  money,  aside 
from  certain  balances  of  disbursing  officers,  or  considerably  less  than 
3  per  cent  of  the  national  banking  capital  of  the  city.  The  United 
States  deposits  in  national  banks  in  all  other  places  were  about  $115,- 
000,000,  or  more  than  12  per  cent  of  the  national  banking  capital  of 
the  remainder  of  the  country.  It  is  plain,  therefore,  under  the  policy 
of  recalling  the  public  funds  which  was  inaugurated  in  the  spring,  that 
the  national  banks  of  New  York  were  not  favored  with  any  large  pro- 
portion of  public  moneys,  but,  if  any  unintentional  discrimination  was 
shown,  were  treated  less  favorably  than  the  banks  of  other  sections  of 
the  country.  Not  a  dollar-  of  the  public  moneys  has  been  deposited  in 
the  national  banks  of  the  country  upon  any  other  basis  than  that  of  the 
public  interest.  These  funds  have  been  deposited  and  distributed  without 
regard  to  partisanship,  and  no  Individual  or  association  of  individuals, 
no  city  or  state  or  section,  has  received  any  other  than  that  fair  and 
Impartial  consideration   to   which  each  is  entitled. 

While  the  Secretary  of  the  Treasury  felt  compelled,  in  order  to  meet  the 
exigencies  of  the  situation,  to  increase  deposits  largely  in  the  banks  of 
New  York  City,  even  the  proportion  left  in  their  custody  after  the  panic 
had  subsided  was  smaller  than  the  proportion  in  certain  other  cities 
and  States.  The  amount  of  public  deposits  December  7,  1907,  in  the  entire 
country  was  $222,352  252,  which  amounted  to  15.3  per  cent  of  national 
banking  capital  and  surplus,  amounting  to  $1,451,296,366.  While  the 
banks  of  the  State  of  New  York  appear  as  holders  of  public  moneys  to 
the  amount  of  26.8  per  cent  of  their  capital  and  surplus,  the  banks  of 
the  New  England,  Eastern,  and  Middle  Western  States  taken  as  a  whole 
and  including  New  York,  show  a  percentage  of  deposits  to  capital  and 
surplus  of  only  a  little  more  than  15  per  cent.  The  banks  of  the  Southern, 
Western,  and  Pacific  States,  on  the  other  hand,  show  a  proportion  of 
nearly.  18  per  cent.  With  the  elimination  of  New  York  from  the  East- 
ern group,  the  percentage  of  the  remaining  Eastern  and  Middla  Western 
States  is  only  about  11.2. 


TEE  MONEY  PANIC  OF  1907.  67 

Full  details  of  this  distribution  of  public  funds,  show  that  they  are 
distributed  among  some  1,400  national  banks.  The  chief  object,  of 
course,  in  distributing  public  funds  is  not  to  afford  profit  to  banks  as 
such,  but  to  afford  to  the  business  community  means  for  carrying  on  its 
transactions  upon  a  normal  basis  of  money  supply  and  Interest  charges. 
It  has  not  been  thought  necessary  by  the  Department  to  extend  the  dis- 
tribution of  public  funds  to  all  small  banks,  but  the  aim  has  been  to 
distribute  them  so  widely  in  every  part  of  the  country  that  the  benefit 
of  the  funds  thus  distributed  would  reach  even  the  most  remote  quarters 
through  the  increased  power  of  making  loans  and  rediscounts  given  to 
the   stronger   banks  of  the   locality. 

It  has  been  sought  under  the  present  administration  of  the  Depart- 
ment to  reduce  the  geographical  distribution  of  the  public  funds  as  far 
as  possible  to  an  equitable  basis.  "While  one  of  the  means  of  "doing  this 
has  been  to  correct  inequalities  in  the  percentage  of  such  distributions 
by  States,  and  such  corrections  are  still  being  made  from  time  to  time, 
it  has  not  been  felt  that  the  sole  and  conclusive  test  of  the  wisdom  of 
the  distribution  was  the  exact  percentage  of  funds  distributed.  On  the 
contrary,  where  particular  trade  movements  were  taking  place  involving 
a  special  demand  for  currency,  larger  deposits  have  been  made  than  in 
communities  where  the  supply  of  currency  and  capital  appeared  to  be 
adequate  to  meet  existing  demands.  The  State  of  Lousiana,  for  instance, 
where  the  cotton  movement  of  the  Southwest  is  largely  financed,  held  on 
December  7,  deposits  equal  to  27.4  per  cent  of  its  national  bank  capital 
and  surplus.  The  State  of  Texas,  on  the  other  hand,  which  has  banking 
capital  equal  to  about  four  times  that  of  Louisiana,  has  received  only 
5.2  per  cent  of  this  amount  in  public  moneys,  because  the  resources  of 
the  local  banks  appeared  to  be  equal  to  the  local  character  of  the  ex- 
penditures involved  in  the  movement  of  the  cotton  crop.  It  may  be  added. 
In  the  case  of  Texas  and  in  some  other  States  where  the  distribution  of 
public  funds  was  small,  that  the  banks  showed  by  the  large  reserves  of 
cash  which  they  held  that  they  did  not  need  Government  assistance. 
Thus,  the  percentage  of  total  reserve  held  against  deposits  was  in  Texas 
25.72  per  cent,   and   in  Arkansas   29.8a  per  cent. 

In  the  West,  Wisconsin,  which  contains  only  one  large  commercial 
center,  received  deposits  in  the  ratio  of  only  9.9  per  cent  of  banking 
capital  and  surplus,  while  Indiana  received  17.1  per  cent.  On  the 
Pacific  Coast,  California  received  22.2  per  cent ;  the  State  of  Washington 
29.4  per  cent,  and  Oregon  34.4  per  cent.  In  New  England  on  the  other 
hand,  where  business  is  carried  on  less  with  borrowed  capital  than  in 
some  other  sections  of  the  Union,  the  average  percentage  of  public  de- 
posits for  the  national  banks  of  the  entire  section  was  only  8  per  cent, 
and  in  Connecticut  as  low  as  3.2  per  cent.  It  would  seem,  therefore,  that 
in  spite  of  considerable  differences  in  the  distribution  of  public  funds, 
it  could  hardly  be  asserted  that  the  figures  indicate  any  justifiable  pref- 
erence fiDr  one  section  of  the  country  over  another.  If  they  do  indicate 
such  a  preference,  it  is  in  favor  of  the  West  and  South  as  against  the 
Eastern  States,  where  resources  in  addition  to  the  normal  commercial 
assets  of  the  banks  are  less  needed  than  elsewhere,  except  in  New  York, 
upon  which  centers  the  pressure  fn3m  nearly  the  entire  country. 

The  subject  of  the  equitable  distribution  of  these  deposits  Is  one  to 
which  the  Treasury  Department  has  given  much  attention.  Bear- 
ing in  mind  the  peculiar  needs  of  different  sections  and  the  well-recog- 
nized movements  of  currency,  it  was  intended  so  to  distribute  the  weekly 
deposits  which  were  begun  in  August  as  to  remove  the  inequalities  which 
might  be  found  to  exist  in  a  manner  so  gradual  as  to  prevent  any  sudden 
and  violent  disturbance  to  business  in  any  locality.  To  formulate  an 
intelligent  policy  and  pursue  proper  methods  in  dealing  with  these  de- 
posits, a  commission  was  appointed  by  the  Secretary  in  April,  1907, 
consisting  of  the  Treasurer  of  the  United  States,  the  Comptroller  of  the 
Currency,  the  Director  of  the  Mint,  the  Chief  of  the  Division  of  Loans 
and  Currency,  and  the  Chief  of  the  Division  of  Public  Moneys.  Much 
progress  has  been  made  in  the  equitable  distribution  of  thpse  funds  by 
gradually  increasing  the  deposits  where  they  were  most  needed,  and  it 
was  the  intention  to  deposit  in  several  additional  weekly  installments, 
some  of  which  had  already  been  prepared,  substantial  amounts  in  cer- 
tain of  the  larger  cities,  notably  Chicago,  St  Louis,  Philadelphia,  Cin- 
cinnati and  other  points.  This  policy  of  gradual  distribution  was  inter- 
rupted by  the  panic  of  October.  It  then  became  necessary  to  mass  funds 
in  large  amounts  where  they  would  be  most  effective,  and  the  figures 
already  given  show  that  from  the  financial  centers  they  were  distributed, 
almost  automatically,  to  the  points  most  seriously  threatened. 

One  of  the  reasons  for  making  deposits  in  large  amounts  in  the  national 
banks  of  New  York  and  other  important  cities,  aside  from  the  great 
effectiveness  of  such  deposits  in  financial  centers,  whence  they  would  find 
their  way  to  the  points  where  the  need  was  greatest,  was  the  fact  that 
these  banks  were  able  more  promptly  to  obtain  the  bonds  required  as 
security.  The  emergency  was  too  keen  to  assign  deposits  to  banks  which 
were  not  in  possession  of  bonds  or  could  not  obtain  them  promptly,  either 
by  purchase  or  by  borrowing  from  large  financial  institutions  not  en- 
gaged directly  in  the  business  of  note  issue  or  the  payment  of  demand 
deposits. 

An  effort  was  made  also  to  broaden  the  basis  upon  which  public  de- 
posits might  be  made  by  extending  the  list  of  bonds  acceptable  to  the 
Department.  Up  to  about  the  1st  of  October,  State,  railway,  and  muni- 
cipal bonds  were  accepted  at  90  per  cent  of  their  market  value,  when 
not  above  par,  when  such  bonds  came  within  the  provisions  of  the  laws 
of  the  States  of  New  York  and  Massachusetts  governing  Investments  by 
savings  banks.  At  about  this  time  bonds  coming  within  the  provisions 
of  these  laws  became  very  scarce.  Banks  were  then  informed  that  bonds 
would  be  acceptable  which  came  within  the  laws  of  Connecticut  and  New 
.Jersey,  thus  making  available  many  millions  of  bonds  which  were  con- 
sidered as  good  security. 

The  Department  has  exercised  great  caution  in  the  acceptance  of 
bonds  as  securities  for  deposits,  and  in  nearly  all  cases  where  bonds  were 
accepted  which   were   not  legal   savings-bank   bonds    they   were   marketable 


68  THE  .\i<).\i:y  /M.v/r-  of  wot. 

at  a  price  equal  to,  and  in  some  cases  In  excess  of,  that  of  savings-bank 
bonds.  It  was  deemed  wise,  however,  a:^  they  were  not  classed  as  Buvings- 
bank  bonds,  to  accept  them  at  a  lower  rate,  namely, >  75  per  cent  of  their 
market  value.  In  every  case  the  Department  has  required  an  ample 
margin,  and  has  every  confidence  in  the  soundness  of  the  security  it  has 
accepted.  It  may  be  further  stated  that  many  of  the  bond;  accepted  by 
the  Department,  and  this  is  especially  so  in  the  case  of  Government  bonds, 
are  selling  above  par,  which  gives  additional  margin,  and  In  those  cases 
where  the  market  price  was  above  par  no  b.nuls  have  been  accepted  beyond 
DO  per  cent  of  their  par  value. 

The  net  result  of  the  Treasury  operations  under  the  present  admin- 
istration o*  the  Department  has  not  bten  to  increase  the  principal,  of 
the  public  debt,  or  the  interest  chages  upon  it,  in  spite  of  the  recent 
issues  of  securities.  On  the  contrary,  the  principal  of  the  interest- 
bearing  debtMeclined  from  $920,099,510  on  March  1,  1907,  to  $897,503,990 
on  June  1,  1908.  Interest  charges  stand  at  about  $2,544,000  less  than 
in  March,   1907. 

The  fact  that  there  has  been  a  net  decrease  in  the  principal  of  the 
debt  is  due  to  the  redemption  and  payment  of  a  considerable  part  of 
the  4  per  cent  funded  loan  of  1907,  which  by  its  terms  was  redeemable 
at  the  pleasure  of  the  United  States  after  July  1.  1907.  Ov/ing  to  the 
demand  for  money  which  arose  in  the  spring  of  1907,  it  was  deemed  ad- 
visable to  anticipate  the  maturity  of  a  part  of  these  bonds  by  offering  to 
pay  the  principal  with  interest  to  an  amount  not  exceeding  $25,000,000. 
This  offer,  which  was  made  by  a  circular  issued  by  the  Department  March 
14,  1907,  resulted  in  redemptions  between  that  date  and  June  24,  of  bonds 
to  the  amount  of  $25,088,750. 

In  the  meantime  steps  were  taken  to  di.spose  of  the  remainder  of 
the  loan.  Under  the  circular  of  April  2,  1907,  inviting  the  surrender 
of  $50,000,000  in  the  maturing  bonds  in  exchange  for  2  per  cent  con- 
sols of  1930,  there  were  received  for  refunding  between  that  date  and 
May  31  bonds  to  the  amount  of  $50,307,800.  These  measures  left 
outstanding,  subject  to  redemption,  4  per  cent  bonds  to  the  amount  of 
$36,121,450.  Most  of  these  bonds  were  received  for  redemption  and  the 
interest-bearing  debt  was  reduced  by  about  $36,000,000  during  the  month 
of   July. 

The  reduction  obtained  by  the  two  operations,  redemption  in  advance 
of  maturity  and  ultimate  redemption  after  maturity,  was  about  $61,000,000. 
As  the  new  issues  of  securities  amounted  on  December  31  to  $24,088,040 
in  Panama  Canal  bonds  and  $15,436,500  in  certificates  of  Indebtedness, 
making  a  combined  sum  of  $39,524,540,  this  increase  of  the  debt  fell  about 
$21,500,000  short  of  the  reduction  previously  made. 

Even  more  favorable  is  the  showing  In  respect  to  annual  interest 
charges.  The  redemption  of  about  $61,000,000  4  per  cent  bonds  ex- 
tinguished annual  interest  charges  of  $a,440,000.  The  substitution  of 
2  per  cent  bonds  for  the  remaining  $50,000,000  of  the  4  per  cent  loan 
reduced  the  interest  charges  by  about  $1,000,000  per  annum.  The  total 
saving  of  about  $3,440,000  is  offset  by  the  interest  on  the  new  securi- 
ties, which  amounts  to  about  $482,000  upon  the  Panama  bonds  and  about 
$463,000  upon  the  3  per  cent  certificates,  making  a  total  additional  in- 
terest charge  of  about  $945,000.  Offsetting  this  increase  in  charges 
against  the  reduction  caused  by  the  redemption  and  refunding  of  the  4 
per  cent  loan  there  emerges  a  saving  for  the  current  year  of  nearly  $2,- 
500,000. 

As  it  has  been  shown  that  tlie  issue  of  the  Panama  Canal  bonds  was 
a  necessary  incident  to  the  construction  of  the  canal  and  that  substantially 
the  only  one  p'ossible  criticism  which  could  lie  against  the  action  of  the  i^e- 
partment  was  as  to  the  exact  date  of  the  issue,  it  is  fair  to  consider  the  in- 
terest payments  upon  the  $15,436,500  in  one-year  certificates  as  representing 
the  only  important  obligation  incurred  by  the  Treasury  I^partment  in  seek- 
ing to  avert  a  financial  disaster.  The  amount  of  interest  upon  these  obli- 
gations will  be  about  $462,000  if  they  run  to  maturity,  or  a  little  more 
than  half  of  a  cent  per  capita.  It  seemed  to  the  Secretary  that  the  benefit 
to  the  country  as  a  whole,  including  the  inhabitants  of  its  most  remote 
parts,  would  more  than  compensate  this  expenditure.  The  amount  of 
such  interest  payments,  moreover,  is  likely  to  be  still  further  reduced  by 
arrangements  which  have  been  made  with  certain  of  the  banks  to  sur- 
render their  certificates  in  advance  of  maturity  with  interest  only  to  the 
date  of   such   surrender. 

Owing  to  various  other  readjustments,  including  the  fact  that  a  con- 
siderable sum  in  the  old  4  per  cent  loan  in  1900  had  not  been  presented 
for  redemption  or  conversion,  the  estimated  annual  interest  charges  on  the 
debt,  which  was  $23,645,678  on  March  1,  1907,  stood  on  June  1,  1908, 
at  $21,101,197.  As  the  one-year  certificates  are  not  likely  to  be  renewed, 
disbursements  of  Interest  on  their  account  will  cease  within  a  year,  and 
if  no  further  change  occurs  in  the  principal  of  the  interest-bearing  debt, 
the  reduction  made  in  the  interest  charges  between  March  14,  1907  and 
November  30,  1908,  will  be  approximately  $3,000,000. 

Gro-wtli    of    Money    in    Circulation— Tlie    New    Currency    IjUW— 
The  Treasury  Department  and  tlie  3Ioney  Panic. 

The  net  increase  in  the  stock  of  money  during-  the  last  four 
years  has  been  $587,631,922,  consisting-  of  gold,  $302,893,065;  sil- 
ver, $40,680,905,  and  national  bank  notes,  $252,460,952,  while 
there  was  a  decrease  of  $8,402,000  in  Treasury  notes  in  1890. 

The  Treasury  holdings  of  g-old  on  June  30,  1908,  amounted  to 
$1,001,666,550,  against  $97,353,776  on  January  31,  1895. 

The  increase  in  small  denominations,  $10  and  under,  during 
the  la.st  four  years  has  been  $314,337,811.  showing  that  there 
has  been  a  marked  incr.^ase  in  the  demand  for  small  Ijills  to  meet 
the  requirements  of  trade  and  commerce. 


THE  MONEY  PANIC— NATIONAL  BANKS.  6'. 

There  has  been  much  important  legislation  in  currency  mat- 
ters to  meet  the  demands  of  the  business  interests  of  the  coun- 
try, notable  among  which  may  be  mentioned  the  following  en- 
actments, which  were  passed  upon  recommendation  of  the  Presi- 
dent in  1906:  An  increased  supply  of  bills  of  small  denomina- 
tions ;  increase  of  the  "monthly  limit  of  retirement  of  national 
bank  notes  from  $3,000,000  to  $9,000,000;  autho«izing  the  Secre- 
tary of  the  Treasury  to  receive  other  than  United  States  bonds 
as  security  for  public  deposits,  among  which  are  State  and  mu- 
nicipal bonds  and  other  securities  that  are  acceptable  as  savings 
bank  investments;  the  issue  of  $10  gold  certificates;  amendment 
to  the  law  of  1900,  permitting  the  issuance  of  United  States 
notes  in  denominations  less  than  $10 — ones,  twos,  and  fives. 

National    Banks   and   Growth    of   National    Banking:    since    tke 
Besinniug    of    1900. 

The  act  of  March  14,  1900,  entitled  "An  act  to  define  and  fix 
the  standard  of  value,  to  maintain  the  parity  of  all  forms  of 
money  issued  or  coined  b}'  the  United  States,  to  refund  the  pub- 
lic debt,  and  for  other  purposes,"  commonly  known  as  the  "Gold 
Standard  Act,"  gave  a  strong  impetus  to  the  organization  of 
national  banks,  by  reason  of  the  fact  that  authority  was  granted 
for  the  formation  of  national  banking  associations  with  capital 
of  $25,000,  and  added  to  the  value  of  the  note  issuing  franchise 
by  permiting  the  issue  of  circulating  notes  to  the  par  value  of 
the  United  States  bonds  deposited  as  security  therefor.  From 
the  date  of  the  passage  of  that  act  to  June  1,  1908,  charters 
were  granted  to  3,889  associations,  with  authorized  capital  of 
$228,198,300.  By  reason  of  liquidations,  voluntary  and  other- 
wise, the  net  increase  in  number  of  banks  was  3,193.  Capital 
stock  increased  from  $616,308,095  to  $925,697,775,  a  net  increase 
of  $309,389,680.  Circulation  outstanding  increased  during  this 
period  from  $254,402,730  to  $698,449,517,  the  net  increase  being 
$444,046,787. 

On  February  13,  1900,  the  date  of  reports  to  the  Comptroller 
of  the  Currency  next  previous  to  that  of  the  passage  of  the  gold 
standard  act,  there  were  in  active  operation  3,604  banks  with  ag- 
gregate resources  of  $4,674,910,710,  of  which  $2,481,579,942  con- 
sisted of  loans  and  discounts  and  $476,544,315  of  lawful  money, 
that  is,  gold,  silver,  and  legal  tenders.  The  principal  liabilities 
of  the  associations  were  as  follows :  Capital  stock,  $613,084,465 ; 
surplus  and  undivided  profits,  $363,872,959 ;  circulation  out- 
standing, $204,912,544;  individual  deposits,  $2,481,847,032.  On 
May  14,  1908,  the  date  of  the  latest  reports  to  the  Comptroller 
of  the  Currency,  the  number  of  national  banking  associations  in 
operation  was  6,778,  their  loans  and  discounts  $4,528,346,875, 
specie  and  other  lawful  money  $861,326,450,  and  aggregate  re- 
sources $8,594,632,697.  Capital  stock  paid  in  amounted  to  $912,- 
361,919,  surplus  and  other  undivided  profits  $758,108,662,  circu- 
lating notes  outstanding  $614,088,723,  and  individual  deposits  $4,- 
312,656,789. 

Comparing  the  condition  of  the  banks  on  February  13,  1900, 
and  May  14,  1908,  there  is  shown  to  have  been  a  net  increase  in 
number  of  associations  of  3,174  ;  in  aggregate  resources  of  $3,- 
919,711,984;  in  capital  stock  $299,277,454;  in  surplus  and  other 
undividefd  profits  $394,235,698  ;  in  circulating  notes  $409,176,177, 
and  in  individual  deposits  $1,830,809,753.  The  percentages  of 
incrgase  were  as  follows :  Number  of  banks,  88.07  per  cent ;  ag- 
gregate resources,  83.85  per  cent;  capital  stock,  48.82  per  cent; 
circulation,  199.68  per  cent;  individual  deposits,  73.77  per  cent. 

Classifying  the  returns  by  geographical  divisions,  the  States 
in  each  division  being  shown  in  the  accompanying  table  relating 
to  the  number  and  capital  of  national  banks  organized  since 
March  14,  1900,  it  is  noted  that  there  has  been  an  increase  in 
the  aggregate  resources  of  banks  in  every  section  of  the  coun- 
try. In  the  New  England  States  the  number  of  banks  decreased 
from  565  to  485  and  the  capital  in  the  sum  of  $35,822,020;  but 
the  increase  in  surplus  and  imdivided  profits  was  $17,163,010,  in 
circulation  $16,390,368,  and  in  individual  deposits  $65,034,438. 

The  number  of  national  banks  in  operation  in  the  Eastern 
States  on  February  13,  1900,  was  976,  and  on  May  14,  1908,  l,4v)5. 
This  increase  in  number  of  banks  was  attended  by  an  increase  in 
capital  stock  to  the  extent  of  $116,424,214;  surplus  and  undivided 


70 


THE  MONET  PANIC— NATIONAL  BANKS. 


profits,  $187,694,952;  circulatiug  notes,  $133,265,042,  and  indi- 
vidual  deposits,  $643,575,617. 

In  the  Southern  States  the  number  of  banks  in  operation  in- 
creased over  150  per  cent,  or  about  545,  to  1,369,  resulting  in  an 
inerease  in  capital  stock  of  $72,831,910;  in  surplus  and  undivided 
profits,  $53,441,175;  in  circulating  notes,  $76,760,030,  and  indi- 
vidual d(^posits  of  $220,122,825. 

The  number  of  banks  in  the  Middle  Western  States  was  nearly 
doubled,  the  inerease  being  from  1,053  to  1,931,  and  an  increase 
in  capital  stock  of  $83,246,950;  surplus  and  undivided  profits, 
$85,917,020;  circulation,  $115,126,149,  and  in  individual  deposits, 
$529,319,606^ 

The  most  notable  increase  in  number  of  banks  was  in  the 
Western  States  division,  viz,  235  per  cent,  or  about  346  to  1,161 
banks.  The  increase  in  capital  stock  in  this  division  was  $32,- 
385,700 ;  in  surplus  and  undivided  profits,  $23,875,439 ;  circulating 
notes,   $33,587,585,   and   individual   deposits,    $194,855,710. 

On  February  13,  1900,  there  were  in  operation  in  the  Pacific 
States  119  national  banks,  and  on  May  14,  1908,  including  five 
associations  in  the  insular  possessions,  there  were  336.  The  in- 
crease in  capital  in  this  division  was  $30,210,700 ;  in  surplus  and 
undivided  profits,  $26,144,100;  in  circulation,  $34,047,002,  and  in 
individual  deposits,  $168,901,555.  The  capital  of  the  five  banks 
in  the  insular  possessions  on  May  14,  1908,  vras  $710,000;  sur- 
plus and  undivided  profits,  $158,957 ;  circulating  notes  outstand- 
ing, $385,747,  and  individual  deposits,  $1,134,176. 

The  number  of  national  banks  classified  by  capital  stock,  or- 
ganized in  each  State  and  geographical  division  since  March  14, 
1900,  together  with  the  number  and  paid-in  capital  stock  of  na- 
tional banks  reporting  to  this  office  on  May  14,  1908,  are  shown 
in  the  accompanying  table : 


Summary,  ty  States,  geographical  divisions,  and  classes,  of  na- 
tional l)anks  organized  March  14,  1900,  to  May  31,  1908, 
and  the  numher  and  capital  of  reporting  national  danJcs  on 
May  U,  1908. 


States,  etc. 

Capital 
—$50,000. 

Capital 

$50,000+. 

Total 
organizations 

l?anlfs  reporting 
on  May  14,   J)OS. 

No. 

Capital. 

No. 

Capital. 

No. 

Capital. 

No. 

Capital, 

Maine 

3 
4 
5 
1 

"1 

$75,000 
105,000 
125.000 
25,000 



75,000 

■; 

15 
1 

4 

$285,000 
200,000 
100,000 
4,000,000 
500,000 
200,000 

8 
6 
6 
16 
1 
7 

$360,000 
305,000 
225,000 
4,025.000 
500,000 
275.000 

77 
57 
51 
198 
22 
80 

$9,201,000  00 

New  Hampshirt 

Vermont 

Massachusetts- 
Rhode  Island— 
Oonnectlcut— - 

5,4.-55,000  00 
5,710.000  00 

56.427,500  00 
6,700,250  00 

20,230,050  00 

Tot.  New  Eng- 
land States- 

16 

405.000 

28 

5.285.000 

44 

148 
74 

386 
8 
39 

3 

5.690.000 

485 

103.703.800  00 

New  York 

New  Jersey 

Pennsylvania- 
Delaware 

74 

48 

186 

8 
28 

1,892,500 

1,235,000 

4,797,000 

220,000 

747.000 

74 
26 
200 

14,070,000 

1,885,000 

22.180,000 

15,962,500 
3,120,000 

26,977.000 

220,000 

1,677,000 

850,000 

420 
f73 
761 
26 
101 

11 

158,657,320  00 

19,850,070  50 

112.978,971  no 

2,323,985  00 

Maryland 

District  ol 
Columbia 

11 
3 

930,000 
850.000 

17,821,950  00 
5,202.000  00 

Total  Eastern 
States 

344 

8.891.500 

314 

27 
33 
22 
12 
37 
19 
31 
18 
17 
118 
21 
26 
20 

39.915,000 

658 

72 
68 
44 
17 
73 
29 
66 
21 
28 
402 
36 
78 
46 

48.806,500 

1,495 

=- 

105 
95 
67 
20 
96 
39 
76 
29 
36 

529 
40 

146 
82 

316,372,299  59 

Virginia 

West  Virginia- 
North  Carolina 
South  Carolina 

Georgia — 

Florida.— 

Alabama- 

Mississippi 

Louisiana 

45 
35 
22 

5 
36 
10 
35 
3 
11 
284 
15 
52 
26 

579 

1,206,000 
960,000 
580,000 
125,000 

1,020,000 

275,000 

029,500 

80,000 

280,000 

7,641,000 
375,000 

1,340,000 
675,000 

2,760,000 
2,605,000 
2,110,000 
1,485,000 
3,550,000 
3,450,000 
2,625,000 
1,765,000 
8,210,000 
10,550,000 
1,770,000 
3,615,000 
1,750,000 

3,966,000 
3,565,000 
2,690.000 
1,610.000 
4,570,000 
3,725,000 
3,554,500 
1,815,000 
3,490,000 
18,191,000 
2,145,000 
4,985,000 
2,425.000 

12,601,000  00 
8,019,250  00 
6, .535, 000  00 
4,210,000  00 

10,409,490  00 
4,691,-350  00 
8,307,000  00 
3,401,980  00 
8,695,000  00 

40,163,000  00 
3,950,000  00 

16,370,900  00 
9.545,000  00 

Arkansas 

Kentucky 

Tennessee 

Total  South- 
ern States- 

15.486.500 

401 

41.275,000 

980 

56,761.500 

1,369 

186.899,870  00 

THE  MONEY  PANIC— BANKS—CURRENCY  LAW. 


71 


Summary  by 

States, 

etc 

.,  of  national  banks- 

-Continued. 

states,  etc. 

Capital 

-$^,U00 

Capital 

$60,000+. 

Total 
organizations 

Banks  reporting 
on  May  14,  1908. 

No. 

Capital. 

Ao. 

Capital. 

No. 

Capital. 

No. 

Capital. 

Ohio            

10  < 
87 
I4r 

IC 
3- 
17' 

ir 

43 
723 

10^ 

6^ 

8-^ 
1  ■ 
10 

273 

2,768,000 
2,278,000 
3,793,500 
265,000 
950,000 
4.571,000 
3,080,000 
1.160,000 

76 
57 
69 
21 
23 
24 
50 
27 

11,225,000 
6,200,000 

11,335,000 
4,390,000 
2,950,000 
3,250,000 
2,945,000 
7,485,000 

180 
144 
215 
31 
60 
203 
167 
70 

13,993,000 

8,478,000 
15,128,500 
4,655,000 
3,900,000 
7,821,000 
6,025,000 
8,615,000 

364 
239 
407 
97 
128 
261 
317 
119 

60,349,100  00 

Indiana 

Illinois 

Michigan 

Wisconsin 1:- 

Minnesota 

Iowa 

Missouri 

Total  Middle 

24,916,450  00 
.56, 043,. 500  00 
14,7.55,000  00 
15,740,000  00 
20,666,000  00 
20,270,000  00 
30,455,000  00 

Western 
States 

18,865.500 

347 

49,780,000 

1,070 

U5 

117 
113 
21 
20 
82 
34 
312 

68,645,500 

1,932 

129 

87 
207 

2or. 

39 
30 

114 
40 

309 

43,195,050  00 

North  Dakota- 
South  Dakota- 
Nebraska 

Kansas 

Montana 

Wyoming 

Colorado 

New  Mexico 

Oklahoma • 

2,7»0,00O 

1,510,000 

2,(90,000 

2,185.000 

375.000 

250.000 

1,376,000 

r.50,000 

7,000,000 

7 

8 
22 
28 

7 

10 
30 

9 
39 

400,000 
400,000 

1,-375,000 

2,050.000 
610,000 
550,000 

2,450,000" 
525,000 

2,705,000 

3,140,000 
1,910,000 
3,865,000 
4,235,000 
985,000 
800,000 
3.826,000 
1,175,000 
9,705,000 

4,610.000  00 
3, .385, 000  00 
13,215,000  00 
12,142,500  00 
3,705,000  00 
1,610,000  00 
9,465,000  00 
1.995,000  00 
12,212,700  00 

Total  West- 
ern States- 

722 

18,576.000 

160 

11,065,000 

882 

41 
38 
110 
33 

29,641,000 

1,161 

58 
60 

62,370,200  00 

Washington— 
Oregon 

22 

27 
49 
23 
7 
1 
5 

555.000 
676,000 
1,250,000 
.-80,000 
180,000 
25,000 
130.000 

19 
11 
61 
10 
3 
7 
4 
1 

1,445,000 

650,000 

10,212.800 

600.000 

275  000 

2,000,000 
1,. 326. 000 

7,482,200  00 
4,108,700  00 

California 

Idaho 

11,462,800      134 
1    180  000        37 

30,. 532, 800  00 
1,855,000  00 

Utah 

10          i'^'i  000        19 

2,155,000.00 

Nevada 

Arizona 

Alaska 

1,125,000!        8 

200,000j        9 

50,000         1 

1,1.50,000 
330,000 
50,000 

9 
12 
2 

1,707,000  00 
705,000  00 
100,000  00 

Total  Pacific 
States- 

134 

3,396,000 

116 

14,557,800 

250 

1 

17,953,800 

331 

4 

1 

5 

6,778 

48,645,700  00 

Hawaii 

Porto  Rico 

2 

50,000 

2 

550,000 
100,000 

.  600,000 
100.000 

610,000  00 
100,000  00 

Total  Island 
Possessions 

2 

50,000 

3 

650,000 

5 

700,000 

710,000  00 

Total  United 
States 

2,520 

35, 670,, 500 

'l,369 

162.527.800 

3,889 

228,198,300 

912,361,919  59 

THE   CURRENCY   LAW. 

From  the  opening-  of  the  first  session  of  the  Sixtieth  Con- 
g-i-ess  it  was  agreed  by  all  Eepublicans  that  an  honest  attempt 
should  be  made  to  enact  into  law  a  Currency  bill  which  should 
provide  for  any  future  emerg-ency  and  prevent  a  repetition  of  a 
panic  such  as  we  had  last  fall.  Early  in  the  session  the  Repub- 
licans reported  a  bill  known  as  the  Vreeland  bill  and  it  passed 
the  House  by  a  good  majority.  During  its  consideration  the 
Republicans  gave  the  Democrats  an  opportunity  to  vote  upon 
the  so-called  Williams  bill,  which  had  had  the  approval  of  Mr. 
Bryan,  but  the  Democrats  refused  to  vote  even  for  their  own  bill, 
and  persisted  in  a  useless  filibuster,  but  could  not  prevent  the 
passage  of  the  Republican  bill. 

In  the  Senate  the  so-called  Aldrich  bill  was  passed  and  con- 
ference committees  were  appointed  in  both  houses.  It  was  found, 
however,  that  the  House  would  not  accept  the  Aldrich  bill,  and 
that  the  Senate  would  not  accept  the  Vreeland  bill,  and  it  was 
not  until  the  end  of  the  session  that  a  so-called  conference  bill 
was  agreed  upon  by  the  Conference  Committee  of  both  Houses. 
This  bill  was  introduced  into  the  House  on  May  27th,  and  passed 
by  a  vote  of  1G6  to  140,  the  Republicans  voting  in  the  affirma- 
tive and  the  Democrats  in  the  negative.  The  same  conference 
bill  was  introduced  the  following  day  in  the  Senate  and  passed 


72  THE  MONEY  PAX  10-  THE  CURRENCY  LAW. 

that  body   on   Saturday,   May   30th,  after  a   filibuster  had  been 
utteinptect  ag-ainst  the  bill  by  the  DcMuocrats. 

In  speakiiigr  ujk)!!  the  measure  diirinj,'-  Its  consideration  in  the 
House  JJepresentative  Burton,  of  Ohio,  said: 

Mr.  Speaker,  the  incompetency  of  the  Democratic  party  to  rule  this 
people  was  never  more  emphatically  displayed  than  by  their  course  on 
this  currency  legislation.  Last  autumn  thure  was  a  frightful  panic  The 
mightiest  financial  institutions  tottered  as  if  they  would  fall,  and  wheels 
of  commerce  and  Industry  were  clogged,  hundreds  of  thousand  were  thrown 
out  of  employment  and  much  of  the  cause  of  this  distressful  condition 
was    the    rigidity   and   insufficiency   of   our   currency   system. 

The  Republicans  of  this  House  came  here  determined.  In  spite  ot 
barren  theories,  in  i^pite  of  selfish  interests,  and  against  the  solid  oppo- 
sition of  the  Democratic  party,  to  do  something  for  this  country,  so  that 
such  a  calamity  might  not  occur  again.  [Applause  on  the  Republican 
side.  J 

If  you  gentlemen  had  been  in  power  and  had  gone  home,  having  done 
nothing,  you  might  better  have  called  on  the  rocks  and  the  hills  to  fall 
on  you  because  of-  your  inability  to  take  care  of  this  most  urgent  prob- 
lem. And  yet  you  fill  the  air  with  cries  that  this  measure  is  prompted 
only  by  political  emergency,  that  it  is  partisan.  Gentlemen,  if  there  is 
any  question  which  .should  be  approached  dispassionately,  if  there  is  any 
question  wherein  we  should'  seek  to  grasp  the  real  situation  and  solve 
it,    it   is  this  which  relates  to   the  money  supply  of  the  country. 

*»*****♦« 

But  this  bill  throws  open  to  any  national  bank  of  the  country  the 
opportunity  to  become  a  member  of  an  association  of  banks,  each  of  which 
may  issue  currency  upon  its  resources — that  is,  upon  commercial  paper 
gr    securities    approved    by    the    association. 

There  must  be  at  least  ten  banks  associated,  having  a  capital  and 
surplus  of  not  less  than  $5,000,000.  But  if  any  single  banking  asso- 
ciation having  public  bonds  wishes  to  issue  currency  under  the  method 
embodied  in    the  Aldrich  bill,   it  may  do   so. 

On  this  side  we  have  had  the  courage  to  bring  forward  a  measure 
for  the  relief  of  the  country  and  to  meet  the  fear  of  panic  and  distress ; 
on  the  other  side  you  have  fled  from  your  own  measure.  And  now  you 
accuse  others  because  they  introduce  a  bill  for  the  purpose  of  meeting 
the  existing  situation,  containing  a  principle  to  which  even  you  cannot 
make    objection. 

The  provisions  of  the  bill  agreed  upon  may  not  be  permanent.  We 
have  placed  a  time  limit  upon  them  to  satisfy  that  potent  public  opinion 
which  believes  that  we  ought  to  have  an  entire  reorganization  of  our 
whole  banking  system.  Some,  no  doubt,  will  maintain  that  these  pro- 
visions will  work  so  well  that  no  such  readjustment  will  be  required. 
At  any  rate,  we  are  advocating  the  passage  of  a  law  which  has  in  it 
no  element  of  danger.  No  bank  note  can  be  issued  which  will  not  be 
good  anywhere  on  the  globe.  The  tax  is  so  high  that  there  can  be  no 
danger  of  any  inflation.  The  redemption  fund  of  10  per  cent  substituted 
for  the  reserve  provision  in  the  House  bill  is,  I  believe,  an  improve- 
ment. And  with  this  on  the  Statute  books  the  ship  of  commerce  may  go 
out  into  the  most  stormy  .'^ea  with  the  hope  that,  though  tempests  may 
come,  she  will  weather  them  all,  and  weather  them  in  safety.  [Pro- 
longed applause  on  the  Republican  side.] 

The  bill  as  it  became  a  law  is  as  follows : 

THE  NEW  CURRENCY  LAW. 

An     Act    to    Amend    the    National     Banking    LaTrs. 

Be  it  enacted  by  the  Senate  and  House  of  Representatices  of  the  United 
States  of  America  in  Congress  assembled,  That  national  banking  as- 
sociations, each  having  an  unimpaired  capital  and  a  surplus  of  not  less 
than  twenty  per  centum,  not  less  than  ten  in  number,  having  an  aggre- 
gate capital  and  surplus  of  at  least  five  millions  of  dollars,  may  form 
voluntary  associations  to  be  designated  as  national  currency  associations. 
The  banks  uniting  to  form  such  association  shall,  by  their  presidents 
or  vice-presidents,  acting  under  authority  from  the  board  of  directors, 
make  and  file  with  the  Secretary  of  the  Treasury  a  certificate  setting  forth 
the  names  of  the  banks  composing  the  association,  the  principal  place  of 
business  of  the  association,  and  the  name  of  the  association,  which  name 
shall  be  subject  to  the  approval  of  the  Secretary  of  the  Treasury.  Upon 
the  filing  of  such  certificate  the  associated  banks  therein  named  shall 
become  a  body  corporate,  and  by  the  »ame  so  designated  and  approved 
may  sue  and  be  sued  and  exercise  the  powers  of  a  body  corporate  for 
the  purposes  hereinafter  mentioned :  Provided,  That  not  more  than  one 
such  national  currency  association  shall  be  formed  in  any  city :  Pro- 
vided, further.  That  the  several  members  of  such  national  currency  as- 
sociation shall  be  taken,  as  nearly  as  conveniently  may  be,  from  a  ter- 
ritory composed  of  a  State  or  part  of  a  State,  or  contiguous  parts  of  one 
or  more  States :  And  provided  further,  That  any  national  bank  in  such 
city  or  territory,  having  the  qualifications  herein  prescribed  for  mem- 
bership in  such  national  currency  association,  shall,  upon  its  application 
to  and  upon  the  approval  of  the  Secretary  of  the  Treasury,  be  admitted 
to  membership  in  a  national  currency  association  for  that  city  or  ter- 
ritory, and  upon  such  admission  shall  be  deemed  and  held  a  p:irt  of  the  body 
corporate,  and  as  such  entitled  to  all  the  rights  and  privileges  and  subject  to 
all  the  liabilities  of  an  original  member:  And  provided  further.  That  each 
national  currency  association  shall  be  composed  exclusively  of  banks 
not  members  of  any   other  national   currency    association. 

The    dissolution,    voluntary  or  otherwise,   of  any  bank   in   such   associ- 
ation   shall    not    affect    the    corporate    existence    of    the    association    unless 


THE  MONEY  PANIC— THE  CURRENCY  LAW.  73 

there  shall  then  remain  less  than  the  minimum  number  of  ten  banks ; 
Provided,  however.  That  the  reduction  of  the  number  of  said  banks  below 
the  minimum  of  ten  shall  not  affect  the  existence  of  the  corporation 
with  respect  to  the  assertion  of  all  rights  in  favor  of  or  against  such 
association.  The  affairs  of  the  association  shall  be  managed  by  a  board 
consisting  of  one  representative  from  each  bank.  By-laws  for  the  gov- 
ernment of  the  association  shall  be  made  by  the  board,  subject  to  the 
approval  of  the  Secretary  of  the  Treasury.  A  president,  vice-president, 
secretary,  treasurer,  and  an  executive  committee  of  not  less  than  five 
members,  shall  be  elected  to  the  board.  The  powers  of  such  board,  except 
in  the  election  of  officers  and  making  of  by-laws,  may  be  exercised  through 
its  executive  committee. 

The  national  currency  association  herein  provided  for  shall  have  and 
exercise  any  and  all  powers  necessary  to  carry  out  the  purposes  of  this 
section,  namely,  to  render  available,  under  the  direction  and  control  of 
the  Secretary  of  the  Treasury,  as  a  basis  for  additional  circulation,  any 
securities,  including  commercial  paper,  held  by  a  national  banking  associ- 
ation. For  the  purpose  of  obtaining  such  additional  circulation,  any 
bank  belonging  to  any  national  banking  association,  having  circulating 
notes  outstanding  secured  by  the  deposit  of  bonds  of  the  United  Sthtes 
to  an  amount  not  less  than  forty  per  centum  of  its  capital  stock,  and 
which  has  its  capital  unimpaired  and  a  surplus  of  not  less  than  twenty 
per  centum,  may  deposit  v/ith  and  transfer  to  the  association,  in  trust 
for  the  United  States,  for  the  purpose  hereinafter  provided,  such  of  the 
securities  above  mentioned  as  may  be  satisfactory  to  the  board  of  the 
association.  The  officers  of  the  association  may  thereupon,  in  behalf 
of  such  bank,  make  application  to  the  Comptroller  of  the  Currency  for 
an  issue  of  additional  circulating  notes  to  an  amount  not  exceeding  seventy- 
five  per  centum  of  the  cash  value  of  the  securities  or  commercial  paper 
so  deposited.  The  Comptroller  of  the  Currency  shall  immediately  trans- 
mit such  application  to  the  Secretary  of  the  Treasury  with  such  recom- 
mendation as  he  thinks  proper,  and  if,  in  the  judgment  of  the  Secretary 
of  the  Treasury,  business  conditions  in  the  locality  demand  additional 
circulation,  and  if  he  be  satisfied  with  the  character  and  value  of  the 
securities  proposed  and  that  a  lien  in  favor  of  the  United  States  on  the 
securities  so  deposited  and  on  the  assets  of  the  banks  composing  the  as- 
sociation will  be  amply  sufficient  for  the  protection  of  the  United  States, 
he  may  direct  an  issue  of  additional  circulating  notes  to  the  association, 
on  behalf  of  such  bank,  to  an  amount  in  his  discretion,  not,  however,  ex- 
ceeding seventy-five  per  centum  of  the  cash  value  of  the  securities  so 
deposited :  Provided,  That  upon  the  deposit  of  any  of  the  State,  city, 
town,  county,  or  other  municipal  bonds,  of  a  character  described  in  sec- 
tion three  of  this  Act,  circulating  notes  may  be  issued  to  the  extent  of 
not  exceeding  ninety  per  centum  of  the  market  value  of  such  bonds  so 
deposited  :  And  provided  further.  That  no  national  banking  association  shall 
be  authorized  in  any  event  to  issue  circulating  notes  based  on  commercial 
paper  in  excess  of  thirty  per  centum  of  its  unimpaired  capital  and  sur- 
plus. The  term  "commercial  paper"  shall  be  held  to  include  only  notes 
representing  actual  commercial  transactions,  which  when  accepted  by  the 
association  shall  bear  the  names  of  at  least  two  responsible  parties  and 
have  not  exceeding  four  months  to  run. 

The  banks  and  the  assets  of  ail  banks  belonging  to  the  association 
shall  be  jointly  and  severally  liable  to  the  United  States  for  the  redemp- 
tion of  such  additional  circulation ;  and  to  secure  such  liability  the  lien 
created  by  section  fifty-two  hundred  and  thirty  of  the  Revised  Statutes 
shall  extend  to  and  cover  the  assets  of  all  banks  belonging  to  the  asso- 
ciation, and  to  the  securities  deposited  by  the  banks  with  the  association 
pursuant  to  the  provisions  of  this  Act ;  but  as  between  the  several  banks 
composing  such  association  each  bank  shall  be  liable  only  in  the  pro- 
portion that  its  capital  and  surplus  bears  to  the  aggregate  capital  and 
surplus  of  all  such  banks.  The  association  may,  at  an3  time,  require 
of  any  of  its  constituent  banks  a  deposit  of  additional  securities  or 
commercial  paper,  or  an  exchange  of  the  securities  already  on  deposit, 
to  secure  such  additional  circulation ;  and  in  case  of  the  failure  of  such 
bank  to  make  such  deposit  or  exchange  the  association  may.  after  ten 
days'  notice  to  the  bank,  sell  the  securities  and  paper  already  in  its 
hands  at  public  sale,  and  deposit  the  proceeds  with  the  Treasurer  of 
the  United  States  as  a  fund  for  the  redemption  of  such  additional  cir- 
culation. If  such  fund  be  insufficient  for  that  purpose,  the  association 
may  recover  from  the  bank  the  amount  of  the  deficiency  by  suit  in  the 
Circuit  Court  of  the  United  States,  and  shall  have  the  benefit  of  the  lien 
hereinbefore  provided  for  in  favor  of  the  United  States  upon  the  assets 
of  such  bank.  The  association  or  the  Secretary  of  the  Treasury  may 
permit  or  require  the  withdrawal  of  any  such  securities  or  commercial 
paper  and  the  substitution  of  other  securities  or  commercial  paper  of 
equal  value  therefor. 

Sec.  2.  That  whenever  any  bank  belonging  to  a  national  currency 
association  shall  fail  to  preserve  or  make  good  its  redemption  fund  in 
the  Treasury  of  the  United  States,  required  by  section  three  of  the  Act 
of  June  twentieth,  eighteen  hundred  and  seventy-four,  chapter  three 
hundred  and  forty-three,  and  the  provisions  of  this  Act,  the  Treasurer 
of  the  United  States  shall  notify  such  national  currency  association  to 
make  good  such  redemption  fund,  and  upon  the  failure  of  such  national 
currency  association  to  make  good  snch  fund,  the  Treasurer  of  the  United 
States  may,  in  his  discretion,  apply  so  much  of  the  redemption  fund 
belonging  to  the  other  banks  composing  such  national  currency  associ- 
ation as  may  be  necessary  for  that  purpose ;  and  such  national  currency 
association  may,  after  five  days'  notice  to  such  bank,  proceed  to  sell  at 
public  sale  the  securities  so  deposited  by  such  bank  with  the  association 
pursuant  to  the  provisions  of  section  one  of  this  Act,  and  deposit  the 
proceeds  with  the  Treasurer  of  the  United  States  as  a  fund  for  the  re- 
demption of  fhe  additional  circulation  taken  out  by  .such  bank  under  this 
Act. 

Sec.  3.  That  any  national  banking  association  which  has  circulating 
notes   outstanding,    secured   by   the    deposit  of   United   States    bonds,    to   an 


74  THE  MONEY  PANIC— THE  CURRENCY  LAW. 

amount  of  not  less  than  forty  per  centum  of  its  capital  stock,  and  which 
bus  a  surplus  of  not  less  than  twenty  per  centum,  may  make  application 
to  tlie  Comptroller  of  the  Currency  for  authority  to  issue  additional  cir- 
culating notes  to  be  secured  by  the  deposit  of  bonds  other  than  bonds 
of  the  United  States.  The  Comptroller  of  the  Currency  shall  transmit 
immediately  the  application,  with  his  recommendation,  to  the  Secretiiry 
of  the  Treasury,  who  shall,  if  in  his  judgment  business  conditions  in  the 
locality  demand  additional  circulation,  approve  the  same,  and  shall  de- 
termine the  time  of  issue  and  fix  the  amount,  within  the  limitations 
herein  imposed,  of  the  additional  circulating  notes  to  be  Issued.  When- 
ever after  receiving  notice  of  such  approval  any  such  association  shall 
deposit  with  the  Treasurer  or  any  Assistant  Treasurer  of  the  United 
States  such  of  the  bond.s  described  in  this  section  as  shall  be  approved 
in  character  and  amount  by  the  Treasurer  of  the  United  States  and  the 
Secretary  of  the  Treasury,  It  shall  be  entitled  to  receive,  upon  the  order 
of  the  Comptroller  of  the  Currency,  circulating  notes  in  blank,  registered 
and  countersigned  as  approved  by  law,  not  exceeding  in  amount  ninety 
per  centum  of  the  market  value,  but  not  in  excess  of  the  par  value  of 
any  bonds  so  deposited,  such  market  value  to  be  ascertained  and  determined 
under  the  direction   of  the  Secretary   of  the  Treasury. 

The  Treasurer  of  the  United  States,  with  the  apprpval  of  the  Sec- 
retary of  the  Treasury,  shall  accept  as  security  for  the  additional  cir- 
(.ulating  notes  provided  for  in  this  section,  bonds  or  other  interest-bearing 
obligations  of  any  State  of  the  United  States,  or  any  legally  authorized 
bonds  issued  by  any  city,  town,  county,  or  other  legally  constituted 
municipality  or  district  in  the  United  States  which  has  been  in  existence 
for  a  period  of  ten  years,  and  which  for  a  period  of  ten  years  previous 
to  such  deposit  has  not  defaulted  in  the  payment  of  any  part  of  either 
principal  or  interest  of  any  funded  debt  authorized  to  be  contracted  by 
it,  and  whose  net  funded  indebtedness  does  not  exceed  ten  per  centum 
of  the  valuation  of  its  taxable  property,  to  be  ascertained  by  the  last 
preceding  valuation  of  property  for  the  assessment  of  taxes.  The  Treas- 
urer of  the  United  States,  with  the  approval  of  the  Secretary  of  the 
Treasury,  shall  accept,  for  the  purposes  of  this  section,  securities  herein 
enumerated  in  such  proportions  as  he  may  from  time  to  time  determine, 
and  he  may  with  such  approval  at  any  time  require  the  deposit  of  addi- 
tional securities,  or  require  any  association  to  change  the  character  of 
the   securities    already   on    deposit. 

)  Sec.  4.  That  the  legal  title  of  all  bonds,  whether  coupon  or  reg- 
istered, deposited  to  secure  circulating  notes  issued  in  accordance  with  the 
terms  of  section  three  of  this  Act,  shall  be  transferred  to  the  Treasurer 
of  the  United  States  in  trust  for  the  association  depositing  them,  under 
regulations  to  be  prescribed  by  the  Secretary  of  the  Treasury.  A  receipt 
shall  be  given  to  the  association  by  the  Treasurer  or  any  Assistant  Treas- 
urer of  the  United  States,  stating  that  such  bond  is  held  in  trust  for 
the  association  on  whose  behalf  the  transfer  is  made,  and  as  security 
for  the  redemption  and  payment  of  any  circulating  notes  that  have  been 
or  may  be  delivered  to  such  association.  No  assignment  or  transfer  of 
any  such  bond  by  the  Treasurer  shall  be  deemed  valid  unless  counter- 
signed by  the  Comptroller  of  the  Currency.  The  provisions  of  sections 
fifty-one  hundred  and  sixty-three,  fifty-one  hundred  and  sixty- 
four,  fifty-one  hundred  and  sixty-five,  fifty-one  hundred  and  sixty-six,  and 
fifty-one  hundred  and  sixty-seven,  and  sections  fifty-two  hundred  and  twen- 
tyrfour  to  fifty-two  hundred  and  thirty-four,  inclusive,  of  the  Revised 
Statutes  respecting  United  States  bonds  deposited  to  secure  circulating 
notes  shall,  exc-^pt  as  herein  modified,  be  applicable  to  all  bonds  deposited 
under  the  terms  of  section  three  of  this  Act. 

Sec.  5.  That  the  additional  circulating  notes  issued  under  this  Act 
shall  be  used,  held,  and  treated  in  the  same  way  as  circulating  notes  of 
national  banking  associations  heretofore  issued  and  secured  by  a  deposit 
of  United  States  bonds,  and  shall  be  subject  to  all  the  provisions  »of  law 
affecting  such  notes  except  as  herein  expressly  modified :  Provided,  That 
the  total  amount  of  circulating  notes  outstanding  of  any  national  banking 
association,  including  notes  secured  by  United  States  bonds  as  now  pro- 
vided by  law,  and  notes  secured  otherwise  than  by  deposit  of  such  bonds, 
shall  not  at  any  time  exceed  the  amount  of  its  unimpaired  capital  and 
surplus  :  A^ul  provided  further,  That  there  shall  not  be  outstanding  at  an> 
time  circulating  notes  issued  under  the  provisions  of  this  Act  to  an  amount 
of  more  than  five  hundred  millions  of  dollars. 

Sec.  6.  That  whenever  and  so  long  as  any  national  banking  associ- 
ation has  outstanding  any  of  the  additional  circulating  notes  authorized 
to  be  issued  by  the  provisions  of  this  Act  it  shall  keep  on  deposit  in  the 
Treasury  of  the  United  States,  in  addition  to  the  redemption  fund  required 
by  section  three  of  the  Act  of  June  twentieth,  eighteen  hundred  and  seven- 
ty-four, an  additional  sum  equal  to  five  per  centum  of  such  additional 
ciruclation  at  any  time  out.'-tanding,  such  additional  five  per  centum  to 
be  treated,  held,  and  used  in  all  respects  in  the  same  manner  as  the 
original  redemption  fund  provided  for  by  said  section  three  of  the  Act 
of  June  twentieth,   eighteen  hundred  and  seventy-four. 

Sec.  7.  In  order  that  the  distribution  of  notes  to  be  issued  under  the 
provisions  of  this  Act  shall  be  made  as  equitable  as  practicable  between 
the  various  sections  of  the  country,  the  Secretary  of  the  Treasury  shall 
not  approve  applications  from  associations  in  any  State  in  excess  of  the 
amount  to  which  such  State  would  be  entitled  of  the  additional  notes 
herein  authorized  on  the  basis  of  the  proportion  which  the  unimpaired  capi- 
tal and  surplus  of  the  national  banking  associations  in  such  state  bears 
to  the  total  amount  of  unimpaired  capital  and  surplus  of  the  national 
banking  associations  of  the  United  States :  Provided,  hvivever.  That  in 
case  the  applications  for  associations  in  any  State  shall  not  be  equal 
to  the  amount  which  the  as.sociations  of  such  State  would  be  entitled  to 
under  this  method  of  distribution,  the  Secretary  of  the  Treasury  may, 
in  his  discretion,  to  meet  an  emergency,  assign  the  amount  not  thus 
applied  for  to  any  applying  association  or  associations  in  States  in  the  same 
section  of  th«  country. 


TBB  MONEY  PANIC— THE  CURRENCY  LAW.  -TS 

Sec.  8.  That  it  shall  be  the  duty  of  the  Secretary  of  the  Treasury 
CO  obtain  information  with  refertnee  to  the  value  and  character  of  the 
securities  authorized  to  be  accepted  under  the  provisions  of  this  Act,  and 
he  shall  from  time  to  time  furnish  information  to  national  banking  as- 
sociations as  to  such  securities  as  would  be  acceptable  under  the  provisions 
of  this  Act. 

Sec.  9.  That  section  fifty-two  hundred  and  fourteen  of  the  Revised 
Statutes,   as  amended,  be  further  amended  to  read  as  follows  :  , 

"Sec.  5214.  National  banking  associations  having  on  deposit  bonds 
of  the  United  States,  bearing  interest  at  the  rate  of  two  per  centum 
per  annum,  including  the  bonds  issued  for  the  construction  of  the  Panama 
Canal,  under  the  provisions  of  section  eight  of  'An  Act  to  provide  for 
the  construction  of  a  cang,l  connecting  the  waters  of  the  Atlantic  and 
Pacific  oceans,'  approved  .June  twenty-eighth,  nineteen  hundred  and  two, 
to  'secure  its  circulating  notes,  shall  pay  to  the  Treasurer  of  the  United 
States,  in  the  months  of  January  and  July,  a  tax  of  one-fourth  of  one 
per  centum  each  half  year  upon  the  average  amount  of  such  notes  in 
circulation  as  are  based  upon  the  deposit  of  such  bonds ;  and  such  asso- 
ciations having  on  deposit  bonds  of  the  United  States  bearing  interest 
at  a  rate  higher  than  two  per  centum  per  annum  shall  pay  a  tax  of 
one-half  of  one  per  centum  each  half  year  upon  the  average  amount  of 
its  notes  in  circulation  as  are  based  upon  the  deposit  of  such  bonds. 
National  banking  associations  having  circulating  notes  secured  otherwise 
than  by  bonds  of  the  United  States  shall  pay  for  the  first  month  a  tax 
at  the  rate  of  five  per  centum  per  annum  upon  the  average  amount  of 
such  of  their  notes  in  circulation  as  are  based  upon  the  deposit  of  such 
securities,  and  afterwards  an  additional  tax  of'  one  per  centum  per  annum 
for  oach  month  until  a  tax  of  ten  per  centum  per  annum  is  reached, 
and  thereafter  such  tax  of  ten  per  centum  per  annum,  upon  the  average 
amount  of  such  notes.  Every  national  banking  association  having  out- 
standing circulating  notes  secured  by  a  deposit  of  other  securities  than 
United  States  bonds  shall  make  monthly  returns,  under  oath  of  Its  presi- 
dent or  cashier,  to  the  Treasurer  of  the  United  States,  In  such  form 
as  the  Treasurer  may  prescribe,  of  the  average  monthly  amount  of  its 
notes  so  secured  in  circulation  ;  and  it  shall  be  the  duty  of  the  Comptroller 
of  the  Currency  to  cause  such  reports  of  notes  in  circulation  to  be  verified 
by  examination  of  the  banks'  records.  The  taxes  received  on  circulating 
notes  secured  otherwise  than  by  bonds  of  the  United  States  shall  be  paid 
into  the  Division  of  Redemption  of  the  Treasury  and  credited  and  added 
to  the  reserve  fund  held  ^or  the  redemption  of  United  States  and  other 
notes." 

Sec,  10.  That  section  nine  of  the  Act  approved  July  twelfth,  eighteen 
hundred  and  eighty-two,  as  amended  by  the  Act  approved  March  fourth, 
nineteen  hundred  and  seven,  be  further  amended  to  read  as  follows : 

"Sec.  9.  That  any  national  banking  association  desiring  to  withdraw 
Its  circulating  notes,  secured  by  deposit  of  United  States  bonds  in  the 
manner  provided  in  section  four  of  the  Act  approved  June  twentieth, 
eighteen  hundred  and  seventy-four.  Is  hereby  authorized  for  that  pur- 
pose to  deposit  lawful  money  with  the  Treasurer  of  the  United  States  and, 
with  the  consent  of  the  Comptroller  of  the  Currency  and  the  approval 
of  the  Secretary  of  the  Treasury,  to  withdraw  a  proportionate  amount 
of  bonds  held  as  security  for  its  circulating  notes  in  the  order  of  such 
deposits :  Provided,  That  not  more  than  nine  millions  of  dollars  of  lawful 
money  shall  be  so  deposited  during  any  calendar  month  for  this  purpose. 

"Any  national  banking  association  desiring  to  withdraw  any  of  its 
circulating  notes,  secured  by  the  deposit  of  securities  other  than  bonds 
of  the  United  States,  may  make  such  withdrawal  at  any  time  In  like 
manner  and  effect  by  the  deposit  of  lawful  moaey  or  national  bank  notes 
with  the  Treasurer  of  the  United  States,  and  upon  such  deposit  a  pro- 
portionate share  of  the  securities  so  deposited  may  be  withdrawn :  Pro 
vided.  That  the  deposits  under  this  section  to  retire  notes  secured  by  the 
deposit  of  securities  other  than  bonds  of  the  United  States  shall  not 
be  covered  Into  the  Treasury,  as  required  by  section  six  of  an  Act  en- 
titled 'An  Act  directing  the  purchase  of  silver  bullion  and  the  issue  of 
Treasury  notes  thereon,  and  for  other  purposes,'  approved  July  fourteenth, 
eighteen  hundred  and  ninety,  but  shall  be  retained  in  the  Treasury  for  the 
purpose  of  redeeming  the  notes  of  the  bank  making  such  deposit." 

Sec.  11.  That  section  fifty-one  hundred  and  seventy-two  of  the  Re- 
vised Statutes  be,  and  the  same  is  hereby  amended  to  read  as  follows: 

"Sec.  5172.  In  order  to  furnish  suitable  notes  for  circulation,  the 
Comptroller  of  the  Currency  shall,  under  the  direction  of  the  Secretary 
of  the  Treasury,  cause  plates  and  dies  to  be  engraved,  in  the  best  manner 
to  guard  against  counterfeiting  and  fraudulent  alterations,  and  shall  have 
printed  therefrom,  and  numbered,  such  quantity  of  circulating  notes,  in 
blank,  of  the  denominations  of  five  dollars,  ten  dollars,  twenty  dollars, 
fifty  dollars,  one  hundred  dollars,  five  hundred  dollars,  one  thousand 
dollars,  and  ten  thousand  dollars,  as  may  be  required  to  supply  the  as- 
sociations entitled  to  receive  the  same.  Such  notes  shall  state  upon 
their  face  that  they  are  secured  by  United  States  bonds  or  other  securi- 
ties, certified  by  the  written  or  engraved  signatures  of  the  Treasurer 
and  Register  and  by  the  imprint  of  the  seal  of  the  Treasury.  They 
shall  also  express  upon  their  face  the  promise  of  the  association  receiving 
the  same  to  pay  on  demand,  attested  by  the  signature  of  the  president 
or  vice-president  and  cashier.  The  Comptroller  of  the  Currency,  acting 
under  the  direction  of  the  Secretary  of  the  Treasury,  shall  as  soon  as 
practicable,  cause  to  be  prepared  circulating  notes  in  blank,  registered 
and  countersigned,  as  provided  by  law,  to  an  amount  equal  to  fifty  per 
centum  of  the  capital  stock  of  each  national  banking  association ;  such 
notes  to  be  deposited  in  the  Treasury  or  in  the  sub-treasury  of  the 
United  States  nearest  the  place  of  business  of  each  association,  and  to 
be  held  for  such  association,  subject  to  the  order  of  the  Comptroller  of 
the  Currency,  for  their  delivery  as  provided  by  law :  Provided,  That  the 
Comptroller  of  the  Currency  may  issue  national  bank  notes  of  the  present 
form  until  plates  can  be  prepared   and  circulating  notes  Issued  as  above 


76  THE  MONEY  PANIC— THE  CURRENCY   LAW, 

provided :  Provided,  however,  That  in  no  event  shall  bank  notes  of  the 
present  form  be  Issued  to  any  bank  as  additional  circulation  provided 
for  by  this  Act." 

Skc.  12.  That  circulating  notes  of  national  banking  associations,  when 
presented  to  the  Trea.sury  for  redemption,  as  provided  In  section  three 
of  the  Act  approved  June  twentieth,  eighteen  hundred  and  seventy-four, 
shall    be   redeemed  In    lawful   money   of   the    United    States. 

Skc.  13.  That  all  acts  and  orders  of  the  Comptroller  of  the  Currency 
and  the  Treasurer  of  the  United  States  authorized  by  this  Act  shall  have 
the  approval  of  the  Secretary  of  the  Treasury,  who  shall  have  power, 
also,  to  make  any  such  rules  and  regulations  and  exercise  such  control 
over  the  organization  and  management  of  national  currency  associations 
as  may   be   necessary   to  carry   out   the  purposes   of   this   Act. 

Skc.  14.  That  the  provisions  of  section  fifty-one  hundred  and  ninety- 
one  of  the  Revised  Statutes,  with  reference  to  the  reserves  of  national 
banking  associations,  shall  not  apply  to  deposits  of  public  moneys  by  the 
United    States    in    designated    depositories. 

Skc.  15.  That  all  national  banking  associations  designated  as  regu- 
lar depositories  of  public  money  shall  pay  upon  all  special  and  additional 
deposits  made  by  the  Secretary  of  the  Treasury  in  such  depositories,  and 
all  such  associations  designated  as  temporary  depositories  of  public  money, 
shall  pay  upon  all  sums  of  money  deposited  in  such  associations  interest 
at  such  rate  as  the  Secretary  of  the  Treasury  may  prescribe,  not  less, 
however,  than  one  per  centum  per  annum  upon  the  average  monthly 
amount  of  such  deposits :  Provided,  hoioever,  That  nothing  contained  in 
this  Act  shall  be  construe^  to  change  or  modify  the  obligation  of  any 
association  or  any  of  its  officers  for  the  safe-keeping  of  public  money: 
Provided,  further.  That  the  rate  of  interest  charged  upon  such  deposits 
shall   be  equal   and   uniform   throughout  the   United   States. 

Skc.  16.  That  a  sum  sufficient  to  carry  out  the  purposes  of  the  pre- 
ceding sections  of  this  Act  is  hereby  appropriated  out  of  any  money  In 
the  Treasury  not  otherwise  appropriated. 

Skc.  17.  That  a  Commission  is  hereby  created,  to  be  called  the 
"National  Monetary  Commission,"  to  be  composed  of  nine  members  of  the 
Senate,  to  be  appointed  by  the  Presiding  Officer  thereof,  and  nine  mem- 
bers of  the  House  of  Representatives,  to  be  appointed  by  the  Speaker 
thereof ;  and  any  vacancy  on  the  Commission  shall  be  filled  in  the  same 
manner  as  the  original  appointment. 

Sec.  18.  That  it  shall  be  the  duty  of  this  Commission  to  inquire  into, 
and  report  to  Congress  at  the  earliest  date  practicable,  what  changes  are 
necessary  or  desirable  in  the  monetary  system  of  the  United  States  or 
in  the  laws  relating  to  banking  and  currency,  and  for  this  purpose  they 
are  authorized  to  sit  during  the  sessions  or  recess  of  Congress,  at  such 
times  and  places  as  they  may  deem  desirable,  to  send  for  persons  and 
papers,  to  administer  oaths,  to  summon  and  compel  the  attendance  of  .wit- 
nesses, and  to  employ  a  disbursing  officer  and  such  secretaries,  experts, 
stenographers,  messengers,  and  other  a.ssistauts  as  shall  be  necessary  to 
carry  out  the  purposes  for  which  said  Commission  was  created.  The 
Commission  shall  have  the  power,  through  sub-committee  or  otherwise, 
to  examine  witnesses  and  to  make  such  investigations  and  examinations, 
in  this  or  other  countries,  of  the  subjects  committed  to  their  charge  as 
they  shall  deem  necessary. 

Sec.  19.  That  a  sum  sufficient  to  carry  out  the  purposes  of  sections 
seventeen  and  eighteen  of  this  Act,  and  to  pay  the  necessary  expenses  of 
the  Commission  and  its  members,  is  hereby  appropriated  out  of  any  money 
in  the  Treasury  not  otherwise  appropriated.  Said  appropriation  shall  b© 
immediately  available  and.  shall  be  paid  out  on  the  audit  and  order  of  the 
chairman  or  acting  chairman  of  said  Commission,  which  order  and  audit 
shall  be  conclusive  and  binding  upon  all  Departments  as  to  the  correctness 
of  the  accounts  of  such  Commission. 

Sec.  20.  That  this  Act  shall  expire  by  limitation  on  the  thirtieth 
day  of  June,  nineteen  hundred  and  fourteen. 

Approved  May  30,  1908. 


THE   CURRENCY   LAW. 

Ita    Pro-vialons    Outlined    by    an    Accepted    and    Unprejudiced 
Autliorlty. 

[From  "Bradstreets,"   May   30,    1908.] 

The  bill  is,  as  was  to  be  expected,  a  compromise  measure,  in 
which  the  conferees  have  combined  as  far  as  possible  the  fea- 
tures of  the  Aldrich  and  Vreeland  bills.  It  empowers  national 
banking  associations,  each  having  an  unimpaired  capital  and  a 
surplus  of  not  less  than  20  per  cent,  not  less  than  ten  in  number, 
and  having  an  aggregate  capital  and  surplus  of  not  less  than 
$5,000,000,  to  form  voluntary  associations  to  be  designated  as 
National  Currency  Associations.  The  banks  uniting  to  form  such 
associations  are  required  through  their  oflRcers  to  file  ^vith  the 
Secretary  of  the  Treasury  certificates  setting  forth  the  names 
of  the  associations  and  of  the  banks  composing  them  and  their 
principal    place    of    business,    whereupon    the    associated    banks 


i' 


THE  MONEY  PANIC— THE  CV-ifRENCY   LAW 


named  in  each  certificate  are  to  liecome  a  body  corporate,  enti- 
tled to  sue  and  be  sued  and  to  exercise  the  powers  of  a  body 
•■orporate  for  the  purpose  of  the  bill.  Not  more  than  one  .  i 
association  is  to  be  formed  in  any  city ;  the  members  thereof 
■ire  to  be  taken  as  nearly  as  conveniently  may  be  from  a  terri- 
to7-y  composed  of  a  state  or  part  of  a  state  or  contiguous  parts 
of  one  or  more  states,  and  no  member  of  one  national  currency 
association  is  to  be  a  member  of  another,  but  any  national  bank 
within  the  territory  of  aii  association  having-  the  requisite  quali- 
fications is  entitled  to  become  a  member  thereof.  The  affairs  of 
each  association  are  to  be  managed  by  a  board  consisting  of  one 
representative  from  each  bank. 

In  order  to  obtain  additional  circulation,  any  bank  belonging 
to  a  national  currency  association  having-  circulating-  notes  out- 
standing secured  by  the  deposit  of  United  States  bonds  to  an 
amount  not  less  than  40  per  cent  of  its  capital  stock,  and  uhicti 
has  its  capital  unimpaired  and  a  surplus  of  not  less  than  20 
per  cent,  may  deposit  with  and  transfer  to  the  association  in 
tmst  for  the  United  States  such  securities  held  by  it,  including 
commercial  paper,  as  may  be  satisfactory  to  the  board  of  the 
association,  whose  officers  may  thereupon  in  behalf  of  such  bank 
apply  to  the  Comptroller  of  the  Currency  for  an  issue  of  ad- 
ditional circidating  notes,  not  exceeding  75  per  cent  of  1he  cash 
value  of  the  securities  or  commercial  paper  so  deposited.  The 
;application  is  to  be  immediately  transmitted  by  the  Comptroller 
■with  such  recommendation  as  he  shall  think  proper  to  the 
rSeeretary  of  the  Treasniy,  who  may  direct  an  issue  of  additional 
notes  to  the  association  on  behalf  of  the  applying  bank  to  an 
amount  in  his  discretion  not  exceeding  75  per  cent  of  the  cash 
value  of  the  securities  deposited,  provided  that  in  his  judgment 
business  conditions  in  the  locality  demand  additional  circula- 
tion ;  that  he  is  satisfied  with  the  character  and  value  of  the 
securities  proposed,  and  that  a  lien  in  favor  of  the  United  States 
on  the  securities  deposited  and  on  the  assets  of  the  banks  com- 
posing the  association  will  be  amply  sufficient  to  protect  the 
government.  "Upon  the  deposit  of  state,  county,  or  municipal 
bonds,  circulating  notes  may  be  issued  to  not  exceeding  90  per 
cent  of  the  market  value  thereof,  but  no  national  bank  is  to  be 
authorized  in  any  event  to  issue  circulating  notes  based  on  com- 
mercial paper  in  excess  of  30  per  cent  of  its  unimpaired  capital 
and  surplus.  The  term  "commercial  paper,"  as  used  in  Ihe  bill, 
Is  defined  to  include  only  notes  representing  actual  commercial 
transactions,  which  when  accepted  by  the  association  shall  bear 
the  names  of  at  least  two  responsible  parties  and  have  not 
exceeding  four  months  to  run. 

^s  a  means  of  additional  security  for  the  notes  issued  under 
'the  bill,  it  is  provided  that  the  banks  and  the  assets  of  all  banks 
belong'ing  to  the  association  to  whom  they  are  issued  shall  be 
jointly  and  severally  liable  for  the  redemption  thereof,  and  the 
lien  created  by  section  5230  of  the  Eevised  Statutes  is  extended 
to  cover  the  assets  of  all  banks  belonging  to  the  association  and 
the  securities  deposited  by  the  banks  with  the  association, 
though  as  between  the  several  banks  composing  such  association 
each  bank  will  be  liable  only  in  the  proportion  that  its  aggregate 
capital  and  surplus  bear  to  the  aggregate  capital  and  surplus  of 
all  such  banks.'  Associations  may  at  any  time  require  from  any 
of  their  constituent  banks  a  deposit  of  additional  securities  or 
commercial  paper  or  an  exchange  of  secujcities  already  on  de- 
posit, and  in  case  of  the  failure  of  a  bank  to  meet  such  require- 
ment may,  after  ten  days'  notice  to  the  bank,  sell  the  securities 
and  paper  already  in  their  hands  at  public  sale  and  deposit  the 
proceeds  with  the  Treasurer  of  the  United  States  as  a  fund  for 
the  redemption  of  the  additional  circulation,  or  in  case  of  the  in- 
sufficienc}^  thereof  may  recover  the  amount  of  the  deficiency 
by  suit.  In  the  event  of  any  bank  failing  to  preserve  or  make 
good  its  redemption  fund,  the  national  currency  association  of 
which  it  is  a  member  ma}^  be  notified  to  do  so,  and  in  the  event 
of  its  failure  the  Treasiirer  of  the  United  States  is  authorized 
to  apply  so  much  of  the  redemption  fund  of  the  other  banks  com- 
posing the  association  as  may  be  necessary  for  the  purpose. 

As  already  intimated  above,  bonds  other  than  those  of  the 
United   States  may  be   accepted   as   security  for  additional  cir- 


78      THE  MONET  PANIC— THE  CURRENCY  LAW. 

culation.  With  the  approval  of  the  Secretary  of  the  Treasury, 
the  Treasurer  of  the  Uuited  States  is  to  accept  for  that  purpose 
bonds  or  other  interest-bearing  obligations  of  any  state  of  tlie 
United  States,  or  any  legally  authorized  bonds  issued  by  any 
city,  town,  coiintv  or  otlier  lej^ally  <'onstltuted  municipality  or 
district  in  the  United  States  which  has  been  in  existence  for  a 
period  of  ten  years,  and  which  for  a  period  of  ten  years  pre- 
vious to  the  deposit  thereof  has  not  defaulted  in  the  payment 
of  any  part  of  either  principal  or  interest  of  any  funded  debt 
authorized  to  be  contracted  by  it,  and  whose  net  founded  indebt- 
I'dness  does  not  exceed  10  per  cent  of  the  valuation  of  its  tax- 
able property.  The  legal  title  of  all  bonds  deposited  is  to  be 
transferred  to  the  Treasurer  of  the  United  States  in  trust  for 
the  association  depositing  them. 

The  notes  issued  under  the  bill  are  to  be  used,  held  and 
treated  in  the  same  way  as  national  bank  notes  heretofore  issued 
and  subject  to  the  provisions  of  law  affecting  such  notes  except 
as  modified  in  the  bill.  The  total  amount  of  outstanding  cir- 
culating notes  of  any  bank,  however,  must  not  exceed  the  amount 
of  its  imimpaired  ca^^ital  and  surplus,  and  the  total  amount  of 
notes  issued  under  the  bill  must  not  at  any  time  exceed 
$500,000,000.  While  any  bank  has  outstanding  any  of  the  ad- 
ditional circulation  authorized  by  the  bill,  it  is  required  to  keep 
on  deposit  in  the  Treasury,  besides  the  redemption  fund  re- 
quired under  the  act  of  Jime  20,  1874,  an  additional  sum  equal 
to  5  per  cent  of  such  additional  circulation,  to  be  held  and 
treated  in  the  same  manner  as  provided  by  that  act.  To  secure 
an  equitable  distribution  of  the  notes  issued  under  the  bill,  it 
is  provided  that  the  Secretary  of  the  Treasury  shall  not  approve 
applications  from  any  state  in  excess  of  the  amount  to  which 
such  state  would  be  entitled  on  the  basis  of  the  proportion  borne 
by  the  unimpaired  capital  and  surplus  of  the  banks  of  that 
state  to  those  of  the  banks  of  the  whole  coimtry,  provided  that 
where  the  applications  from  any  state  are  below  its  propor- 
tion the  Secretary  of  the  Treasury,  to  meet  an  emergency,  may 
assign  the  amount  not  applied  for  to  any  applying-  association 
in  another  state  in  the  same   section  of  the  country. 

The  tax  on  the  additional  circulation  is  fixed  by  the  bill  for 
the  first  month  at  the  rate  of  5  per  cent  per  annum  upon  the 
average  amount  of  such  notes  in  circulation,  with  an  additional 
tax  of  1  per  cent  per  annum  for  each  month  afterward  until 
a  tax  of  10  per  cent  per  annum  is  reached,  and  thereafter  a  tax 
of  10  per  cent  per  annum  upon  the  average  amount  of  the  notes. 
These  taxes  are  to  be  added  to  the  reserve  fund  held  for  the 
redemption  of  United  States  and  other  notes.  Provision  is  made 
for  the  appointment  of  a  currency  commission,  consisting  of 
nine  members  from  each  branch  of  the  national  legislature,  to 
report  what  changes  are  desirable  in  the  monetary  system  of 
the  United  States  or  in  the  laws  relating  to  banking  and  cur- 
rency, such  commission  to  sit  during  the  sessions  or  recess  of 
Congress. 

A  Measure   of  Panic  Insurance. 
[Prom  the  Wall  Street  Journal.] 

In  the  first  place,  it  certainly  does  provide  a  measure  of 
protection  against  the  worst  effects  of  such  a  financial  crisis 
as  we  had  last  winter.  It  provides  for  the  issue  of  emergency 
currency  up  to  $^00,000,000  that  could  be  issued  quickly  by 
national  banks  in  case  any  scare  developed  that  led  to  with- 
drawal of  reserve  money  into  hoarding  places.  That  is  soiue- 
thing  so  invaluable  to  the  financial  system  of  the  United  States 
that,  however  defective  the  mechanism  to  accomplish  this  may 
be  and  however  short  it  may  fall  of  a  thorough-going  reorgani- 
ation  of  the  banking  and  currency  laws  of  the  United  States, 
it  must  be  accepted  as  a  great  relief  measure.  It  is  imnic  in- 
surance. 

Moreover,  in  accomplishing  this  it  does  so  with  a  frank  ac- 
knowledgment that  the  law  is  a  temporary  expedient.  This 
acknowledgement  is  made  in  the  last  section  of  the  bill,  which 
provides  that  the  Act  shall  expire  by  limitation  on  June  30, 
1914.  In  the  meantime  a  national  monetary  commission  is  pro- 
vided for,  which  is  to  report  what  changes  are  necessary  in  the 


THE  MONEY  PANIC— MONEY  OF  THE  WORLD.  71; 

laws  relating-  to  banking-  and  currency.  The  purpose  is  that 
between  now  and  1914  a  really  comprehensive  and  scientific* 
system  of  banking  shall  be  enacted. 

Ex-Secretary   Sliaw    on   Canse   of   Panics. 

At  the  meeting-  of  the  National  Business  League  of   Chicago 
ex-Secretary  Shaw  said: 

"The  American  people  have  been  living  extravagantly  and  this  prac- 
tice has  become  well-nigh  universal,  and  applies  as  much  to  the  West 
as  to  the  East.  Boldness  in  business  has  also  been  the  rule.  In  the 
agricultural  States  men  have  purchased  lands,  paying  part  cash,  and 
have  felt  perfectly  safe  with  a  mortgage  representing  50  per  cent  of 
the  prospective  value.  City  and  suburban  property  has  been  purchased 
in  the  same  way.  Others  have  purchased  well-known  and  high-grade 
stocks  and  bonds  as  investments,  but  have  borrowed  a  part  of  the  pur- 
chase price.  Timber,  coal  lands  and  mining  enterprises  have  been  cap- 
italized, and  every  locality,  East,  West,  North,  and  South,  has  aided  in  their 
fllDtation.  Commercial,  industrial,  and  electric  railway  enterprises  hava 
been  projected,  and  securities  thus  created  have  found  a  ready  market 
in  rural  as  well  as  in  urban  communities.  Meantime,  everyone  has  de- 
nounced the  speculator  and  none  have  been  'more  generous  of  criticism 
than   those    most    guilty. 

"It  has  been  popular  for  several  years  to  speak  disparagingly  of 
American  business  men,  their  methods,  and  the  institutions  with  which 
they  have  been  connected.  With  few  exceptions,  both  the  secular  and 
the  religious  press  have  vied  with  magazine  writers,  Chautauqua  lec- 
turers, and  ambitious  politicians  in  painting  in  most  somber  colors  every- 
thing American,  and  in  gazetting  as  unworthy  of  confidence,  quite  indis- 
criminately, American  business  men.  A  few  most  shameful  disclosures 
have  been  held  up  quite  universally  as  fair  illustrations  of  conditions 
generally  Instead  of  exceptions.  Threats  of  criminal  prosecutions  of  un- 
named persons  on  undefined  and  indefinite  charges  have  been  liberally 
exploited.  Naturally  these  things  have  had  their  influence.  Universal 
business  confidence  cannot  be  maintained  indefinitely  in  the  face  of  uni- 
versal denunciation,  and  when  confidence  forsakes  us  there  is  nothing 
left  on  which   to   rest  our  business  and  industrial   superstructure. 

"Lest  I  might  be  misunderstood,  I  want  to  make  it  clear  that  in 
my  judgment  this  country  will  never  outgrow  the  lift  toward  civic  and  busi- 
ness righteousness  resulting  fro'm  the  policy  of  strict  enforcement  of  law 
which  has  characterized  the  administration  of  President  Roosevelt.  I  am 
equally  certain  that  it  will  take  us  some  years  to  outgrow  the  evil  effects 
resulting  from  agitation,  reckless  legislation,  and  ill-considered  prose- 
cutions by  those  who  have  been  unable  to  appreciate  the  President's  pur- 
poses." 


MONEY     OF     THE     WORLD. 

Stocks  of  Money  in  the   Principal   Conntrles  of  tlie  World,   in 
1873,  1896,  and  1906. 

This  table,  which  shows  the  quantity  of  gold,  silver,  and  un- 
covered paper  in  each  of  the  principal  countries  for  which  figures 
are  available,  compares  the  quantities  of  these  various  classes 
of  money  in  1906  with  that  of  1896,  the  period  of  the  silver 
agitation  in  the  United  States,  and  with  that  of  1873,  the  earliest 
year  for  which  figures  of  this  character  were  collected  by  the 
Director  of  the  Mint,  whose  office  is  authority  for  all  of  the 
figures  in  this  table.  It  will  be  noted  that  the  quantity  of 
gold  and  the  total  money  in  the  United  States  have  grown  much 
more  rapidly  than  in  any  other  country,  and  that  the  growth 
from  1896  to  1906  has  been  very  strongly  marked  with  a  gain 
far  in  excess  of  that  of  any  other  country  in  the  list.  Attention 
is  also  called  to  the  fact  that  the  total  stock  of  gold  in  the  13 
countries  named,  as  shown  by  the  final  line  of  the  table,  has 
grown  much  more  rapidly  than  that  of  either  of  the  other 
classes  of  money  named. 

In  this  connection  the  table  showing  the  world's  gold  and  sil- 
ver production  from  1493  to  1907  will  prove  interesting.  The 
table  in  question  will  be  readily  found  by  reference  to  the  index. 

By  an  examination  of  that  table  it  will  be  seen  that  the 
world's  gold  production  since  1873  has  aggregated  as  much 
as  in  the  entire  period  from  1492  to  1873.  An  analysis  of 
that  table  discloses  the  fact  that  the  value  of  gold  produced 
in  the  world  from  1492  to  1873  was  6,120  million  dollars, 
coining  value,  and  that  the  production  from  the  beginning  of  1873 
to  the  beginning  of  1908  was  6,368  millions.  Statisticians  esti- 
mate that  the  quantity  of  gold  in  the  world  is  now  double  that 
of  1875,  while  the  quantity  produced  since  1896  has  been  over 
three  billion  dollars,  or  one-third  as  much  as  that  produced  in 
the  400  years  prior  to  1896. 


80 


THE  MONEY  PANIC  OF  1907. 


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PROSPERITY. 


The  periods  of  protection  in  the  United  States  have  been  the 
periods  of  prosperity.  The  periods  of  prosperity  have  been  those 
of  protection.  In  the  first  half  of  the  little  more  than  a  cen- 
tury of  our  existence  under  the  Constitution  protection  and  low 
tariff  alternated  at  comparatively  frequent  intervals.  In  the 
second  half  protection  has  been  the  rule,  low  tariff  the  exception. 
In  the  48  years  from  1860  to  1908  there  have  been  45  years  of 
protection  and  45  years  of  prosperity,  3  years  of  low  tariff  and  3 
years  of  adversity.  To  be  sure,  there  were  during  the  long  per- 
iod of  protection  certain  financial  disturbances,  due  to  inci- 
dents and  caiises  which  had  no  relation  to,  and  were  not  affected 
by,  the  system  of  raising  of  revenues,  but  these  were  exceptions 
which  proved  the  rule  of  general  prosperity  as  an  accompani- 
ment of  protection. 

Measuring  from  1812,  the  date  of  the  first  protective  tariflE, 
to  1861,  the  beginning  of  what  may  be  termed  the  permanent 
period  of  protection,  there  were  many  experiments  with  free 
trade  and  pi'otection.  "J)uring  that  long  period,"  said  the  late 
James  G.  Blaine,  in  his  celebrated  reply  to  William  E.  Glad- 
stone published  in  the  North  American  Eeview  in  January,  1890, 
"free  trade  tariffs  were  thrice  followed  by  industrial  stagnation, 
by  financial  embarrassments,  by  distress  among  all  classes  de- 
pendent for  subsistence  upon  their  own  labor.  Thrice  were 
these  burdens  removed  by  the  enactment  of  a  protective  tariflE. 
Thrice  the  protective  1;ariff  proinptly  led  to  industrial  activity, 
to  financial  ease,  to  prosperit}'^  among  the  people ;  and  this  happy 
condition  lasted  in  each  case  until  illegitimate,  prolific  com- 
binations precipitated  another  era  of  free  trade.  *  *  *  As 
an  offset  to  the  charge  that  free  trade  tariffs  have  always  ended 
in  panics  and  long  periods  of  financial  distress,  the  advocates 
of  free  trade  point  to  the  fact  that  a  financial  panic  of  great 
severity  fell  upon  the  country  in  1873  when  the  protective  tariff 
of  1861  was  in  full  force.  The  panic  of  1873  was  widely  different 
in  its  true  origin  from  those  which  I  have  been  exposing.  The 
Civil  War  had  sacrificed  on  both  sides  a  vast  amount  of  prop- 
erty, a  half  million  men  had  been  killed,  and  a  million  more  dis- 
abled;  the  public  debt  that  must  be  funded  reached  nearly 
3,000  millions  of  dollars ;  *  *  *  two  great  calamities  in  the 
years  immediately  preceding  had  caused  the  expenditure  of 
more  than  two  hundred  millions  of  dollars  suddenly  withdrawn 
from  the  ordinary  channels  of  commerce ;  the  rapid  and  exten- 
sive rebuilding  in  Chicago  and  Boston  after  the  destructive 
fires  of  1871  and  1872  had  a  closer  connection  with  the  panic 
of  1873  than  is  commonly  thought.  Still  further,  the  six  years 
of  depression  from  1873  to  1879  involved  individual  suffering 
rather  than  general  distress.  The  country  as  a  whole  never  ad- 
vanced in  wealth  more  rapidly  than  during  that  period.  *  *  ♦ 
The  business  distress  was  relieved  and  prosperity  restored  under 
protection,  whereas  the  ruinous  effects  of  panic  under  free  trade 
have  never  been  restored  except  under  protection." 

This  masterly  analysis  by  Mr.  Blaine  of  the  relation  of  pro- 
tective tariffs  to  prosperity  and  of  great  financial  depressions  in 
their  relation  to  low  tariffs  has  been  fully  justified  by  the  events 
since  it  was  written.  The  long  period  of  depression  which  fol- 
lowed the  return  to  low  tariff  immediately  succeeding  Mr. 
Blaine's  defeat  for  the  presidency  continued  during  that  entire 
period  of  low  tariff  and  until  relief  was  obtained  by  a  return  to 
protection.  Following  the  reestablishment  of  protection  in  1897 
came  an  immediate  restoration  of  prosperity,  which  continued 
steadily  until  the  great  disturbances  in  world  finances  resulting 
from  the  Boer  and  Russo-Japanese  wars,  and  the  local  disturb- 
ances .  resulting  from  the  great  losses  consequent  upon  the 
Baltimore  and  San  Francisco  disasters,  which  paralleled  the 
Chicago  and  Boston  disasters  of  1871  and  1872,  referred  to  by 

D  SI 


18  PROSPERITY. 

Mr.  Blaine  as  closely  connected  with  the  panic  of  1873,  and 
fully  jxistifyin^-  his  statement  tliat  financial  depressions  under 
protei'tirm  are  due  to  momentary  causes  and  are  but  temporary 
in  duration. 

That  the  panic  of  1907  was  due  to  the  great  causes  above  re- 
ferred to  and  to  the  lack  of  suiticient  currency  to  finance  the 
threat  un(iertakiuj>s  com  c(|uent  upon  the  tremendous  prosperity 
which  had  come  to  1  he  country  under  the  decade  of  protection 
is  now  peuerally  conceded,  as  will  be  seen  from  the  quoi>ations 
which  follow  from  distiuf^iiished  writers  upon,  and  students  of 
this  subject.  That  it  was  merely  a  financial  piiu'w,  temporary  in 
its  existence  anti  not  a  ^rcat  industrial  depression  reducing  em- 
ployment, wages,  and  prices  of  the  products  of  labor,  such  as 
that  accompanying  the  Wilson  low  tariff,  will  be  equally  apparent 
by  a  comparison  of  conditions  in  the  summer  of  1908,  ten  months 
after  the  panic  of  1907,  with  those  of  the  snmmer  of  1896,  after 
three  years  of  low  tariff  and  accomjjanying  indu.strial,  as  well 
as  financial  depression.  The  ])ublic  soup  houses,  the  Coxey  ar- 
mies, the  thousands  compelled  to  sacrifice  self  respect  and  ask 
and  accept  charity  and  the  millions  nnsnccessfnlly  seeking  em- 
ployment, which  characteri/efl  the  industrial  panic  accompanying 
the  low  tariff  period,  1894-7,  contrast  strongly  with  conditions 
to-day. 

IliiMineHH    liiii»rovoin«*iitH   !n    190«. 

That  business  conditions  have  a1  really  greatly  improved  and 
that  the  financial  divstnrbance  of  eight  months  ago  is  not  to  re- 
sult in  general  business  depression  is  now  generally  conceded. 

The  New  York  Journal  of  Commerce  (Democratic)  of  June 
1,  1908,  announced  the  resumption  of  work  on  full  time  in  large 
numbers  of  the  New  England  cotton  and  woolen  mills.  ,The 
same  issue  reports  from  Paducah,  Ky.,  the  big  hosiery  mills  of 
that  city  running  day  and  night  in  the  hope  of  catching  up  with 
orders. 

The  Philadelphia  Ledger  of  June  2d  reports  the  Coplin  Cement 
Manufactiiring  C-omi)any  as  working  day  and  night  with  its 
entire  force,  while  large  ninnbers  of  other  industries  were  re- 
ported as  increasing  their  force  of  employees  and  working  on 
full  time.  ; 

Dispatches  from  8t.  Louis  published,  on  June  1st,  state  that 
17,000  names  were  on  June  1st  added  to  pay  rolls  in  St.  Louis 
and  vicinity,  and  that  $.5,000,000  worth  of  goods  had  been  sent 
from  the  St.  Louis  hou.ses  to  manufacturers  within  a  forlnight. 
The  New  York  Evening  I'ost  (Democratic)  of  May  23d,  com- 
menting upon  the  improvement,  says:  "It  Ts  only  fair  to  remem- 
ber that  the  country  has  to-day  in  its  sound  currency  and  pro«;- 
perous  interior  two  factors  making  for  recovery  which  did  not 
exist  in  1874;"  and  on  June  1st  publishes  dispatches  from  many 
places,  especially  the  New  England  cotton  and  woolen  mills, 
announcing  a  return  to  full  time. 

The  Washington  Post  (Democratic)  of  June  2d  saj^s :  "June 
begins  the  real  summer  season  with  many  signs  of  returning 
prosperity.  Plentifulness  of  money  and  its  cheapness  have  en- 
couraged promoters  of  industrial  enterprises  and  railroad  buil- 
ders to  renew  their  plans  of  expansion.  Some  of  the  best  in- 
formed railroad  men  foresee  business  that  will  tax  the  capacity 
of  their  equipment.  Menhants  are  beginning  to  order  for  a 
busy  fall  trade.     'J'he  country  is  all  right." 

I?.  Ct.  Dun  &  (^o.  say  in  their  Heview  that  their  figures  of  com- 
mercial failures  for  the  month  of  May.  1908,  present  the  most 
encouraging  monthly  statement  as  to  the  amount  of  defaulted 
indebtedness  since  July  of  last  year  and  its  total  of  13y2  mil- 
lions compares  favorably  with  20  1/3  millions  in  the  best  pre- 
ceding n)onth  of  this  year.  The  New  York'  Herald  of  June  1st 
says:  "All  the  factors  of  production  are  with  us  in  full  blast,  and 
with  ea.sy  money  and  good  crop  prospects,  to  which  the  element 
of  confidence  is  now  added  by  the  enactment  of  the  currency 
law.  the  outlook  is  bright  indeed  for  the  highest  measure  of 
prosperity." 

The  New  York  Journal  (Democratic)  of  June  2d  says:  "The 
country  is  waking  up.  Mills  and  factories  that  have  been  closed 
for  months  are  again  humming  and  whirring  with  action.    Trade 


PROSPERITY.  88 

is  iniproving-.  New  York  merchants  are  reinstating  employees 
that  they  were  forced  to  dispense  with  last  fall  because  of  the 
flurry  in  Wall  street.  In  Chicago  commercial  men  are  pre- 
paring for  a  prosperous  season.  In  the  great  manufacturing 
centers  of  the  East  fears  have  fled  from  owners  of  plants  and 
many  chimneys  that  had  long  grown  cold  are  now  sending  up 
their  former  volumes  of  smoke.  There  is  money  in  the  banks 
and  the  specter  of  distress  is  dimmer." 

The  New  York  Herald  of  July  26,  says :  From  all  over  the 
land  come  the  good  tidings  that  an  unmistakable  and  abundant 
wave  of  prosperity  is  sweeping  along.  To  the  Hei-ald  come  dis- 
patches from  the  great  centers  which  prove  beyond  doubt 
that  "good  times"  are  here — and  here  apparently,  to  stay,  Mills 
are  running  full  blast,  crops  are  bumper  everywhere,  the  rail- 
roads are  taking  on  men,  and  the  entire  nation,  with  one  accord, 
gives  vent  to  the  expression  that  prosperous  seasons  are  at  hand. 
In  the  uplift  of  general  industi-y  from  depression,  following 
upon  satisfactory  harvests,  no  one  can  overlook  the  tremendous 
force  of  abundant  and  cheap  money.  While  the  vast  accumu- 
lations in  the  banks  of  the  country  are  in  themselves  the  evi- 
dences and  results  of  lessened  activities  of  commercial  life, 
the  great  accumulations  of  surplus  funds  gathered  in  the  financial 
reservoirs  provide  the  quickening  of  industry  when  the  proper 
period  for  recuperation  has  run  its  course. 

How  vast  a  sum  of  reserve  money  has  acciimulated  in  the 
country  in  recent  months  can  only  be  approximated.  But  in 
the  national  banks  alone,  under  the  call  of  the  Comptroller  of 
the  Currency  for  their  condition  on  May  14.  there  was  no  less 
than  $861,326,450  of  specie  and  legal  tenders  or  reserve  money. 
Of  this  sum  $318,000,000  was  in  the  vaults  of  national  banks 
in  New  York  City.  The  Comptroller  of  the  Currency  has  just 
issued  a  call  for  the  condition  of  the  national  banks  as  of  July 
15.  The  figures  on  this  are  not  yet  available,  but  the  general 
impression  is  that,  despite  gold  exports  during  the  interval,  the 
showing  "legal  reserve  money"  will  have  been  augmented. 

The  total  gold  circulation  in  the  United  States,  according 
to  recent  estimates,  amounted  to  the  huge  total  sum  of  $1,445,- 
000,000,  of  which  36  per  cent  was  held  in  the  national  banks  of 
the  United  States  and  nearly  16  per  cent  in  the  banks  of  New 
York  City,  which  is  the  central  reservoir  of  the  financial  system. 
As  already  stated  on  May  14,  the  national  banks  of  the  country 
held  $861,326,450,  which  was  an  increase  of  $73,000,000,  as  com- 
pared with  the  preceding  call  by  the  Comptroller  of  the  Cur- 
rency, that  of  February  14,  and  no  less  than  $171,000,000  more 
than  was  held  by  the  banks  of  the  national  association  a  year 
ago  in  May. 

National   Bank   Conditions,  May   14,    1908. 

The  latest  report  of  the  Comptroller  of  the  Currency  on  the 
operations  of  the  National  banks  of  the  country  shows  that  their 
condition  had  nearly  returned  to  that  of  the  corresponding  date 
in  1907,  a  period  of  high  tide  of  prosperity,  and  was  in  marked 
contrast  with  conditions  in  March,  1897,  the  month  of  the  inau- 
guration of  William  McKinley,  and  the  approximate  end  of  the 
Wilson  low  tariff  period.  The  capital  stock  paid  in  of  the 
National  banks  of  the  coimtry  on  May  14,  1908,  was  912  million 
dollars ;  on  May  20,  1907,  one  year  earlier,  884  millions,  and  on 
March  9,  1897,  was  but  642  million  dollars,  showing  an  improved 
condition  as  to  capital  stock  when  compared  with  that  of  one 
year  ago,  and  an  increase  of  nearly  50  per  cent  when  compared 
that  of  the  corresponding  date  of  1897.  The  surplus  fund  on 
May  14,  1908,  was  555  million  dollars,  against  535  millions  on 
May  20,  1907.  and  but  247  millions  on  March-S,  1897.  The  un- 
divided profits,  less  expenses  and  taxes  paid,  were  on  May  14, 
1908.  203  million  dollars,  against  186  millions  May  20,  1907,  and 
but  8614  millions  on  March  9,  1897.  The  individual  deposits  on 
May  14,  1908.  were  4,313  million  dollars,  against  4,323  millions 
on  May  20,  1907.  and  but  1,669  millions  on  March  9,  1897,  the  in- 
dividual deposits  on  May  14,  1908.  being  thus  practically  as  much 
as  one  year  ago,  and  over  2i/4  times  as  much  as  in  1897.  The 
loans  and  discounts,  which  are  a  measure  of  industrial  activity, 


Si 


PROSf'ERITY. 


yvei-e  on  May  14,  1008,  4,528  million  dollars,  against  4,631  mil- 
Upna oix  May  20,  1907,  and  biit  1,886  millions  on  March  9,  1897, 
beiiifj;-  thus  but  little  below  the  conditions  of  that  high  water 
l})i^i;k,0,f  I  prosperity  one  year  ago,  and  more  than  2Va  times  as 
i^uch  as  iiji  ^larch,  1897. 

,  Money  in  Cirvuliition,  Jnly   1,   190S. 

The  money  in  <'irculatibn  in  the  United  States  on  July  1, 
1908,  was  $3,045,257,289,  against  $2,772,956,455  on  Jnly  1,  1907. 
tHe  year  of  high-water  mark  of  prosperity,  against  $1,-506,434,966 
iili896,  the  year  of  low-water  mark  of  Democratic  adversity,  and 
the  year  in  which  William  Jennings  Bryan  was  telling  us  that 
prosperity  and  sufficient  money  to  produce  prosperity  could  only 
be  had  by  the  free  and  unlimited  coinage  of  silver.  The  per 
c;apita  circulation  July  1,  1908,  was  $34.81,  against  $32.22  on 
July  1,  1907,  and  $21.41  on  July  1,  1897,  the  per  capita  of  money 
ih  circulation  on  July  1,  1908,  being  thus  8  per  cent  more  than  in 
1907  and  60  per  cent  more  than  in  July,  1896,  the  low-record  year 
oi  the  Wilson  tariff  period.  One  interesting  feature  of  this  tre- 
mendous increase  in  the  amount  of  money  in  circulation  in  the 
United  States  in  1908  as  compared  with  1896,  when  we  were  told 
that  increased  currency  could  only  be  obtained  by  the  free  and 
linlimited  coinage  of  silver,  is  the  fact  that  the  gold  and  gold 
certificates  in  circulation  (the  latter  being,  of  course,  the  equiva- 
lerit  of  gold,  since  they  represent  gold  deposited  in  the  Treasury) 
aggregated  on,  July  1^  1908,  $1,403,017,937,  agtlinst  but  $497,103,- 
183  on  July  1,  1896,  or  nearly  three  times  as  much  gold  in  cir- 
culation in  1908  as  in   1896. 

Prices  of  Farm  Products,  1908. 

Another  evidence  that  the  financial  disturbance  of  1907  has 
not  seriously  atTected  the  masses  or  their  purchasing  power  and 
has  riot  brought  to  the  great  agricultural  population  the  terrible 
depression  which  char9,cterized  the  low  tariff  period  is  found 
in  a  comparison  of  prices  of  farm  and  other  products  prevailing 
in  the  markets  to-day  with  those  of  1896.  A  little  table  below 
compares  prices  of  a  few  representative  articles  in  the  first  week 
Of  June,  1908,  with  those  ruling  in  the  first  week  of  June,  1896. 
It  wilj.be  seen  that  the  price  of. wheat  in  New  York,  which  in 
th^  first  week  of  June,  1896,  was  69%  cents  per  bushel,  was  $1 
per  bushel  in  June,  1908 ;  corn  advanced  from  33%  cents  per 
bushel  in  June,  1896,  to  78  cents  per  bushel  in  June,  1908;  oats, 
from  22%  cents  per  bushel  in  June,  1896,  to  53%  cents  per  bushel 
lit  1^08  ;  lard^  from  4.4  cents  per  pound  to  8]/^  cents;  mess  pork, 
from  $8  per  barrel  to  $14.50 ;  wool,  Ohio  XX,  from  17  cents  per 
pound  to  30  cents-;  and  cotton,  from  7%  cents  per  pound  in 
June,  1896,  to  11.4  cents  per  pound  in  June,  1908. 

"Wholesale  prices  at  'New  York  of  representative  articles  of  farm 
Vf    '  :         production,  1896  and  190S. 


-'  '                                  Articles. 

First  week  in  June— 

1896, 

1908. 

1X7.hn6f.              .    ,                               )  t^  •>       -.  ,.  ;  f .    . .          . 

per  bi;shel-. 

Dollars. 

0.69% 
.33% 
.22% 
.044 

8.00 
.17 
.07% 

Dollars. 
1.00 

Oats  '"          '               3."  -IIZII-2llCl2 

„^-.per  bushel- - 
per  bushel— 

.78 
.531^ 

I,ard      '                           —  - ' — 

per  pound.. 

.085 

Mess  pork  _. — — 

Wool,    Obio   XX — - 

per  barrel.^ 

per  pound-. 

per  pound.. 

14.. 50 
•.30 
.114 

♦Price  at  Boston. 


Evidences  of  Industrial   Activity. 

One  further  evidence  of  the  slight  effect  upon  our  industries 
of  the  financial  panic  of  1907  when  compared  with  the  industrial 
panic  of  1894,  1895  and  1896,  which  followed  the  enactment  of 
the  Wilson  law,  is  found  by  a  comparison  of  the  imports  of 
manufacturers'   raw  materials  at   the  present  time  with  those 


PROSPERITY— 1897-1907.  85 

of  the  low  tarit?  period,  and  also  by  a  comparison  of  the  manu- 
factures  exported   at  the    present   time   with   those   of   the    low 
tariff  period.     The  imports  of  raw  material  for  use  in  manufac- 
turing- in  the  seven  months  from  October,  1907,  to  and  including 
April,    1908,  the   full   period  of  the  financial   panic,   exceeded   in 
'  value  those  of  any  full  year  of  the  operation  of  the  Wilson  low 
\  tariff   aef,,  whose    framers  prided    themselves   on    the    fact    that 
their  tariff  law  offered  free  raw  materials  to  the  manufacturers 
of  the  United  States.     The  importation  of  raw  material  during 
the  entire  i)eriod  of  the  Wilson  law  averaged  16  million  dollars 
per  month;  during  the  seven  months'  depression  under  the  Ding- 
ley  law,  from  October,  1,   1907,  to  May  1,  1908,  the  importation 
,  of  raw  material  for  use   in  manufacturing  averaged  29  million 
dollars    per    month.     The    exports    of    manufactures    during   the 
three  years'  operation  of  the   Wilson  tariff  law  aggregated  774 
million  dollars,  or  an  average  of  21^2  million  dollars  per  month. 
The  exports  of  manufactures  from  July   1,  1907,  to  May  1,  190S, 
\  including  the   full  period  of  the    depression  imder  the   Dingley 
law,  aggregated  637  million  dollars,  or  an  average   of  63.7  mil- 
lions per  month.     Thus  the  monthly  average  of  exportations  of 
manufactures   during   the   ten  months   ending  with   April,    1908, 
has  been  three  times  as  much  in  value  as  the  monthly  average 
during  the  entire  period  of  the  Wilson  law.     It  may  safely  be 
asserted  that  the  value  of  manufactures  exported  in  the  fiscal 
I  year  190S  will  he  as  great  as  that  for  the  entire  three  years  under 
I  the  Wilson  laiv,  this  estimate  for  1908  being  based  upon  the  11 
I  months'  figures  already  received  by  the  Bureau  of  Statistics. 

All   Late  Returns   Favorable. 

Necessarily  the  opportunities  for  a  statistical  comparison  of 
1908  conditions  with  those  of  earlier  years  are  few,  since  statis- 
;  tical  statements  in  most  cases  apply  to  full  years,  either  fiscal 
i  or  calendar,  and  none  of  these  at  the  present  moment  are  avail- 
!  able  for  the  year  1908.  In  all  of  the  monthly  or  briefer  periodic 
I  statements  available  the  latest  figures  for  1908  have  been  pre- 
i  sented,  and  the  instantaneous  picture  of  conditions  which  they 
I  present  is,  as  seen  by  the  above,  extremely  favorable.  It  is  pos- 
I  sible,  however,  to  compare  conditions  at  th^e  close  of  1907  (in 
i  some  cases  the  calendar,  and  in  other  cases  the  fiscal  year)  witb 
!  those  of  earlier  dates  and  especially  to  compare  conditions  of 
I  1907,  after  a  decade  of  Dingley  operation,  with  those  of  1897, 
I  after  three  years'  experience  with  low  tariff  and  four  years  ex- 
I  perience  with  Democratic  rule.  The  statements  and  tabh^s  which 
i  follow  compare  conditions  in  1907  with  those  of  1897,  the  year 
j  of  McKinley's  inauguration  and  the  enactment  of  the  Dingley 
law,  also  in  other  cases  with  those  of  1906,  the  last  full  year 
Democratic  and  low  tariff  rule. 


I 


Comparison  op  conditions  in  1907  w^ith  those:  op  isot. 

Financial,     Commercial     and     Industrial     Conditions     in     tWe 
United   States   in   1897   and   at   Latest   Available   Date.     .. 

Value  of  all  farm  products,  estimated  by  the  Department  of 
Agriculture:  in  1897,  4,250  million  dollars;  in  1907,  7,500  mit- 
lions. 

Value  of  farm  animals:  on  January  1,  1897,  $1,655,415,000;  on 
January  1,  1908,  $4,331,230,000. 

Value  of  horses:     1897,  $452,650,000;  in  1908,  $1,867,530,000. 

Value  of  mules:  1897,  $92,302,000;  in  1908,  $416,939,000. 

Value  of  cattle  :     1897,  $877,169,414  ;  in  1908,  $1,495,995,000. 

Value  of  sheep:     1897,  $67,021,000;  in  1908,  $211,736,000. 

Value  of  swine  :     1897,  $166,273,000 :  in  1908,  $339,030,000. 

Farm  value  of  sheep  per  head :     1897,  $2.46 ;  in  1907,  $3.88. 

Value  of  wool  product:  1897,  30  million  dollars;  in  1907,  78 
millions. 

Farm  value  of  crops:  1897,  501  million  dollars;  in  1907, 
1,337  millions. 

Farm  value  of  wheat  crop :  1897,  428  million  dollars ;  in  1907, 
564  millions. 


M  PROSPERITY— X801'19Q7. 

Hay  crop  of  the  United  States:  1897,  401  million  dollars;  in 
J 907.  744  millions. 

I\)tiito  iTop  of  the  United  States:  1897,  90  million  dollars; 
in  1907,  184  million.s. 

lieet  sugar  product  of  the  United  States:  1897,  84  million 
pounds;  in  1907,  9G7  millions,  or  eleven  times  as  much  in  1907 
as  in  1897,  and  the  beet  sugar  production  in  1907  was  twice  as 
great  as  that  of  the  cane  sugar  production  of  the  Uii^ted  States 
lor  the  same  year. 

Farm  value  of  corn  per  bushel:  in  1897,  26.3  cents;  in  1907, 
51.6  cents. 

Farm  value  of  wheat  per  bushel:  in  1897,  80.8  cents;  in  1907, 
87.4  cents. 

Value  of  cotton  crop:  1897,  288  million  dollars;  in  1907,  683 
millions.     (Estimate  of  New  Orleans  Cotton  Exchange.) 

Price  of  middling  cotton  per  pound  in  the  New  York  market: 
1897,  7  cents;  in  1907,  12.1  cents. 

Price  of  medium  Ohio  fleece  wool  per  pound  :  January,  1897, 
21  cents ;  January,  1907,  39  cents. 

Average  price  of  corn  in  the  New  York  market:  in  January, 
1897,  32  cents  per  pound;  in  January,  1907,  64  cents  per  pound. 

Pig  iron  production  in  1897,  9,652,000  tons;  in  1907,  25,781,000 
tons. 

Coal  production:  1897,  178,776,000  tons;  in  1907,  429  million 
tons. 

Tin  plates  manufactured:  1897,  574,779.000  pounds;  in  1906i, 
1,294,000.000  pounds.  , 

American  cotton  manufactured  by  American  mills:  in  1897, 
2,792,000  bales;  in  1907,  5,005,000  bales. 

Cotton  imported  for  use  in  manfacturing  in  1897,  51,899,000 
pounds;  in  1907,  104,792,000  pmmds.  ■  <;°     '!•    /'iv.'^-, 

Wool  imported  for  use  in  manufacturing:  in  1897,  350,852,000 
pounds  ;  in  1907,  203,848,000  pounds,  showing  the  contrast  under 
protection  and  free  trade. 

Raw  silk  imported  for  use  in  manufacturing :  in  1897,  7,993,000 
pounds ;  in  1907,  18,744,000  pounds. 

Crude  rubber  imported  for  use  in  manufacturing:  in  1897, 
35,574,000  pounds  ;  in  1907,  76,964,000  pounds. 

Pig  tin  imported  for  use  in  manufacturing  tin  plates:  in  1897, 
6J.2  niillion  dollars;  in  1907,  38  million  dollars. 

Value  of  all  mineral  products:  in  1897,  $647,000,000;  in  1906, 
$1,903,000,000. 

Total  domestic  exports:  in  1897,  1.032  million  dollars;  in  1907, 
1,854  millions. 

Exports  of  manufactures:  1897,  311  million  dollars;  in  1907, 
740  millions. 

Share  which  manufactures  form,  of  the  exports :  1897,  30  peir 
cent;  1907,  40  per  cent. 

Imports  :  1897,  $764,730,000  ;  in  1907,  $1,434,421,000. 

Imports  of  raw  material  for  use  in  manufacturing:  1897, 
$196,159,000;  in  1907,  $477,027,000. 

Imports  free  of  duty:  1897,  382  million  dollars;  in  1907,  644 
millions. 

Imports  dutiable:  1897,  383  million  dollars;  in  1907,  790  mil- 
lions. 

Excess  of  exports  over  imports:  1897,  $286,263,144;  in  1907 
$446,429,653,  and  the  excess  of  exports  over  imports  since  the 
Dingley  Act  went  into  effect,  over  5^  billion  dollars. 

Money  in  circulation :  July  1,  1897,  1,640  million  dollars ;  Jum 
1,  1908,  3,036  millions. 

Gold  and  gold  certificates  in  circulation :  July  1,  1897,  555  mil; 
lion  dollars ;  June  1,  1908,  1,402  million  dollars.  \ 

Per  capita  money  in  circulation :  July  1,  1897,  $22.87 ;  June  l! 
1908,  .$34.75.  i 

Interest  on  public  debt:  July  1,  1897,  $34,387,000;  June  1} 
1908,  $21,258,000.  ; 

Per  capita  interest  charged:  July  1,  1897,  48  cents;  June  II 
1906,  24  cents.       ^  j 

Number  of  national  banks  in  operation  in  United  States! 
October  5,  1897,  3,610;  February  14.  1908,  6,698.  j 

Capital  stock  of  national  banks  in  operation :  October  5,  1897!' 
$•81,500,000 ;  February  14,  1908,  $905,550,000.  i 


PROSPERITY.  87 

Loans  and  discounts  of  national  banks :  October  5,  1897,  2,067 
million  dollars ;  February  14,  1908,  4,422  million  dollars. 

Deposits  in  all  banks  in  the  United  States:  1897,  5,095  million 
dollars;   1907,  13,100  millions. 

Deposits  in  savings  banks :  1897,  1,983  million  dollars ;  1907, 
3,495  millions. 

Number  of  depositors  in  savings  banks :  1897,  5,201,132 ;  1907, 
8,588,811. 

Bank  clearings  in  the  United  States :  1897,  54  billion  dollars ; 
1907,  155  billions. 

Wealth.  (There  are  no  figures  for  1897  or  1907.)  Census 
estimate  for  1900  is  88,517  million  dollars,  and  for  1904,  107,104 
millions. 

Industrial  insurance  in  force:  1897,  996  million  dollars;  in 
1906,  2,454  millions. 

Students  in  colleges,  universities,  and  schools  of  technology: 
in  1897,  86,000;  in  1906,  129,000. 

Telegraph  messages  sent:  1897,  71,780,000;  in  1907,  98,480,000. 

Kailways  in  operation  in  the  United  States:  1897,  184,591 
miles;  1907,  228,509  miles,  an  increase  of  43,918  miles. 

Passengers  carried :  1897,  504  millions ;  1906,  815  millions. 

Tons  of  freight  carried:  1897,  788  millions;  1906,  1,610  mil- 
lions. 

Railways  placed under  receivership:  1897,  1,537  miles;  1907, 
317  miles. 

llailw^ays  sold  under  foreclosure :  1897,  6,675  miles ;  1907,  114 
miles. 

Electric  railways  in  the  United  States :  1897,  13,765  miles ; 
1906,  36,212  miles. 

Average  freight  rates  on  wheat  from  St.  Louis  to  Liverpool : 
1897,  20.33  cents  per  bushel ;  in  1907,  15.87  cents  per  bushel. 

Tonnage  of  vessels  owned  on  the  ocean,  frontage,  lakes  and 
western  rivers  of  the  United  States:  1897,  4,769,000  tons;  1907, 
6,939  tons. 

Vessels  built  in  the  United  States:  1897,  232,233  tons;  1907, 
471,332  tons. 

'I'onnage  of  vessels  from  foreign  countries  entering  the  ports 
of  the  United  States:  1897,  23,760,000  tons;  1907,  36,622,000  tons. 

Tonnage  of  vessels  passing  through  the  Sault  Ste.  Marie 
Canal:  1897,  17,620,000  tons;  1907,  44,088,000  tons. 

Telephone  subscribers:  1897,  325,000;  January  1,  1908,  3,035,- 
000. 

Number  of  railway  employees:  1897,  823,476;  1906,  1,521,355. 

Wages  paid  by  railways:  1897,  466  million  dollars;  1906,  901 
millions. 

Expenditures  for  public  schools  in  the  United  States :  1897, 
$187,682,000;  1906,   $307,766,000. 

Immigrants  arrived  :  1897,  230,832  ;  1907,  1,285,-349. 

Original  homestead  entries  in  the  United  States :  1897,  4,452,- 
000  acres;  1907,  14,755,000  acres. 

Public  lands  sold  for  cash :  1897,  7,754,000  acres ;  1907,  20,867,- 
000  acres. 


Tlie  present  phenomenal  prosperity  lias  been  fvon  under  a 
tariff  Tvl»lcli  -was  made  to  protect  the  Interests  of  tlie  Ameri- 
can producer,  business  man,  wage-worker,  and  farmer  alike. 
—President  Roosevelt  at  Minneapolis,  April  4,   1903. 

Tlie  Rate  law  does  not  pro  far  enough.  The  practice  untler 
it  has  already  disclosed  the  necessity  for  new  amendments 
and  will  doubtless  suggest  more.  Such  is  the  true  method 
—the  empirical  and  tentative  method — of  securing  proper 
remedies  for  a  new  evil.— Hon.  "W^m.  H.  Taft,  at  Columbus. 
Ohio. 

The  hum  of  industry  has  drowned  the  voice  of  calamity 
and  the  voice  of  despair  is  no  longer  heard  in  the  United 
States,  and  the  orators  without  occupation  here  are  no-^v 
looking  to  the  Philippines  for  comfort.  As  Tve  opposed  them 
when  they  vrere  standing  against  industrial  progress  at 
home,  -Mve  oppose  them  now  as  they  are  standing  against  na- 
tional duty  in  our  island  possession  in  the  Pacific. — President 
McKinley. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  which  no  oratory,  which  no  eloquence,  which  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New    York   World. 


88 


PROSPERITY— MONEY  IN  CIRCULATION. 


Money   In    Circulation    In    the    Lnlted    Stutea,    1880   to    1008. 

'I'his  table  shows  the  amount  of  money  in  circulation  in 
the  United  States  and  the  various  classes  thereof  at  decennial 
periods  from  1800  to  1880,  quinquennially  from  1880  to  1890, 
and  annually  from  1890  to  1908.  An  especially  important  feat- 
ure is  the  decline  in  the  amount  of  money  in  circulation  and 
in  per  capita  circulation  in  1895  and  1890  and  the  rapid  in- 
crease which  has  characterized  more  recent  years.  It  will  be 
Keen  that  the  total  amount  of  money  in  circulation  has  doubled 
since  ISOO  and  that  the  increase  has  occurred  cliiefiy  in  g-old, 
antl  in  gold  certilicates  for  which  an  ecpiivalent  in  gold  is  de- 
posited in  the  Treasury  Department.  The  total  circulation  has 
doubled  and  the  per  capita  circulation  has  incieascnl  more  than 
50  ])er  cent  since  1896,  when  Mr.  Bryan  and  liis  followers  were 
telling-  us  that  free  coinage  of  silver  was  necessary  to  a  growth 
of  our  currency. 


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PROSPERITY— BANK  DEP0JSIT8. 


BANK   DEPOSITS. 

Bank    Deposits    in   tlie    United    States,    1875    to    1907. 

This  table,  taken  from  the  official  reports  of  the  Comptroller 
of  the  Currency,  shows  the  amount  of  money  deposited  in  all 
classes  of  banks  and  the  grand  total  of  bank  deposits  in  the 
United  States  in  each  year  from  1875  to  1907.  It  will  be  noted 
that  the  total  gain  in  total  deposits  in  the  four  Democratic 
years,  from  the  end  of  1892  to  the  end  of  1896,  was  but  280  million 
"dollars,  an  anniial  average  of  70  millions  during  that  period, 
while  the  increase  since  the  beginning  of  1897  has  averaged  700 
million  dollars  per  annum,  or  more  than  ten  times  as  much  an- 
nually as  the  annual  average  during  the  four  years  of  Democracy 
and  low  tariff. 

Deposits  in  banks  of  all  classes  in  the  United  States,  1815  to  1901, 


Deposits  In— 


National 


1875- 
1876. 

1877. 

1878. 

1879. 

1880. 

1881. 

1882. 

1883. 

1884. 

1885 

1886. 

1887- 

1888- 

1889. 

1890. 

1891. 

1802- 

1803. 

1891. 

1895- 

189(L 

1837. 

1898: 

1899- 

19O0- 

1901 

1902- 

1903- 

1901. 

lOO^- 

1906- 

1907. 


Dollars 

686,478,630 
641,432,886 
636,267,529 
631,632,160 
618,934,141 
833, 701, 03 4 
1,031,731,013 
1,063,707,249 
1,043,137,763 
979,020,350 
1,106,376,517 
1,146,216,911 
1,285,076,979 
1,292,342,471 
1,442,137,979 
1,521,745,665 
1,535,058,569 
1,753,339,680 
1,556.761,230 
1,677,801,201 
1,736,022,007 
1,668,413,508 
1,770,480,563 
■2,023,357,160 
^ 522, 157, 509 
•2,458,092,758 
^ 941, 837, 429 
3,098,875,772 
3,200,993,509 
3,312,439,842 
3,783,658,494 
4,055,873,637 
4,322,880,141 


Savings 
banks. 


Dollars 
924,037,304 
941,350,255 
866,218,306 
879,^97,425 
802,490,298 
819,106,973 
891,961,142 
966,797,081 
,024,856,787 
,073,294,955 
,095,172,147 
,141,530,578 
,235,247,371 
,364,196,550 
,444,391,325 
,550,023, 
,654,826,142 
,758,329,618 
,808,800,262 
,777,833,242 
,844.357,798 
,935,466,468 
,983,413,56 
,028,208,409 
,182,006,421 
,389,719,951 
,516,843,293 
,650,104,486 
,815,483,106 
,918,775,329 
,093,077,357 
,299,544,601 
.495.410.087 


State 
bauks. 


Dollars. 

165,871,439 

157,928,658 

226,654,538 

142,764,491 

166,958,229 

208,751,611 

261,362,303 

281,775,496 

334,995,702 

325,365,669 

344,307,916 

342,882,767 

447,995,653 

410,047,842 

507,084,481 

553,054,584 

556,637,012 

648,513,809 

706,865,643 

65S,1O7,404 

712,410,423 

695,659,914 

723,640,795 

,912,365,406 

164,020,972 

266,735,282 

610,502,246 

698,185,287 

814,570,163 

073,218,049 

365,20^,630 

741,464,129 


Loan  and 

trust 
companies. 


Dollars. 

85,025,371 
87,817,992 
84,215,849 
73,136,578 
75,878,219 
90,008,008 
111,670,329 
144,841,596 
165,378,515 
188,745,922 
188,417,293 
214,063,415 
240,190,711 
2.57,878,114 
299,612,899 
336,456,492 
355,530,080 
411,659,996 
486,244,079 
471,298,816 
546,652,657 
586,468,156 
566,922,205 
662,138,397 
835,499,064 
,028,232,407 
,271,081,174 
,525,887,493 
,.589,398,796 
,600,322,325 
,980,856,737 
,008,937,790 
,061,623,035 


Private 
banks. 


Dollars. 

321,100,000 

322,100,000 

243,810,090 

183,830,000 

139,920,000 

182,667,235 

241,845,554 

295,622,160 

(h) 

(h) 

(h) 

(h) 

96,580,4^7 

94,878,842 

83,183,718 

99,721,667 

94,959,727 

93,091,148 

68,552,696 

66,074,549 

81,824,932 

59,116,378 

50,278,243 

62,085.081 

64,974,392 

96,206,049 

118,621.903 

131,669,948 

133,247,990 

95,791,454 

127,937,098 

109, 947,. 509 

151,072,225 


Total 
deposits. 


Dollars. 

2,182,512,744 
2,150,629,791 
2,057,196,222 
1,901,260,654 
1,834,175,887 
2.134,234,861 
2,538.570,371 
2,755,743,582 


3,305, 
3^19, 
3,*r6, 
4,061, 
4,196, 
4,664, 
4,627, 
4,651, 
4,921, 
4,945, 
5,094, 
5,688, 
6,768, 
7,238, 
8,458, 
9.104, 
9,553, 
10,000, 
11,350, 
12,215, 
13,099, 


091,171 
343,819 
410,402 
002,364 
811,580 
934,251 
223,910 
115,302 
267,817 
124,424 
785,370 
164,456 
658,361 
986,450 
886,045 
722,986 
693,. 594 
516,999 
739,316 
767,666 
635,348 


The  Republican  party  Tvas  born  becanse  of  a  principle, 
and  it  has  lived  and  grroTrn  becanse  of  principles  too  sonnd 
to  be  overthroTrn,  too  deep  to  be  effaced.— Hon.  James  S. 
Sherman. 

In  the  great  battle  of  1896  the  Republican  party  again 
stood  for  the  maintenance  of  the  integrity  of  the  nation. 
The  fight  wnn  against  odds  produced  by  a  great  industrial 
depression,  and  against  the  most  sophistical  arguments.  The 
Republican'  party  maintained  a  campaign  of  education 
among  the  T\'age-earners  and  the  farmers,  Tvhich  ultimately 
led  to  the  complete  defeat  of  this  second  financial  heresy 
Trhich  has  threatened  the  integrity  of  our  business  structure. 
—Hon.    Wm.    H.    Taft,    at    Kansas    City,  Mo. 


There  has  never  been  a  Republican  Administration 
tvhich  has  not  carried  us  forward.  There  has  not  been  a 
Democratic  Administration  since  the  advent  of  the  RepuG- 
lican  party  that  has  not  carried  us  baclCTrard.  The  Demo- 
cratic party  has  never  had  the  courage,  even  VFhen  it  had 
the  opportunity,  to  enact  into  la"*v  its  oivn  promises.  The 
Republican  party  on  the  contrary  has  not  only  promised 
but  has  fulfilled  its  pledges  and  accomplished  even  more 
than  it  pledged.  That  is  ivhy  it  has  the  confidence  of  the 
people,  tliat  is  ^vhy  it  can  again  be  Intrusted  with  legis- 
lation and  administration  for  another  term.  That  is  why 
it  should  be,  and  I  believe  will  be,  successful  again  next 
NoTentber. — Hon.  James  S.  Sherman. 


90 


PROSPERITY— SAVIXaS  DEPOSITS. 


Xiinibrr  of  savuigs  banks  in  the  United  States,  number  of  de- 
posit or.s,  amount  of  savings  deposits,  average  amount  due  eaeh 
depositor-  in  the  years  1S20,  JH/io,  IHSO,  lS3o,  JH-'fO,  and  ISJ/.j  to 
linn,  inid  avcnigc  per  c(tpita  in  the  I'nitcd  States  in  the  years 
gin.. 

(.)!. (piled  ill  tlie  ollice  ol  the  Ooujptrolier  of  llie  (Jurreucy.) 


Year. 


1820^- 
ia25.. 
ISiO-. 
1835.. 
1840-. 
1845- . 
1846_. 
1847.. 
1848.. 
1819.. 
1850.. 
18')1-. 
1852_. 
1853.- 
180-4.. 
1855.. 
1855.. 
1857- 
18>8.. 
1859-. 
1860- 
1861- 
1862-. 
18J3- 
188I-. 
186">_. 
1866- 
1867- 
1888- 
1869- 
1870- 
1871.. 
1872.. 
1873.. 
1874- 
1875.. 
1876- 
1877.. 
1878-. 
1879.- 
1880-. 
1881- 
1882-. 
1883-. 
1884- 
1885- 
1886- 
1887- 
1888- 
1889- 
1890- 
1891.. 
1892- 
1893.. 
1894.. 
1895- 
1896-. 
18')7- 
1898- 
1899- 
1900- 
1901- 
1902- 
1903.. 
1904.. 
1905- 
1906- 
1907.- 


Numbei 

Number 

Average 

due 
eacu  de- 
positor. 

Average 
pe   capi- 

of 

of  Hf  l)OS- 

1  epoKlts. 

ta  iu  the 

banks. 
10 

ItulS. 

Uulted 

Wtates 

8,635 

$1,138,576 

$131.86 

$0.12 

15 

16,931 

2,537,082 

149.84 

.2.^ 

m 

3rt,035 

6,9,3,304 

183.09 

.54 

52 

60,05i 

10,613,726 

176.72 

.72 

el 

78,701 

14,051,520 

178.54 

.82 

70 
74 

14), 206 
158.709 

24,5J9-,677 

168.77 

1.23 

1,33 

76 

187,739 

31,627,479 

168.46 

1..50 

83 

199,764 

33,087,488 

165.63 

1.52 

90 

217,318 

33.073,92  4 

165.99 

1.60 

108 

251,351 

43,431,130 

172.78 

1.87 

128 

277,118 

50,457,913 

182.06 

2.10 

Ml 

308, 8i3 

59,467,453 

192.54 

2.40 

15,) 

36), 538 

72,313,696 

197.82 

2,82 

190 

396,173 

77,823,906 

196.44 

2.94 

21') 

431,602 

84,290,076 

195.29 

3.0) 

222 

487,986 

95,598,230 

195.90 

3.40 

231 

490,428 

98,512,968 

200.87 

3.41 

215 

538,840 

108,4.38,287 

201.24 

3.61 

251^ 

622,5-)6 

128,6.57,901 

206.66 

4.21 

278 

693,870 

149,277,504 

215.13 

4.75 

285 

694,487 

146,729,882 

211.27 

4.58 

289 

787,943 

169,434,540 

215.03 

5.18 

233 

887,016 

206,235,202 

232.48 

6.18 

30') 

976,025 

236,280,401 

242.08 

6.91 

317 

980,844 

242,619,382 

247.35 

6.98 

336 

1,067,031 

282,455,791 

264.70 

7.9C 

371 

1,18S,202 

327,009,452 

283.63 

9.03 

406 

1,310,114 

392,781,813 

299.80 

10.62 

476 

1,466,684 

457,675,050 

312.04 

12.12 

517 

1,630,846 

549,874,358 

337.17 

14.26 

577 

1,902,047 

650,715,442 

312.13 

16.45 

647 

1,992,925 

735,046,805 

368.82 

18.11 

689 

2,185,832 

802,363,609 

367.07 

19.25 

693 

2,293,401 

831,5,56,902 

.376.98 

20.20 

771 

2,35J,864 

921,037,304 

391.56 

21.25 

781 

2,368,630 

911,3.50,255 

397.42 

20.86 

675 

2,395,314 

866,218,306 

361.68 

18.69 

663 

2,400,785 

879,897,425 

366.50 

18.49 

639 

2,238,707 

802,490,298 

353.72 

16.42 

629 

2,335,582 

819.106,973 

.350.71 

16.33 

629 

2,528,749 

891,961,142 

3.52.73 

17.38 

629 

2,710,354 

966,797,081 

35<).70 

18.42 

630 

2,876,4.38 

1,024,856,787 

356.29 

19.09 

636 

3, 01'),  151 

1,073,294,955 

355.96 

19.. 55 

6J6 

3,071,495 

1,095.172,147 

356.. 56 

19.51 

638 

3,158,950 

1,141,530,578 

361.36 

19.  a9 

681 

3,418,013 

1,235,247,371 

361.39 

21.05 

801 

3,838,291 

1,361,196,550 

.355.41 

22.75 

819 

4,021.523 

1,425,230,349 

354.40 

23.25 

921 

4,258,893 

1,524,844,506 

358.03 

24.35 

1,011 

4,533,217 

1,623,079,749 

358.04 

25.29 

1,059 

4,781.605 

1,712,769,026 

358.20 

26.11 

r030 

4,830,599 

1,785,150,9,57 

369.55 

26.63 

1.024 

4,777,687 

1,747,961,280 

365.86 

25.53 

1,017 

4,875,519 

1,810,597.023 

371.36 

25.88 

988 

5,065,494 

1,907,156,277 

376.50 

26.68 

980 

5,201,1:^2 

1,939,376,0.35 

372.88 

26.. 56 

979 

5,385.746 

2,065,631,298 

383.54 

27.67 

987 

5,687,818 

2,2.30,366,9.54 

392.13 

29.24 

1,002 

6.107  083 

2,449,547,885 

401.10 

31.78 

1,007 

6,.35.s,723 

2,597.091,580 

408.30 

33.45 

1,036 

6.660,672 

2,750,177,290 

412.53 

.34.89 

1,078 

7,035,228 

2,935,204,845 

417.21 

36.. 52 

1,157 

7,305,143 

3,060,178.611 

418.89 

37.52 

1,237 

7,696,229 

3,261,233,119 

423.74 

39.17 

1,319 

8,027,192 

3, 48?. 137. 198 

433.79 

41.13 

1,415 

8,. 588, 811 

3.690,078,945 

429.64 

42.87 

AnythinpT  tliat  nialces  eni>ital  Idle,  or  which  reduces  or 
destrovs  it,  must  reduce  hotli  viajfes  and  the  opportunity 
to  earn  wapres.  It  only  rquires  the  effects  of  a  panic  tlirouftli 
^vhicli  we  are  pnsslnjar.  or  IhrouRh  which  we  passed  in 
1893  or  187.^,  to  show  how  cloHcly  united  in  a  common  in- 
terest we  all  are  In  modern  society.  We  are  in  the  same 
boat,  and  financial  and  Imsiness  storms  wliich  aflfect  one 
are  certain  to  aflfect  all  others.— Hon.  Wm.  H.  Taft,  before 
the   Cooper   Union,   New  Yorlc   City. 


PROSPERITY— SAVINGS  DEPOSITS. 


W 


SAVING   BANK   DEPOSITS. 

Deposits  and  13eiM>sitors  in  SavinRS  Banks  in  tli€?  Pri«ciiml 
Countries  of  the  World,  compared  witli  those  of  the  United 
States. 

This  table,  which  shows  the  number  of  depositoi\s  in  savings 
banks  in  the  principal  countries  of  the  world,  and  the  average 
cunount  per  capita,  gives  an  opportunity  to  compare  the  pros- 
perity of  American  savings  depositors  with  that  of  depositors 
in  other  counties.  It  will  be  noted  that  the  total  amount  of 
deposit  and  the  per  capita  deposit  exceed  in  the  United  States 
those  of  any  other  country  shown  in  the  list,  which  includes 
all  countries  for  which  statistics  of  this  character  are  available. 
The  table  is  an  official  one  prepared  by  the  Bureau  of  Statistics 
for  publication  by  the  Comptroller  of  the  Currency  in  his  an- 
nual report  for  1908. 

Depositors,  amount  of  deposits  and  average  deposit  in  all  savings 
hanks,  and  average  deposit  per  inhabitant  in  the  principal  coun- 
tries of  the  world,  according  to  latest  available  information. 

[From  1907  Report  of  the  Comptroller  of  the  Currency.] 


Countries. 


Austria 

Belgium  (a) 

Denmark  (b) 

France 

Germany 

Hungary  (o) 

Italy  (d) 

Netherlands 

Norway 

Russia  (e) 

Finland 

Sweden 

United  Kingdom. 

Australasia 

Canada  (f). 

Cape  Colony 

British  India 

Japan 

United  States  (g) 
All  other 

Total 


Number  of 
depositors. 


$5,514. 
2,311, 
1,323 

12,134 

17.294, 
1,546, 
6,545, 
1,649, 
790, 
5,665., 
243, 
1,941, 

12,093, 

1,500, 

209, 

107, 

1,115, 

12,552, 
8,588, 
2,C«0, 


570 
845 
044 
523 
217 
629 
678 
769 
307 
996 
525 
655 
783 
443 
563 
191 
758 
050 
811 
278 


$95, 809, ( 


Deposits. 


$1,033, 

151, 

212 

898, 

2,831, 

370, 

233, 

91, 

100, 

533, 

24, 

175, 

1,017, 

237, 

63, 

12, 

45, 

75, 


181,961 
640,983 
900,390 
376,625 
333,000 
944,925 
735,421 
649,000 
250,602 
346,000 
434^885 
917,932 
120,458 
305,271 
741,650 
514,706 
396,741 
966.732 
078,945 
788,295 


$12,106,630,522 


Average 
deposit. 


$187.32 

65.59 

160.98 

74.03 

163.71 

239.84 

35.71 

55.55 

126.85 

94.13 

100.33 

90.60 

84.10 

158.16 

293.07 

116.75 

40.69 

6.05 

429.64 

114.46 


$126.36 


a.  Data  for  the  State-controlled  Caisse  Gengrale  d'Epargne.  Includes 
savings  deposits  with  post-offices.  In  addition,  there  are  four  municipal 
and  five  private  savings  banks,  which  on  December  31,  1904,  had  42,279, 
and  on  December  31,  1905,  42,171  depositors,  and  deposits  tio  the  amount 
of  $9,379,623   in   1904,  and   $9,575,248   in    1905. 

b.  Includes  all  savings  institutions.  Number  of  dep'ositors  in  savings 
banks  proper,  exclusive  of  branches  of  ordinary  banks,  was  in  1905,  1,021,- 
697;  in  1904,  996,615;  deposits,  $160,621,194  in  1904,  and  $166,677,241 
in  1905. 

c.  Exclusive  of  owners  of  savings  deposits  in  commercial  banks  and 
savings  associations,  who  numbered  in  1905,  499,238,  and  in  1904,  462,307, 
with  deposits  of  $144,622,000  in  1904  and  $162,948,000  in  1905. 

d.  Exclusive  of  depositors  in  the  so-called  "societa  ordinarie  di  credito" 
and  "societa.  cooperative  di  credito,"  for  which  the  number  of  depositors 
is  not  stated.     The  deposits  at  the  end  lof  1903  amounted  to  $85,965,495. 

e.  Preliminary  data  for  all  Government  savings  banks,  as  published  in 
the  Viestnik  Finansov.  Deposits  are  exclusive  of  securities  held  for  depos- 
itors, the  nominal  value  of  which  on  December  31,  1905,  was  $115,431,000, 
and  on  December  31,   1906,   $122,262,000. 

f.  Exclusive  of  deposits  and  depositors  in  the  special  savings  banks, 
amounting  on  June  30,  1906,  to  $27,399,194.  The  total  deposits  in  all 
savings  banks  amounted  thus  to  $89,309,816  in  1906,  making  the  average 
deposit  per  inhabitant  $13.87.  These  totals  do  not  include  the  savings 
deposits  in  the  chartered  banks  ("deposits  payable  after  notice  or  on  a  fixed 
day"),  which  on  December  31,  1906,  were  $398,765,182,  and  on  Decem- 
ber 31,   1905,   $338,411,275. 

g.  Includes  Illinjois  State  banks  having  savings  departments. 


lilberty  and  honor  do  not  measnre  all  that  the  party 
has  stood  for  and  stands  for  today.  There  is  another  grreat 
underlying  policy  \^'hich  the  Repuhlican  party  adopted  at 
its  birth  and  has  developed  since  as  has  none  of  the  great 
povrers  of  Christendom.  I  refer  to  the  Policy  of  Progress, 
Tvhich  has  made  onr  country  the  greatest,  onr  nation  the 
strongest,  and  onr  people  the  Tvealthiest  and  happiest  of 
all    the    peoples    of    the    world.— Hon.    Jameia    S.    Sherman. 


02 


PROSPERJTY-^NATWNAL  BANKS. 


II 


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189,800 
589,000 
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PROSPERITY— NATION  A  L  BANKS. 


93 


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94   PROSPERITY— BVILDISO  ASSOC  I  AT  I  ON  S-^F  A  J  LURES. 


BlILDIKG    ASSOCIATIONS, 

TlK-y    (tire    for    )!t7:2M,4MM».000    of    Hie     Peuplo'M    SiiviiiKM.— An     lii- 
rreiiNO  of  )|(5r>.(NMMM)0   in    ISI07  Alone. 

[From  Cincinnati  Commercial  Tribune,  March  1,  1908,] 

The^ report  of  Secretary  Cellariiis^  of  the  United  States  League 
of  Buil'dini^  Associations,  now  in  session  at  New  Orleans,  shows 
that  the  building-  associations  of  the  United  States  are  caring 
for  the  enormous  number  of  728,000,000  dollars  of  the  savers 
among  the  people  of  the  United  States — the  home-builders  and 
home-ownei's  of  the  country.  Secretary  Cellarius  thus  tells  of  the 
remarkable  increase  in  the  holdings  of  the  building  associations 
during  1907: 

The  building  and  loan  associations  of  the  United  States  have  increased 
approximately  $55,000,000  in  assets  In  3  907.  so  that  they  now  csjre  for 
$728,000,000  of  the  people's  savings.  The  members  of  these  associations 
are  largely  wage-earners.  They  have  in  the  aggregate  accumulated  a  vast 
sum,  which  has  been  mainly  loaned  to  members  for  the  purpose  of  securing 
their  own  homes. 

During  the  same  year  the  membership  increased  over  100,000, 
with  Pennsylvania  having  the  largest  increase  in  assets— $10,- 
000,000— and  Ohio  next  with  an  increase  of  $8,000,000.  In  only 
one  State,  California,  was  there  a  decrease  in  membership,  2,000 
falling  from  the  rolls;  yet  the  assets  of  the  associations  in  that 
State  increased  in  the  sum  of  of  $200,000.  Plainly  the  calamity 
howler  ought  to  take  to  the  woods  in  the  face  of  the  showing  of 
the  building  associations  of  the  United  States.  Deposits  of  $673,- 
000,000  in  1906  rising  to  deposits  of  $728,000,000  in  1907  are  a 
most  conclusive  answer  to  the  pessimists  whose  only  delight  is  in 
the  determination  to  see  nothing  but  calamity  and  to  hear  noth- 
ing but  its  howls.  The  better  part  of  the  showing  is  in  the  fact 
that  the  depositor  in  a  building  association  is  a  home-builder, 
adding  immensely  to  the  wealth  of  the  country  and  raising  the 
standard  of  citizenship.  Ohio  shows  up  well,  magnificently  well, 
in  fact,  considering  the  greater  population  of  Pennsylvania,  and 
1908  will  push  her  further  to  the  front. 


FAIL,URES. 

Commercial   Failures   in   the   United   States,    1880  to   1»07. 

The  table  which  follows,  taken  from  Dun's  Keview,  a  non- 
partisan publication,  shows  the  number  of  commercial  failures 
and  the  amount  of  liabilities  in  each  year  from  1880  to  1C07. 
These  figures  are  for  the  calendar  years — the  year  ending  De- 
cember 31 — and  those  for  1907  therefore  include  most  of  the 
freat  failures  which  occurred  during  the  recent  financial  troubles, 
t  will  be  noted  that  the  total  liabilities  in  1907  ($197,000,000) 
\r--ere  but  about  one-half  of  those  of  1893  ($346,000,000),  when  the 
population  was  but  about  three-fourths  that  of  today,  and  much 
lesi*  than  the  annual  average  during  the  four  Democratic  years, 
1893,  1894,  1895  and  1896,  although  the  population  of  the 
I'nitei^  States  was  then  less  than  70.000.000  against  tlu'  p  v  i 
86,000,000.  The  liabilities  of  the  failures  of  1893  amounted  to 
$346,779,839,  when  the  entire  population  was  about  66,349,000,  or 
an  average  liability  of  $5.23  if  applied  to  the  entire  population. 
Jn  1907  tho»  liabilities  were  $197,385,225  and  the  population  85,- 
817.293,  or  a^  average  liability  of  $2.30  per  capita  in  1907,  against 
^5.23  per  capita  in  1893. 


Principles     ar^    more     endnriiigr    than     men,     more     lastint^; 
\n     factionM. — Hon.    James    S.    Sherman. 

nstead  of  makiigr  a  panic,   the   national    policy   of  endiuj^ 

lawlessnes    of   e.<>rporations    in    interstate    commerce,    and 

ikinjBT  away  their  poorer  of  issuing,   without   supervlMion, 

v«    and    bonds,    wHl    produce    a    changre    in    their    nianaju;-e- 

and    remove    one    fruitful   cause    for   loss    of   public    con- 

•e.— Hon.  Wm.  H.  T^ft,  to    Merchants  and  Manufacturers' 

iation,   Boston,  Mas*. 


PROSPERITY. 


99 


Commercial  failures  and  averanf  of  liabilities,  1880  to  1901. 
[From  Dun's  Review,  New  York.] 


t  otal  for  ttie  Year. 

Calendar  Year. 

Number 
of  failure^ 

Number  of 

busivess  cou- 

cerns. 

Per  ct. 

of  fail- 
ures. 

0.63 
.71 

.82 

1.06 

1.21 

1.16 

1.01 

.90 

1.02 

1.04 

.98 

1.07 

.88 

123 

1.25 

1.09 

1.31 

1.26 

1.10 

.81 

.92 

.90 

.93 

.94 

.92 

.85 

.77 

.82 

A  lllOUUt  of 

liabilities. 

I 

$65,752,000 
81,135.932 
101,547,564 
172,874,172 
226,-343,427 
124,220,321 
114,644,119 
167,-560,944 
123,829,973 
148,784.3.37 
189,856,964 
189,868,638 
114,044,167 
34G.779  889 
172.992,355 
173.196.050 
225,096,834 
154,332,071 
130.662,899 
90,879,889 
1-38,495,673 
113,092,376 
117,476,769 
1.55,444,185 
144,202..311 
102,676,172 
119,201,515 
197,385,225 

V  verage 
liabilities^. 

1880 

4,735 

5,582 

6,738 

9,184 

10,968 

10,6.37 

9,834 

9,634 

10,679 

10,882 

10,907 

12,273 

10,344 

15,242 

13.885 

13,197 

15,088 

13,. 3.51 

12,186 

9,337 

10,774 

11,002 

11,615 

12,069 

12,199 

11,520 

10,682 

11,725 

746,82.3 

781,689 

822,256 

863,993 

904,7,59 

919,990 

969,841 

994,281 

1,016,662 

1.051,140 

1,110,590 

1,142,951 

1,172,705 

1.193  113 

1.114.174 

1,209.232 

1,151,579 

1,058,521 

1,105,830 

1,147,595 

1,174,-300 

1,219,242 

1,253,172 

1,281.481 

1,320.172 

1,356,217 

1,. 391,. 587 

1,417,077 

$13  886 

1881 

14  530 

1882 

15  oro 

1883  _ 

18  8:!3 

1884 

20  632 

1885    - 

11  678 

1886 

11  651 

1887 

17.302 

1888  — 

11,595 

1889  — 

13.672 

1890  . 

17.^06 

1891 

1892.. 

15.471 
11,025 

1893* 

22,751 

1894* 

12,458 

1895*  

13,124 

1896*  

14,992 

1897 

1898 

11,5.59 
10,722 

1899 

9,733 

1900-. 

12,854 

1901.. 

10.279 

1902.. 

10,114 

1903 

12,879 

]<)04 

11 ,820 

1905 

8,913 

1906 

11,15;) 

1907 

16,834 

^Democratic  and  low  tariff  period. 


WHEAT  PRODUCTION   AND   CONSUMPTION. 

Wheat  Production  aiitl   Cousiiiiiiitlou  of  tlie  United   States  and 
Production   of  tlie  AV4»rld. 

This  table  show.s  the  prodiietiou,  ■  export.s,  quantity  rvtaiiied 
for  consumption,  eon.stnn])tion  per  capita,  and  farm  vahie  of 
wheat  in  the  United  States,  for  a  lon*>  term  of  years.  The  per 
capita  consnmption,  a  measure  of  the  prosperity  of  the  ])eophs 
was,  it  will  be  observed,  larger  in  1906  than  in  any  earlier 
year;  the  value  of  the  crop  per  acre  in  1905.  1906  and  1907, 
greater  than  in  many  years;  the  production  unusually  larg'e. 
but  the  exportation  much  below  the  annual  averuo-e  ])rior  to 
1904,  indicating-  that  the  requirements  of  our  own  p()))ulation 
are  rapidly  approaching-  present  productive  cai>acity  and  justify- 
ing the  efforts  of  the  present  administration  to  expand  the 
producing  ai'ea  of  the  country  through  irrigation,  drainage  and 
the  con.servation  of  natural   res(virces. 


Quantities  of  wheat  produced  in  the  United  States  and  in  the 
world,  and  of  reheat  and  luheat  flour  exported  and  retained 
for  consumption,  1877  to  1907 ;  flour  reduced  to  wheat  at  p/2 
hushels  to  barrel. 

[From   the  Statistical  Abstract.] 


Year 
ending 
J  une  m- 

(a) 


1877 

1878 

1879 

1880 

1881 

1882 

1883 

1884 


Produc- 
tion. 


Bushels. 
289,356,500 
364,196,146 
420,122,400 
448,756,630 
498,-549,868 
383,280,090 
.504.185,470 
421,086,160 


Exports 

of 

domestic. 


Bushels. 
57,013,936 
92. on, 726 
150,. 502, 5% 
180,301,180 
183,321,-514 
121,85)2,-389 
147,811,316 
111,534,182 


Domestic 

retained 

for  con- 

sumptiou- 

Q,uaatlty. 


Bushels. 
232,312,514 
272.154,5-20 
269,619,894 
268,4.52,4.50 
312,228,354 
261,387,701 
.356.374,154 
309,551,978 


far 
capita 
con- 
sump- 
tion. 

Value 

of  crop 

per 

acre. 

Bush. 

'     5.01 

$10.09 

1     5.72 

14.65 

1     5.. 58 

10.15 

1     5.35 

15.27 

i    6.09 

12.48 

1     4.98 

12.12 

1     6,64 

12.02 

'    5.64 

10,52 

Wor  d's 
production. 


Avp»-Hge 
crop. 

1,944. 000, (MM) 


2.115.000.000 


96 


PROSPERITY. 
Quantities  of  wheat  produced — Continued. 


Year 

ending 

June-0- 


1885- 
18S6. 
1887- 


Produc 
lion. 


1890- 


1894. 
1895- 


1897- 
1898_. 


1300-. 
1901.. 
1902-. 


1904- . 
1905- . 
1906-. 
1907.. 


Bushels. 
512,765,000 
3>7,U2,OflO 
457,218,000 
458,329,000 
415,868,0* 
490,560,000 
399,262,000 
611,780,000 
515,949.000 
396,131,725 
460,267,416 
467,102,947 
427.684,346 
530,149,168 
675,148,705 
547,303,846 
522,229,505- 
748,460,218 
670,063,008 
637,821,835 
552,399,517 
692,979,489 
735,260,970 


Exports 

of 
domeutlc. 


Bushels. 
132,570,366 

94,505,793 
153,801,969 
119,624,314 

88,600,742 
109,430,467 
106,181,316 
225,665,812 
191,912,63.5 
164,283,129 
144,812,718 
126,443,968 
145.124,972 
217.306,004 
222,618,420 
186.096,762 
215,990,073 
234,772,515 
202,905.508 
120,727,613 

41,112,910 

97.609,007 
146,700,425 


Domestic 
retained 
for  con- 
sumption. 

Quantity 


Bushels. 
380,194,634 
262,516.207 
303,413,031 
336,703,656 
327,267,258 
381,129,533 
293.080.684 
386.114,188 
32  4, 036, 36  ■) 
231,818,596 
315,454,698 
340,658,979 
282,559.374 
312,843,161 
452,-530,285 
361,207,084 
.306,239.432 
513,687,703 
467,157,410 
517.094.222 
508,286,607 
595,370,482 
588,560,515 


Per 

captla 

Value 

con- 

ofcrop 

sump- 

per 

tion. 

acre. 

Bush . 

6.77 

8.38 
8.05 

4.57  ■ 

5.17 

8.54 

5.62 

8.25 
10.. 32 

8.98 
9.28 

5.. 34 

6.09 

4.59 

5.91 

12.86 

4.89 

8.35 

3.44 

6.16 

4.59 

6.48 

4.85 

6.99 

3.95 

8.97 

4.29 

10.86 

6.09 

8.92 

4.74 

7.17 

3.95 

7.61 

6.50 

9.37 

5.81 

9.14 

6.33 

8.06 

6.15 

11.58 

7.07 

10.83 

6.86 

10.37 

World's 
production. 


2, 434, 000. 000' ( 


2,432 
2,481 
2,. 562, 
2,660, 
2,562, 
2, .506, 
2,236, 
2,948, 
2,783, 
2,640, 
2,955, 
3,090, 
3,186, 
3,147, 
3,317, 
3,423, 
3.111, 


322,000 
805,000 
913,000 
557.000 
518,000 
.320,000 
268,000 
246,000 
885,000 
751.000 
975,000 
116.000 
883,000 
627,000 
381,000 
134,000 
059,000 


— — — _ ._> "THf' 

a  The  production  and  value  per  acre  relate  to  the'calendar  year  precedloffr 
the  fiscal  year. 


Prosperity  lias  come  at  home;  the  national  honor  and  in- 
terest have  been  upheld  abroad.— From  President  Roosevelt's 
speech   of  acceptance. 

The  price  of  ivheat  is  fixed  by  the  lavr  of  sapply  and  de- 
mand, -which  is  eternal;  STold  has  not  made  longr  crops  or 
short  crops,  hif^h  prices  or  lo^v  prices. — Maj.  McKinley  to 
Homestead    -worlcinKinen,    September    12,    1896. 

We  mnst  regard  and  have  an  interest  in  what  our  neii^li- 
bors  are  doing:,  and  when  tvc  can  assist  tliem,  we  cannot 
pass  by  on  the  other  side  as  the  Levite  did,  l»ut  we  must 
talce  them  up  as  the  Good  Samaritan  did  and  bind  up  tlieir 
wonnds  and  prepare  to  send  them  on  tlieir  way  rejoicinK.— 
Hon.    Wm.    H.    Taft.    at    Cleveland,    Ohio. 

Tlie  true  ^velfare  of  the  country  is  indissolu1>ly  bound  up 
with  tlie  -welfare  of  the  farmer  and  the  -wase-worker— of  the 
man  ^vho  tills  the  soil,  and  of  the  mechanic,  the  handi- 
craftsman, the  laborer.  If  -*ve  can  insure  the  prosperity  of 
these  two  classes  we  need  not  trouble  ourselves  about  the 
prosperity  of  the  rest,  for  that  -*vill  follOTV  as  a  matter  of 
course. — Vice-President  Roosevelt  at  opeiiiuf^  of  Pan-Ameri- 
can   E^xposition,    May   20,    1901. 

In  the  first  place  it  is  said  that  the  policy  of  the  admin- 
istration has  been  directed  for  the  last  four  years  aj|,?ninst 
orsranized  capital,  and  that  ''it  has  thereby  frli^i^Iitened  in- 
vestors. I  deny  it.  The  course  of  the  administration  has 
been  directed  against  such  orje^anized  capital  as  ^^'as  vio- 
latingr  the  statutes  of  the  United  States— and  no  other.  It 
bad  every  consi<leration  and  desire  to  aid  and  assist  or^aa- 
ize^  capital  which  wan  engragred  in  legitimate  business. — Hon. 
Wm.  H.  Taft,  to  Merchants  and  Manufacturers'  Association. 
Boston,    Mass. 

The  tide  of  prosperity  may  ebb  and  flovr,  but  the  grreat 
Maves  of  industrial  wealth  -«ill  continue  to  gro-w  in  volume 
with  ever-increasing  c<»n»fort  and  happiness  to  our  con- 
tented people,  -wjio  vrill  soon  number  lOO.OOO.OOO,  And  be- 
eause  t*i  our  intcnigrent  and  skillful  labor,  made  so  because 
of  grood  T*'ages  and  good  living,  >ve  shall  make  better  fabrics 
and  build  stronger  structures— that  in  spite  of  their  higher 
cost  in  the  beginning  will  be  cheaper  in  the  end  and  ^vill 
be  Tranted  by  the  people  in  every  corner  of  the  earth.  So 
fliat  we  shall  capttire  the  markets  of  the  world  in  greater 
volume  without  ever  sacrificing  our  home  market,  the  foun- 
dation of  our  National  wealth  and  progress.— Hon.  James 
S,   Shermap, 


One  vital,  dominating  fact  confronts  the  Democratic 
imrty  -which  no  oratory,  -which  no  eloquence,  Tvhleh  no 
ilb«-ioric    «^n    obscure  J    BRYAN'S    NOMINATION    MEANS    TAFT'S 


^IjECTION^New    yprlf    World. 


PROSPERITY. 


97 


Financial,  commercial,  and  industrial  conditions  in  the  United 
States,  1892,  1896,  and  1907. 


Population   

Interest-bearing  debt dolls.. 

Annual  interest  charge dolls.. 

Annual  interest  per  capita cts.. 

Receipts  from  customs doJs.. 

I'reasury  receipts,  net  ordi- 
nary   dolls— 

Gov't  expenditures   (a) dolls.. 

Gold  in  Treasury dolls.. 

Gold  and  gold  certificates  jn 

circulation  (b) dolls.. 

Money   in   circulation, dolls.. 

Money    in    circulation,     per 

capita    . dolls__ 

Bank  clearings,  New  Vork--dolls__ 
Bank  clear'gs,  total,  U.  S--dolls.. 
Loans   and    discounts,    nat'l 

banks    ^-— - dolls.. 

Savings  bank  depositors  (c) 

No.    ^ dolls-. 

Savings  bank  deposits  (d). .dolls.. 

Bank  deposits,  total dolls.. 

Industrial    life    insurance    in 

force  , dolls— 

Total      life    insurance     in 

force  do'ls.. 

Imports    dolls.. 

Imports,   per  capita  (e) dolls.. 

Exports  dolls- 
Exports,   per  capita  (f) dolls.. 

Excess   of  exports   over   im- 
ports     dolls.. 

Imports  of  mfr's  materials- -dolls- 
Exports  of  manufactures.. -dolls— 
Share    mfr's     form     of    ex- 
ports     per  cent-. 

Pvxports  of  meat   and  dairy 

products  rloMs-. 

Exports  to  Asia  and  Oceania-dolls., 

Exports  to  Porto  Rico fiolls-. 

Exports  to  Hawaii dolls-. 

P:xport^s  to  Philippine  Isles.-dolls-- 
Animals     on     farms,     total 

value    dolls-- 

Horses  dolls-- 

Cattle    .. ..dolls- 
Mules dolls-- 

Swlne  dolls-. 

Sheep   -. dolls.. 

Sheep,   total  in  U.   S No.. 

Sheep,   av.  val.  per  head— .dolls.. 
Farm  products,  value- 
Corn  dolls.. 

Wheat   .-do'ls-- 

Oate   dolls-. 

Hay    dolls— 

Potatoes    doDs-- 

Wool  production  . lbs-1 

Wool  dolls- 
Cotton  production. —dolls-. 

Beet-sugar    production tons-. 

Mineral    production dolls-. 

Coal  production tons.. 

Pig-iron   production tons.. 

Steel  rails  mfg... tons-- 

Steel    manufactured tons.. 

Exports  of  iron  and  steel— -dolls— 

Tin  plates  manufactured lbs.. 

Tin  plates  imported Ibs.. 

Pig  tin   imported lbs__ 

Domestic     cotton     used     in 

mfg    bales.. 

Silk  imported  for  mfg.. lbs.. 

Hides  and  skins  imported.. .dolls.. 
Rubber  imported  for  mfg 
P.  O.  Dept.,  receipts  of.. 
Telegraph  messages  sent. 

Telephone  subscribers   (k) No__ 

Patents  issued  No__ 

Failures No.. 

Failures,  liabilities  dolls- 
Original  homestead  entries.acres.. 

Railways  built  miles.. 

Railways,  net  earnings dolls.. 

Railways,    dividends  paid... dolls.. 

Railways,    employees No.. 

Railways,  wages  paid dolls.. 

Railways,  freight  carried tons.. 

Railway  passenffers,   carried..No— 


...Ibs- 

-dolls.. 

.No 


65,086,000 
585,029,3J0 

22,893,883 

35 

177,452,964 

354,937,784 
345,023,331 
114,612,892 

549,662,443 
.1,601,347,187 

24.56 
36,279,905,236 
60,883,572,438 

2,127,757,191 

4,781,605 


70,254,000 
847,363,890 

34,387,266 

49 

160,021,752 

326,970,200 
352,179,446 
102,494,781 

497,103,183 
1,506,434,966 

21.41 

29,350,894,884 
51,935,651.733 

1,971,642,012 

5,065,494 


1,758,329,018        1,935,466,468 
4,664,93i,251        4,945,124,424 


583,527,016 

4,897,731,359 
827,402,462 

12.50 
1,030,278,148 

15.61 

202,875,686 
188,317,595 
183,076,682 

18.02 

141,240,834 

35,163,117 

2,856,003 

3,781,628 

60.914 

2,461,7.55,698 

1,007,593,636 

922,127,287 

174,882,070 

211,031,415 

116,121,290 

'     44,938,365 

2.60 

642,146,630 

322,111,881 

209,253,611 

490,427,798 

V)3,567.520 

294,000,000 

79,075,777 

313,000,000 

5,000 

622,543,381 

160,115,242 

9,157,000 

1,298,936 

4,927,581 

28,800,930 

42,119,192 

422,176,202 

43,908,652 

2,856,000 

8,834,049 

26,850,218 

39,976,205 

70,930,476 

71,722,589 

216,017 

23,559 

10,344 

114,044,167 

16,808,791 

4,441 

352,817,406 

93,862,412 

821,415 

440.318.900 

730,645,011 

575,769,678 


5,943,067,492 

779,724,674 

10.81 

882,606,938 

12.29 

102,882,264 
197,616, 852 
258,008,885 

20.89 

133,377,549 

42,827,258 

2,102,094 

3,985,707 

162,446 

1,727,926,084 
500,140,186 
872,883,961 
103,204,457 
186,529,745 
65,167,735 
38,298,783 
1.70 

491,006,967 

310,602,539 

132,485,033 

388,145,614 

72,182,350 

272,474,708 

32,529,536 

269,116,000 

29,000 

640,544,221 

171,416.393 

8,623,129 

1,300,325 

5,281,689 

41,160,877 

359,209,798 

385,138,983 

49,952.957 

2, .505.000 

9,363,987 

30,520,177 

36,774,460 

82,499,208 

72.221,896 

281,695 

•23,273 

15,088 

226,096,834 

4,830,915 

1,654 

332,766,979 

81,528,154 

m785,034 

m445, 508,261 

773,868,716 

685.120.756 


85,817.000 
894.834.280 

21,628,914 

25 

332,233,363 

663,140,334 
578,903,748 
304,619,431 

bl. 161, 769, 607 
b2, 772, 956, 455 

b32.22 
95,315.421,238 
154,662,515,258 

4,631,143,692 

8,588,811 
3,495,410,087 
13,099,635,348 

2,453,616,207 

13,706,810,284 

1,434,421,425 

16.55 

1,880,851,078 
21.60 

446,429,653 
477,027,174 
740.123,451 

39.92 

202,302,508 
133,889,857 
g25, 686,285 
hl4.435.725 
8,661.424 

4,423,697,853 

1,846,578,412 

1,527,0.54,378 

428,063,613 

417,791.321 

204,210,129 

53,240,282 

3.95 


554. 
334, 
743, 
183, 
298. 
78. 
578, 


181, 

jl,293, 

142, 


,901,000 

,4.37,000 

,.568,000 

,507.000 

,880,000 

,294,750 

,263,165 

,000,000 

432,000 

jl, 902, 517, 565 

j 369. 783, 284 

25.781,361 

j3, 977, 872 

,398,000 

,530,871 

,738.880 

,529,406 

96.013.005 

5,005,000 

18,748,904 

83,206,545 

76,963,838 

183,585,006 

98,480,097 

3,035,533 

36.620 

11,725 

197,385.225 

14,754, 5a5 

j5,294 

J790,187,712 

1253,340,925 

j 1,521,355 

jn900,801,653 

jl, 610,099, 829 

3815,744, lis 


98 


PROSPERITY, 


Financial^  commercial,  and  industrial  conditions  in  the  United 
States,  1892,  1896,  and  1907.— Continued. 


ITEMS. 

1892. 

1896. 

1907. 

Railways,     freijrht    receipts, 

ton  per  mile... cents— 

94 

/                    82 

77 

Railways    sold    under    fore- 

closure     miles.. 

1,922 

13,730 

114 

Freight    passing    Sault    Ste. 

Marie  canals tons.. 

10,647,203 

17.249.418 

44,087,974 

WHOLESALE  PRICES  (ANNUAL 

AVERAGE). 

Dollars. 

"  Dollars. 

Dollars. 

Wheat  per  bush- 

0.7876 

0.6413 

0.9073 

Corn    per  bush.. 

.4500 

.2580 

.5280 

Oats per  bush.. 

.3042 
4.3466 

.1801 
3.79.57 

.4501 

Flour,  patent  — _. .barrel.. 

4.87.55 

Hogs,   heavy 100  lbs._ 

5.1550 

3.3579 

6.0800 

Bacon,  short  clear  sides---pound._ 

.0787 

.0494 

.0954 

Steers,  choice  to  extra 100  lbs.. 

6.0909 

4.5957 

6.-5442 

IJeef,  fresh  native  sides pound.. 

.0762 

.0698 

.0384 

Coffee,  Rio  No.  7 pound.. 

.1430 

.1233 

.0658 

Sugar,   granulated pound.. 

.04354 

.04532 

.04651 

Tea,   Formosa,  fine. pound.. 

.3008 

.2.583 

.2300 

Men's  shoes,  vici  kid ...pair.. 

2.5000 

2.2500 

2.500 

Men's  shoes,   brogan pair.. 

1.0375 

.9938 

1.2729 

Serge  suitings yard.. 

.9100 

.6143 

1.05 

Women's  dress  goods,   cash- 

mere   yard.. 

.3724 

.1960 

.3920 

Wool,       Ohio,       and      XX, 

scoured    pound-. 

.6119 

.3940 

.7181 

Coal,    anthracite,   stove ton.. 

4.1532 

3.7942 

4.8215 

Co-U,  bituminous,  at  mine_-.ton_. 

.9000 

.9000 

1.5375 

Petroleum,    refined gallon.. 

.0794 

.1039 

.1346 

Pig  iron,  foundry  No.  1 ton.. 

15.7492 

12.9550 

23.8950 

Wire   nails   100  Ibs- 

2.1896 

2.9250 

2.1167 

Cut  nails 100  lbs.. 

1.7583 

2.7125 

2.1625 

Tin   plates   (o) 100  lbs.. 

5.3050 

3.4354 

4.0900 

Steel  rails ton.. 

30.0000 

28.0000 

28.0000 

Steel  billets ton.. 

23.6308 

18.8333 

29.2533 

Rope,  manila,  %  Inch pound.. 

.1148 

.0664 

.1290 

a  "Net  ordinary  expenses"  Include  expenditures  for  War,  Navy,  Indians, 
pensions,  payments  for  interest,  and  "Miscellaneous,"  but  do  not  include  pay- 
ments for  premiums,  principal  of  public  debt,  or  expenditures  for  postal  service 
paid  from  revenues  thereof. 

b  As  the  result  of  special  investigation  by  the  Director'of  the  Mint  a  reduc- 
tion of  $135,000,000  was  made  in  the  estimate  of  gold  coin  in  circulation  on  July 
1,  1907,  as  compared  with  the  basis  of  previous  years. 

c  Includes  depositors  in  Illinois  State  banks  having  savings  departments,  for 
number  of  which  see  report  of  the  Comptroller  of  the  Currency. 

d  Exclusive  of  Illinois  State  banks  having  savings  departments. 

e  Based  on  Imports  for  consumption  only. 

f  Based  on  domestic  exports  only. 

g  Shipments  to  Porto  Rico. 

h  Shipments  to  Hawaii. 

i  Includes  corn,  wheat,  oats,  barley,  rye,  buckwheat,  potatoes,  and  hay. 

.1  1906. 

k  Includes  statistics  of  American  Telephone  and  Telegraph  Company  and 
operating  companies  associated  with  it. 

1  1893. 

m  1895. 

n  Excludes  compensation  paid  by  Southern  Pacific  Company,  not  reported. 
Corresponding  amount  ^aid  in  1905  was  $27,530,117. 

o  1892  figures  are  for  imported  tin;  those  of  subsequent  years,  ol  domestic 
manufacture. 


The  policy-  of  Waslilnarton  la  tlie  policy  of  the  Repuhllcan 
party. — Senator  Oullom. 

Linxnries  to  the  Earopean  laborer  are  necessities  to  the 
American. — Senator    Frye,    in    the   American    Economist. 

The  people  have  no  patience  Trith  those  Trho  Tvonld  violate 
the  pligrhted  faith  of  the  nation  and  stamp  its  ohligrations 
^vith  dishonor.— Hon.  Wm.  McKlnley  to  delci^ation  of  farmers, 
at  Canton,  September  22,  1896. 

The  business  men  of  onr  community  as  a  -whole  are  honest 
and  their  methods  are  sound.  The  President  has  never  said 
otherwise.  Indeed,  it  is  chieHy  in  the  interest  of  the  great 
body  of  honest  business  men  that  he  has  naade  his  flg^ht 
for  laTTfnl  business  methods.— Hon.  Wm.  H.  Taft,  to  Mer- 
chants and  Manafacturers'  Aaaociation,  Boston,  Mass. 


THE  TARIFF. 


Protection  to  AnnM-ican  labor  aiul  iiulnstry  was  one  of  the 
leading-  motives  which  led  to  the  Constitution — in  fa-'t,  said 
Webster,  "Without  that  provision  in  the  Constitution  it  never 
could  have  been  adopted."  It  is  not  to  be  wondered  at  then  that 
the  first  revenue  law  placed  upon  our  statute  books  provided 
for  the  encouragenieiit  and  protection  of  maauiactui-ers.  .Vvniie 
the  list  of  articles  enumerated  was  small  as  compared  to  f  2 
extended  schedule  of  to-day,  yet  the  law  was  found  to  be  most 
effective  in  inaugurating  an  industrial  policy  and  an  industrial 
advance,  which  hiis  ooiiiiaued  with  more  or  less  foroe  uiul  with 
comparatively  few  interruptions  to  the  present  day.  This  first 
tariff  law  continued  in  force  practically  without  material  change 
until  1812,  when  it  was  enacted: 

"That  an  additional  duty  of  100  per  cent  upon  the  permanent 
duties  now  imposed  by  law  ujjon  goods,  wares,  and  merchandise 
imported  into  the  United  Statt^s  shall  be  levied  and  collected  upon 
all  goods,  wares,  and  merchandise  which  shall,  from  and  alter 
the  passing  of  this  act,  be  imported  into  the  United  States  from 
any  foreign  port  or  place." 

'And  it  was  further  enacted: 
'■''''"That  this  act  shall  continue  in  force  so  long  as  the  United 
States  shall  be  engaged  in  war  with  Great  Britain  and  until  the 
expiration  of  one  year  after  the  conclusion  of  peace,  and  no 
longer:  Provided,  hoiccvcr,  That  the  additional  duties  laid  by 
this  act  shall  be  collected  on  all  such  goods,  wares,  and  mei'chan- 
dise    as   shall   have   been  previously   imported." 

This  was  the  only  comjjlete  revision  of  the  tariff  that  has 
taken  place  in  our  history  on  account  of  war.  The  increase  in 
tariff  rates,  coupled  with  the  prohibitions  of  non-intercourse, 
threw  us  on  our  resources  and  residted  in  the  establishment  of 
many  new  industries,  which,  in  spite  of  the  ravages  of  war, 
brought  immense  increase  of  national  wealth  and  business  a^*- 
tivity.  ,.*'' '  ■■    "     ■'•  ■  '- 

In  a  special  message  to  Congress,  February^  20,  -'iSld,  ^jP't'e^- 
dent  Madison  asked —  "     . -^^•'•'    iun  >.    I'rj 

"Deliberate  consideration  of  the  means  to  preserve  and  pro- 
mote the  manufactures  wJiich  have  sprung  into  existence  and  at- 
tained an  unparalleled  maturity  throughout  the  United  States 
during  the  period  of  the   European   wars."  « 

The  law  of  1812  terminated  on  February  17,  1816,  by  its 
own  provision,  one  year  after  the  ratification  of  the  Treaty  of 
Ghent.  Fearing  that  the  duties  existing  before  the  war  would 
not  afford  sufficient  protection  to  the  newly  estiiblished  indus- 
tries, it  was  the  determination  of  the  leaders  of  the  time  that 
those  duties  should  be  increased  in  the  new  law  of  1816;  and 
the  intention  was  to  make  the  tariff  a  thoroughly  protective 
one,  yet  it  proved  a  failure,  as  the  framers  of  that  tariff  had 
not  anticipated  the  iiiundation  of  goods  with  which  our  country 
would  be  flooded  from  abroad  and  particularly  from  Eijgland 
because  of  the  stocks  that  had  accumulated  there  for  several 
years.  We.  therefore,  experienced  our  first  great  industrial  de- 
pression, which  lasted  until  1824,  when  the  first  thoroughly  pro- 
tective tariff  law  was  enacted,  by  which,  in  the  words  of  the 
late  President  McKinley  :  "The  nation  was  quickened  into  new 
life,  and  the  entire  country  imder  the  tariff,  moved  on  to  higher 
triumphs  in  industrial  progress,  and  to  h,  higher  and  bett^ 
destiny  for  all  of  its  people."  In  1828  still  higher  duties  were 
substituted.  The  operation  of  the  law  bi-ought  great  dissatis- 
faction in  the  South,  resulting  in  Nullification  in  Soutli  Carolina, 
which,  however,  was  quickly  suppressed  by  President  Jack- 
son. The  agitation  against  the,  high  duties  of  the  1828  tariff 
led  to  the  compromise  tariff  of  1832,  which  provided  for  n. 
gradual  reduction  every  two  years  until  only  20  per  cent  should 
remain.  Long  before  the  final  reduction,  however,  the  panic  of 
1837  came  upon  the  country,  bringing  disaster  on  every  h-ind  and 
the  greatest  business  depression  which  the  country  had  up  to  that 

time  known.  "  .'   ':  ' 

.'ji'ty-hj:  .,  i.v 

99 


100  THE   T. Mi  IFF. 

'I'he  election  of  the  ^^  h.gs  in  1840  was  followed  by  the  tarilf 
of  1842 — an  adecjuate  protection  measure,  and  a  revival  of 
industry  and  prosperity  innnediately  followed.  But  the  Demo- 
crats aj^ain  came  into  power  in  1844,  and  under  the  leadership 
of  the  Seereary  of  the  Treasury,  Jiobert  J.  Walker,  of  Missis- 
sippi, a  new  law  was  framed  in  1846  which  remained  in 
force  until  1857,  when  the  duties  were  further  reduced  and 
whea  a  lother  severe  panic  followed  with  accompanying-  distress 
to  all  j^hases  of  commerce  and  industry.  This  period  from 
1846  to  1860  was  accompanied  by  the  nearest  approach  to  free 
trade  in  our  history,  and  while  the  country  enjoyed  more  or 
less  progress  and  periods  of  prosperity  in  certain  industrial 
lines,  owing  largely  to  demands  abroad  for  our  agriculaural 
products,  due  to  foreign  wars  and  famines,  yet  in  spite  of  these 
favorable  conditions,  the  so-called  Walker  Tariff  and  tariff  of 
1857  brought  widespread  ruin  to  many  of  our  industries  and 
checked  our  industrial  progress. 

When  the  Republicans  came  into  power  in  1860,  they  were 
confronted  with  a  country  nearly  bankrupt,  with  an  em.pty 
Treasury,  with  indu^ries  prostrated,  with  expenditures  exceed- 
ing receipts,  and  with  an  unfavorable  balance  of  trade.  Mr. 
Morrill,  of  Vermont,  then  Chairman  of  the  Ways  and  Means 
Committee,  framed  a  bill  on  jjrotective  tariff  lines,  which  passed 
the  House  of  Ilepresentatives  on  May  11,  1860,  and  the  Senate 
in  the  early  part  of  1861^  being  signed  by  President  Buchanan 
on  March  2,  1861.  It  was  really  the  first  measure  of  any  kind 
enacted  by  the  Republican  party,  and  since  that  law  was  placed 
on  the  statute  books  the  Republican  party  has  persistently  and 
consistently  advocated  and  enacted  tariff  laws  which  during 
their  operation  have  not  only  afforded  sufficient  revenue,  but 
have  given  ample  protection  to  American  labor  and  industry 
against  the  competition  of  cheaper  labor  abroad.  This  first  law, 
due  to  the  wisdom  of  Republican  leaders,  was  in  no  way  intended 
to  be  a  war  measure,  and  after  the  war  broke  out  and  during 
four  years  of  its  continuance,  it  was  repeatedly  amended  to 
meet  existing  conditions.  After  the  close  of  the  war  and 
during  the  years  which  followed  numerous  changes  were  made, 
reducing  many  of  the  high  rates  made  necessary  as  revenue 
producers  during  the  war  period,  but  the  Republican  principle 
of  protection  was  refined  so  long  as  the  legislative  and  exec- 
utive  power   remained   in   the    hands    of    the   Republican   party. 

The  McKinley  law  enacted  in  1890  was  accepted  by  all 
Republicans  and  Protectionists  as  the  best  tariff  law  that  had 
ever  been  framed  up  to  that  time.  Under  its  operation  the 
country  was  at  the  height  of  its  prosperity  and  progress  in 
1892,  when  suddenly  to  the  consternation  of  the  industrial  world 
a  Democratic  President  was  elected,  and  Avitli  him  a  Democi*atic 
Senate  and  House  of  Repi-esentatives.  Anticipating  the  enact- 
ment of  a  tariff  law  largely  for  revenue  only,  a  linanciaj  arid 
industrial  panic  came  over  the  country,  which  continued  until 
it  was  arrested  by  the  enactment  of  the  so-called  Dingley  Tariff 
in  1897.  Carrying  out  their  threat,  the  Democrats  framed  and 
passed  a  low  tariff  bill  in  1894,  which  became  a  law  without  the 
signature  of  the  President  and  remained  in  force  until  July 
24,  1897. 

Since  1897  to  the  present  time  the  Dingley  law  has  been  in 
operation,  and  under  it  the  United  States  has  shown  a  progress 
and  prosperity  never  before  known  in  the  history  of  civilization. 
On  other  pages  will  be  found  detailed  tables  showing  the  changes 
from  year  to  year  in  the  various  phases  of  our  industrial  life, 
in  our  foreign  trade  and  domestic  production,  and  in  the  state 
of  the  Treasury,  and  these  tables  will  vindicate  to  the  very 
last  degree  the  wisdom  of  the  Republican  party  in  framing  what 
has  been  without  question  as  nearly  perfect  a  tariff  law  as  it 
was  possible  to  frame  to  meet  equitably  the  needs  of  all  sec- 
tions of  the  country,  all  classes  of  people,  and  all  diversified 
industries.  To  show  compactly  what  progress  has  been  made 
imder  the  Dingley  law  tlie  following  tabulation  is  given.  The 
year  1896  is  taken  as  the  last  full  year  of  the  Cleveland  Free 
Trade  Administration,  and  1907  is  taken  as  the  last  full  year  for 
which  the  figures  are  available. 


THE  TAHjFF.  Itl 

Conditions  in  1907  compatM  witti  tiiose  of  1896. 


Population. 


Population   

Money   in   circulation 

Bank   clearings    — . 

National   banks   deposits - 

Savings   banks   deposits.. 

State  banks  deposits 

Receipts  of  the  Gov't  (net  ordinary) 

Expenditures   

Imports    

Exports    

Exports  of  manufactures 

Farm   products   

Value  of   farm   animals 

Corn    (farm   values) 

Wheat - 

Oats   _ 

Cotton    

Hay 

Goal  mined  tons— 

Pig  iron  manufactured. tons.. 

Steel    tons.. 

Tin  plate  manufactured pounds. _ 

Domestic  cotton  consumed.. .bales.. 

Sugar  consumed   tons.. 

Railways   ..miles.. 

Freight  carried  by  railways.. -tons.. 
Post-offlce  receipts .._ 


,  ■.  .;     >  i,. 

-■      -    ,..'      ,.   r     . 

Increase 

.    f.m^. :  0 

'v^    ,1997.     .    . 

per 
cent. 

70,254,000 

85,817,239 

22.15 

$1,506,434,960 

$2,772,956,455 

84.07 

$51,935,651,733 

$154,662,515,258 

197.80 

$1,668,413,508 

$4,322,880,141 

159.10 

$1,935,466,468 

$3,4.95,410,087 

80.59 

$395,659,914 

$3,068,649,860 

341.11 

$326,976,200 

$683,140,334 

102.81 

$352,179,446 

$-)78,903,748 

64.38 

$779,724,674 

ill, 431, 421, 425 

83.97 

$882,606,938 

S 1,880,851,078 

113.10 

$258,008,885 

$740,123,451 

186.86 

a$ 4, 250, 000, 000 

$7,500,000,000 

76.38 

$1,727,926,084 

b$4, 331, 230, 000 

150.66 

$191,006,967 

$1,336,901,000 

172.28 

$310,602,539 

$551,437,000 

78.50 

$132,485,033 

$334,568,000 

152.53 

$291,811,564 

C$721,647,237 

147.30 

$388,145,614 

$743,507,000 

91.55 

171,416,390 

C369,783,28t 

115.72 

8,623,127 

25,781,361 

198.88 

5,281,689 

C23,398,136 

343.00 

359,209,798 

Cl, 293, 738, 880 

260.18 

2,505,000 

5,005,000 

99.80 

1,960,086 

2,993,978 

52.75 

182,769 

c222,635 

21.81 

773,868,716 

1,610,099,829 

108.06 

$82,499,208 

$183,585,006 

122.58 

a  Department  of  Agriculture  estimate  for  1897. 


b  1908. 


c  1906. 


To  show  in  brief  the  important  chang-es  and  revisions  of  the 
tariff  during"  our  history  and  their  result,  the  following"  sum- 
mary is  given,  beginning  with  the  tariff  of  1813,  the  first  im- 
portant revision  following  the  first  law  of  1789. 

Important  tariff  revisions. 


'si 

Reason   for  revision. 

Time    con- 
sumed.* 

Nature 
of  change. 

Result. 

1812 

War     

No  debate.. 
39   days 

Rates      doubled. 
Moderate     protec- 

181« 

To   provide  new  rates  after 

Disastrou**, 

repeal  of   war   duties. 

tion. 

1824 

Ruinous  condition  of  indus- 
tries. 

4^^  months. 

Substantial        in- 
crease. 

Beneficial. 

1828 

To  increase  prosperity   .... 

4    months .  . 

Further    increase. 

Do. 

1832 

>jnciliation     

6    months .  . 

Decrease     

....Do 

Injurious. 
Disastrous. 

188S 

Compromise     to     save     the 
Union. 

1842 

To   save  our  industries    .  .  . 

5    months.. 

Increase    

Beneficial. 

1846 

To  satisfy  the  Southern  free 
traders. 

31^  months. 

Free  trade  and  ad 
valorem   duties. 

Ruinous. 

1857 

To     decrease     the     revenue 
and    still    further    satisfy 
the     South     

6    months .  . 

Further  decrease. 

Bankruptcy. 

1861 

First   Republican   tariff    for 

11     months. 

Increase    

Beneficial. 

1861 

revenue    and    protection. 

1862 
1863 
1864 

To  meet  requirements   of 

Passed 

General  increase.. 

Do. 

war. 

promptly. 

1865 

1867 

To  help  wool  and  woolen  in- 
dustries. 

7    months.  . 

Upward    changes. 

Do. 

1870 

To  establish  new  industries, 
especially  iron  and  steel. 

4    months .  . 

$28    per    ton    on 
steel  rails. 

Do. 

1872 

To  conciliate   "reformers.". 

3    months... 

10    per    cent    re- 
duction. 

Injurious. 

1875 

To  correct  act  of  1872 

1    month .  .  . 

Repeal   of  10  per 
cent  reduction. 

Beneficial. 

1888 

To    conciliate    revisionists.. 

2    months.  .. 

Reduction         and 
increased      free 
list 

Injurious. 

1890 

To  meet  existing  conditions. 

5^  months. 

Increase  and  spe- 
cific rates. 

Beneficial. 

1894 

To  try  free  trade 

8  months.  .. 

Large     reduction, 
free  wool,  etc.. 

Ruinous. 

1887 

To  provide  revenue   and  to 
protect  our  failing  indus- 
trieg. 

5  months.  .. 

Substantial        in- 
crease. 

Beneficial. 

•  Thle  la  the  time  of  actual  debate  and  passage,  exclusive  of  time  spent 
la  agitation,   hearings,    and   preparation. 


102  THE  TARIFF- 

The  teneti^  of  the  Demoiirdtic  party  being  to  the  effect  that 
;i  turirt'  sh(j;i'l^  „be  fyr  revenue  on]y^  while  many  of  the  leading- 
liemo>^!j'^t^  ,adv(^;ace ,  absctliite  j'fiVe  trade,  it  is  not  dinicult  to 
draw  the  line  between  Iho' tw'T)  ivjlvtios  and  foretell  what  would 
be  the  residt  of  a  chiiii^t'  in  our  system,  which  has  Ix'en  so 
snccessful,  so  thoroughly  tried,  and  so  fully  vindicated.  Every 
prominent  industrial  eoantry  on  earth  except  one  has  resorted 
to  the  [)rott>ction  of  tlieir  laboi-  and  industries,  and  it  is  thought 
that  within  a  few  yeai's  even  (jreat  Britain,  the  only  free  trade 
country  on  earth  of  any  importance,  will  change  her  fiscal 
policy  and  again  adopt  the  system  of  protection.  It  would 
be  folly  then  for  the  linited  States  to  abandon  a  system  under 
vyhich  she  has  thrived  to  an  unparalleled  degree  and  adopt  a 
system  discarded  by  practically  every  other  nation  and  com- 
petitor in  the  world's  markets. 

,  IVrhaps  the  most  persistent  complaint  matie  against  the  pro- 
tective tariff  is  the  cry  that  the  tariff  is  the  "Mother  of 
IVusts,"  to  use  the  careless  words  of  a  departed  monopolist 
;,■  Trusts,  however,  are  not  a  j)roduct  confined  to  the  United 
States  or  to  protective  countries,  as  Free  Trade  England  is 
(^vered  with  them  from  one  end  of  the  country  to  the  other ; 
in  fact,  they  were  in  force  there  long  before  they  were  in  the 
United  States.  There  may  be  combinations  of  capital  or  labor 
and  associations  of  corporations  and  communities  of  interests 
that,  are  for  the  best  interest  of  all  concerned,  and  there  may 
be  those  which  are  inimical  to  the  welfare  of  a  part  of  the  people 
and  which  give  advantage  to  another  part.  The  question  must 
be  studied  and  considered  and  handled  entirely  apart  from  the 
tariff. 

'Kegarding  the  charge  that  under  our  protective  system  our 
manufacturers  are  selling  goods  abroad  cheaper  than  at  home, 
it 'may  be  said  that  this  universal  principle  of  business,  of  pro- 
duction, and  markets,  is  indulged  in  to  a  far  less  degree  in 
the  United  States  than  abroad,  and  at  no  time  to  the  injury 
of  the  American  laborer.  We  also  sell  many  things  abroad  at  a 
larger  price  than  we  do  at  home.  We  sell  things  according  to 
the  markets,  according  to  prices,  according  to  supply  and  de- 
mand, according  to  the  universal  principle  of  competition,  bnt 
always  to  the  advantage  of  the  American  laborer,  who  reaps 
a  hig;her  reward  for  his  labor  than  can  be  found  elsewhere  on 
the  fate  of  the  earth.  While  it  is  possible  that  a  fraction  of  1 
per  cent  of  our  goods  sold  abroad  now  may  be  at  a  price  less  than 
at  home,  it  can  be  stated  without  fear  of  successful  contradic- 
tion, that  under  free  trade  we  would  lose  our  splendid  home 
market  and  be  obliged  to  seek  foreign  markets  in  competition 
with  the  cheap  labor  of  the  world,  withoiit  profit  to  our  man- 
ufacturers or  suitable  wages  to  our  workmen. 

The  export  discount  bugbear  does  not  any  longer  deceive 
the  American  laborer,  for  the  American  voter  and  the  American 
workingman  prefers  to  see  our  factories  running  12  months 
a  year  instead  of  being  shut  down  for  two  or  three  months, 
and  a  stock  of  surplus  goods  piled  up  in  warehouse.  These  two 
principal  objections  that  the  Demoernts  make  to  the  operation 
of  our  protective  sj'stem,  viz,  that  it  fosters  trusts  and  enables 
us  to  maintain  profital)le  prices  at  home,  have  been  shattered 
time  and  time  again.  Opposed  to  them  are  the  many  favorable 
and  snccessful  results  which  have  come  to  our  great  country 
during  the  past  half  century,  and  particularly  during  the  last/ 
decade  under  the  operation  of  a  fiscal  system  which  limits  the 
importatio7i  of  competitive  products  to  displace  the  goods  that 
should    be   manufactured   by   our   own    people. 

(^.f  the  many  satisfactory  reasons  for  maintaining  a  pro- 
tective tariff,  the  greatest  of  course  will  be  that  of  the  high 
wag^ji,  in  soured  to  the  American  workingman.  Tables  showing 
the  wages  of  labor  in  the  United  States  and  other  countries 
are  published  on  another  page  of  this  volume,  though  these 
are .  scarcely  required  since  there  is  not  an  intelligent  man 
living  to-day  who  does  not  know  that  the  American  workman 
gets  two  and  three  times,  and  even  quadruple  the  wages  of 
low^  tariff  countries.  There  is  no  man  but  who  knows  that 
tjtie-  standard  of  living  of  the  American  laborer  is  higher  than 
in   any   other    country,   that   he   not  only   gets   more   money  in 


THE  TARIFF,  1789  TO  1908.  WS 

wag-es,  b\it  far  more  comforts  at  home,  that  his  family  is 
better  housed,  better  fed,  better  clothed,  better  educated,  enjoy;-} 
more  of  the  conveniences  and  comforts  and  luxuries  of  life  than 
is  ever  dreamed  of  by  the  average  laborer  of  Europe.  So  lonfy  as 
the  Eepublican  party  remains  in  power  there  will  be  no  abandon- 
ment of  an  industrial  system  made  possible  by  tarift"  law  that  will 
maintain  this  standard  of  living  to  the  American  workmen. 

Another  reason  why  we  should  continue  our  tariff  on  pro- 
tective lines  is  that  it  gives  as  a  surplus  in  the  Treasxiry.  Under 
the  operation  of  the  Dingley  law,  since  the  Spanish  war  our  re- 
ceipts have  exceeded  oi.r  expenditures  by  nearly  $3000,000,000.  It 
is  possible  that  a  deficit  may  come  for  a  single  year  or  two.  due 
to  a  temporary  depression  in  business  or  to  extraordinary  expen- 
ditures, but  this  wili  undoubtedly  adjust  itself  and  with  a  large 
surplus  for  just  such  an  emergency,  there  need  be  no  alarm,  be- 
cause in  a  single  year  or  even  a  two  year  period  the  expenditures 
may  exceed  ot:r  receipts.  Our  government  receipts  consist  almost 
wholly  of  customs  duties  and  the  so-called  internal  revenue,  and 
this  internal  revenue  must  depend  largely  upon  the  prosperity  of 
the  petiple.  upon  their  purchasing  power;  and  being  derived  al- 
most wholly  from  a  tax  upon  luxuries,  it  must  depend  almost  as 
wholly  upon  a  surplus  wage  fund  maintained  over  the  expendi- 
tures for  the  necessaries  of  life.  The  internal  revenue  then  is  most 
direciiv  associated  with  the  tariff,  for  the  reason  that  if  duties 
are  lowered  and  foreign  goods  are  allowed  to  come  into  the 
country,  displacing  American  products  and  miaking  idle  Ameri- 
can workingmen,  the  internal  revenue  will  immediately  fall  off 
in  proportion.  As  regards  the  claim  which  the  Democrats  and 
free  traders  advance,  that  a  lowering  of  duties  will  result  in 
increased  importations  and  increased  revenue,  the  opposite  has 
always  been  shown  to  be  the  result.  Although  for  a  time 
the  purchase  of  foreign  goods  might  increase,  yet  when  the 
people  become  impoverished  from  lack  of  work  and  lack  of 
wages,  their  purchasing  power  is  reduced,  no  matter  how  cheap 
the  articles  may  l)e.  Protection  then  insures  adequate  revenue, 
without  resorting  to  direct  taxation,  which  has  always  been  ob- 
noxious to  the  American  people,  and  which  will  not  be  resorted 
to  unless  to  meet  the  exigencies  of  war. 

Another  argument  which  the  Free  Traders  and  Democrats 
are  delighted  to  indulge  in  has  been  that  if  we  do  not  buy 
we  cannot  sell.  In  the  eleven  years  of  the  Dingley  tariff  our 
sales  abroad  have  practically  doubled  and  we  are  to-day  in  the 
first  rank  as  an  exporting  nation,  and  during  this  time  our 
favoi'able  balance  of  trade  has  exceeded  four  billion  dol- 
lars. These  foreign  markets  which  we  have  been  gaining 
against  the  competition  of  the  great  industrial  nations  of  the 
earth  we  have  gained  without  sacrificing  any  portion  whatever 
of  our  splendid  home  market,  which  is  the  envy  of  the  civilized 
wor'al. 

The  tariff  planks  of  the  Republican  and  Democratic  platforms 
since  1856  are  printed  on  another  page  of  this  volume,  as  shown 
by  the  index. 

Following  these  various  changes  the  general  statement  can 
he  made  that  whenever  in  our  history  the  tariff  has  been  reduced 
in  whole  or  in  part,  a  business  de])ression  has  followed,  and  in 
many  cases  most  severe  commercial  and  industrial  panics.  The 
general  statement  can  also  be  made  that  in  every  instance  where 
the  tariff  has  been  increased,  or  a  higher  duty  placed  upon  any 
article,  prosperity  has  follov/ed  in  general  throughout  the  coun- 
tr3\  and  the  particular  article  or  class  of  articles  to  which  pro- 
tection was  given  or  upon  which  the  protection  was  increased 
shoAved  a  most  substantial  advancement.  Besides  the  general  re- 
vision shown  in  the  preceding  table  there  have  been  at  various 
times  changes  in  our  tariff  schedules,  not  affecting  the  entire 
list  of  articles.  The  various  tariff  laws  are  shown  in  detail  in 
the  following  table:  i 

Our    Prineipnl    Tarill"    Laws. 

Date  of  such  act.  Character  of  the  bill   and  other  remarks. 

1789,  July      4. ...  Specific  and  ad  valoi'em  rates,  latter  from  5  to 

15    per  cent. 

1790,  August    10.. Specific  and  ad  valorem  rate's,  latter  from  3  to 

15^  per  cent. 


104 


THE  TARIFF,  1789  TO  1908, 


Date  of  such  act.  Obaracter  of  the  bill  and  other  remarki. 

1791,  March    3... .This  act  only  affected  "spirits"  paying  specific 

duties. 

1792,  May    2 Specific  and  ad  valorem  rates,  latter  from  7i/^ 

to   15  per  cent. 

1794,  June    7 Specific  and  ad  valorem  rates,  latter  from  10 

to   20   per   cent. 

1795,  January  29.This  act  affected  but  few  articles  paying  spe- 

cific and  ad  valorem  rates. 

1797,  March  3... This  act  affected  but  few  articles  paying  spe- 
cific and  ad  valorem  rates. 

1797,  July    8 This   act   only   affected   salt    paying   a   specific 

duty. 

1800,  May  13 This  act  affected  but  few  articles  paying  spe- 
cific and  ad  valorem  rates. 

1804,  March  26.. This  act,  commonly  called  "Mediterranean 
fund,"  imposing  an  additional  duty  of 
2^  per  cent  in  addition  to  the  duties  now 
imposed  by  law. 

1804,  March  27.. This  act  affected  but  few  articles  paying  spe- 
cific rates. 

1812,  July    1 This  act  imposed  DOUBLE  DUTIES,  known  as 

WAR    DUTIES. 

1813,  July    29... .This    act   only   affected   salt   paying  a  specific 

duty. 
1816,  February  S.This  act  continued  the  double  duties  to  30th  of 

June,   1817. 
1816,  April    27.  ..Specific  minimum  and  ad  valorem  rates,  latter 
from   71/^  to  30  per  cent. 

1818,  April    20... This  act  affected  but  few  articles  paying  spe- 

cific rates. 

1819,  March    3...  This  act  only  affected  "wines"  paying  specific 

rates. 

1824,  May  22 ....  Specific,  minimum,  compound,  and  ad  valorem, 
latter  from  12  to  50  per  cent,  the  first 
really  Protective  tariff.  Eesults  were 
most  beneficial. 

1828,  May  19 . . .  Known  as  the  Tariff  of  Abominations.  Spe- 
fic,  minimum,  compound  and  ad  valorem, 
latter  from  20  to   50  per   cent. 

1828,  May    24 This  act  only  affected  "wines"  paying   specific 

rates. 

1830,  May  20.... This  act  only  affected  "coffee,  tea,  and  cocoa," 
paying  specific  rates,  and  reducing  the 
rates. 

1830,  May  29 This  act  only  affected  "molasses"  paying  spe- 
cific rates. 

1830,  May    ft9 This    act   only   affected   "salt"    paying   specific 

rates. 

1832,  July    13 This  act  only  affected  "wines  of  France"  paying 

specific  rates. 

1832,  July    14. .  ..Specific,  minimum,  compound,  and  ad  valorem, 

the  latter  from  5  to  50  per  cent. 

1833,  March    2 ...  Compromise  act — looking  to  a  reduction  of  du- 

ties to  20  per  cent. 

1841,  Sept.    11...  Specific   and   ad  valorem,  latter   from   12i/^  to 

20  per  cent. 

1842,  August    30. Specific,  minimum,  compound,  and  ad  valorem, 

the  latter  from  1  to  50  per  cent. 

1846,  July  30.  .  .The  rates  of  duty  imposed  by  this  act  were  ex- 
clusively ad  valorem,  and  arranged  by 
schedules. 

1857,  March  3 .  .  A  further  reduction  of ,  rates  which  were  ex- 
clusivelj'^  ad  valorem,  arranged  by  sched- 
ules. 

1861,  March  2... Went  into  effect  April  12,  1861.  Intended  to 
raise  the  necessary  revenue  for  the  Gov- 
ernment expenditures  and  afford  Protec- 
tion  to   our   labor   and   industries. 

1861,  August  5... First  of  the  war  tariffs,  large  increase  in 
duties. 

1861,  Dec.    24.... Duties  increased  on  sugar,  tea,  and  coffee. 


THE  TARIFF,  1789  TO  1908.  108 


Bills    changing     and    generally    increasing 

duties. 


Date  of  such  act.  Character  of  the  bill  and  other 

1862,  July    14 Went  into  effect  August  2,   1862.     Further   in- 

crease of  rates. 

1863,  March  3; 
1864,  April  20, 
June  30;  1865, 
March  5;  1866, 
March  15,  July 
28 

1867,  March    2...Eates  increased  on  wool  and  woolens,   giving 

great  benefit  to  those  industries. 
1870,  ITuly        14, 
December    20..  General    changes.     Free    list    largely    reduced. 

Duty  of  $28  per  ton  on  steel  rails. 

1872,  May    1 Tea  and  coffee  made  free. 

1872,  June  6 Went  into  effect  August  1,  1872.     Reduction  of 

10   per   cent.     Increased  free  list. 
1875,  February  S.Iievised  statute,  with  slight  and  unimportant 

changes. 

1874,  June    22 Known    as    the    "Little    Tariff    Bill."     General 

changes. 

1875,  March   3. . .  Rates  increased  on  sugar.     Repeal  of  the  10  per 

cent  reduction  of  Act  of  June  6,   1872. 

1879,  July    1....  Quinine  made  free. 

1880,  July    14...  A  few  unimportant  changes. 
1882,  May    6    and 

December    3... Repeals   discriminating  duty. 

i|.883,  March  3... Went  into  effect  July  1,  1883.  Known  as  the 
Tariff  Commission  Bill.  General  revision, 
reduction  and  increased  free  list.  Severe 
blow  to  wool  industry. 

1890,  October  l.Went  into  effect  October  6.  1890.  Known  as 
the  McKinley  Bill.  Changes  from  ad  val- 
orem to  specific  rates.  Enlarged  free  list. 
Sugar  made  free,  a  bounty  being  substi- 
tuted.    Reciprocity  law. 

1894,  August  27. Known  as  the  Gorman-Wilson  Bill.  Became  a 
law  without  the  President's  signature. 
General  reduction  of  duties.  Wool  put  on 
free  list.  Results,  both  anticipatory  and 
actual,  were  disastrous  to  all  industry 
and  labor. 

1897,  July  24 . .  .  Known  as  the  Dingley  Law  and  still  in  op- 
eration unchanged.  The  most  perfect  and 
successful  tariff  law  ever  enacted.  Has 
brought  unprecedented  prosperity. 

It  will  be  seen  from  the  above  table  that  the  present  law 
has  been  in  operation  unchanged  longer  than  any  other  tariff 
law  in  our  history,  and  while  many  favor  continuing  the  law 
unchanged  for  the  present,  still  there  is  such  a  general  demand 
for  re-adjustment  of  schedules  to  meet  changed  conditions  in 
our  industrial  world  that  it  is  conceded  on  all  sides  that  gen- 
eral revision  will  be  made  in  the  near  future.  In  fact,  antici- 
pating such  revision  both  Houses  of  Congress  have  asked  and 
received  authority  to  secure  information  looking  to  the  prepar- 
ation of  a  new  law. 

In  the  Senate,  on  May  16,  Mr,  Aldrich,  from  the  Committee 
on  Finance,  reported  the  following  resolution,  which  was  con- 
sidered by  unanimous  consent  and  agreed  to :  "Resolved,  That 
the  Committee  on  Finance  is  authorized,  in  connection  with 
investigations  heretofore  ordered  by  the  Senate,  with  the  view 
of  promptly  securing  the  information  necessary  for  an  in- 
telligent revision  of  the  customs  laws  of  the  United  States, 
to  call  to  their  assistance  experts  in  the  Executive  Depart- 
ments of  the  Government  and  to  employ  such  other  assistants 
as  they  shall  require  ;  and  they  are  especially  directed  to  report 
what  further  legislation  is  necessary  to  secure  equitable  treat- 
ment for  the  agricultural  and  other  products  of  the  United 
States  in  foreign  countries ;  and  they  shall  also,  in  the  consider- 
ation of  changes  of  rates,  secure  proof  of  the  relative  cost  of  pro- 
duction in  this  and  in  principal  competing  foreign  countries  of 


106  TEE  TARIFF— ^REVISION. 

the  various  articles  affected  by  the  tariff  upon  which  changes  in 
rates  of  duty  are   desirable." 

In  the  House,  on  May  16,  Mr.  Payne,  from  the  Committee 
on  Ways  and  Means,  moTed  the  passage  of  the  following  tarill" 
resolution:  "Itesolved,  That  the  Committee  on  Ways  and  Means 
is  authorized  to  sit  during  the  recess  of  Congress  ajid  to  gather 
such  information,  through  CJovernment  agents  or  otherwise,  as 
to  it  may  seem  fit  looking  toward  the  preparation  of  a  bill  for 
the  revision  of  the  tariff ;  and  said  committee  is  authorized  to 
purchase  such  books  and  to  have  such  printing  and  binding 
done  as  it  shall  require,  and,  in  addition  to  requiring  the  atten- 
dance of  the  eonnnittee  stenographers,  is  authorized  to  employ 
an  additional  steuogi'apher,  and  to  incur  such  other  expenses 
as  may  be  deemed  necessary  by  said  committee;  and  all  the 
expenses  of  said  committee  shall  be  paid  out  of  the  contingent 
fund  of  the  House  on  the  usual  vouchers,  approved  as  now  pro- 
vided by  law."  The  i-esolution  was  agreed  to  by  a  strict  party 
vote  of  154  yeas  to  92  nays. 

The  platform  adopted  at  Chicago  by  the  National  llepublican 
Convention  and  the  pledge  made  in  the  tariff  plank  will  be 
faithfully  kept  by  those  selected  to  make  our  laws,  in  the  next 
session  of  the  60th  Congress  or  in  the  fii'st  session  of  the  61st 
Congress ;  but  in  the  light  of  history  and  with  the  experience 
we  have  had  for  120  years,  and  the  record  of  the  Republican 
party  on  this  subject,  there  can  be  no  doubt  that  the  new  tariff 
will  be  a  measure  fully  protective  in  principle  and  framed  with 
a  view  to  meet  the  requirements  on  an  equitable  basis  of  every 
section,  every  class,  and  every  industi-y. 

Canse  of   the   Growth   of    Protection    Sentiment   at    Home    and 
A»>i*oa«l. 

The  primary  ide«C  in  levying  a  tax  upon  merchandise  entering 
a  community  or  State  was  to  require  persons  from  abroad  trad- 
ing in  that  coni..ninity  to  bear  their  proper  share  in  th^  public 
expenditures.  The  tranquillity  and  order  of  the  community,  and 
hence  its  commercial  possibilities,  were  maintained  by  the  gov- 
ernment, for  whose  support  the  local  producers  and  merchants 
were  taxed,  and  it  was  held  that  merchants  from  abroad  desir- 
ing to  enjoy  the  privilege  of  trading  in  that  community  should 
contribute  their  proper  share  to  the  maintenance  of  the  govern- 
ment, which  assured  commercial  privileges,  and  that  they  should 
contribute  a  relatively  lai'ger  percentage  of  the  valu'^  of  the 
merchandise  sold  than  was  required  of  the  local  dealer  because 
the  foreign  merchant  carried  away  with, him  his  profits,  while 
the  domestic  producer  or  dealer  expended  his  profits  in  the  home 
commimity  in  the  support  of  his  family  or  in  the  employment  of 
other  members  of  the  community.  Hence  the  tariff — a  tax  upon 
merchandise  entering  a  community  from  abroad. 

Dangler  from  Ontslde  Competition  Constantly  Increasini?. 

Originally  the  danger  to  domestic  industries  from  foreign 
competition  was  much  less  than  at  the  present  time.  Merchan- 
dise brought  into  any  country  from  abroad  must  first  bear  the 
cost  of  transportation,  and  in  times  when  the  cost  of  transpor- 
tation was  great,  and  when  goods  were  necessarily  transported 
by  animal  power  and  by  sailing  vessels  only,  this  high  cost  of 
carriage  was  of  itself  a  protection  to  the  domestic  producer  in 
any  country.  True,  the  producer  of  merchandise  just  across 
the  border  line  of  a  country  had  an  enormous  advantage  c  ver  the 
producer  a  thousand  or  five  thousand  miles  distant,  but  as  only 
a  small  proportjon  of  the  producers  were  located  near  to  the 
border  line  such  countries  did  not  find  it  necessary  to  establish 
high  tariffs  to  protect  their  own  producers  or  manufacturers. 
The  distance  which  foreign  goods  must  be  carried  and  the  cost 
of  transportation  over  thr»  distance  alone  serve  to  create  a 
protective  wall  for  the  domestic  producer.  In  late  years  these 
conditions  of  distance  and  transportation  have  absolutely 
changed.  The  railroad  and  the  modern  steamship  have  reduced 
the  cost  of  transportation  compared  with  that  in  the  early  part 
or  even  in  the  middle  of  the  century  just  ended  ;  while  the  tele- 
graph  and  the  telephone   have  annihilated  distance  and   time. 


TEE  TARIFF.  107 

Merchandise  from  the  interior  of  Europe,  ordered  by  telephone, 
telegraph,  and  cable,  transported  from  its  place  of  production 
by  trolley  road,  canalized  rivers,  or  boats  operated  by  steam  or 
electricity,  or  by  railway  to  the  Atlantic,  and  thence  by  great 
steamships,  built  to  carry  hundreds  of  carloads  at  a  single 
voyage,  across  the  ocean,  and  again  transported  to  the  interior 
of  the  United  States  by  the  cheapest  land  transportation  ever 
known  to  man,  can  be  placed  at  the  door  of  the  consumer  in  the 
Mississippi  Valley  for  a  very  small  percentage  of  the  cost  of 
transporting  the  same  at  the  middle  of  the  last  century. 


Cheap  Freights  HaT^e  Destroyed  Natural  Protection. 

As  a  result  the  protection  which  distance  and  the  cost  of  trans- 
portation afforded  to  the  local  producer  has  disappeared,  and  with- 
out a  protective  tariff,  established  by  the  Government,  he  has  as  his 
direct  competitor  the  low-priced  labor  of  any  and  every  part  of 
the  world.  The  cheap  labor  of  the  densely  populated  countries 
of  Europe,  the  140  million  low-priced  workers  of  Eussia,  the  300 
million  people  of  India,  whose  average  wage  is  biit  a  few  cents 
per  day,  and  the  400  million  workers  of  China  are  to  day  as 
much  the  competitors  of  the  workman  of  the  United  States  as 
though  they  were  located  but  just  across  the  border.  Modern 
methods  of  transportation  and  communication  have  brought 
these  great  masses  of  producers  to  our  very  doors,  and  without 
the  protection  which  the  tariff  affords  would  place  that  cheap 
labor  in  as  close  competition  with  our  own  as  it  would  hare 
been  a  half  century  ago  if  located  but  a  hundred  miles  away. 

As  an  example  of  the  reduction  in  cost  of  transportation  may 
be  cited  the  fact  that  the  annual  average  freight  rate  on  wheat 
from  Chicago  to  Liverpool,  by  the  cheapest  method  of  trans- 
portation, in  1873  was  40  cents  per  bushel  and  in  1903  8  cents 
per  bushel,  or  but  one-fifth  that  of  only  30  years  earlier.  Com- 
paring conditions  now  with  those  of  the  early  part  of  the  last 
century  the  reduction  is  still  greater,  and  the  cost  of  transporta- 
tion at  the  present  time  may  safely  be  said  to  be  less  than  one- 
tenth  of  that  then  existing.  An  illustration  of  the  reduction  in 
cost  of  transportation  through  modern  methods  is  found  in  the 
fact  that  the  census  of  1880  showed  that  the  railways  could 
transport  a  ton  of  wheat  for  a  given  distance  as  cheaply  as  a 
single  bushel  could  be  transported  the  same  distance  by  horse 
power,  and  railway  rates  have  fallen  practically  one-half  since 
that  time.  That  high  authority  the  Encyclopedia  Pritannica 
states  in  its  1903  edition  that  the  mechanic  in  Liverp  ol  may 
now  pay  with  o)ie  day's  wages  the  entire  cost  of  transporting 
a  year's  supply  o/  hread  and  meat  for  one  man  from  Vhlcagt 
to  that  city. 

These  facts  illustrate  how  completely  modern  methods  have 
destroyed  the  protection  ^vhich  the  local  producer  formerly  had 
against  foreign  competitors,  and  explain  the  reason  why  modern 
governments  have  found  it  necessary,  one  by  one,  to  adopt  the 
protective  system,  imtil  now  many  men  in  the  most  ardent  and 
chief  remaining  supporter  of  the  nonprotective  system,  the 
United  Kingdom,  are  seriously  discussing  the  adoption  of  a 
protective  tariff.  This  gradual  destruction  of  the  natiiral  pro- 
tection formerly  afforded  by  distance  and  cost  of  transporta- 
tion accounts  for  the  fact  that  it  has  been  found  necessary  to 
maintain  the  protective  tariff  on  the  various  industries  as  they 
have  developed,  and  that  this  necessity  for  maintaining  protec- 
tion for  those  indnsti-ies  has  meantime  been  recognized  by  all 
other  leading  manufacturing  countries  of  the  worl  1  whose  in- 
dustries were  developed  even  before  those  of  the  United  States, 
except  in  the  case  of  the  United  Kingdom,  whose  people  are 
now-  clamoring  for  a  return  to  protection  of  their  long  estab- 
lished domestic  industries.  This  reduction  in  cost  of  trans- 
portation is  indeed  one  of  the  chief  causes  of  the  steady  move- 
ment toward  protection  which  has  characterized  the  history 
of  the  world  during  the  last  half  century.  The  fact  that,  with 
improved  methods  of  transportation  and  a  narrowing  of  dis- 
tances and  cheapening  of  cost  of  transportation,  the  whole 
world  has  become  the   next-door  neighbor  of*  each   community 


108  THE  TARIFF. 

.has  compelled  that  community  to  establish  tarilT  dutips  of  a 
?haracter  which  would  reduce  the  competition  offered  by  the 
•jheap  labor  of  those  communities  against  which  distance  no 
lon^rr  affords  protection. 

Practically  all  of  the  500,000  miles  of  railway  and  10  million 
tons  of  steamship  tonnage  with  which  the  world  is  now  supplied 
have  been  created  since  the  middle  of  last  century ;  the  world  s 
international  commerce  has  quadrupled  while  the  world's  popu- 
lation was  increasing  but  50  per  cent,  and  during  that  very 
period  the  nations  of  the  world  have  one  by  one  found  it 
necessary  to  establish  tariff  protection  to  take  the  plac-  of  that 
protection  which  distance  and  high  cost  of  transportation  for- 
merlv  afforded. 


Tru8t«  Have  Longr  Floarlitlied  in  Free  Trade  Hlii^land. 

No  one  familiar  with  the  history  of  trusts  and  great  combi- 
nations in  other  parts  of  the  world  can  for  a  moment  accept  as 
accurate  the  assertion  that  the  tariff  is  responsible  for  the  ex- 
istence of  organizations  of  this  general  character,  whether  un- 
der the  title  of  trusts  or  otherwise.  Mr.  Blaine,  in  1888,  on  re- 
turning from  a  visit  to  Europe,  declared  in  his  speech  opening 
the  Presidential  campaign  of  that  year  that  trusts  and  com- 
binations to  control  prices  even  at  that  early  date  existed  in 
free-trade  England  in  lai-ge  numbers;  or,  as  Senator  Dolliver 
has  recently  expressed  it,  "England  was  even  then  plastered  all 
over  with  ^nists."  In  October,  1895,  a  steel-rail  trust  which  em- 
braced the  steel-rail  manufacturers  of  Great  i>ritain  was  or- 
ganized, and  on  February  5,  1896,  the  London  Ironmonger  an- 
nouiwed  the  details  of  its  agreement,  the  chief  amoni>-  them  being 
that  "there  is  to  be  no  underselling."  In  1895  the  Sheffield 
Telegraph  published  the  draft  of  a  scheme  proposing  t' e  com- 
bination of  200  iron  firms  in  the  various  cities  of  E  <  lind  for 
the  purpose  of  regulating  the  prices  of  all  classes  of  ron.  In 
1897  the  details  of  the  combination  between  the  great  armament 
manufacturing  firms  were  announced.  Some  of  the  gr  at  com- 
binations in  England  for  the  control  of  prices  of  articles  in 
common  use  were  organized  as  early  as  1890,  among  them  the 
following:  The  Salt  Union,  Limited,  with  a  cap  tal  of 
$10,000,000;  in  the  same  year,  the  Alkali  Company,  combining  43 
oianufacturing  establishments,  with  a  capital  of  .$30,000,000;  the 
J.  &  P.  Coates  Company,  thread  mariufacturers,  in  1896,  a  com- 
bination of  four  businesses  with  a  capital  of  $27,000,000  ;  another 
cotton  thread  organization,  a  year  later,  combining  15  manu- 
facturing establishments  with  a  capital  of  $14,000,000;  a  com- 
bination of  cotton  spinners  in  1898,  combining  31  establishments 
with  a  capital  of  $30,000,000;  in  the  same  year  a  combination  of 
the  dyeing  interests,  combining  22  establishments  with  a  capital 
of  $22.000,000 ;  also  in  the  same  year  a  combination  of  the  York- 
shire Wool  Combers,  combining  38  establishements  with  a  capi- 
tal of  $12,000,000;  also  in  1898  a  combination  of  60  calico  print- 
ing establishments  with  a  capital  of  $46,000,000 ;  in  1900  a  com- 
bination of  28  wall  paper  manufacturers  with  a  capital  of 
$21,000,000,  and  in  the  same  year  a  combination  of  46  establish- 
ments of  cotton  and  wool  dyeing  organizations  with  a  capital 
of  $15,000,000.  In  the  decade  1890-1900  the  public  announce- 
ments of  combinations  in  free-trade  England  included  328  dif- 
ferent business  concerns  amalgamated  into  15  great  organiza- 
tions with  a  total  capital  of  $.330,000,000,  while  a  vecy  large 
number  of  minor  organizations  and  those  which  were  not  made 
public  should  be  added  to  the  list  to  render  it  complete.  Many 
great  combinations  have  been  organized  in  free-trade  England 
since  1900,  but  this  history  of  the  decade  in  which  great  com- 
binations of  capital  of  this  character  have  been  common  in  all 
parts  of  the  world  where  manufacturing  capital  is  pie  tiful  is 
sufficient  to  show  that  .such  combinations  and  or^^anizitions  are 
not  confined  to  protection  countries,  but  on  the  contrary  flourish 
with  equal  vigor  in  the  one  free-trade  country  of  the  world  in 
which  a  sufficient  amount  of  capital  exLsts  to  justify  the  or- 
ganization of  combinations  of  this  kind. 


TEE  TARIFF— THE  TRUST  QUESTION.  10.9 

Export  Price  Redaction  in   Free  Trade   Engrland. 

Exportation  at  prices  below  th»se  of  the  home  market  is  not 
in  any  sense  the  result  of  or  accomplished  by  the  aid  of  a  pro- 
tective tariif.  It  is  practiced  more  freely  in  fxee  trade  Great 
Britain  than  in  any  other  country.  United  States  Consid  Jinfus 
Fleming,  writing-  from  his  post  in  Edinburgh,  Scotland,  in  an 
official  report,  on  this  subject  says : 

*'  'It  is  the  policy  of  British  manufacturers  to  maintain 
prices  in  the  home  market  at  the  highest  possible  level  and 
to  make  whatever  concessions  may  he  necessary  in  foreign 
markets,^  said  the  managing  director  of  a  leading  British  metal- 
working  company  to  me.  He  referred  to  the  industries  in 
general,  excepting  such  as  are  based  largely  upon  the  manufac- 
ture of  low-grade  goods  for  the  foreign  trade.  There  can  be 
no  doubt  that  this  manufacturer  spoke  with  full  knowledge 
of  the  subject.  His  opinion  is  corroborated  by  investigation 
in  various  departments  of  production.  Cutting  prices  in  foreign 
markets  to  meet  competition,  or  to  prevent  competition,  as 
the  case  may  be,  is  a  common  practice,  the  length  to  which  it 
is  carried  depending  altogether  on  circumstances,  chiefly  on 
stocks  and  labor  conditions.  When  a  considerable  surplus?  re- 
mains on  the  hands  of  the  producer  the  effort  is  to  avoid  over- 
loading the  home  market  and  thus  reducing  the  price  of  the 
bulk  of  the  product  to  sell  the  surplus  in  foreign  countries 
at  the  best  price  obtainable. 

"At  all  times,  even  when  great  trade  conditions  at  home  and 
abroad  are  excellent,  it  is  t'he  rule  in  British  industries  to  quote 
lotccr  prices  to  foreign  buyers  and  British  exporters  than  to 
the  average  domestic  trader.  The  difference  in  favor  of  the  for- 
eigner or  exporter  ranges  from  4  to  6  per  cent.  The  British 
maker  of  an  important  machine  informs  me  that,  although  he 
has  no  competition,  he  quotes  the  machine  to  customers  in 
Belgium  and  one  or  two  other  countries  on  the  Continent  at 
15  per  cent  less  than  the  price  at  which  it  is  sold  in  tliis 
country  The  reason  is  that  these  Belgian  and  other  Continental 
firms  will  not  pay  more  than  a  certain  amount  for  it,  and  he 
comes  to  their  terms  in  order  to  obviate  the  danger  of  compe- 
tition arising  from  the  invention  and  manufacture  of  a  simi- 
lar apparatus  in  Belgium  or  elsewhere.  He  told  me  that  he 
would  sell  abroad,  in  the  present  state  of  trade,  at  any  price 
he  could  get  above  cost.  Another  example  of  sales  made  in 
a  foreign  market  at  much  below  home  prices  has  fallen  directly 
under  my  notice.  I  have  seen  invoices  of  a  British  firm  of  steel 
wire  manufacturers  to  German  buyers  in  which  the  prices  were 
fully  201/2  per  cent  lower  than  the  prices  quoted  to  home  cus- 
tomers. This  reduction  Avas  not  due  to  an  extraordinary  sur- 
plus, but  principally  to  a  determination  to  put  a  certain  line 
of  goods  into  a  competitive  market. 

"There  are  few  manufactui-ers  whose  business  in  foreign 
competitive  markets  is  not  regularly  conducted  on  the  plan  of 
getting  the  goods  off  their  hands  at  a  profit  if  possible  and  at 
cost  if  necessary.  It  may  be  doubted  if  price  lists  and  discount 
sheets  are  anything  more,  outside  of  the  hoine  market,  than  aixis 
to  bai-gaining,  except  in  seasons  of  very  marked  activity  at 
home.  In  most  trades  the  one  fixed  purpose  is  to  not  reduce 
prices  to  British  consumers  until  forced  to  do  so.  As  one  manu- 
facturer expressed  it  to  me,  'This  is  the  very  root  of  success 
in  all  commercial  business — to  hold  what  you  have  and  gain 
what  you  can.' 

"Overproduction  is  an  evil  no  less  frequently  observed  in 
Great  Britain  than  in  Germany  and  the  United  States.  A  well- 
known  English  writer  on  economic  subjects,  who  belongs  to  the 
Alanchester  school,  said  to  me  in  a  recent  conversation  that 
it  was  distinctly  true,  as  stated  in  one  of  his  works  on  trade 
relations,  that  overproduction,  although  not  (in  his  opinion) 
so  widely  diffused  here  as  in  the  United  States,  was  a  difficult 
recurring  factor  in  the  commercial  prol)lem ;  that  'the  British 
manufacturer,  under  such  circumstances,  recognizes  the  inadvis- 
ability  of  flooding  his  own  markets  with  cheap  commoditieib, 
which  they  will  require  time  to  digest,  thus  deferring  the 
period  when  he  can  supply  them  again  profitably,  and  therefore 


110  THE  TARIFF. 

J 

he  sells  the  surplus  to  foreign  countries  at  a  loss.'  He  added 
that  'there  is  scarcely  a  tariff  wall  in  existence  that  the  British 
manufacturer  will  not  climb  over  at  such  times.' 

"This  political  economist  looks  u])ou  tfic  foreign  trade  as 
distinct  from  the  domestic  trade,  to  be  haiullcd  by  each  producer 
as  circumstauces  seem  to  demand,  especially  in  periods  of  over- 
production. To  the  same  eft'ect  a  prominent  brewer,  an  ex- 
member  of  Parliment,  said:  *1  have  been  dimtijing  ale  and  beer 
on  foreign  markets  all  my  life  ivhenever  I  have  had  a  surplus. 
PracticaUy  erenj  mannfactarvr  in  tills  (•ountry  mcU.s  Jiis  goods 
abroad  for  the  best  price  they  icill  bring  when  his  stock  is  too 
heavy  to  be  unloaded  at  home  in  a  reasonable  time  without  break- 
ing th'-»  market.'  As  I  have  before  indicated,  this  statement  of 
British  commercial  practice  is,   in  my  opinion,   unquestionable." 

United  States  Consul  Samuel  M.  Taylor  writes  from  Glasgow, 
Scothmd :  "(Jenerally  speaking,  manufacturers  of  soft  goods 
(cottons,  etc.)  have  one  price  for  domestic  and  export  trade, 
and  surplus  stocks  are  avoided  by  limiting  the  output,  even  to 
the  extent  of  closing  the  works.  However,  if  there  is  a  sur- 
plus, 'odds  and  ends,'  it  is  exported  at  reduced  prices.  In  the 
iron  and  steel  trade,  however,  it  is  different.  Manufactured 
steel  for  export  is  sold  at  from  5  to  10  ])er  cent,  less  than  for 
domestic  use,  and  even  at  a  greater  reduction.  In  other  words, 
the  cost  of  transportation  to  a  foreign  country  where  compe- 
tition is  brisk  is  largely  assumed  by  the  British  exporter  or 
manufacturer  by  means  of  this  reduction,  and  even  Kngland 
is  treated  as  foreign  by  the  Scotch  manufacturer  and  gets  re- 
ductions accordingly.  The  Scotch  manufacturer  neither  expects 
nor  receives  the  same  profits  on  his  exports  to  foreign  countries 
that  he  obtains  at  home.  The  same  statement  applies  largely 
to  machinery.  In  Scotland  a  combination  at  present  exists 
which  fixes*  the  price  of  steel  plates  for  the  whole  of  Scotland, 
but  gives  the  members  of  the  combination  power  to  sell  in  other 
districts  than  Scotland  at  whatever  prices  they  choose.  In  the 
coal  trade,  in  the  words  of  my  informant,  'it  is  well  recognized 
that  foreign  consumers  can  buy  cheaper  than  home  consumers, 
the  reason  being  that  colliery  proprietors  could  not  dispose 
of  their  product  with  the  regularity  and  in  the  quantity  neces- 
sarj'^  to  maintain  a  large  output  unless  they  sold  cheap  and 
granted   facilities  to  the   foreigner.'  " 

Kxport    Price   Reduction    in    Forelgrn    Countries. 

Judge  E.  H.  Gary,  Chairman  of  the  Board  of  Directors  of 
the  U.  S.  Steel  Corporation,  in  a  statement  before  the  House 
Committee  (ni  Merchant  Marine  in  April,  1906,  said:  "The 
Great  Britain  home  price  of  rails  is  $31.50  per  ton  and  the  ex- 
port price  of  Great  Britain  is  $25,  f.  o.  b.  their  mills.  In 
Germany  the  home  price  is  $30  and  the  export  price  $24 ;  in 
France  the  home  price  is  $31  and  the  export  price  $25.50;  in 
Austria  the  home  price  is  $31  and  the  export  price  $25.50; 
in  Belgium  the  home  price  is  $30  and  the  export  price  $21 ; 
in  the  United  States  the  home  price  is  $28  and  the  export  price 
about  $26.60.  There  is  less  margin  in  this  country  than  any- 
where else,  and  the  home  prices  abroad,  you  will  observe,  are 
invariably  larger  than  our  home  prices. 

"Now,  take  structural  material,  including  shapes,  plates,  bars, 
angles  and  tees.  In  Great  Britain  the  home  price  is  $1.60 
per  100  pounds  and  the  export  price  $1.35 ;  in  Germany  the  home 
price  is  $1,50  and  the  export  price  $1.25;  in  France  the  home 
price  is  $1.65  and  the  export  price  $1.35;  in  Austria  the  home 
price  is  $1.50  and  the  export  price  $1.35;  in  Belgium  the  home 
price  is  $1.55  and  the  export  price  $1.35;  in  the  United  States 
the  home  price  is  $1.60  and  the  export  price  $1.40.  Our  price 
of  plates  lately  has  slightly  increased  because  of  the  demand. 
Our  customers  generally,  however,  are  covered  for  the  season  at 
about  $1.40.  These  figures  are  taken  from  authoritative  sources 
and  I  think  there  is  no  doubt  that  they  are  reliable.  They 
are  the  figures  ujjon  which  we  are  doing  our  b»isiness  right 
along  every  day." 

"If  you  did  not  have  this  avenue  of  export  "trade  by  which 
you  could  dispose  of  the  surplus  product  which  is  in  excess  of 


THE  TARIFF  AND  EXPORT  TRADE.  Ill 

the  domestic  demand,"  said  Representative  Littlefield,  "you  would 
either  have  to  stop  producing-  and  therefore  lose  the  use  of 
your  mills  and  sustain  a  loss  in  that  respect,  or  you  would  have 
to  carry  the  siirplus  product  on  hand  until  the  demand  was 
created  for  it  elsewhere? 

"Yes ;  but  I  do  not  think  it  would  be  practicable  to  manufac- 
ture and  carry  the  surplus  ;  it  runs  int<)  money  so  fast.  I  think  we 
would  have  to  shut  down  our  mills,  and  you  know  what  that 
means  in  the  disoi-ganization  of  forces.  So  it  really  comes  to 
this :  That  we  would  be  obliged  to  increase  the  cost  of  manu- 
fucture  if  we  could  not  run  at  full  capacity.  That  would  be 
the  inevitable  result." 

Kn^lisli   Attitude  Towards   Trusts. 

The  United  States  Industrial  Commission  made  a  thorough 
investigation  of  trusts  and  trust  operations  in  foreig-n  countries 
as  well  as  in  the  United  States  in  1900,  sending-  an  expert  (Prof. 
J.  W.  Jenks,  of  Cornell  University)  to  the  principal  E  ropean 
ccxuntries  and  g-iving  the  subject  much  careful  atte- tion  and 
study.  The  report  stated  that  "there  is  a  stroug  tendency  to- 
ward the  formation  of  industrial  combinations  everywhere  in 
Europe,"  and  of  the  situation  in  England  says :  "There  were  in 
earlier  days  very  many  local  combinations  to  keep  up  prices, 
and  in  some  cases  these  rings  have  proved  very  successful.  With- 
in the  last  three  years  a  very  active  movement  toward  the  con- 
centration of  industry  into  larg-e  single  corporations,  quite  after 
the  form  that  has  been  common  in  the  United  States,  may  be 
observed.  Nearly  all  the  feeling  that  one  notes  in  England  on 
this  subject  has  reference  to  the  later  corporations  formed  by 
the  buying-  up  of  many  differ*  it  establishments  in  the  same  line 
of  business — corporations  that  through  combination  have  suc- 
ceeded in  acquiring  in  many  particulars  a  good  degree  of  monop- 
olistic control.  *  *  *  Industrial  combinations  in  Europe 
do  not  seem  to  have  awakeneci  t  hp  hostility  m  any  country  that 
is  met  with  in  the  United  States.  In  Eiglmd  one  finds  in 
the  papers  a  little  expression  of  fear  of  the  newer  large  cor- 
porations. The  Government  has  taken  no  action  whatever  re- 
garding them  further  than  to  pass.  August  8,  1900,  an  amend- 
ment to  the  Companies  Act,  which  jirovides  for  greater  publicity 
regarding  the  promotion  and  the  annual  business  of  corporar 
tions  than  before.  *  *  *  There  is,  relatively  speaking,  little 
objection  to  combinations  in  Europe,  and  in  some  cat-es  the 
governments  and  people  seem  to  believe  that  they  are  needed  to 
meet  modern  industrial  conditions.  They  do  believe  that  they 
should  be  carefullj^  supervised  by  the  Government  and,  if  nec- 
essary, controlled.  *  *  *  The  great  degree  of  publicity  in  the 
organization  of  corporations  has  largely  prevented  t'hese  evils 
arising  from  stock  watering,  and  has  evidently  had  "much  effect 
in  keeping  prices  steady  and  reasonable  and  in  keeping  wages 
steady  and  just.  There  seems  to  be  no  inclination  toward  the 
passage  of  laws  that  shall  attempt  to  kill  the  combinations. 
This  is  believed  to  be  impossible  and  unwise.  Laws  should  at- 
tempt only  to  control,  and  that,  apparently,  chiefly  through 
publicity,  though  the  governments  may  be  given  restrictive 
power  in  exceptional  cases." 

Effect  of  Protection  on  Export  Trade. 

One  of  the  assertions  made  and  offered  as  an  argument 
against  protection  is  that  high  tariffs  established  by  a  country 
lead  other  countries  to  discriminate  against  the  products  of  that 
protection  country  and  exclude  them  from  their  markets,  either 
by  adverse  legislation  or  otherwise.  Let  us  see  about  this.  "The 
proof  of  the  pudding  is  in  the  eating."  The  proof  of  the  effect 
of  protective  tariffs  upon  the  export  trade  of  the  countries 
having  such  protection  is  found  in  the  measure  of  the  actual 
growth  of  their  exports  as  compared  with  the  growth  of  coun- 
tries not  having  a  protective  tariff  and  offering  in  the  world's 
markets  the  same  class  of  goods  as  those  offered  by  the  protec- 
tion country.  The  United  States  Bureau  of  Statistics  has  re- 
cently   published   a    Statistical   Abstract    of   the    World,    which 


Ill  THE  TARIFF  AND  EXPORT  TRADE. 

gives  the  exports  of  domestic  products  by  each  of  the  principal 
counti'ies  of  the  world  during  a  long  term  of  years.  It  is  easy, 
then,  to  compare  the  growth  in  exports  by  the  countries  having 
a  protective  tariff  with  that  of  the  single  remaining  nonprotec- 
ted country — the  United  Kingdom.  The  two  most  strongly 
marked  examples  of  protective  tariff  countries^are  Germany  and 
the  United  States,  and  th(v<^'liitvf  free-trade  country  of  the  world 
is  the  United  Kingdom.  These  three  countries  are  also  especially 
suitable  for  contrast  in  the  effects  of  their  respective  tariff 
policies  upon  their  export  trade  by  reason  of  the  fact  that  they 
are  the  ciiief  competitors  for  the  great  markets  of  the  world 
and  the  only  countries  of  the  world  whose  annual  cxpoi-ts  reach 
or  pass  the  billion  dollar  line,  each  of  these  countries  exjjorting 
annually  more  than  one  billion  dollars'  worth  of  merchandise, 
while  no  other  country  of  the  world  has  ever  exported  so  much 
as  one  billion  dollars'  value  of  domestic  products  in  a  siiigle 
year.  Let  us  see,  then,  what  the  effect  of  protection  has  been 
upon  sales  abroad  by  the  United  States  and  Germany,  the  world's 
tnost  conspicuous  examples  of  protective-tariff'  countries,  as  com- 
pared with  the  effect  of  free  trade  upon  exports  from  the 
United  Kingdom,  the  world's  most  marked  example  of  low- 
tariff  countries.  The  Statistical  Abstract,  above  referred  to, 
compiled  from  the  official  figures  of  the  countries  in  question 
and  issued  by  the  Bureau  of  Statistics,  shows  that  the  exports 
of  domestic  products  from  free-trade  tlnited  Kingdom  grew 
from  1,085  million  dollars  in  1880  to  1.828  millions  in  1906, 
an  increase  of  less  than  70  per  cent ;  while  those  froin  protec- 
tion Germany  grew  from  688  millions  in  1880  to  1,364  millions 
in  1905,  an  increase  of  over  100  per  cent ;  and  those  from  protec- 
tion United  States  grew  from  824  millions  in  1880  to  1,854  mil- 
lions in  1907,  an  increase  of  125  per  cent.  This  certainly  does 
not  justify  the  assertion  that  other  countries  discriminate 
against  and  reject  the  merchandise  of  the  country  having  pro- 
tective tariff  laws  and  favor  that  of  countries  having  free  trade. 
While  of  course  the  general  law  of  supply  and  de  and  in- 
fluences in  a  greater  or  less  degree  the  volume  of  exports  from 
year  to  year,  the  experiences  above  cited  are  sufficient  to  clearly 
indicate  that  the  existence  of  a  protective  duty  on  imports  does 
not  result  in  an  exclusion  of  our  exports  by  other  countries, 
since  our  exports  have  increased  enormously  during  the  opera- 
tion of  protective  tariff  laws.  <       "'  ! 

Exports  Under  the  United  States  Tariff. 

Another  and  even  more  striking  illustration  of  the  growth 
of  exports  under  low  tariff  and  protection,  respectively,  is  found 
in  a  study  of  the  detailed  history  of  the  tariffs  and  exprrt  trade 
of  the  United  States.  The  only  protective  tariffs  wh  ch  the 
United  States  had  prior  to  1861  operated  during  the  years  1813- 
16,  1825-33,  and  1843-46,  an  aggregate  of  17  years  prior  to  1861. 
Since  that  time  protective  tariffs  have  covered  the  years  1861-94 
and  1897-1908,  making  the  total  of  the  period  covered  by  protec- 
tive tariffs  62  years,  against  57  years  of  low  tariff,  counting  the 
formative  period  from  1790  to  1812  as  low  tariff".  Thus  the  his- 
tory of  the  United  States  under  the  Constitution  is  about  evenly 
divided  between  protective  tariff  and  low  tariff.  Now,  let  us  see 
the  result  in  its  effect  upon  our  exports  during  those  two  great 
periods  of  protection  and  low  tariff — 62  years  of  protect^! on  and 
57  years  of  low  tariff.  During  the  57  years  of  low  tariff  the  im- 
ports exceeded  the  exports  by  $514,954,931;  during  the  62  years 
of  protective  tariffs  the  exports  exceeded  the  imports  by  over 
5  billion  dollars.  These  statements  are  compiled  from  official 
reports  of  the  United  States  Bureau  of  Statistics  and  their  ac- 
curacy can  not  be  called  into  question.  Does  this  look  as  though 
protective  tariffs  had  the  effect  of  reducing  or  destroying  the 
export  trade? 

Is     There    Danger     of    Knropean     Combinations     Against     the 
United    States    on   Acconnt    of    Our    Tariff? 

Statements  have  been  made  from  time  to  time  that  European 
countries  were  likely,  by  reason  of  the  high  protective  tariff  in 
the  United  States,  to  enter  into  an  agreement  for  the  exclusion 


TSE  TARIFF  AND  EXPORT  TRADE.  118 

of  our  products  from  their  markets.  Ihis  assertion  has  been 
made  over  and  over  again  for  years,  but  more  especially  in  com- 
paratively recent  years.  But  such  action  seems  highly  improbable, 
for  the  following  reasons :  1.  The  countries  in  which  tl  ese  threats 
of  retaliation  are  most  frequently  heard  are  themselves,  in  all 
cases  except  the  United  Kingdom,  protective-tariff  countries, 
and  it  is  unlikely  that  they  would  seriously  and  through  official 
action  complain  of  a  protective  tariff  established  in  any  other 
country.  2.  The  European  countries  can  not  afford  to  exclude 
our  staple  products,  which  are  required  in  such  large  quantities 
by  their  people  and  which  would  advance  in  price  in  their  mar- 
kets if  the  supply  from  the  world's  largest  producer  were  ciit  off. 
3.  The  exclusion  of  these  necessary  products  from  the  United 
States  would  necessitate  their  importation  from  other  countries, 
and  by  reducing  the  supplies  in  these  other  countries  would 
make  markets  for  our  products  in  those  countries  drawn  upon 
or  in  other  countries  from  which  they  had  been  accustomed  to 
draw  their  supplies.  4.  Experiments  of  this  kind  for  the  ex- 
clusion of  our  meats  from  certain  European  countries  have  not 
resulted  in  a  reduction  of  our  total  exports  of  meats  and  other 
provisions.  5.  The  countries  which  have  complained  most  bitter- 
ly of  the  tariff  of  the  United  States  have  steadily  and  rapidly 
increased  their  importations  of  our  products  meantime.  6. 
During  the  very  period  in  which  the  talk  of  exclusion  from 
European  countries  of  American  manufactures  have  been  made, 
our  exports  of  manuf^-ctures  to  those  countries  have  most  rapidly 
increased. 

As  to  the  first  proposition,  it  is  from  the  European  countries 
that  the  threats  of  retaliation  against  the  protective-tariff  laws 
of  the  United  States  are  most  frequently  heard.  Yet  all  of  the 
leading  countries  of  Europe,  with  the  exception  of  the  United 
Kingdom,  have  within  comparatively  recent  years  adopted  pro- 
tective-tariff systems  and  in  most  cases  are  now  increasing  or 
proposing  to  increase  their  rates  of  duty  for  the  avowed  pur- 
pose of  making  their  tariffs  more  thoroughly  protective.  In  the 
case  of  the  United  Kingdom,  the  only  European  country  of  im- 
portance not  having  a  protective  tariff,  the  adoption  of  a  pro- 
tective system  is  being  strongly  urged.  It  seems  highly  improb 
able  that  a  country  officially  adopting  a  tariff  system  with  the 
explicit  purpose  of  protecting  its  own  industries  would  complain 
of  like  action  on  the  part  of  any  other  country,  even  if  the  rates 
which  that  country  imposes  were  higher  than  those  which  it 
imposes. 

Retaliation   a   Boomerang,-. 

The  European  countries  in  question  are  large  consumers  of 
the  great  products  of  the  United  States — cotton,  whe^it,  corn, 
meats,  and  other  forms  of  provisions — as  well  as  of  manufac- 
tures. The  United  States  is  the  world's  largest  producer  of  every 
one  of  these  articles.  She  produces  three-fourths  of  the  cotton 
of  the  world ;  three- fourths  of  its  corn ;  three-fifths  of  the  wheat 
entering  the  European  markets  from  extra-European  co  mtries; 
and  two-fifths  of  the  meats  which  enter  into  international  com- 
merce. The  European  countries,  with  possibly  one  or  two  ex- 
ceptions, do  not  produce  a  sufficient  supply  of  these  articles  for 
their  respective  home  markets.  They  must  buy  them  in  large 
quantities  from  some  other  part  of  the  world.  One  important 
effect  of  excluding  from  their  markets  the  products  of  the 
world's  principal  source  of  these  various  articles  must  be  to  in- 
crease in  their  home  markets  the  prices  of  those  articles.  If 
through  concerted  action  by  these  countries  three-fourths  of  the 
world's  supply  of  cotton  (produced  in  the  United  States)  were 
excluded  from  their  markets  naturally  the  price  for  the  remain- 
ing one-fourth  of  the  world's  cotton,  wherever  produced,  would 
advance  greatly,  and  this  principle  would  apply  in  the  exclusion 
of  any  of  the  great  products  of  which  the  United  States  exports 
a  sufficiently  large  percentage  to  make  absence  of  its  product 
a  factor  in  determining  prices.  Imagine  the  effect  upon  the 
price  of  wheat  if  three-fifths  of  the  extra-European  supply  for 
European  markets  were  destroyed  in  a  single  hour  or  day.  Im- 
agine the  effect  upon  prices  of  meats  if  40  per  cent  of  the 
world's  available  supply  for  the  international  trade  were  wiped 


114  THE  TARIFF  AND  EXPORT  TRADE. 

out  of  existence.  Note  the  effect  upon  the  price  of  cotton  due 
to  a  small  shortage  in  the  crop  of  the  United  States,  and  con- 
sider what  would  be  the  effect  if  all  of  the  cotton  supply  of  the 
United  States- — three-fourths  of  that  which  the  world  produces — 
were  shiit  out  of  the  markets  demanding  that  cotton. 

Even  if  certain  counti'ies  were  to  exclude  the  great  products 
of  the  United  States  from  their'  markets  they  would  be  com- 
pelled to  draw  their  supply  from  some  other  country  or  coun- 
tries, and  the  products  of  the  United  States  would  find  heir 
markets  in  those  countries  thus  drawn  upon  or  in  the  countries 
to  which  they  had  formerly  furnished  their  surplus.  The  world's 
production  of  the  requirements  of  rnan — cotton,  corn,  wheat, 
provisions — is  no  more  than  the  quantity  required  by  the  various 
parts  of  the  world  which  are  now  brought  into  such  close  com- 
mercial relationship  by  reason  of  cheap  transportation,  and  if 
through  the  exclusion  of  our  products  from  certain  countries 
the  products  of  other  countries  were  drawn  upon  to  supply  those 
markets  our  products  would  in  turn  find  a  sale  in  the  other  parts 
of  the  world  thus  affected  by  that  change  in  supply.  These 
great  requirements  of  man  for  food  and  clothing,  demanded  as 
they  are  in  every  part  of  the  world,  and  easily  transported  to 
any  given  spot,  like  water,  seek  their  level,  and  the  exclusion  of 
our  products  from  one  country'  or  group  of  countries  would 
simply  result  in  their  finding  markets  in  the  spot  from  which 
those  consuming  countries  might  draw  their  supply. 

Results    of    E^xperinienis    in    Retaliation. 

Certain  experiments  in  the  exclusion  or  attempt  to  exclude 
American  products  have  been  made  in  European  countries  during- 
the  past  twenty  years,  and  the  effect  of  those  experiments  upon 
our  sales  of  the  articles  in  question  is  worth  noting.  Beginning 
agout  twenty  years  ago  certain  of  the  European  countries  began 
the  exclusion  of  certain  classes  of  meats  from  the  United  States, 
charging  that  they  were  dangerous  to  public  health  by  reason  of 
the  presence  of  trichinae  in  hogs,  Texas  fever  and  other  diseases 
in  cattle,  and  upon  other  but  somewhat  similar  grounds.  These 
rulings  or  legislation  against  American  meats  extended  from 
country  to  country  upon  various  pretexts  during  a  series  <  , 
years  down  to  a  very  recent  date,  proving  in  each  case  more  or 
less  a  barrier  against  the  meat  products  of  the  United  States. 
They  resulted  in  some  cases  in  more  stringent  export  regulations 
by  the  United  States,  and  in  some  cases  in  a  modification  of  the 
legislation  or  regiilations  in  the  country  of  importation,  and 
the  net  result  has  been  a  steady  growth  in  the  exportation  of 
provisions  from  the  United  States  during  the  very  period  in  ques- 
tion. The  total  value  of  provisions  and  animals  for  food  ex- 
ported from  the  United  States  in  1880,  the  approximate  date  at 
which  this  adverse  movement  against  provisions  from  the  United 
States  began,  was  130  million  dollars,  and  237  millions  in  1907, 
a  growth  of  more  than  100  million  dollars  in  exports  of  pro- 
visions and  live  animals  for  food  purposes  during  the  very  period 
in  question,  and  a  very  large  proportion  of  this  growth  was  in 
exports  of  those  articles  to  European  countries. 

Another  evidence  of  the  indisposition  of  other  countries  to 
attempt  to  exclude  the  required  products  of  the  United  States 
from  their  markets  is  found  in  the  fact  that  although  a  dozen 
of  the  great  countries  of  the  world  simultaneously  protested 
against  the  Dingley  tariff  act,  no  one  of  those  countries  ex- 
cluded any  of  the  products  of  the  United  States  following  the 
enactment  of  that  law  or  even  reduced  by  a  single  dollar  the 
value  of  their  purchases  from  this  country.  These  protests, 
while  not  a  joint  action,  and  while  relating  in  some  cases  to  dif- 
ferent features  of  the  act  from  those  complained  of  by  other 
protesting  countries,  were  practically  simultaneous,  and  as  the 
passage  of  the  act  without  recognition  of  their  protest  was  a 
simultaneous  rejection  by  the  United  States  of  those  protests, 
the  occurrence  offered  to  them  a  special  and  unique  opportunity 
for  combined  action  in  excluding  our  products  from  their  mar- 
kets. Yet  not  a  single  one  of  those  countries  took  such  action, 
and  in  no  case  did  they  reduce  their  purchases  from  the  United 
States.     On  the  contrary,   our   exports  to  every   one  of  the   12 


TSa   TARIFF— AGREBMSNT  WITH    QBRMAN7.         115 

countries  have  increased.  Our  exports  to  the  12  countries  which 
protested  against  the  act  in  question  were  in  1896  $618,688,000, 
and  in  1907  $1,220,000,000,  an  increase  of  about  100  per  cent  as 
compared  with  1896,  tlie  year  prior  to  that  in  which  these  pro- 
tests were  made.  (See  table  of  countries  protesting  against 
Dingley  law,  and  exports  to  them.) 

Besides,  the  complete  power  of  the  United  States  to  pro- 
tect itself  against  retaliation  must  not  be  overlooked.  The  only 
countries  from  which  there  could  be  any  possibility  of  danger 
are  the  leading  industrial  and  commercial  nations  of  Europe, 
Their  policy  is  protective,  so  is  ours.  But  if  they  are  compelled 
to  buy  largely  of  our  products  from  necessity,  we  buy  largely  of 
theirs  from  choice.  We  are  among  their  best  customers.  "What 
they  buy  of  us  are  necessaries ;  what  we  buy  of  thorn  are  chiefly 
luxuries.  If  they  were  to  proscribe  our  products  we  could  more 
easily  proscribe  theirs.  So  long  as  we  maintain  the  protective 
policy  we  can  defend  ourselves ;  the  more  we  advance  towards 
free  trade  the  fewer  weapons  of  defense  we  hold. 

Thus,  both  the  logic  of  the  situation  and  our  actual  experi- 
ence with  adverse  legislation  and  threats  of  such  legislation  fail 
to  justify  the  assertion  that  our  products  of  any  class  are  being 
excluded  or  are  likely  to  be  excluded  from  the  markets  of  other 
countries  by  reason  of  our  protective  tariff. 

Our  Elxportfl   of  Manufactures   Gain  More  Rapidly  tlian  tbose 
of  Natural  Products. 

To  the  argument  that  the  world  must  have  our  natural  pro- 
ducts and  hence  our  freedom  from  danger  of  adverse  combina- 
tions against  them  an  answer  might  be  made  that  our  chief 
concern  is  in  the  exports  of  manufactures.  True,  but  has  the 
existence  of  our  protective  tariff  affected  adversely  our  exports 
of  manufactures?  The  exports  of  manufactures  in  the  fiscal 
year  1897,  the  last  year  under  the  low  tariff  Wilson  law,  were 
311  million  dollars;  in  1907  they  were  740  million  dollars,  an 
increase  of  about  150  per  cent.  During  that  same  period  the 
exports  of  all  articles  other  than  manufactures  increased  from 
721  millions  in  1897  to  1,114  millions  in  1907,  an  increase  of 
about  50  per  cent.  Thus  ohr  exports  of  manufactures  have  in- 
creased about  150  per  cent  and  those  of  all  other  articles  about 
50  per  cent  during  the  existence  of  the  highly  protective  Dinglby 
law. 

Protective  Tariff  as   a  Revenue  Producer. 

In  the  matter  of  revenue  the  contrast  between  low  and  pro- 
tective tariff  is  equally  striking.  In  the  57  years  of  low  tariff 
no  less  than  22  of  the  total  showed  an  excess  of  expenditures 
over  receipts  by  the  Government ;  while  in  the  62  years  of  pro- 
tective tariffs  46  of  the  total  showed  an  excess  of  receipts  over 
expenditures.  Of  the  16  years  under  protective  tariffs  in  which 
the  expenditures  exceeded  the  revenues  no  less  than  nine  were 
war  periods,  when,  necessarily,  expenditures  exeeeded  receipts 
from  ordinary  sources,  while  in  only  two  of  the  years  in  which 
deficits  occurred  under  low  tariffs  could  that  deficiency  be 
charged  to  war  conditions.  The  war  of  1812-14,  the  civil  war, 
and  the  war  with  Spain  all  occurred  during  protective-tariff 
periods ;  while  the  war  with  Mexico  occurred  during  a  low- 
tariff  period.  (See  statement  and  table  on  this  subject  on  an- 
other page  of  this  volume.) 


TARIFF    AGREEMENT    WITH    GERMANY,    JULY    1,    1007. 

In  1906,  a  new  tariff  went  into  operation  in  the  German 
Empire,  constructed  in  accordance  with  the  modern  European 
method  of  tariff  making.  It  consists  of  a  so-called  "general"  or 
"autonomous"  tariff,  which  is  applied  to  imports  from  countries 
which  have  no  commercial  treaties  with  Germany,  and  a  "con- 
ventional" tariff,  comprising  the  reduced  tariff  rates  which  are 
granted  to  nations  with  whom  such  treaties  are  negotiated.  The 
rates  of  duty  imposed  by  the  general  tariff  are  much  higher  — 


116         THE   TARIFF— AGREEMENT   WITB    OERMANT. 

in  many  oases  more  than  double — the  "conventional"  duti«i. 
In  accordance  with  the  terms  of  this  tariff,  Germany  has  nego- 
tiated reciprocity  treaties  with  some  ten  European  nations,  and 
it  is  her  intention  to  negotiate  similar  treaties  with  every  nation 
in  the  world  with  which  she  has  a  commerce  of  any  importance. 

By  the  terms  of  her  tariff  act,  the  higher  rates  of  duties 
would  have  automatically  applied  to  all  dutiable  goods  imported 
from  the  United  States  into  Germany  after  March  1,  1906.  The 
attention  of  the  United  States  Government  was  drawn  to  this 
fact  by  a  diplomatic  note  from  the  German  ambassador,  dated 
November  4,  1905,  accompanied  by  a  friendly  expression  of  the 
desire  of  the  German  government  to  enter  into  a  commercial 
arrangement  with  the  United  States  under  which  the  same 
treatment  would  be  accorded  to  her  exjjorts  to  Germany  as  to 
those  from  other  countries  with  which  she  had  commercial 
treaties.  As  a  result  of  the  correspondence  that  ensued,  a  "Pro- 
visorimn"  was  agreed  to,  and  subsequently  ratified  by  the  German 
Reichstag,  by  the  terms  of  which  the  application  of  the  higher 
German  tariff  rates  to  American  goods  was  postponed  for  one 
year  and  four  months,  pending  the  formal  negotiation  of  a 
commercial  agreement  laetween  the  two  countries. 

To  arrange  the  details  of  such  an  agreement,  the  President 
sent  a  tariff  commission  to  Germany  in  November,  1906,  con- 
sisting of  S.  N.  D.  North,  Director  of  the  Census ;  James  L. 
Gerry,  Chief  of  the  Customs  Division  of  the  Treasury  DepArt- 
ment,  and  N.  I.  Stone,  tariff  expert  of  the  Department  of 
Commerce  and  Labor.  This  conmiission  spent  two  months  in 
Berlin  in  daily  conference  with  a  commission  of  twelve  experts 
designated  by  the  various  departments  of  the  German  govern- 
ment. It  brought  back  two  tentative  plans  for  the  adjustment  of 
the  tariff  differences  between  the  two  nations.  One  was  a  com- 
plete reciprocity  treaty,  framed  in  accordance  with  the  terms 
of  the  German  treaties  with  other  countries.  The  alternative 
proposition,  which  was  temporary  in  character,  was  signed  by 
the  President,  Jur..  1,  1907,  and  was  subsequently  ratified  by 
the  German  Reichstag.  Under  its  terms  it  remains  in  effect 
from  July  1,  1907,  until  June  30,  1908,  and  thereafter  for  six 
months  from  the  date  uj^on  which  either  nation  shall  have  given 
notice  of  its  intention  to  terminate  the  agreement.  In  other 
words,  the  agreement  may  continue  indefinitely,  while  it  is  at 
the  same  time  within  the  power  of  either  nation,  in  the  event 
that  it  does  not  operate  to  its  satisfaction,  to  terminate  it  upon 
six  months'  notice. 

Under  the  agreement  about  95  per  cent  of  the  United  States 
exports  to  Germany  retain  the  benefit  of  the  minimum  tariff 
thereon.  The  articles  affected  include  cereals,  fruits,  and 
other  farm  products,  meats,  lumber,  boots  and  shoes,  all 
sorts  of  mauTifactures  of  leather,  paper,  glass,  iron  and  steel, 
all  forms  of  electrical  appliances,  agricultural  implements,  ma- 
chinery, arms,  watches,  etc. 

It  remains  to  summarize  the  concessions  which  the  United 
'States  has  granted  in  return.  The  agreement  was  negotiated  under 
the  provision  of  section  3  of  the  tariff  act  of  1897.  JJnder  a  prior 
agreement  with  Germany,  that  country  received  all  the  con- 
cessions in  the  way  of  reduced  duties  permitted  under  fhis 
section,  except  the  remission  of  20  per  cent  of  the  duty  on 
champagne.  Champagne  is  a  product  of  France,  and  not  to  any 
extent  of  Germany.  The  German  manufacture  of  sparkling  wines 
is  insignificant  and  the  concession  to  Germany,  permissible  un- 
der this  item,  only  served  the  purpose  of  the  basis  upon  which 
to  hang  certain  modifications  in  the  Treasury  and  Consular 
Regulations  for  the  administration  of  our  customs  laws,  as  fol- 
lows :  That  in  all  reappraisement  cases  the  hearings  shall  be 
open  unless  the  appraisers  shall  certify  to  the  Secretary  of  the 
Treasury  that  the  public  interests  will  suffer  thereby ;  that  the 
"market  value"  of  imported  goods,  whenever  such  goods  are 
made  and  sold  wholly  for  export,  so  that  there  can  exist  no 
domestic  value  established  by  sale,  shall  be  the  export  price  of 
the  goods  in  question ;  that  certificates  of  invoices  issued  by  the 
German  chambers  of  commerce,  which  are  conducted  under  the 
supervision  of  tfee  German  government,  shall  be  accepted  by 
our   appraisers  as   "competent   evidence"    (not   necessarily   con- 


THE  TARIFF— STEEL  RAILS. 


117 


elusive),  and  considered  in  connection  with  ail  other  evidence, 
w^henever  the  appraisement  of  goods  imported  from  Germany  is 
under  consideration  ;  that  all  agents  of  the  United  States  gov- 
ernment sent  to  Germany  in  connection  with  the  administration 
of  the  customs  tariff  shall  be  dul}^  accredited  to  the  German 
government,  and  certain  other  minor  modifications  in  the  con- 
sular regulations,  the  effect  of  which  is  to  save  exporters  to  the 
United  States  from  personal  appearance,  duplicate  invoices,  etc. 


Production  and   Prices   of  Bessemer   Steel  Rails  in   tlie  United 

States. 

The  following  table  gives  the  annual  production  in  gross  tons 
of  Bessemer  steel  rails  in  the  United  States  from  1867  to  1907, 
together  with  their  average  annual  price  at  the  works  in  Penn- 
sylvania, and  the  rates  of  duty  imposed  by  our  Government  at 
various  periods  on  foreign  steel  rails.  Prices  are  given  in  cur- 
rency. 

[Note   the  pyramid  of   production,    the  inverted   pyramid   of   prices,   and  the 
reduction  in  the  duty.] 


Years. 

Gross  tons 

Price. 

1867 - 

2,277 

$166.00 

1868 - 

6,451 

158.46 

im.)    

8,616 
30,357 

132.19 

1870 

106.79 

1871 ■- 

34,152 

102.52 

1872 

8^,991 
115,192 

111.94 

1873. 

120.58 

1874 - 

129,414 
259,699 

94.28 

1875 

1876 

368,269 
385,835 

59.25 

1877 

45.58 

1878 

491,427 
610,682 

42.21 

187i)      

48.21 

1880 

852,196 
1,187,770 

67.52 

1S81    

61.08 

1882 

1,284,067 

48. .50 

1883 

1,148,709 
996,983 
059,471 

37.75 

188-1 

30.75 

1885 

28.52 

1886 

1,574,71/8 

34.52 

1887 

2,101,904 

37.08 

1888 

1,386,277 

29.83 

1880 

1,510,057 

29.25 

18)0 

1,867,837 

31.78 

1891 

1,293,053 

29.92 

18)2 

1,537,588 

30.00 

18')3 

1,129,400 

28.12 

189 ! 

1,016,013 

1,299,628 

24.00 

1895 

2f.33 

1893 

1,116,958 

28.00 

1897 

1,644,520 

18.75 

1898 

1,976,702 

17.62 

1899 

2,270,585 

28.12 

ITOO 

2,38?,  654 

32.20 

1901 

2,870,816 

27.33 

1902 

2,935,392 

28.00 

1903 

2,946,756 

28.00 

1901 

2,137,957 

28.00 

1905 . 

3,192,317 
:!,791,45') 

28  00 

1906 

28.00 

1907 

3,380.025 

28.00 

Duty. 


45  per  cent  ad  valorem  to  January 
1,    1871. 


$28.00  per  ton  from  January  1, 
1871,  to  August  1.  1872;  $25.20 
from  August  1.  1872.  to  March  3, 
1875;  .$28.00  from  March  3.  1875, 
to  July  1.  1883. 


$17.00  per  ton  from  July  1,  1883.  to 
October  6,    1890. 


$13.44  per  ton  from  October  6. 
to   August   28,    1894. 


$7.84  per  ton  from  August  28, 
to  date. 


1890. 


Tlie  fiaestion  of  tariff  i-evision  stands  Tvliolly  apart  from 
tlie  question  of  dealini^  ^vitli  the  trusts. — President  Roose- 
velt   at    Minneapolis,   April   4,    1903. 

No  cliang'e  in  tariff  duties  can  have  any  substantial  effect 
in  solving^  the  so-calld  trust  problem.— President  Roosevelt 
at    Minneapolis,   April  4,   1903. 

Anythingr  that  makes  capital  idle,  or  which  reduces  or 
destroys  It,  must  reduce  both  vrages  and  the  opportunity 
to  earn  wages.  It  only  reawires  the  effects  of  a  panic  through 
Tvhich  ive  are  passing',  or  througrh  which  -wve  passed  in 
1893  or  1873,  to  shovr  hoTV  closely  united  in  a  common  in- 
terest vre  all  are  in  modern  society.  We  are  in  the  sante 
boat,  and  financial  and  business  storms  ivhich  affect  one 
are  certain  to  affect  all  others.— Hon.  Wm.  H.  Taft,  before 
the    Cooper   Union,    New^   York    City. 

One  vital,  dominatingr  fact  confronts  the  Democratic 
party  -  vt^hich  no  oratory,  vrhich  no  eloquence,  ^vhieh  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New    York    World. 


lit 


THV  TARIFF— EFFECT  ON  EXPORT  TRADE. 


Selling  price  of  iron  ore  and  price  of  pig  iron  at  date  of  buying 
movement,  189j^  to  1008. 

[Furnished  by  Mr.  George  Smart,  Editor  of  the  Iron  Trade  Review.] 


Date  of  buying 
movement. 

Season  Iron  ore  prices. 

Iron  prices. 
Valley. 

8«MOn. 

4 

a  a 

-OS 

'M 

1 

1 

r^ 

^§ 

a;  O  4) 

1 

""ni 

O^ 

a^ 

o«" 

jg  0  ca 

2i^ 

Dollars 

Dollars 

Dollars 

Dollars 

Dollars 

Dollars 

1894 

March  1,   1894 

2.75 

2.35 

2.50 

9.65 

9.65 

1895 

April    1.    1895 

2.90 

2.15 

2.25 

1.90 

9.40 

9.40 

1896 

May   1,    1896 

4.00 

3.50 

2.70 

2.25 

12.40 

11.15 

1897 

May   20,    1897 

2.60 

2.25 

2.15 

1.90 

8.35 

8.40 

1898— 

March   20,    1898 

2.75 

2.25 

1.85 

1.75 

9.55 

9.80 

189i)-. 

February    1,    1899— 

3.00 

2.40 

2.15 

2.00 

10.30 

9.75 

1900 

December    15.    1899.. 

5.50 

4.50 

4.25 

4.00 

2i.l5 

22.15 

U)01 

April   15,    1901 

4.25 

3.25 

3.00 

2.75 

16.15 

14.40 

1902 

February  1,   1902 

4.25 

3.25 

8.25 

2.75 

15.90 

15.90 

1908 

March  20,   1903.    ... 

4.50 

4.00 

3.60 

3.20 

21.50 

21.65 

1904 

April   15.    1904 

3.25 

3.00 

2.75 

2.50 

13.35 

13.15 

1905- 

February  1,  1905 

3.75 

3.50 

3.20 

3.00 

15.50 

16.00 

1906 

December  5,   1905-.. 

4.25 

4.00 

8.70 

3.50 

17.25 

17.25 

1907— 

November  10.   1906.. 

5.00 

4.75 

4.20 

4.00 

21.50 

21.50 

1908 

June   18,    1908. 

4.50 

4.25 

8.70 

3.50 

16.00 

15.00 

Grofvth  of  Imports  anci  Bxports  of  Manufactures  in  tUe 
United  Kingdom  and  United  States,  respectively,  from 
1870  to  1907. 

This  table,  which  shows  the  value  of  manufactures  imported 
into  and  exported  from  the  United  States  and  United  Kingdom, 
respectively,  at  quinquennial  periods  from  187G  to  1907,  is  es- 
pecially interesting  in  view  of  the  fact  that  it  compares  the  trade 
in  manufactures  of  the  United  States  under  protection  with 
that  of  the  United  Kingdom  under  free  trade.  It  will  be  noted 
that  the  increase  in  imports  of  manufactures  into  the  United 
Kingdom  has  been  more  rapid  than  that  into  the  United  States 
and  that  the  percentage  of  growth  in  exportations  of  manu- 
factures from  the  United  States  has  been  much  greater  than 
from  the  United  Kingdom.  The  United  Kingdom's  importations 
of  manufactures  grew  from  $277,000,000  in  1870  to  $762,000,000 
in  1907,  an  increase  of  considerably  more  than  200  per  cent, 
while  those  of  the  United  States  grew  during  the  same  period 
from  $229,000,000  to  $638,000,000,  an  increase  of  considerably  less 
than  200  per  cent.  In  the  exports  of  manufactures  the  contrast 
is  much  more  strongly  marked ;  the  exports  of  manufactures 
from  the  United  Kingdom  were  $888,000,000  in  1870  and  $1,690,- 
000,000  in  1907,  a  gain  of  a  little  less  than  100  per  cent,  while 
those  from  the  United  States  grew  from  $70,000,000  in  1870  to 
$740,000,000  in  1907,  an  increase  of  nearly  1,000  per  cent. 

This  seems  to  disprove  the  frequent  assertion  of  the  Demo- 
crats that  a  protective  tariff  at  home  destroys  our  chances  for 
selling  abroad. 


Exports  of  Manufactures  and  Total  Exports  of  Domestic  Mer- 
cbandlse  from  tlie  United  States,  United  King^dom,  and 
Germany,   from  1875  to   1907. 

The  table  which  follows  shows  the  imports  and  exports  into 
and  from  free  trade  United  Kingdom,  and  protective  Germany, 
and  the  United  States,  respectively,  from  1875  to  1907  ;  also  the 
exports  of  manufactures  from  each  of  those  countries  during 
that  period.  It  is  interesting  to  note  that  the  total  exports  of 
the  United  States  have  grown  more  rapidly  than  those  of  either 
Germany  or  the  United  Kingdom,  and  the  growth  in  the  exports 
of  manufactures  has  been  much  more  rapid  than  in  either  of 
those  countries.  Manufactures  exported  from  the  United  King- 
dom amounted  to  $979,000,000  in  1875  and  in  1907  to 
$1,690,000,000,  having  thus  increased  less  than  75  per  cent,  dur- 


TEE  TARIFF  AND  EXPORT  TRADE, 


lift 


ing-  that  time.  Those  from  Germany  grew  from  $460,000,000  in 
!S80  (no  data  for  1875)  to  $1,047,000,000  in  1906,  an  increase  of 
about  130  ])er  cent.,  while  those  from  the  United  States  grew 
from  $102,000,000  in  1875  to  $740,000,000  in  1907,  an  increase  of 
over  625  per  cent.  Tliis  seems  to  pretty  thoroughly  dispose  of 
the  statement  that  protection  injures  the  export  trade  of  the 
l)rotected  country. 


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120  THE  TARIFF. 

Importation  of  manufactures  into  United  Kinudom  and  United 
States,  respectively^  at  quinquennial  years,  1S70  to  1001. 

[From    official    statistics    of   the    respective    goveruments.] 

Into  the  United  Into  the  United 
Kingdom.  States. 

Year,  Millions  dollars.  Millions  doll 

1870 277  229 

1875 354  241 

1880 405  307 

1885 406  261 

1890 478  348 

1895 483  296 

1900 OHO  337 

1905 707  430 

1907 762  638 

Exportation  of  manufactures  from  United  Kingdom  and  United 

States,  respectively,  at  quinquennial  years,  1870  to  1901. 

[From  official  statistics  of  the  respective  governments.] 

From  the  United  From  the  United 

J\inyfl'm.  States. 

Year.                                                               Million.s  dollars.  Millions  dollars. 

1870 888  70 

1875 .           979  102 

1880 965  122 

1885    915  150 

1890 T 1,112  179 

1895 941  205 

1900 1,126  485 

1905 1.329  611 

1907 1.690  740 


Growtli  of  Exports  to  tlie  Countries  Ti^hichi  Protested  Against 
the  Dingley  Tariflf  Bill. 

This  table  gives  a  full  list  of  the  countries  which  protested 
against  the  Dingley  tariif  bill  during  its  consideration,  and 
the  value  of  merchandise  exported  thereto  in  the  year  prior  to 
the  consideration  of  that  measure  and  of  their  protest,  and 
compares  with  those  figures  the  exports  to  those  same  countries 
in  1898  (the  year  immediately  following  the  enactment  of 
the  tariff  law)  and  in  1907,  the  latest  year  for  which  figures 
are  now  available.  It  will  be  seen  that  despite  the  protests 
against  the  Dingley  bill  and,  in  some  cases,  implied  threats  of 
exclusion  of  American  products  in  case  the  bill  should  become 
a  law,  the  exports  to  those  countries  have  in  ev6ry  case  greatly 
increased,  the  total  exports  to  those  countries  in  1907  being 
practically  double  those  of  1896,  the  year  prior  to  the  enact- 
ment of  the  law. 

Exports  from  the  United  States  to  the  countries  which  protested 
against  the  Dingley  tariff  hill,  showing  increase  in  exports 
after  enactment  of  the  law. 


Countries. 


Year  ending  June  80— 


United  Kingdom  

Germany    

Netherlands    

Belgium    <. 

Italy    — "_ 

Japan    

Denmark    

China    

Argentina    

Austria-Hungary    

Greece 

Switzerland    

Total   to   countries. 


1896. 

lb98. 

1907. 

$105,741,339 

$540,940,605 

$607.783,2.55 

97,897.1OT 
«9, 022, 899 

155,039,972 

256,595.663 

64,274,524 

104,507,716 

27,070,625 

47,619,201 

51.493,044 

19,143,606 

23,290,858 

61,746,965 

7,889,685 

20,385,041 

38,770,027 

6,557,448 

12,697,421 

23.384,989 

6,921,933 

9,992,894 

25, 704.. 532 

5,979,046 

6,429,070 

32.163,336 

2.439,651 

5,697,912 

15,136,185 

191,048 

127,5.59 

1,634, 4;n 

32,954 

263,970 

612,. 579 

$618,687,429 

$886,759,027 

$1,219,532,722 

THE  TARIFF— PRINCIPAL  SYSTEMS  OF  THE  WORLD.  121 


MODERN  TARIFF  SYi)TEMS   OF  THE  WORLD. 


Three  types  of  tariff  systems  have  been  adopted  by  leading 
nations  during-  the  more  recent  period.  The  earliest  type  is  the 
single,  or  "autonomous,"  tariff.  It  is  made  up  of  schedules  or 
rates  which  apply  uniformly  to  imports  from  all  countries,  no 
favor  or  discrimination  being  shown  to  any  one  of  them.  It  is 
also  called  "autonomous"  because  it  is  the  result  of  domestic 
legislation  only,  with  regard  primarily  to  the  wants  and  inter- 
ests of  national  industry.  While  the  character  of  such  autono- 
mous legislation  is  in  most  cases  protective,  this  is  not  an  ab- 
solutely essential  element  of  the  autonomous  tariff.  Cases  are 
possible  where  a  tariff  of  this  character  may  be  constructed 
along  free  trade  lines. 

The  only  example  of  an  autonomous,  non-protectionist  tariff 
is  presented  by  the  British  tariff,  the  duties  of  which  are  purely 
fiscal  in  character  and  therefore  not  adapted  for  change  or  re- 
duction by  tariff  agreements. 

The  tariff  systems  adopted  by  most  countries  of  the  European 
continent  differ  from  the  British  sj^stem,  each  tariff  having  a 
double  column  of  rates.  The  rates  in  the  second  columns  are  of 
course  never  higher  than  in  the  first  column,  and  as  a  rule — 
lower. 

In  case  this  double  set  of  rates  is  the  result  of  domestic 
legislation  and  the  mere  application  of  these  rates  to  the  vari- 
ous countries  the  result  of  international  bargaining,  the  tariff 
is  designated  as  a  "maximum  and  minimum"  tariff.  Examples 
of  this  system  are  presented  by  the  tariffs  of  France,  Spain, 
and  Norway,  as  well  as  Ijy  the  recent  tariff  of  Canada.  When- 
ever this  second  set  of  rates  is  primarily  not  the  result  of  do- 
mestic legislation  but  of  international  bargaining,  such  a  tariff 
is  spoken  of  as  a  "general  and  conventional"  tariff.  Typical 
representatives  of  the  cojiventional  system  are  the  German, 
Austro-Hungarian,  Italian,  Swiss,  and  the  most  recent  Russian 
tariffs. 

The  Maxlmnm  and   Minininm    System    Described. 

As  can  be  seen  from  the  short  definitions  just  given,  both  the 
"maximum  and  minimum"  and  the  "general  and  conventional" 
tariff  systems  presuppose  international  bargaining  and  agree- 
ments. The  difference  between  the  two  systems  is,  that  in  the 
case  of  the  maximiim  and  minimum  tariff  systems  the  legislative 
body  of  the  country  from  the  outset  fixes  the  limits  within  which 
concessions  to  foreign  countries  can  be  made  by  the  Executive. 
After  this  type  of  tariff  has  been  adopted  by  the  national  legis- 
lature the  domestic  producer  is  assured  of  a  minimum  degree  of 
protection  which  cannot  be  reduced  by  the  Executive  through 
negotiations  with  foreign  countries.  Furthermore,  the  legis- 
lature may  restrict  the  number  of  articles  to  which  two  sets 
of  rates  are  applicable.  For  example,  the  French  tariff  provides 
only  for  a  single  rate  of  duties  for  the  principal  breadstuffs. 

Tlie    Con-v^entional     System    Described. 

In  the  case  of  the  general  and  conventional  tariff  sj-^stems  the 
legislature  fixes  from  the  outset  one  set  of  duties  only,  which 
is  sometimes  called  the  autonomous  set,  being  the  result  of  au- 
tonomous national  legislation.  The  process  by  which  the  second 
set  of  duties  is  attained  is  normally  as  follows :  Country  A  and 
Country  B,  both  having  passed  the  aiitonomous  tariffs,  open 
negotiations  through  specially  appointed  agents  with  the  view 
of  obtaining  reciprocal  concessions  from  the  rates  found  in  the 
respective  autonomous  tariffs.  Assuming  that  Country  A  is  an 
exporter  of  agricultural  and  mining  products,  its  negotiator^ 
naturally  will  attempt  to  obtain  reductions  of  duty  on  the  above 
products  without  paying  any  attention  to  the  autonomous  rates 


122  THE  TARFFr— PRINCIPAL  SYSTEMS  OF  THE   WORLD. 

found  in  the  tariff  of  "Country  A"  on  articles  in  the  exportation 
of  which  th(Mr  country  is  not  interested.  In  case  Country  B  is 
an  exporter  of  textiles  and  chemicals  tlie  ne{>()tiat.ors  rej)resent- 
injjf  Country  B  will  be  interested  in. having  tlie  rates  on  these 
products  only  reduced  by  Country  A.  If  the  concessions  granted 
by  one  side  are  found  to  be  eqiiivalent  to  those  granted  by  the 
other,  new  sets  of  rates  will  be  constructed  which,  as  a  rule, 
will  be  lower  in  either  tariff  than  the  rates  on  the  same  arti<les 
adopted  oi-iginally  by  the  legislatures  of  the  two  countries. 
Sometimes  the  result  of  such  negotiations  is  that  some  conven- 
tional rate  adopted  does  not  differ  from  the  original  autonomous 
rate,  but  is  merely  "fixed"  or  "bound"  for  the  period  of  time* 
during  which  the  tariff  agreement  is  to  last.  The  conventional 
tariff'  schedule  which  results  from  such  negotiations  is  therefore 
composed  of  reduced  and  "bound"  or  "fixed"  rates.  The  gen- 
eral schedule  may  be  changed  at  any  time  without  breaking  any 
of  the  conditions  of  the  treaty;  the  conventional  rates  must  re- 
main in  force  during  the  lifetime  of  the  treaty  and  can  be 
changed  by  the  consent  of  both  parties  only. 

Such  negotiations  usually  are  carried  on  with  more  than  one 
country  and  result  in  redactions  or  binding  of  rates  on  various 
groups  of  articles  in  the  exportation  of  which  the  particular 
countries  are  interested.  In  case  a  country  does  not  care  to 
enter  into  such  special  tariff  negotiations,  relying  merely  on  the 
most  favored  nation  clause  in  its  existing  treaties  with  the  re- 
spective country,  all  the  conventional  rates  accorded  to  other 
countries  as  the  result  of  speciaV  negotiations  are  granted  to 
that  country  as  a  matter  of  course.  For  example,  the  United 
Kingdom,  by  reason  of  its  most  favored  nation  clause,  obtained 
without  special  negotiation  all  the  conventional  rates  granted  by 
Germany  in  1905-1906  to  Russia,  Austria-Hungary,  Italy,  Swit- 
zerland, Belgium,  Servia,  Houmania,  Sweden,  Bulgaria  and 
Greece,  Inasmuch  as  the  greater  part  of  the  countries  also  con- 
cluded commercial  agreements  with  each  other  and  extended 
the  concessions  granted  to  any  one  of  them  to  all  others  having 
most  favored  nation  clauses  in  their  treaties,  it  follows  that  all 
concessions  granted  originally  only  to  one  country  in  the  cycle 
are  applicable  to  importations  from. all  other  countries  entitled 
to  such  concessions  by  reason  of  their  most  favored  nation 
clause.  It  can  be  seen  therefore  that  the  application  of  the 
original  general  tariff  adopted  by  the  legislature  is  considerably 
modified  by  the  conclusion  of  commercial  treaties  and  that  the 
conventional  rates  are  the  ones  normally  applied.  These  rates 
come  into  force  by  legislative  enactment,  each  tariff  conven- 
tion or  treaty  with  its  set  of  new  conventional  rates  being  sub- 
ject to  sanction  by  the  legislature.  The  conclusion  of  such 
tariff  treaties  on  the  part  of  the  negotiators  therefore  presup- 
j)oses  not  only  an  expert  knowledge  of  the  export  industries, 
for  which  concessions  are  obtained,  but  also  of  the  limits  of 
concessions  from  the  rates  of  the  general  tariff  which  may  be 
granted  without  endangering  the  adoption  of  the  tariff  treaty 
by  the  legislature  of  their  own  country.  For  it  must  be  under- 
stood that  the  terms  of  the  treaty  cannot  be  modified  by  the 
legislature,  which  merely  reserves  in  itself  the  right  to  adopt 
or  reject  the  treaty  as  a  whole.  In  the  case  of  the  maximum 
and  minimum  tariff,  unless  the  right  to  grant  all  or  certain  mini- 
mum rates  for  equivalent  concessions  is  specially  conferred  upon 
the  Executive  by  the  legislature,  a  similar  legislative  sanction 
is  necessary,  thoTigh  from  what  has  been  said  above,  it  is  mani- 
fest that  the  scope  and  freedom  of  the  negotiators  is  more  lim- 
ited and  restricted. 

Important     Difference     BetTveen     tlie     Conventional     and     tlie 
Maxlinnni   and    Minimum    Systems. 

The  most  important  difference  between  the  two  types  of  the 
double  tariff  system  is  that  the  maximum  and  minimum  tariff 
leaves  the  Government  free  to  change  either  the  maximum  or 
minimum  rates  whenever  circumstances  and  changed  industrial 
conditions  make  such,  action  advisable.  All  that  the  Govern- 
ment binds  itself  to  do  with  regard  to  the  foreign  country  is 
to  accord  to  it  its  minimum  tariff.     As  the  French  negotiators 


PRINCIPAL  TARIFF  SYSTEMS  OF  THE  WORLD.        123 

put  it  in  their  letter  to  the  Canadian  delegates  during  the  ne- 
gotiations for  the  recent  reciprocity  treaty,  "it  is  a  principle  in 
French  customs  legislation  that  the  Administration  cannot  re- 
nounce its  right  to  revise  or  modify  the  tariff."  Under  the  sys- 
tem of  conventional  tariffs  the  contracting  powers  specify  the 
exact  rate  of  duty  to  be  respectively  applied  to  each  other's  prod- 
ucts, and  w^hile  the  general  rates  may  be  moved  up  or  down 
during  the  lifetime  of  the  treaty,  the  conventional  rates  can- 
not be  raised  during  this  period  except  by  mutual  consent.  In 
order  to  insure  stability  of  rates,  tariff  conventions,  as  a  rule, 
are  concluded  for  a  certain  number  of  years — not  less  than 
five,  but  usually  for  a  longer  period,  ten  or  even  twelve  years. 
It  is  plain  that  either  system  has  its  advantages  and  disadvan- 
tages and  no  a  priori  judgment  upon  the  respective  merits  of 
the  two  systems  is  possible. 

European  Interpretation   of  tlie   Most   Favored  Nation   Clause. 

Mention  has  been  made  of  the  "most  favored  nation  clause,*!, 
by  reason  of  which  countries  obtain  more  favored  treatment 
freely  and  as  a  matter  of  course  without  special  negotiations 
or  equivalents.  Inasmuch  as  the  European  interpretation  of  this 
clause  differs  considerably  from  ours  a  few  words  of  explana- 
tion would  seem  necessary.  The  American  view  or  interpreta- 
tion of  this  clause  is  that  every  favor  or  concession  granted  by 
a  treaty  is  to  be  compensated  by  a  definite  and  positive  con- 
cession of  some  sort  in  return,  and  that  the  American  Govern- 
ment reserves  to  itself  the  right  to  judge  in  each  particular 
case  of  the  adequacy  of  the  return  favor  or  concession.  In  op- 
position to  this  construction  of  the  clause  the  one  now  accepted 
by  European  countries  in  their  commercial  relations  is  that  all 
concessions  and  favors  given  to  a  third  party  shall  be  at  once 
and  without  any  special  return  extended  to  the  other  party  to 
whom  such  treatment  is  guaranteed.  The  result  is  that  a  na- 
tion having  been  granted  the  most  favored  nation  clause  by  its 
neighbor  is  assured  that  while  this  clause  is  in  force  it  will  not 
be  treated  less  favorably  than  any  other  nation.  In  the  first 
place,  then,  favors  or  concessions  given  to  any  other  country 
are  at  once  and  as  a  matter  of  course  given  to  all  other  nations 
entitled  to  the  most  favored  nation  clause.  And,  second,  these 
concessions  are  given  without  any  special  compensation  even 
though  they  were  secured  by  the  first  country  in  return  for 
specified  and  important  concessions. 

Such  an  interpretation  of  the  claiise  in  connection  with  a 
special  tariff  agreement  assures  to  the  parties  concerned  the 
maximum  possible  benefits  in  the  markets  of  the  other  con- 
tracting party.  Either  country  when  sufficiently  interested  has 
an  opportunity  of  obtaining  the  greatest  possible  concessions  for 
its  own  export  industries  by  granting  through  direct  negotia- 
tions return  concessions  on  its  own  general  rates.  Moreover,  it 
is  assured  that  subsequent  tariff  treaties  with  other  countries 
will  not  make  less  favorable  its  position  in  its  neighbor's  market, 
inasmuch  as  all  such  subsequent  concessions  and  favors  granted 
to  a  third  party  will,  as  a  matter  of  course,  and  without  further 
concessions  on  its  own  part,  be  extended  to  it  by  reason  of  its 
most  favored  nation  clause. 

It  is  therefore  seen  that  the  conventional  tariff  system  is 
closely  interwoven  with  the  most  favored  nation  claiise.  The 
United  Kingdom,  having  a  duty  on  but  few  articles  and  thus 
no  concessions  to  offer,  is  unable  to  make  special  tariff  agree- 
ments and  must  be  satisfied  with  benefits  reflected  to  it  merely* 
through  its  most  favored  nation  clause.  For  no  matter  how 
large  the  circle  of  countries  that  conclude  special  tariff  agree- 
ments with  conventional  rates  it  is  plain,  from^what  has  been 
said  above,  that  the  reduction  or  "binding"  of  rates  will  apply 
only  to  such  articles  which  constitute,  so  as  to  say,  the  special 
field  of  the  respective  countries.  These  reductions  or  conces- 
sions may  or  may  not  be  of  special  importance  to  other  coun- 
tries which  receive  the  more  favorable  rates  through  the  most 
favored  nation  clause  only.  As  a  matter  of  fact,  industrial  con- 
ditions and  the  needs  of  foreign  markets  for  various  industries 
are  not  identical   in  the  various  countries.    Hence,  a  country 


124        PRINCIPAL  TARIFF  SYSTEMS  OF  THE  WORLD. 

which  is  able  to  offer  concessions  is  in  a  better  strategic  posi- 
tion to  ohtain  concessions  for  its  export  industries  than  a  coun- 
try which  has  no  such  concessions  to  offer. 

This  disadvantage  becomes  more  pronounced  in  relation  to 
the  United  States,  which,  as  mentioned  above,  grants  conces- 
sions only  upon  receiving  equivalent  concessions  from  the  otlior 
nation.  As  a  matter  of  fact,  the  concessions  of  Section  3  in  the 
Dingley  tariff  have  never  been  extended  to  articles  the  pi'oducts 
of  the  United  Kingdom,  for  the  reason  that  the  latter  country 
was  not  in  position  to  offer  equivalent  concessions. 

Tlie  Position    of   the    United    States. 

It  is  difficult  to  bring  the  United  States  tariff,  now  in  force, 
under  any  one  of  the  heads  of  tariff  systems  discussed,  as,  al- 
though chiefly  of  the  first  named  or  "autonomous"  type,  it 
partakes  of  some  of  the  features  of  a  "maximum  and  minimunt" 
tariff  and  by  the  adoption  of  the  Cuban  reciprocity  treaty  of  1903 
has  also  features  of  a  "general  and  conventional'  tariff.  Sec- 
tion 3  of  the  Dingley  tariff  authorized  the  President  to  reduce 
duties  on  argols,  brandies,  sparkling  and  still  wines,  vermuth, 
paintings,  and  statuary,  whenever  reciprocal  and  equivalent 
concessions  might  be  secured  in  favor  of  the  products  and  manu- 
factures of  the  United  States.  The  following  countries  are 
f  ranted  reduced  rates  under  this  provision :  France,  Germany, 
taly,  Portugal,  Spain,  and  Switzerland.  The  concessions  which 
were  granted  in  the  case  of  these  several  countries  were,  how- 
ever, not  equal.  Thus,  in  the  case  of  Italy  and  Switzerland 
this  country  was  able  to  obtain  in  exchange  for  concessions  of 
Section  3  all  the  conventional  rates  granted  by  those  countries 
to  other  nations,  either  through  special  tariff  treaties  or  by  rea- 
son of  the  most  favored  nation  clause.  In  the  case  of  Spain 
we  are  entitled  to  treatment  under  the  minimum  tariff.  In  the 
case  of  Portugal  the  concessions  obtained  included  the  lowest 
rates  accorded  to  any  other  country,  except  Spain  and  Brazil, 
on  wheat,  corn,  flours,  except  wheat,  flour,  lard,  and  grease,  min- 
eral oil,  certain  agricultural  machinery,  tools  and  instruments, 
tar  and  mineral  pitch. 

The  concessions  obtained  from  Germany  in  exchange  for  those 
given  to  her  products  under  Section  3  of  the  Dingley  tariff  in- 
clude now  most  of  the  conventional  rates  granted  by  her  through 
previous  special  conventions  to  Eussia,  Austria-Hungary,  Italy, 
Switzerland,  Belgium  and  Roumania,  and  Servia.  In  the  case  of 
France,  however,  the  concessions  from  the  general  rates  are 
more  restricted  and  include  at  present  merely  the  minimum 
rates  on  canned  meats,  manufactured  and  prepared  pork  meats, 
lard  and  its  compounds,  fresh  table  fruits,  dried  or  preserved 
fruits,  apples  and  pears,  crushed  or  cut  and  dried,  common 
woods,  paving  blocks,  staveg  and  hoops. 

In  December,  1903,  a  reciprocal  convention  Isetween  the 
United  States  and  Cuba  went  into  effect,  by  the  terms  of  which 
the  United  States  granted  a  20  per  cent  reduction  upon  all  im- 
ports from  Cuba,  the  products  of  that  island ;  while  the  Cuban 
Government  granted  reductions  on  a  large  list  of  articles,  vary- 
ing between  25  and  40  per  cent,  on  the  produce  and  manufac- 
tures of  the  United  States  imported  into  that  island.  The  re- 
duced rates  granted  to  Cuba  have  not  been  extended  to  any  other 
country,  the  United  States  Government  regarding  the  commer- 
cial relations  between  this  country  and  the  island  of  Cuba  as 
^culiar  and  sui  generis. 

Illnstration     of     the     Conventional     and     the     Maximam     and 
Minimnm   Tariffs. 

Below  are  given  extracts  from  the  German  and  French  Cus- 
toms Tariffs  respectively  as  illustrations. 

The  rates  in  the  second  column  of  the  German  Tariff,  marked 
conventional,  are  the  results  of  reciprocity  treaties  concluded 
with  various  foreign  nations,  with  the  exception  of  the  rates 
given  in  Tariff  Nos.  1,  2,  3  and  4.  These  rates  were  fixed  by  the 
German  Reichstag  at  the  time  of  the  adoption  of  the  Tariff,  so 
as  to  prevent  a  reduction  of  duties  on  these  cereals  below  that 
limit  as   a  result  of  treaty   negotiations. 


PRINCIPAL  TARIFF  SYSTEMS  OF  THE  WORLD. 


125 


In  the  case  of  the  French  Tariff,  the  Parliament  was  likewise 
anxious  to  prevent  a  reduction  of  duties  on  cereals  and  this  was 
done  by  failing-  to  provide  any  rates  in  the  "minimum  tariff" 
column  on  these  products,  leaving  but  one  set  of  duties  in  the 
general  tariff  in  tariff  Nos.  68-76  inclusive. 


EXAMPLE  OP  CUSTOMS  TARIFF  OP  FRANCBJ. 

(Maximum  and  minimum.) 
Schedule  A — Import  tariff. 


Articles. 


Second    Section— Vegetable    Products. 

VI.— Farinaceous  Pood. 

Wheat,   spelt,   and  meslin: 

Grain • 

Crusiied,    and  grist  containing   more 

than  10  per  cent  of  flour 

Flour  at  the  rate  of  extraction  (aux 
taux  d'extraction)— 

Of  70  per  cent  and  above 

Of    between    70   per    cent    and    60 

per  cent 

Of  60  per  cent  and  below 


Oats: 

Grain 

Meal 

Barley: 

Grain 

Meal 

Rye: 

Grain 

Meal 

Indian    corn: 

Grain 

MeaL 

Buckwheat: 

Grain 

Meal 

Malt 


Ships'  biscuit  and  bread 

Groats,    grits    (coarse  flour),    pearled    or 

cleaned  grain  

Millet,   hulled  or  cleaned 

Semolina    and    Italian    pastes    (SO    2.40 

francs)  

Sago,     salep,     exotic    feculee  and    their 

derivatives 


XXIII.— Glass  and  Crystal. 

Plate  glass: 

I/ess  than  one-half  of  a  square  'meter 
In  surface  

One-half  of  a  square  meter,  inclusivie. 
to  1  square  meter.  exclusive- 
Rough 

Polished  or  silvered. .. 

1  square  meter  or  more — 

Rough 

Polished  or  silvered 

Glass,  common,  east  or  molded,  with  or 
without  grooves,  reliefs,  or  perfora- 
tions, of  any  thickness,  shape,  or 
size,   for  insulators,   roofing,    windows. 

piping,   or  pavements 

Table  glass,  of  glass  or  crystal: 

Plain  and  molded,   white,  or  of  one 

color,  and  colored  in  the  paste 

Out  and  engraved,  in  any  other  man- 
ner  than   is   necessary    for   efl'acing 

the  mark  of  the  pontee 

Decorated  in  gold  or  color 

Lamp   chimneys   

Window  glass: 
Common- 
Panes    not    exceeding    50    square 

centimeters   in   surface 

Panes    exceeding   50   square    centi- 
meters  in  surface 

Colored  or  slightly  tinted  glass,  un- 
dulated glass  

Framed  window  g'ass,  colored  glass, 
enameled,  entrraved,  decorated  with 
lithographic.  i>hotogrophic,  or  other 
prints,   or  hand  painted 


Unit  of 
quantity. 


100  kilos  G 
100  kilos  N, 

—-do 

—.do 

.-..do 


100  kilos  G 
.—do 


.do- 
-do 


-do 

-do 

-do 

-do 


100  kilos  N, 
100  kilos  G, 


100  kilos  N, 
—.do 


100  kilos  N. 


Sq.   meter, 
....do 


-do... 
-do  — 


100  kilos  G. 
-.-.do 


100  ki'os  N. 

—-do 

.--do 


100  kilos  G. 
100  kilos  N. 
do,»... 

-—do I 


Rate  of  duty 

(additional  taxes 

included). 


General 
tarlflr. 


Francs. 
7.00 


11.00 


U.OQ 

13.50 
16.00 

5.00 
6.00 

3.00 
6.00 

5.00 
6.00 

3!oo 

6,00 

2.50 
4.00 
4.00 
7.00 

16.00 
6.00 

19.00 

11.00 


26.00 


1.25 
4.00 


3.00 
5.00 


8.00 
6.00 


20.00 
35.00 
18.00 


7.00 
12.00 
25.00 

120.00 


100.00 


126 


MAXIMUM  AND  MINIMUM  TARIFF, 
Schedule  A — Import  tariff — Continued. 


852 
353 
351 


355 
356 


357 


Articles. 


XXIII.— Qlass  and  Crystal— Continued. 


toy 


glasses     lor 
flat,     cut    and 


Watch  classes: 

Rough,     Including 

watches  

Glasses     for    clocks, 

polished  

Glasses  lor  clocks,  other,   and  watch 

glasses,   cut  and  polished 

Spectacle  and  optical  glasses: 

Plane,   concave,    or  convex. 

"KoyloB,"   or   window   glass,    cut  on 

one  surface _. 

Polished  or  cut 

Vitrifications: 

Vitrifications  and  enamel.  In  lumos 
and  tubes— 

Not  cut - 

Out,   not  rebaked. 

Vitrifications  in  beads,  perforated  or 
cut,  spun  glass,  balls,  and  imita- 
tion coral  of  glass 

Imitation    precious    stones,     trinkets 

of  glass,  ox)lored  or  not 

Flowers  and  ornaments  of  beads  and 

porcelain,  mosaics  on  paper 

Wreaths,  finished  or  not.  and  other 
vitrified   or   porcelain    articles,  with 

or  without  metal  ornaments 

Bottles,  full  or  empty. _ 

Cullet  or  broken  glass 


Unit  of 
quantity. 


.do 

-do 

-do 

kilos  N. 


-do 

-do 


100 


kilos  6, 
do 


kilos  N, 

-do 

-do 


-do 

kilos  6, 
-do  .... 


Hate  of  duty 

(additional  tuxes 

Included). 


General 
tar  1  ft-. 


Francs. 
20.00 
75.00 
180.00 


30.00 
180.00 


6.00 
7.50 


30.00 
150.00 
150.00 


175.00 

4.50 

Free. 


Mini- 
mum 
tariff. 


Francs. 
15.00 
50.00 
150.00 


I'kOO 
150.00 


5.00 
6.00 


20.00 
100.00 
125.00 


1)0.00 

3.50 

Free. 


I  am  a  protectionist  because  I  tblnk  1)y  that  policy  the 
^vorkmen  of  America  fvlll  be  well  paid  and  not  underpaid. — 
Hon.    Oeorse    F.    Hoar. 

A  tariff  for  revenue  only  resulted  in  cheaper  -vrool,  cheap- 
er bread,  cheaper  everythinjar;  there  was  no  doubt  about 
that;  but  did  cheapness  produce  happiness,  as  they  said  it 
would?  No;  it  produced  misery,  just  as  we  said  it  w^ould.— 
Hon.  M.   N.  Johnson,   in   Congress,  March  24,   1807. 

The  rail-ways  can  blame  no  one  but  themsel-ves  if  the 
revelation  of  the  flasirrant  violations  of  law^  and  of  tlieir 
unjust  administration  of  a  public  trust  have  led  to  an  pnt- 
burst  of  popular  indi^rnation  and  have  broug'ht  on  temporary 
excess.— Hon.    Wm.     H.     Taft,    at    Columbus,     Ohio. 

The  most  casual  observer  must  have  perceived  the  rapid 
improvement  in  the  commercial  interests  of  the  country 
w^hich  followed  the  enactment  of  the  Dinjgrley  law,  an  im- 
provement which  has  steadily  increased  in  degrree  not-with- 
standin$!r  the  adverse  influence  of  actual  war. — Hon.  C.  W. 
Fairbanks,   in   U.   S.   Senate,   June    3,   1898. 

I  am  a  protectionist  because  facts  confront  us,  not  theo- 
ries. I  have  seen  the  TvaBC-earners  of  Great  Britain  and  con- 
tinental Europe;  know  ho^tv  they  live;  that  they  are  homeless 
and  landless  as  far  as  o^vnership  is  concerned;  that  they  are 
heli>less  and  hopeless  as  to  any  brighter  future  for  them- 
selves or  their  children;  that  in  their  scant  wagres  there  is 
no  marij^ln  for  misfortune  and  sickness,  pauperism  being;  the 
only   refusre.— Hon.    William    P.    Frye. 

What  has  been  the  result  to  the  United  States  of  this 
so-called  colonial  policy?  W^ell,  it  has  added  to  her  trade 
something'  over  one  hundred  millions  of  dollars.  I  do  not 
think  that  is  important  Except  as  a  beginning-.  If  the  gov- 
ernment continues  its  friendly  policy  toward  Porto  Rico 
and  the  Philippines  and  opens  her  markets  as  well  to  the 
Philippines  as  to  Porto  liico,  this  trade  >vill  treble  and 
quadruple  in  a  marvelously  short  time,  so  that  merely  from 
the  standpoint  of  material  progrress,  the  mutual  benefits  for 
the  iicople  -we  are  helping  and  ourselves  -will  be  no  mean 
Justification  for  the  policy.— Hon.  W^m.  H.  Taft,  at  Cleveland, 
Ohio. 


One  vital,  dominating  fact  confronts  the  Democrntic 
party  i;\'hteh  no  oratory,  -»vhlch  no  eloiinence.  which  no 
rhetoric  can  obscure:  BRYAN'S  NOxlIINATlON  MEANS  TAFT'S 
ELECTION.— New    York    W^orld. 


TBB  CONVENTIONAL  TARIFF". 


127 


EXAMPLE    OF    CUSTOMS   TARIFF    OF    GERMANY. 

(Conventional.) 

Rates  of  import  duty. 

; NOTE. —All  rates  are  given  per  100  kilos,   net  weight,  except  where  otherwise 
indicated  by  footnotes.] 


Articles. 


PART  I.— AGRICULTURAL  AND  FOREST  PROD- 
UCTS, AND  OTHER  NATURAL  ANIMAL  AND 
VEGETABLE  PRODUCTS.  POOD  STUFFS.  AND 
ARnCLES  OF  CONSUMPTION. 

A.— Field,  garden,   and  meadow  produce. 

CEREALS    AND    RICE. 

Rye 

Tare:  Sacks.  1. 
Wheat  and  spelt 

Tare:  Sacks.  7. 
Barley: 

xMalting  barley  

Other 

Tare:   Sacks,   1. 

NOTE.— The  following  is  to  be  regarded  as  bar- 
ley other  than  "malting  barley."  and  to  be  ad- 
mitted at  the  reduced  rate: 

(1)  On  entering  at  certain  customs  stations  pro- 
vided with  special  autlioity.  barley  which,  in  its 
pure,  unmixed,  beardless  state,  does  not  reach  the 
weight  of  G5  kilos  per  hectoliter,  and  likewise  does 
not  contain  more  than  30  per  cent  of  grain  of 
which  the  weight  is  67  kilos  per  hectoliter  or  more. 
(2)  Barley  for  which  proof  is  furnishc;'.  that  it  is 
unfitted  for  the  manufacture  of  malt  or  that  it  is 
not  intended   for  that   purpose. 

In  case  the  correctness  of  the  ascertainment  of 
the  quantity  admitted  under  (1)  is  disputed  by  the 
importer,  or  in  case  other  grounds  of  doubt  as 
regards  the  use  to  which  it  is  to  be  put  arise 
respecting  a  consignment  presented  tor  clearance 
on  account  of  its  special  character,  the  customs 
department  is  only  bourn!  to  admit  the  goods  at 
the  reduced  rate,  provided  it  is  first  rendered  un- 
suitable for  use  in  the  manufacture  of  malt.  This 
can  be  done  at  the  option  of  the  customs  depart- 
ment by  grinding,  hulling,  bruising,  or  any  similar 
process.  It  is  understood,  however,  that  the 
application  of  any  such  process  does  not  entail 
any  expense  to  the  importer. 

Oats 

Tare:   Sacks,  1. 

Buckwheat 

Millet  (panicum,  Italian  millet) 

Maize  (Indian  corn)  and  sorghum  (dhoura) 

Other  cereals  not  specially  mentioned 

NOTE   TO   NOS.    1-8.— Cereals   in    sheaves,    as  di- 
rectly gathered  on  the  field,  will  pay  half  the  duty 
in  the  grain  as  specified   above. 
Malt,  except  that  roasted  or  ground— 

From  barley 

From  other  grain 

Rice,   not  cleaned 

LEGUMli:S,  DRY  (RIPE). 

Beans  for  food ..__ 

Pease,  lentils . 

Beans  for  fodder  (horse-beans,  etc.),  lupines,  vetches-- 
NOTE  TO  NOS.  11  and  12.— Legumes  in  the  straw 
are  to  pay  half   the  duty   of  the  class  to  which  it 
belongs. 

OLEAGINOUS  FRUITS  AND   SEEDS. 

Rape  seed,  colza  seed,  dodder  seed,  oil-radish  seed, 
mustard  seed,   hedge-mustard  seed 

Poppy  seed,  also  rii>e  poppyheads,  sunflower  seeds, 
edible  cyiierus  root,  beechnuts,  laurel  berries 

Peanuts,  sesame,  "madia"  seed,  ben  nuts,  kapok  seed, 
and   Niger   seeds 

PART   XV.— GLASS   AND   GLASSWARE. 

Glass  in  the  mass  (also  glass  paste  unshaped  or  in 
rough  lumps);  fusible  glass,  enamel,  and  glazing 
in  the  lump,  colored  or  not.  and  glass  powder 
(ground  glass)  - 

•Gross  weight. 


General 
rate  of 
duty. 


Marks. 

7.00 

Marks. 
5.00 

7.50 

5.50 

7.00 
7.00 

4.00 
1.30 

7.00 

5.00 

5.00 

1.50 
5.00 
1.50 

1.50 
3.00 

no.  25 
♦11.00 

5.75 

4.00 

4.00 

4.00 
4.00 
2.50 

2.00 
1.50 
1.50 

5.00 

2.00 

2.00 

2.00 

2.00 

8.00 

8.00 

128 


COLONIAL  TARIFF. 
Rates  of  import  duty — Continued. 


736 


Articles. 


PART  XV.— GLASS  AND  GLASSWARE— Continued. 


Rough  rods  and  tubes  of  natural  colored  glass 

Glass   tubes    and   rods,    without   distinction    of   color, 
usetl  for   the  manufacture  of  beads   and  blown  art 

wares,   etc _ 

Hollow   glass — 

Neither  molded  nor  ground,  polished,  smoothed, 
cut,  etched,  or  figured— 

Of  natural  color 

White    (or    half    white)    transparent,    with    or 
without  separate  rings  of  massive  white  (or 

half-wlnte  glass) . 

Colored     or    white    nontransparent.     or    even 
Hashed  with  colored  or  white  nontransparent 

glass  ' 

Tare:  Cases.  40;  casks.  iO;  hampers.  13. 
With  the  bottoms  only  molded,  or  with  the  stop- 
pers  shaped  or  ornamented  by   grinding,   mold- 
ing,  etc.— 
Colored     or    white    nontransparent.     or     even 
Hashed  with  white  or  colored  nontransparent 

glass 

Other _-. - _. 

Tare:   Same  as  No.   737. 
Molded,     ground,    polished,     smo:)thed,    cut,    en- 
grav^ed,  or  figured  in  any  otlier  way — 
Colored    or    white    nontransparent.     or    even 
cased  with  colored   or  white  nontransparent 

glass 

Other  -1 --. 

Tare:  Cases— Ink  wells  made  of  ground  white 
transparent   glass,    20;    other,    40.       Casks    40. 
Hampers,    IS. 
Painted,    gilt,    or  silveretl,    alfo   figured  by   colors 

being  applied  or  burnt  in 

So-called  "Silberglass"  (ordinary,  white,  transpar- 
ent, uncut,  and  hollow  glass,  to  which  an  even 
and  glittering  appearance  of  a  color  like  silver 
has  been  Imparted  by  means  of  washing  the 
whole  of  the  interior  with  amalgam,  but  which 
has  not  undergone  any  further  process  of  work- 
ing  on   the   outside),    used    as    ornamental   balis 

for  garden  posts,  chandeliers,  and  the  like 

Otlicr  hollow  glass  of  a  like  description 

Tare:  Cases,  40;  casks.  40;  casks.  40;hampers,  13. 


General 
rate  of 
duty. 


Conven- 
tional 
rat*!  of 
,    duty. 


3.00 
3.00 

3.00 

•8.03 
17.00 


24.00 
20.00 


30.00 
24.00 


5.00 


Marks. 
J. 00 

3.00 
3.00 


*8.00 
10.00 
15.00 


15.00 
12.00 


15.00 
12.00 


20.00 


15.00 
20.00 


•Gross  weight. 


Tariff    Relatious    Bet-fveen    the    Mother    Country    and    its    De- 
pendencies, Possessions,  or  Colonies.     (Preferential  Tariffs.) 

The  tariff  relations  between  the  mother  country  and  its  col- 
onies may  be  cla.ssed  under  the  following-  heads: 

1.  Those  in  which  Colonial  imports  into  the  mother  country 
are  subject  to  the  same  rates  of  duty  as  the  products  of  foreign 
countries  enjoying  the  most  favored  nation  treatment.  This 
mode  of  treatment  of  colonial  imports  prevails  at  present  in  the 
United  Kingdom,  Germany  and  the  Netherlands;  in  the  case  of 
the  United  Kingdom  and  Netherlands,  which  are  practically  on 
a  free  trade  basis,  the  reasons  of  such  policy  are  obvious.  In 
the  case  of  Germany  the  imports  from  her  colonies  consist  al- 
most exclusively  of  such  products,  mainly  raw  materials,  as  do 
not  enter  into  competition  with  German  home  products  or  manu- 
factures and  are  not  subject  to  any  duty  whatever  their  orgin. 

2.  Those  in  which  colonial  products  when  imported  into  the 
mother  country  are  subject  to  preferential,  that  is,  lower  cus- 
toms duties ;  thus,  for  example,  the  United  States  accords  a  25 
per  cent  reduction  from  the  general  rates  to  all  dutiable  imports 
from  the  Philippine  Islands.  The  French  Government  accords 
preferential  treatment  without  limitation  as  to  quantity  to  cer- 
tain articles,  such  as  lumber,  palm  oil,  etc.,  imported  from  the 
French  West  coast  of  Africa.  In  other  cases  reduced  rates  are 
charged  on  limited  quantities  of  certain  colonial  products. 

3.  Those  in  which  the  tariff  of  the  mother  country  is  made 
to  apply  to  the  colonies  and  trade  between  the  mother  country 
and  its  colonies  is  free  and  subject  to  no  duty.  An  example  of 
such  treatment  -is  presented  by  the  tariff  arrangement  existing 


COLONIAL  TARIFF.  129 

between  the  United  States  and  Porto  Rico.  In  the  case  of  tariff 
relations  between  France  and  the  larger  part  of  her  colonies, 
while  free  trade  exists  in  most  articles  exchanged  between  them, 
imp)ortant  exceptions  to  the  general  rule  are  found  in  the  case 
of  "colonial"  products  imi^orted  into  France,  such  as  cocoa, 
chocolate,  coffee,  tea,  jjepper,  etc.,  which  are  subject  to  revenue 
duties,  though  in  most  cases  these  duties  are  50  per  cent  below 
the  minimum  rates  charged  on  imports  of  the  same  character 
from  foreig-n  countries. 

Treatment  by  tlie  Colonies   of  Goods  Coming  from  the  Mother 
Country  or   other    Colonies   lender  the   Same    Sovereignty. 

The  fiscal  treatment  of  imports  from  the  mother  country 
by  the  colonies  is  likewise  three-fold : 

1.  Those  in  which  no  fiscal  favor  or  preference  is  shown  to 
imports  from  the  mother  country.  This  is  the  arrangement  pre- 
vailing at  present  in  the  Dufch  German  colonies  and  British 
Crown  colonies,  as  well  as  in  the  Philippine  Islands  with  re- 
gard to  imports  from  the  United  States. 

2,  Those  in  which  the  products  of  the  mother  country  are 
subject  to  preferential  treatment,  that  is,  admitted  into  the  col- 
ony on  payment  of  lower  rates  of  duty  than  charged  on  imports 
from  foreign  countries.  The  manifest  purpose  of  such  le'gisla- 
tion  is  to  bring  about  a  closer  economic  and  commercial  relation- 
ship between  the  colonies  and  the  mother  country  and  to  open 
a  more  favorable  market  for  the  products  of  the  mother  country 
in  exchange  for  better  opportunities  offered  to  the  products  of 
the  colony  in  the  markets  of  the  mother  country.  Unless  ex- 
isting treaties  with  foreign  countries  contain  provisions  to  the 
contrary,  it  would  seem  that  a  foreign  country  cannot  claim 
the  extension  to  her  products  of  the  preferential  rates  ou  the 
basis  of  its  most  favored  nation  clause  in  its  commercial  treaty 
with  the  mother  country.  In  practice,  however,  the  application 
of  preferential  rates  by  the  British  self-governing  colonies  tc^he 
products  of  the  mother  country  has  given  rise  to  controversies 
and  tariff  difficulties  with  foreign  countries.  Thus,  for  example, 
Canada  involved  herself  into  difficulties  with  Germany  by  ac- 
cording preference  to  British  products ;  the  result  of  this  diffi- 
culty has  been  that  Canadian  products  imported  into  Germany 
are  subject  to  the  general  tariff  and  not  to  the  conventional 
rates.  This  preferential  policy  in  British  colonial  tariffs  is  the 
growth  of  recent  years.  Canada  entered  upon  this  policy  in 
1897  and  accords  now  reductions  of  duty  on  a  large  number  of 
articles,  the  product  and  manufactures  of  the  United  Kingdom. 
The  new  Canadian  tariff  which  went  into  force  November  30, 
1906,  provides  for  the  application  of  preferential  rates  to  direct 
importations  not  only  from  the  United  Kingdom  but  also  to 
products  coming  from  British  West  Indies,  British  Guiana,  Aus- 
tralia, Straits  Settlements,  New  Zealand  and  the  South  African 
Customs  Union.  New  Zealand  in  its  tariff  of  1907  accords  pre- 
ferential treatment  to  certain  articles  which  are  the  produce  and 
manufacture  of  some  part  of  the  British  dominions,  either  by  im- 
posing duties  of  20  to  50  per  cent  higher  on  the  same  articles 
when  coming  from  foreign  countries  or  by  admitting  free  of 
duty  certain  other  articles  that  are  dutiable  at  10  to  20  per  cent 
ad  valorem  when  not  of  British  production.  The  Australian 
Commonwealth  has  also  adopted  the  same  principle  of  preferen- 
tial treatment  of  certain  goods  imported  into  the  Commonwealth 
when  the  produce  or  manufacture  of  the  United  Kingdom.  Fur- 
thermore these  semi-sovereign  colonies  have  entered  into^or  are 
negotiating  reciprocity  tariff  arrangements  between  each  other, 
by  which  preferential  treatment  of  the  respective  imports  from 
each  other  is  granted  to  an  extent  even  larger  than  that  which 
is  accorded  to  products  of  the  mother  country. 

The  third  type  of  tariff  treatment  of  the  products  of  the 
mother  country  by  the  colonies  is  that  prevailing  in  Porto  Eico 
and  in  a  large  number  of  the  French  colonies,  i.  e.,  imports  from 
the  mother  country  are  admitted  free  of  duty.  In  a  case  of  the 
French  colonies  which  have  adopted  the  same  mode  of  treating 
the  products  of  the  mother  country  free  trade  exists  between  all 
of  them,  these  colonies,  together  with  the  mother  country,  con- 
stituting, as  it  were,  one  greater  ou«tom«  union. 


180 


THE  TARIFF— RECIPROCITY. 


Hat  of  tariff  treaties  concluded  by  Germany  with  other  European 
countries. 


Name  of  country. 

Date 
of 

sign- 
lug. 

Date  of  taking  effect. 

Date  of  expiration. 

Auitria-Hunuary 

1905 
1901 
190  i 
1904 
1904 
1904 
1904 
1905 
1SS4 
1906 
1907 

March  1,  1906 

Belgium  

Italy    

Roumauiu .,- 

March  1,  1906  _._ 

December  31     1917 

March  1,  1906 

March  1,  liXJO 

Dticciuber   31,    1917. 

Dpf'Pinhpr    SI       1<)17 

Russia 

March  1,  ISKJO 

Servla   ,    

March  1,  190G 

December   31,    1917. 

Switzerland    _-^— - 

March  1,  1906 

Bulgaria 

March  1,  1906 _ _. 

February   28,    1911. 

Greece  

Sweden 

United  States „ 

July  9,  188t ._. 

May  8,  lOOa. 

July  1,  1907 _ 

6  months'   notice. 
December   31,   1910. 
12  months'   notice. 

*Wlth  option  of  denouncing  it  12  months  before  December  31,  1915. 

List  of  Recent  Tariff  Treaties  Concluded  by  France  with 
otiier  Knropeau  Countries,  witli  tlie  United  States  and 
Canada. 

Austria-Hungary,  1884;  Belgium,  1906;  Germany  (treaty  of 
peace  at  Frankfort) ,  May  10,  1871;  Great  Britain,  1882;  Rouma- 
nia,  1907 ;  Eussia,  1905  ;.  Servia,  1907  ;  Spain,  1893-4 ;  Sweden  and 
Norway,  1892;  Switzerland,  1906;  Canada,  1907;  United  States, 
1908. 


RECIPIIOCITV. 

Reciprocity  is  another  form  of  tariff  revision  which  has  been 
suggested  at  various  times  by  various  people  and  by  people  be- 
longing to  various  political  parties.  It  was  suggested  by  Presi- 
dent Arthur,  James  G.  Blaine,  and  William  McKinley;  was  put 
into  operation  in  the  McKinley  tariff  law ;  was  destroyed  by  the 
Democratic  Wilson-Gorman  tariff  law ;  and  now  the  Deinocratic 
party  is  charging  that  the  Republican  party  is  not  willing  to  give 
the  country  "genuine  reciprocity." 

There  are  two  distinct  kinds  of  legislation  which  have  been 
designated  as  reciprocity  legislation.  The  first  of  these  was 
enacted  by  the  Democratic  party  in  1854,  taking  effect  in  1855. 
It  was  reciprocity  with  Canada,  and  provided  that  cerlain  ar- 
ticles, the  growth  or  produce  of  Canada  or  the  United  States, 
should  be  admitted  into  each  country,  respectively,  free  of  duty. 
These  were  articles  of  common  production  in  the  two  countries, 
and  included  grain,  flour,  animals  of  all  Idnds,  fresh,  smoked, 
and  salted  meats,  cotton,  seeds,  vegetables,  fruits,  fish,  poultry, 
eggs,  hides,  furs,  stone,  slate,  butter,  cheese,  tallow,  lard,  ores, 
coal,  pitch,  turpentine,  ashes,  timber,  lumber,  flax,  hemp,  tobacco, 
and  rags.  These  were  all,  with  the  single  exception  of  cotton, 
articles  of  mutual  production,  and  Democratic  reciprocity  simply 
provided  for  free  trade  in  these  competing  articles.  Uiider  that 
treaty,  which  went  into  effect  March  16,  1855,  and  terminated 
March  17,  1866,  exports  from  the  United  States  to  Canada  fell 
from  $27,741,808  in  the  fiscal  year  1855  to  $23,439,115  in  the  fiscal 
year  1866,  a  reduction  in  our  exports  to  Canada  of  over  4  mil- 
lion dollars  during  this  period  of  Democratic  reciprocity,  while 
imports  into  the  United  States  from  Canada  increased  from 
$15,118,289  in  1855  to  $48,133,599  in  1866,  an  increase  of  33  mil- 
lion dollars.  In  our  trade  with  all  other  countries  during  that 
same  period  our  imports  increased  60  per  cent  while  those  from 
Canada  were  increasing  220  per  cent,  and  our  exports  to  all 
other  countries  increased  70  per  cent  while  those  to  Canada  un- 
der this  reciprocity  were  decreasing  15  per  cent.  It  was  simply 
free  trade  in  articles  of  common  production  and  with  no  barrier 
to  protect  the  domestic  producer — the  result  being  a  much 
greater  increase  in  our  imports  from  Canada  than  in  those  from 
other  countries,  and  a  decrease  of  exports  to  that  country, 
while  to  other  countries  exports  were  increasing. 


THE  TARIFF— RECIPROCITY.  131 

A  later  form  of  reciprocity  with  which  the  conntry  has  had 
■experience  is  illustrated  by  the  plan  formulated  in  the  McKinley 
tariff  law  and  expressed  by  William  JNIcKinley  in  his  much- 
-quoted  speech  at  Buffalo,  in  which  he  said:  "By  sensible  trade 
arrangements  ichich  will  not  interrupt  our  Jiome  production  we 
shall  extend  the  outlets  for  our  increasing-  surplus.  *  *  ••' 
We  should  take  from  our  customers  such  of  their  products  as  we 
can  use  without  harm  to  our  industries  and  labor.  *  *  *  if 
perchance  some  of  our  tariffs  are  no  longer  needed  for  revenue 
or  to  encourag-e  and  protect  our  industries  at  home,  why  should 
they  not  be  employed  to  extend  and  promote  our  markets 
abroad?" 

To  purchase  from  our  neighbor  "such  of  their  products  as 
^we  can  use  without  harm  to  our  industries  and  labor;"  in  other 
words  such  of  their  products  as  are  not  produced  hy  our  own 
labor  and  obtain  in  exchange  markets  for  the  class  of  mer- 
chandise which  we  desire  to  sell,  and  which  the  countries  in 
question  require  for  their  own  use,  differs  materially  from  the 
reciprocity  of  1855-56,  which  was  merely  free  trade  in  arti  r  s 
of  mutual  production,  articles  which  when  imported  compete 
with  the  home  producer.  The  chief  classes  of  products  which 
we  do  not  produce  in  the  United  States  are  tropical  and  sub- 
"tropical.  We  import  about  400  million  dollars'  worth  of  tropical 
and  subtropical  products  every  year;  more  than  a  million  do  :ji\s' 
worth  for  every  (^y  in  the  year,  including  Sundays  and  holidays. 
These  articles  we  cfo  not  produce  in  the  United  States  in  suffi- 
cient quantities  for  home  requirements.  They  include  rubber, 
hemp,  sisal,  jute,  raw  silk,  Egyptian  cotton,  and  other  articles 
used  in  manufacturing,  and  coffee,  cocoa,  tea,  spices,  olives, 
bananas,  and  sugar,  used  as  food  and  drink.  These  classes  of 
articles  are  of  the  class  which  "we  can  use  without  harm  to  our 
industries  and  labor."  Sugar  is  the  only  article  in  this  list 
produced  in  the  United  States,  and  at  the  present  time  the  home 
production  of  sugar  is  only  suiiicient  to  supply  about  one-fifth 
of  the  total  home  consumption.  The  countries  which  produce 
these  tropical  and  subtroi:)ical  articles  'are  not  manufacturing 
countries,  nor  are  they  large  producers  of  those  great  staples 
of  food — flour,  Avheat,  corn,  and  meats.  As  a  consequence,  they 
require  the  very  classes  of  articles  which  the  people  of  the 
United  States  have  to  sell. 

Reciprocity  Treaties  Under  tlie  McKinley  LaTV. 

Under  the  McKinley  tariff  law  reciprocity  treaties  were 
:made  by  President  Harrison  with  the  governments  of  Brazil, 
British  Guiana,  Salvador,  Nicaragua,  Honduras,  Guatemala,  Santo 
Domingo,  and  the  countries  governing  the  British  West  Indies 
and  Porto  Rico  and  Cuba.  These  treaties  provided  for  a  reduc- 
tion of  duties  on  foodstuffs  and  manufactures  from  the  United 
States  entering  the  countries  and"  islands  in  question,  in  ex- 
change for  the  free  importation  of  sugar,  coffee,  tea,  and  hides 
into  the  United  States,  as  provided  under  the  general  terms  of 
the  McKinley  act.  The  result  of  those  treaties  with  this  group 
of  tropical  countries,  producing  the  class  of  articles  whicn  the 
United  States  requires  and  does  not  produce  in  sufficient  quan- 
tities at  home,  was  that  our  exports  to  those  countries  and  is- 
lands increased  26  per  cent  and  our  imports  from  them  increased 
28  per  cent  between  1890,  the  year  of  the  enactment  of  the  Mc- 
Kinley law,  and  1894,  the  year  in  which  it  was  repealed  by  a 
Democratic  Congress  and  a  Democratic  President,  and  recip- 
rocity thus  destroyed.  During  that  same  period  our  exports  to 
all  other  countries  than  those  above  named  increased  3  per 
c\4nt  and  our  imports  from  them  decreased  27  per  cent. 

Tlie    Hawaiian    Reciprocity    Treaty. 

Another  example  of  reciprocity,  that  with  countries  pro- 
ducing the  class  of  articles  which  we  require  and  importing  the 
clan's  which  we  produce  and  desire  to  export,  was  the  recij)rocity 
treaty  with  the  Hawaiian  Islands.  That  treaty  went  into  effect 
September  9,  1876,  and  terminated  April  30,  1900.  During  that 
period  of  the  existence  of  that    agreement,  our  exports  to  the 


181  THE  TARIFF— RECIPROCITY. 

Hawaiian  Islands  grew  from  $779,257  in  the  fiscal  year  1876  to 
$13,509,148  in  the  fiscal  year  1900,  while  imports  from  the 
Hawaiian  Islands  of  noncompeting-  articles  demanded  by  our 
markets — tropical  products — increased  from  $1,237,191  in  1876 
to  $20,707,903  in  1900.  Thus  by  tal<ing-  from  this  tropic:il  coun- 
try— Hawaii — its  production  of  articles  which  we  must  import 
from  some  part  of  the  world,  we  built  up  in  the  H  iw  liian  Is- 
lands a  market  for  our  merchandise  seventeen  times  as  large  as 
in  1876. 

Reciprocity. 

The  statements  and  tables  which  follow  show  in  concise  terms 
the  experience  of  the  United  States  with  reciprocity.  The  prin- 
cipal treaties  and  agreements  of  the  United  States  with  other 
countries  were,  first,  that  with  the  British  North  American  pos 
sessions,  from  1855  to  1866  ;  second,  that  with  the  Hawaiian  Is- 
lands, from  1876  to  1900,  the  date  of  annexation ;  third,  the 
series  of  agreements  made  under  the  tariff  Act  of  1890  and  con- 
tinuing in  force  until  terminated  by  the  Wilson  Act  of  1894  ; 
fourth,  reciprocal  agreements  with  certain  European  countries 
made  under  the  Act  of  1897  ;  and,  fifth,  the  reciprocity  treaty 
with  Cuba,  taking  effect  in  December,  1903,  and  still  in  operation. 
The  details  of  the  agreements  with  these  various  count«-ies  and 
under  these  various  Acts  are  stated  below,  and  in  the  Accompany- 
ing tables  is  shown  the  commerce  with  each  ftf  the  countries  in 
question  covering  the  years  immediately  prior  to  that  in  which 
the  treaty  took  effect  and  continuing  to  the  end  of  its  operation 
or  to  the  present  time  in  the  cases  of  those  still  in  force.  It  will 
be  noted  that  in  the  trade  with  Canada,  tvJiose  products  arc 
similar  to  our  own,  the  exports  from  the  United  States  to  that 
country  made  but  slight  increase  during  the  existence  of  the 
treaty,  but  have  groAvn  rapidly  since  its  termination.  In  the 
case  of  the  Hawaiian  Islands  the  exports  thereto  grew  rapidly 
under  the  treaty  and  have  grown  with  equal  rapidity  since  annex- 
ation, which  made  permanent  the  freedom  of  interchange  be- 
tween that  section  producing  tropical  products  required  by  the 
United  States  and  requiring  products  of  the  temperate  zone  and 
of  manufactiiring  irfdustries  such  as  those  which  the  United 
States  has  to  sell.  In  the  countries  with  which  reciprocity  agree- 
ments were  made  under  the  Act  of  1890,  in  nearly  all  cases  tropi- 
cal or  subtropical  countries,  the  exports  thereto  showed  marked 
gains  during  the  existence  of  the  reciprocity  treaties.  In  the 
case  of  the  European  countries  with  which  reciprocity  agree- 
ments were  made  under  the  Act  of  1897,  the  growth  in  the  trade, 
while  steady,  seems  to  have  been  little  affected  by  these  agree- 
ments, which,  as  will  be  seen  by  the  terms  of  the  treaties,  af- 
fected comparatively  few  articles. 

In  the  trade  with  Cuba  imder  the  reciprocitj'^  treaty  of  1903 
there  has  been  a  marked  growth  in  both  imports  from  and  ex- 
ports to  that  island,  as  will  be  seen  in  the  table  showing  trade 
with  Cuba  from  1880  to  1908.  The  relations  with  that  island, 
both  commercial  and  otherwise,  have  been  so  varied  during  the 
last  20  years  as  to  render  interesting  and  important  this  state- 
ment of  our  trade  thei-ewith  during  that  period  and  in  the  years 
immediately  preceding.  Under  the  reciprocity  clause  of  the 
McKinley  tariff  act  an  agreement  was  made  in  June,  1891,  with 
Spain,  relative  to  Cuba  and  Porto  Eico,  by  which  sugar,  molasses, 
coffee,  and  hides  were  admitted  into  the  United  States  free  of 
duty  and  in  exchange  for  that  privilege  salted  meats,  fish,  lard, 
woods  for  cooperage  and  manufactured  into  doors  and  frames, 
wagons,  cars,  sewing  machines,  manufactures  of  iron  and  steel, 
and  numerous  other  articles  from  the  United  States  were  ad- 
mitted free  of  duty  into  Cuba ;  also  that  corn,  corn  meal,  wheat, 
flour  and  other  articles  should  be  admitted  at  reduced  rates  of 
duty.  This  agreement  remained  in  force  from  September  1,  1891, 
to  August  27,  1894.  From  the  latter  date  until  the  United  States 
assumed  control  of  Cuba  in  1898  no  special  agreements  or  rela- 
tions affected  trade  between  the  United  States  and  that  island. 
American  occupation  of  Cuba  continued  from  January  1,  1899, 
at  which  date  the  Spanish  evacuated  the  island  and  relinquished 
sovereignty,  to  May  20,  1902.  On  December  27.  1903.  became  ef- 
fective the  present  reciprocity  treaty  with  Cuba,  under  which  a 


TEE  TARIFF— RECIPROCITY. 


183 


reduction  of  20  per  cent  is  made  in  the  rates  of  duty  collected  on 
all  merchandise  from  Cuba  entering  the  United  States ;  and  in 
turn  for  that  concession  the  Cuban  rates  of  duty  on  articles  from 
the  United  States  entering  that  island  are  reduced  25  per  cent 
on  machinery  and  numerous  other  articles,  30  per  cent  on  certain 
articles,  40  per  cent  on  still  other  articles,  and  20  per  cent  on 
other  articles  not  included  in  the  above  classes  or  in  the  free  list. 

Reciprocity    Treaties    and     Aftreeiueiits     BetTreen    the     Unite*! 
States   and  Foreign   Countries    Since   1850. 

The  foHowing  is  a  list  of  the  reciprocity  treaties  and  agree- 
ments which  have  been  in  force  between  the  United  States  and 
foreign  countries  since  1850.  Tables  are  also  appended  exhibit- 
ing odr  trade  with  those  countries  before,  during,  and  after  the 
period  covered  by  the  treaties. 


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184  TlIK  TARIFF— RECIPROCITY. 

There  have  been  four  distinct  experiences  with  reciprocity 
in  the  trade  relations  of  the  United  States: 

(1)  'i'he  reeiproeity  treaty  with  Canada,  existing  from  1865 
to  1866.  'Fhe  treaty  alTeeted  imports  from  Canada  east  and 
Canada  west.  Nova  Si'otia,  New  Brunswick,  and  Prince  Edward 
Island,  but  did  not  aifect  imports  from  British  Columbia  and 
Newfoundland. 

(2)  The  reciprocity  treaty  with  the  Hawaiian  Government, 
existing  from  1876  to  1900. 

(3)  The  series  of  treaties  framed  under  the  McKinley  tariff 
act  of  1890  with  Brazil,  Dominican  Kepublic,  Spain, (for  Cuba 
and  Porto  Rico),  in  1891;  and  with  Germany,  United  Kingdom 
(for  British  West  Indies  and  British  Guiana),  Nicaragua,  Sal- 
vador, Austria-Hungary,  Honduras,  and  Guatemala,  in  1892. 
These  continued  in  existence  until  the  passage  of  the  Wilson 
tariff  act,  August  27,  1894. 

(4)  The  reciprocal  agreements  of  1900  with  Germany,  France, 
Portugal,  and  Italy,  still  in  operation. 

(5)  The  reciprocity  treaty  with  Cuba,  framed  and  ratified  in 
1903,  and  taking  effect  December  27,   1903. 

The  detailed  provisions  of  these  various  reciprocity  treaties 
may  be  briefly  described  in  general  terms  as  follows: 

(1)  The  Canadian  reciprocity  treaty  provided  for  the  free  admission 
into  the  United  States  from  Canada,  and  the  free  admission  into  Canada 
from  the  United  States,  of  breadstuffs,  provisions,  live  animals,  fruits,  fish, 
poultry,  hides  and  skins,  furs,  stone,  oi'es  and  metals,  timber  and  lumber, 
unmanufactured  cotton,  flax  and  hemp,  unmanufactured  tobacco — the  list 
of  articles  being  identical  for  each  country. 

(2)  The  Hawaiian  reciprocity  treaty  provided  for  the  free  admission 
into  the  United  States  of  sugar,  molasses,  and  other  of  the  principal 
tropical  productions  of  the  islands,  and  for  the  free  admission  into  the 
islands  of  breadstuffs,  provisions,  manufactures,  and  general  merchandise 
from  the  United  States. 

(3)  In  the  group  of  treaties  made  in  the  years  1891  and  1892,  under 
the  act  of  1890,  the  provisions  were  briefly  as  follows : 

With  Brazil  the  treaty  provided  for  the  free  admission  into  the 
United  States  from  Brazil  of  sugar,  molasses,  coffee,  and  hides,  and  the 
free  admission  into  Brazil  from  the  United  States  of  breadstuffs,  pork, 
fish,  cotton-seed  oil,  coal,  agricultural  implements,  machinery  for  mining 
and  manufacturing,  mechanical  tools,  material  for  railway  construction, 
and  numerous  other  articles,  the  product  of  the  United  States ;  also  for 
a  25  per  cent  reduction  in  the  rates  of  duty  on  certain  other  articles,  in- 
cluding provisions,  manufactures  of  iron  and  steel,  leather,  lumber,  fur- 
niture,   wagons   and   carriages,    and    manufactures   of   rubber. 

With  Cuba  and  Porto  Rico  the  treaty  provided  for  the  free  admission 
into  the  United  States  from  Cuba  and  Porto  Rico  of  sugar,  raolasaes,  coffee, 
and  hides,  and  the  admission  to  the  islands  from  the  United  States,  free  of 
duty,  of  salted  meats,  fish,  lard,  woods  for  cooperage  and  manufactured  into 
doors,  frames,  etc.,  wagons  and  carts,  cars  for  railways,  sewing  machines, 
manufactures  of  iron  and  steel,  oats  and  forage,  and  numerous  other  arti- 
cles, the  product  of  tlfe  United  States  ;  also  corn  and  moal  at  25  cents  per 
hundred  kilograms,  wheat  at  30  cents  per  hundred  kilograms,  flour  at  $1 
per  hundred  kilograms;  also  a  reduction  of  50  per  cent  of  the  duty  on 
numerous   other   articles,    especially    manufactures. 

With  British  West  Indies  the  treaty  provided  for  the  free  admission 
into  the  United  States  of  sugar,  molasses,  coffee,  and  hides  from  the 
islands,  and  the  free  admission  into  the  islands  from  the  United  States  of 
live  animals,  canned  or  dried  beef,  fish,  eggs,  machinery  for  agriculture,  irri- 
gation, and  mining;  carts  and  wagons,  wire,  railwiiy  material  and  locomo- 
tives, fertilizers,  fruits,  sewing  machines,  and  a  large  number  of  manu- 
factures ;  also  a  reduction  of  25  per  cent  in  the  rates  of  duty  on  beef 
and  pork,  salted,  and  provisions,  and  of  50  per  cent  on  bacon  and  hams, 
lard,  bread  and  biscuits,  boots  and  shoes,  shooks  and  staves,  and  other 
articles. 

With  the  Dominican  Republic  and  British  Guiana,  Nicaragua,  Honduras, 
and  Guatemala  the   provisions  were  similar  to  those  with   the  West   Indies. 

With  Germany  the  treaty  provided  for  the  free  admission  into  the 
United  States  of  sugar,  molasses,  coffee,  and  hides  from  Germany,  and 
the  free  admission  into  Germany  from  the  United  States  of  bran,  flax, 
feathers,  hides  and  skins,  tan  bark,  also  a  large  list  of  articles  at  a  fixed 
rate  of  duty,  but  in  all  cases  below  the  regular  tariff  rates — the  list  includ- 
ing breadstuffs,  lumber,  provisions,  live  animals,  fruits,  and  certain  manu- 
factures. 

The  treaty  with  Austria-Hungary  was  similar  in  general  character- 
istics to  that  with   Germany. 

(4)  The  reciprocal  agreements  now  existing  between  the  United  States 
and  Prance,  Portugal,  Germany,  and  Italy,  respectively,  may  be  summar- 
ized as  follows : 

France  :  The  United  States  reduces  the  rate  of  duty  on  crude  tartar 
from  France  to  5  per  cent  ad  valorem;  on  brandies  or  other  spirits  to 
$1.75  per  gallon;  also  a  reduction  on  still  wines  and  vermuth  and  on 
paintings  to  15  per  cent  ad  valorem;  while  the  French  Government  gives 
its  minimum  tariff  rates  to  canned  meats,  table  fr'iits,  dried  fruits,  lard, 
manufactured  and  prepared  pork  meats,  hops,  paving  blocks,  staves,  and. 
Ipgs  and'  sawed  or  squared  timber  and  lumber   from   the  United  States. 

Germany :  The  United  States  gives  the  same  tarifl'  rates  as  those 
named  in  the  treaty  with  France  on  tartar,  brandies,  still  wines,  and 
|)aintings,    and    the    German    Government   gives    to    the    United    States    the 


THE  TARIFF— RECIPROCITY.  135 

same  tariff  rates  as  those  given  to  Belgium,  Italy,  Austria-Hungary,  Rou- 
mauia,  Russia,  and  Switzerland  during  the  existence  of  the  present  tariff 
treaties  with  them,  and  annuls  its  regulations  regarding  dried  fruits  from 
the  United  States,  providing  in  their  stead  a  system  of  inspection  opt- 
account  of  the  San  Jose  scale. 

Portugal :  The  reductions  on  crude  tartar,  brandies,  wines,  and  paint- 
ings accorded  to  Germany  and  Prance  are  given  by  the  United  States  to 
Portugal,  and  the  Portuguese  Government  gives  to  the  United  States  as  low 
rates  of  duty  as  those  accorded  to  any  other  country,  except  Spain  and 
Brazil,  on  breadstuffs,  lard,  mineral  oils,  agricultural  implements,  and 
certain  machinery  for  manufacturing. 

Italy :  The  above-named  rates  with  reference  to  tartar,  brandies, 
still  wines,  and  paintings  are  given  by  the  United  States,  and  a  reduc- 
tion is  made  by  the  Italian  Government  on  imports  of  cotton-seed  oil,  fish, 
machinery,    scientific  instruments,    fertilizers,    and   skins. 

(5)  The  treaty  with  Cuba  which  went  into  operation  December  27, 
1903,  gives  a  reduction  of  20  per  cent  duty  on  all  dutiable  articles  from 
Cuba  entering  the  United  States  and  a  reduction  ranging  from  20  to  40 
per  cent  on  articles  from  the  United  States  entering  Cuba. 


Republican  reciprocity  in  non-competing  articles  and  in 
notliing  else.— Hon.  John   Dalzell,  in  Congress,  March.   1,   1904. 

Protection  brinj^s  together  diversifled  industries  Tvhich 
never  fail  to  vastly  increase  the  personal  inteligrence,  indus- 
try, and  wage  earnings  of  the  people.— H6n.  Justin  S.  Morrill. 

Many  of  our  great  industries,  including  the  silk  industry, 
the  pottery  industry,  the  carpet  industry,  and  the  steel-rail 
industry,  had  only  a  nominal  existence  until  adequately  pro- 
tective duties  ^vere  imposed  on  competing  foreign  products. 
— James   M.   Sivanlc,   in  the   American   Economist. 

The  present  phenomenal  prosperity  has  been  under  a 
tarift'  which  ivas  made  in  accoi-danee  with  certain  fixed  and 
deiinite  principles,  the  most  important  of  w^hich  is  an 
avowed  deterniination  to  protect  the  interests  of  the  Ameri- 
can producer,  business  man,  Ttage-^vorlier,  and  farmer  alike. 
—President    Roosevelt    at    Minneapolis,    April    4,    1903. 

The  3,000,000  of  pien  who  went  out  of  employment  with 
the  revision  of  the  tariff  by  the  Democratic  party  found  em- 
ployment in  the  enactment  of  the  Dingley  law^  by  the  Re- 
publican party,  and  a  million  and  a  half  have  been  added  to 
those   who    have    employment    in    the   industries    of   the    conn- 


S." 


try.— Hon.    P.    P.    Campbell,    in    Congresls,    April    1,    1904 

Those  foreign  countries  vi'hich  have  adopted  protection 
have,  in  the  elements  by  which  you  have  been  accustomed  to 
test  the  prosperity  of  a  nation,  improved  in  a  greater  ratio 
and  more  rapidly  than  ive  have  ourselves;  and  I  have  also 
to  point  out  that  this  tendency,  w^hich  has  become  so  mani- 
fest in  recent  years,  is  likely,  as  eves-y  sensible  man  of  busi- 
ness knows,  to  be  accentuated  as  time  goes  on. — Hon.  Jos. 
Chamberlain,    at    Liverpool,    Oct.    27,    1903. 

The  avowed  policy  of  the  National  administration  of 
tliese  tveo  Presidents  has  been  and  is  to  govern  tlie  Islands, 
having  regard  to  the  interest  and  Tvelfare  of  tlie  Filipino 
people,  and  by  the  spread  of  general  pi'imary  and  industrial 
education  and  by  practice  in  partial  political  control 
to  tit  the  people  themselves  to  maintain  a  stable  and  wel- 
ordered  government  affor<ling  equality  of  right  and  oppor- 
tunity to  all  citizens.— Hon.  Wm.  H.  Taft,  in,  special  report 
to    the    President. 

Certain  great  trusts  or  great  corporations  are  wholly  un- 
affected by  the  tariff.  Practically  all  the  others  that  are  of 
any  importance  have,  as  a  matter  of  fact,  numbers  of  small- 
ei-  American  competitors;  and,  of  course,  a  change  in  the 
tariff  -nhich  would  i^ork  injury  to  the  large  corporation 
would  ^vork  not  merely  injury  but  tlestruction  to  its  smaller 
competitors;  and  equally,  of  course,  such  a  change  ^vould 
mean  disaster  to  all  the  T»-age-workers  connected  ivith 
either  the  large  or  the  small  corporations. — President  Roose- 
velt   at    Minneapolis,    April    4,    1903. 

In  the  ten  years  w^hich  has  elapsetl  since  the  enactment 
of  the  Dingley  Tariff,  the  conditions  have  so  changed  as  to 
make  a  number  of  the  schedules  under  that  tariff  too  high 
and  some  too  lo^v.  This  renders  it  necessary  to  re-examine 
the  schedules  in  order  that  the  tariff  shall  be  placed  on  a 
l>urely  protective  basis.  By  tliat  I  mean  it  should  properly 
protect,  against  foreign  competition,  and  aft'ord  a  reason- 
able profit  to  all  manufactui'ers,  farmers,  and  business  men, 
but  should  not  be  so  high  as  to  furnish  a  temptation  to  -the 
forntatlon  of  monopolies  to  appropriate  the  undue  profit  of 
excessive    rates. — Hon.    Wm.    H.    Taft,    at    Ivansas    City,    Mo. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  ^tvhich  no  oratory,  ^vhich  no  eloquence,  -which  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New    York    World. 


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THE  TARIFF— RECIPROCITY, 


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The  administration  of  exact  justice  by  conrtN  \vitUoii.t 
fear  or  favor,  unmoved  by  the  influence  of  the  vrealtliy  or 
by  the  threats  of  tlie  demagroi^ne,  is  the  highest  ideal  that 
a  groverninent  of  the  x>*^opIe  can  strive  for,  anti  any  means 
by  tvhich  a  suitor,  however  unpopular  or  poor,  is  deprived 
of  enjoyin^jir  this  is  to  be  condemned.  It  is  important,  how- 
ever, that  appeals  to  judicial  remedies  should  be  limite<l  in 
such  a  way  that  parties  >vill  not  use  them  merely  to  delay 
and  so  clogr  eflicient  and  Just  executive  or  legislative  «,otlon. 
—Hon.   Wm.   H.   Taft,   at   Columbus,   Ohio. 


A  protective  tariff  unquestionably  increases  the  rewards 
of  labor  (a)  by  creating:  a  demand  for  skilled  labor,  (b>  by 
diversifying,  the  kinds  of  labor  in  a  country  and  thus  diiTer- 
entiatiuK-  both  demand  and  supply,  and  (c)  by  making:  for 
producers  of  every  kind  a  home  market.  This  increase  of 
the  laborer's  reward  is  not  confined  to  the  protected  indus- 
tries, but  elevates  wa«:es  in  every  sphere  (a)  by  the  sympa- 
thetic effect  of  hijQTh  ^vages  generally,  and  (b)  by  withdraw- 
ing: from  the  nonprotected  industries  and  from  agriculture  a 
8ur|>lus  of  wagre-earners  >vho  rrould  divide  and  reduce  vragea 
If  they  competed  against  each  other.— David  J.  Hill,  D.  D.. 
L.L.  D.,  Bx-presideiit  University  of  Rochester  and.  present 
Ambassador    to    Germany. 


THE  TARIFF— REOIPBOCITT  WITH  CANADA.  139 

Commerce  between  the  United  States  and  Canada,  1850  to  1908 
[OfQcial  figures  from  Bureau  of  Statistics.] 


Year  ending 
June  30- 

Exports 
to  Canada. 

Imports 
to  Canada. 

Excess  of— 

Exports. 

Imports. 

1850 

Dollars. 
9.515.991 
11,787,092 
10,229,608 
12,423,121 
24,157.612 
27,741,808 
29,025,349 
24,138,482 
23,604,526 
28,109,494 
22,695,928 
22,676,513 
20,573,070 
27,619,814 
26,574,624 
28,829,402 
24,828,880 
21,020,302 
24,080,777 
23,381,471 
25,339,254 
32.276,176 
29,411,464 
32,534,984 
41,827,904 
34,547,219 
33,375,719 
87,418.315 
.37.146,682 
29,604.385 
29.460,257 
87,903,822 
36,500,403 
44,417,110 
44,306,196 
38,245,634 
33.462,800 
34,988,110 
35,882,383 
40,607,561 
40,282.108  ■ 
38.147,778 
43,299,787 
46,794,332 
68,664,094 
52,854,769 
59,687.921 
64,928,821 
83,714,086 
87,974,961 
95,319,970 
109,642,993 
123,266,788 
105,789,214 
131.234,985 
140,529,581 
156,736,685 
183,206,067 

Dollars. 

5,179.500 
5,279,718 
5.469,445 
6.527,559 
8.784,412 
15,118,289 
21,276,614 
22,108,916 
15.784,836 
19,287,565 
23,572,796 
22,724,489 
18,511,025 
17,484,786 
29,608,736 
33,264,403 
48,528,628 
25.044,005 
26,261.379 
29.293,766 
36,265,328 
32,542,137 
36,346,930 
87,175,254 
84.173,586 
27.867.615 
28,805,964 
24,164,755 
25.044.811 
25.719,771 
82,988.564 
37,684,101 
50,775,581 
44,294,158 
.       38,399,835 
36.695,685 
37,304,036 
87,847,277 
42,924,554 
42,738,074 
39,042,977 
39,087.782 
34,954,203 
37,777,463 
30,790,916 
86,574,327 
40,887,565 
40,309,371 
81.870,486 
81,220,967 
39.369,074 
48,076,124 
54,781.418 
42,482,163 
51,562,791 
62,469,632 
68,237,653 
73.334,615 

Dollars. 
4.336,491 
6.490,374 
4,760,163 
5,905,038 
15,288,996 
12,623,519 
7,748,735 
2,029,566 
7,819,690 
8,821,929 

Dollars. 

1851 

1852 

1853 - 

1854 



1855  a 

1856  a 

1857  a 

1853  a 

1859  a 

1S60  a 

876,868 

1861  a 

2"062^0l5" 
10.135,a28 

47,976 

1863  a 

1864  a 

3,034,112 

1865  a 

1866  a 

1867 



4,435,001 

23,699,748 

4.023,703 

1868  -     

2,180,602 

1869  _     

5,912,295 

1870     _ 

10,926,074 

1871 

265,961 

1872 

6,935,476 

1873    _ 

7l654'3i8"' 
6.679,604 
4,569,755 
13,253,560 
12,101.871 
3,884,614 

4,640,270 

1874 

1875-        — _    

1876 

1877  _    

1878 

1879 

1880 

3,528,307 

1881 

219.221 

1882 

14,275,178 

1883 

122,952 
5,906.361 
1,549,949 

1,239.131 

8^345^584" 
9.016,869 
25,873.178 
16,280,442 
18,800,356 
24,619,450 
51,843,600 
56,753,994 
55,950,896 
61,566,869 
68,485,370 
63,307,051 
79,682,194 
78,059,949 
88,499,032 
109,871,452 

1884 

1885     

1886 

1887 -•- 

1888 

1889  ___- 

3,841,236 
2,859,167 
7.042.171 
2,130.513 

1890 

1891 .. 

940.004 

1892 

1893 

1S94 

1895 ,- 

1896  _ 



1897  _     ■         

1898     

1899 . 

1900 - 

1902  _     

1903 , 

1901 

1904 

1905  _ 

1906 

1907     _ 

a  Period  of  reciprocal  trade. 


Protection  alone  insnres  American  labor  against  Enropean 
panper  wag-es.— Former  Senator  Casey,  In  tlie  American 
Economist. 

Tlie  civilized  tvorld  substantially  protects  itself,  tbns 
forcing  ns  to  protect  onrselves. — Hon.  D.  B.  Henderson,  in  tbe 
American  Economist. 

We  ask  tbat  sober  and  sensible  men  compare  the  Tvork- 
ings  of  tbe  present  tariif  laTv  and  tbe  conditions  ^vbicb  ob- 
tain nnder  it  witb  tbe  workings  of  tbe  preceding  tariif  law 
of  1894  and  the  conditions  which  that  tariff  of  1894  helped 
to  bring  about.— President  Roosevelt's  speech  accepting  1904 
nomination. 

I  believe  tbat  a  navy  is  the  greatest  insurer  of  peace 
that  we  could  possibly  have— -a  navy  commensurate  vrith  our 
resources,  and  commensurate  Tvith  our  coast  line,  and  com- 
niensurate  Tvith  tbe  number  of  dependencies  Tve  have,  and 
commensurate  vrith  our  population,  and  commensurate  -with 
our  influence  as  a  world  power.— Hon.  Wm.  H.  Taft,  at  Cleve- 
land, Ohio. 


140  THE  TARIFF— PARTY  PLATFORMS  ON. 

Trade  of  the  United  States  with  Cuba,  ISSO  to  1908. 


Fiscal  year  ending  June  80— 

Imports 

Into  the 

United  States 

from— 

Exports 

from  the 

United  States 

to- 

1880 -- 

Dollars. 
65,423,018 
63,003,401 
70,450,652 
65,544.534 
57,181,497 
42,30(5,093 
51,110,780 
49,515,431 
49,319,087 
52,130,623 
53,801,591 
61,714,395 
77,931,671 
78,706,506 
75,678,261 
52,871,259 
40,017,730 
18,406,815 
15,232,477 
25,408,828 
31,371,701 
43,423,088 
34,691,681 
1         62,942,790 
76,983,418 
86,301,259 
84,979,821 
97,441,690 

DoUnrs. 
11, 22'),  699 

l&Jl 

11,361,585 

ias2 - 

12,131,821 

laai - 

15,103,703 

isai- - 

10,910,753 

1885 - - 

9,006.160 

1888 

10,409,170 

1887 .. 

10,546,411 

1888                                  

10,053,560 

188)                                         

11,691,311 

1890            _. 

13,084,415 

^woi_                   __  __                       

12,224,888 

1892„              

17,953,570 

1893 

24,157,698 

1891 __ 

20,125,321 

1895 

12,807,661 

181)6 

7,530,880 

180< 

1898 _ ._ 

8,259,776 
9,561,656 

1819 

18,616,377 

1900 _- 

26,513,400 

1901 

25,964,801 

1902 

26,623,500 

1903 

21,761,638 

1901  .. 

27,377,465 

190) 

38,380,601 

1906 

47,763,688 

1907 . 

1)08 . 

49.305,274 

TARIFF      IN      REPUBLICAN      AND   DEMOCRATIC     PLATFORMS 
18GO  to   1908. 

REPUBLICAN    TARIFF   PLANKS. 

'    1860 

While  providing  revenue  for  the  support  of  the  General 
Government  by  duties  upon  imports,  sound  policy  requires  such 
an  adjustment  of  these  imposts  as  to  encourag-e  the  development 
of  the  industrial  interests  of  the  whole  country ;  and  we  com- 
mend that  policy  of  national  exchanges  which  secures  to  the 
working-men  liberal  wages,  to  agriculture  remunerative  prices, 
to  mechanics  and  manufacturers  an  adequate  reward  for  their 
skill,  labor,  and  enterprise,  and  to  the  Nation  commercial  pros- 
perity  and   independence. 

(1864  and   1868  no  special  reference  to  tariff.) 

1872 

The  annual  revenue,  after  paying  current  expenditures,  pen- 
sions, and  the  'interest  on  the  public  debt,  should  furnish  a 
moderate  balance  for  the  reduction  of  the  principal,  and  that 
revenue,  except  so  much  as  may  be  derived  from  a  tax  on 
tobacco  and  liquors,  should  be  raised  bj'^  duties  iipon  importa- 
tions, the  details  of  which  aiwJuld  be  so  adjusted  as  to  aid  in 
securing  remunerative  wages  to  labor,  and  promote  the  indus- 
tries, prosperity,  and  growth  of  the  whole  country. 

1876 

The  revenue  necessary  for  current  expenditures  and  the 
obligations  of  the  public  debt  must  be  largely  derived  from 
duties  upon  importations,  which,  so  far  as  possible,  should  be 
adjusted  to  promote  the  interests  of  American  labor  and  ad- 
vance the  prosperity  of  the  whole  country. 


1880 

We  reaffirm  the  belief  avowed  in  1876,  that  the  duties  levied 
for  the  purpose  of  reven^  should  so  discriminate  as  to  favor 
American  labor. 


TTJE  TARIFF— PARTY  PLATFORMS  ON.  141 

1884 

It  is  the  first  duty  of  a  good  Government  to  protect  tiie 
rights  and  promote  the  interests  of  its  own  people.  The  largest 
diversity  of  industry  is  most  productive  of  general  prosperity 
and  of  tlie  comfort  and  independence  of  the  people.  We,  there- 
fore, deiuand  that  the  imposition  of  duties  on  foreigu  imports 
shall  be  niade  not  "for  revenue  only,"  but  that  in  raising  the 
requisite  revenues  for  the  Government  such  duties  shall  be  so 
levied  as  to  afford  security  to  our  diversified  industries  and 
protection  to  the  rights  and  wages  of  the  laborer,  to  the  end 
that  active  and  intellir^ent  labor,  as  well  as  ca;)ital,  may  have  its 
just  reward  and  the  laboring  man  his  full  share  in  the  national 
l)rosperity.  Against  the  so-called  economic  system  of  the  Demo- 
cratic party,  which  woi.M  degrade  our  labor  to  the  foreign 
staudaivl.  we  entei*  our  earnest  protest.  The  Democratic  party 
has  failed  completely  to  relieve  the  people  of  the  burden  of 
unnecessai'y  taxation  by  a  wise  reduction  of  the  surplus.  The 
I'.epublican  party  pledges  itself  to  correct  the  inequalities  of 
the  tariff  and  to  reduce  the  surplus,  not  by  the  vicious  and 
indiscriminate  process  of  horizontal  reduction,  but  by  such 
methods  as  will  relieve  the  taxpayer  without  injuring  the  labor 
or  the  great  productive  interests  of  the  country.  We  recognize 
the  importance  of  sheep-husbandry  in  the  United  States,  the 
serious  depression  whi-ch  it  is  now  experiencing  and  the  danger 
threatening  its  future  prosperity ;  and  we,  therefore,  respect 
the  demands  of  the  representatives  of  this  important  agricul- 
tural interest  for  a  readjustment  of  duties  upon  foreign  wool 
in  order  that  such  industry  shall  have  full  and  adequate  pro- 
tection. 

1888 

W^e  are  uncompromisingly  in  favor  of  the  American  system 
of  protection ;  we  protest  against  its  destruction  as  proposed 
by  the  President  and  his  party.  They  serve  the  interests  of 
Europe ;  we  will  support  the  interests  of  America.  We  ac- 
cept the  issue  and  confidently  appeal  to  the  people  for  their 
judgment.  The  protective  system  must  be  maintained.  Its 
abandonment  has  always  been  followed  by  general  disaster  to 
all  interests,  except  those  of  the  usurer  and  the  sheriff.  We 
denounce  the  Mills  bill  as  destructive  to  the  general  business, 
the  labor,  and  the  farming  interests  of  the  country,  and  we 
heartily  indorse  the  consistent  and  patriotic  action  of  the  Re- 
publican representatives  in  Congress  in  opposing  its  passage 
We  condemn  the  proposition  of  the  Democratic  party  to  place 
wool  on  the  free  list,  and  we  insist  that  the  duties  thereon 
shall  be  adjusted  and  maintained  so  as  to  furnish  full  ntid 
adequate  protection  to  that  industry  throughout  the  United 
States.  The  Eepublican  party  would  effect  all  nci  de  1  reduction 
of  the  national  revenue  bj^  repealing  the  taxes  upon  tobacco, 
which  are  an  annoyance  and  burden  to  agriculture,  and  the 
tax  upon  spirits  used  in  the  arts  and  for  mechanical  purposes, 
and  by  such  revision  of  the  tariff  laws  as  will  tend  to  check 
imports  of  such  articles  as  are  produced  by  our  people,  the 
production  of  which  gives  employment  to  our  labor,  and  re 
lease  from  import  duties  those  articles  of  foreign  production 
(except  luxuries)  the  like  of  which  cannot  be  produced  at 
home.  If  there  shall  still  remain  a  larger  revenue  than  is 
requisite  for  the  wants  of  the  Government,  we  favor  the  entire 
repeal  of  internal  taxes  rather  than  the  surrender  of  any  part 
of  our  protective  system,  at  the  joint  behests  of  the  whisky 
trusts  and  the  agents  of  foreign   manufactures. 

1892 

We  reaffirm  the  American  doctrine  of  protection.  We  call 
attention  to  its  growth  abroad.  We  maintain  that  the  pros- 
perous condition  of  our  country  is  largely  due  to  the  wise  rev- 
enue legislation  of  the  last  Tiepublican  Congress.  We  believe 
that  all  articles  which  cannot  be  produced  in  the  United  States, 
except  luxuries,  should  be  admitted  free  of  duty,  and  that  on 
all  imports  coming  into  competition  with  the  products  nt 
American  labor  there  should  be  levied  duties  equal  to  the  dif- 


142  TH^  TARIFF—PARTY  PLATFORMS  ON. 

terence  between  wages  abroad  and  at  home.  We  assert  that 
the  prices  of  manufactured  articles  of  general  consumption  have 
l)een  reduced  under  the  operations  of  the  tariff  act  of  18i)0 
We  denounce  the  eflPorts  of  the  Democratic  majority  of  the 
House  of  Kepresentatives  to  destroy  our  tariff  laws  by  piece-' 
meal,  as  manifested  by  their  attacks  upon  wool,  lead,  and  lead 
ores,  the  chief  product  of  a  niunber  of  States,  and  we  ask  the 
people  for  their  judgment  thereon. 

1896 

We  renew  and  emphasize  the  allegiance  to  the  policy  of 
protection  as  the  bulwark  of  American  industrial  independence 
and  the  foundation  of  American  development  and  prosperity. 
This  true  American  policy  taxes  foreign  products  and  en- 
courages home  industry ;  it  puts  the  burden  of  revenue  on 
foreign  goods ;  it  secures  the  American  market  for  the  Ameri- 
can producer;  it  upholds  the  American  standard  of  wages  for 
the  American  workingman ;  it  puts  the  factory  by  the  side  of 
the  farm,  and  makes  the  American  farmer  less  dependent  on 
foreign  demand  and  price;  it  diffuses  general  thrift,  and  founds 
the  strength  of  all  on  the  strength  of  each.  In  its  reasonable 
application  it  is  just,  fair,  and  impartial ;  equally  opposed  to 
foreign  control  and  domestic  monopoly,  to  sectional  discrimina- 
tion, and  individual  favoritism.  We  denounce  the  present  Demo- 
cratic tariff  as  sectional,  injurious  to  the  public  credit,  and  de- 
structive to  business  enterprise.  We  demand  such  an  equitable 
tariff  on  foreign  imports  which  come  into  competition  with 
American  products  as  will  not  only  furnish  adequate  revenue 
for  the  necessary  expenses  of  the  Government,  but  will  protect 
American  labor  from  degradation  to  the  wage  level  of  other 
lands.  We  are  not  pledged  to  any  particular  schedules.  The 
question  of  rates  is  a  practical  question,  to  be  governed  by  the 
conditions  of  the  time  and  of  production ;  the  ruling  and  uncom- 
promising principle  is  the  protection  and  development  of  Ameri- 
can labor  and  industry.  The  country  demands  a  right  settlement, 
and  then  it  wants  rest. 

1900 

We  renew  our  faith  in  the  policy  of  Protection  to  Ameri- 
can labor.  In  that  policy  our  industries  have  been  established, 
diversified,  and  maintained.  By  protecting  the  home  market 
competition  has  been  stimulated  and  production  cheapened. 
Opportunity  to  the  inventive  genius  of  our  people  has  been 
secured  and  wages  in  every  department  of  labor  maintained 
at  high  rates,  higher  now  than  ever  before,  and  always  dis- 
tinguishing our  working  people  in  their  better  condition  of  life 
from  those  of  any  competing  country.  Enjoying  the  blessings 
of  the  American  common  school,  secure  in  the  right  of  self- 
government,  and  protected  in  the  occupancy  of  their  own  mar- 
kets, their  constantly  increasing  knowledge  and  skill  have  en- 
abled them  to  finally  enter  the  markets  of  the  world.  We 
favor  the  associated  policy  of  reciprocity  so  directed  as  to  open 
our  markets  on  favorable  terms  for  what  we  do  not  ourselves 
produce  in  return  for  free  foreign  markets. 

1904 

Protection  which  guards  and  develops  our  industries,  is 
a  cardinal  policy  of  the  Republican  party.  The  measure  of 
protection  should  always  at  least  equal  the  difference  in  the 
cost  of  production  at  home  and  abroad.  We  insist  upon  the 
maintenance  of  the  principle  of  protection,  and,  therefore, 
rates  of  duty  should  be  readjusted  only  when  conditions  have 
so  changed  that  the  public  interest  demands  their  alteration, 
but  this  work  cannot  safely  be  committed  to  any  other  hands 
than  those  of  the  Republican  party.  To  intrust  it  to  the  Demo- 
cratic party  is  to  invite  disaster.  Whether,  as  in  1893,  the 
Democratic  party  declares  the  protective  tariff  unconstitu- 
tional, or  whether  it  demands  tariff  reform  or  tariff  revision, 
its  real  object  is  always  the  destruction  of  the  protective  sys- 
tem.    However   specious   the    name    the   purpose    is    ever   th.% 


TffE  TARIFF— PARTY  PLATFORMB  OV.  143 

same.  A  Democratic  tariff  has  always  been  followed  by  busi- 
ness adversity ;  a  Republican  tariff  by  business  prosperity.  To 
a  Ilepublican  Congress  and  a  Republican  President  this  great 
rjuestion  can  be  safely  intrusted.  When  the  only  free  trade 
country  among  the  great  nations  agitates  a  return  to  protec- 
tion the  chief  protective  country  should  not  falter  in  maintain- 
ing it. 

1908 
The  Republican  Party  declares  unequivocally  for  the  revision 
of  the  tariff  by  a  special  session  of  Congress  immediately  follow- 
ing the  inauguration  of  the  next  President,  and  commends  the 
steps  already  taken  to  this  end  in  the  work  assigned  to  the  appro- 
priate committees  of  Congress  which  are  now  investigating  the 
operation  and  effect  of  existing  schedules.  In  all  tariff  legislation 
the  true  principle  of  protection  is  best  maintained  by  the  impo- 
sition of  such  duties  as  will  equal  the  difference  between  the  cost 
of  production  at  home  and  abroad,  together  with  a  reasonable 
profit  to  American  industries.  We  favor  the  establishment  of 
maximum  and  minimum  rates  to  be  administered  by  the  Presi- 
dent under  limitations  fixed  in  the  law,  the  maximum  to  be  avail- 
able to  meet  discriminations  by  foreign  countries  against  Ameri- 
can goods  entering  their  markets,  and  the  minimum  to  represent 
the  normal  measure  of  protection  at  home,  the  aim  and  purpose 
of  the  Republican  policy  being  not  only  to  preserve,  without  ex- 
cessive duties,  that  security  against  foreign  competition  to  which 
American  manufacturers,  farmers  and  producers  are  entitled, 
but  also  to  maintain  the  high  standard  of  living  of  the  wage- 
earners  of  this  country,  who  are  the  most  direct  beneficiaries  of 
the  protective  system.  Between  the  United  States  and  the  Philip- 
]nnes  we  believe  in  a  free  interchange  of  products  with  such  limi- 
tations as  to  sugar  and  tobacco  as  will  afford  adequate  protection 
*o  domestic  interests. 


DEMOCRATIC  TARIFF    PI.ANKS. 

1856 
The  time  has  come  for  the  people  of  the  United  States  to  de- 
clare themselves  in  favor  of  free  seas  and  progressive  free 
trade  throughout  the  world,  and,  by  solemn  manifestations,  to 
place  their  moral  influence  at  the  side  of  their  successful  ex- 
ample. 

1860 
We,  the  Democracy  of  the  Union,  in  convention  assembled, 
hereby  declare  oiir  affirmance  of  the  resolutions  unanimously 
adopted  and  declared  as  a  platform  of  principles  by  the  Demo- 
cratic Convention  in  Cincinnati  in  the  year  1856,  believing  that 
Democratic  principles  are  unchangeable  in  their  nature  when 
applied  to  the  same  subject-matters, 

1868 
A  tariff  for  revenue  upon  foreign  imports,  and  such  equal 
taxation  under  the  Internal  Revenue  laws  as  will  afford  inci- 
dental protection  to  domestic  manufactures,  and  as  will,  with- 
out impairing  the  revenue,  impose  the  least  burden  upon  and 
best  promote  and  encourage  the  great  industrial  interests  of  th« 
country. 

1872 
Recognizing  that  there  are  in  our  midst  honest  but  irre- 
concilable differences  of  opinion  with  regard  to  the  respective 
systems  of  protection  and  free  trade,  we  remit  the  discussion 
of  the  subject  to  the  people  in  the  Congressional  districts,  and 
to  the  decision  of  the  Congress  thereon,  wholly  free  from  exe- 
cutive interference  or  dictation. 

1876 
We   denounce   the   present   tariff,    levied    upon   nearly    4.000 
articles,    as    a    masterpiece    of    injustice,     inequality,  and  false 
pretense.     It   yields  a   dwindling,   not   a  yearly  rising  revenue. 


144  mm  TARIFF— PARTY  PLATFORM F^  ON. 

It  has  impoverished  many  iiichistrios  to  subsidize  a  few.  It 
prohibits  imports  that  mig-ht  purchase  the  products  of  Ameri- 
can hibor.  It  has  degraded  American  commerce  from  the  first 
to  an  inferior  rank  on  the  hig-h  seas.  It  has  cut  down  tlie  sales 
of  American  manufactures  at  home  and  abroad,  and  depleted 
the  returns  of  American  ag-ricidture — an  industry  followed  by 
half  our  people.  It  costs  the  people  five  times  more  tba  i  it  pro- 
duces to  the  Treasury,  obstructs  the  process  of  production, 
and  wastes  the  fruits  of  labor.  It  promotes  fraud,  fosters 
smugg-lingf,  enriches  dishonest  otticials,  and  bankrupts  honesL 
merchants.  We  demand  that  all  custom-house  taxation  shall 
be  only  for  revenue. 

1880 
A  tariff  for  revenue  only. 

1884 
The  Democratic  party  is  pledged  to  revise  the  tariff  in  a 
spirit  of  fairness  to  all  interests.  But,  in  making  the  reduction 
in  taxes,  it  is  not  proposed  to  injure  any  domestic  industries, 
but  rather  to  promote  their  healthy  growth.  From  the  founda- 
tion of  this  Government  taxes  collected  at  the  custom-house 
have  been  the  chief  source  of  Federal  revenue.  Such  they  must 
continue  to  be.  Moreover,  many  industries  have  come  to  rely  upon 
legislation  for  successful  contin\iance,  so  that  any  change  of  law 
must  be  at  every  step  regardful  of  the  labor  and  capital  thus  in- 
volved. The  process  of  the  reform  must  be  subject  in  the  execu- 
tion to  this  plain  dictate  of  justice— all  taxation  shall  be  limited 
to  the  requirements  of  economical  government.  The  necessary 
reduction  and  taxation  can  and  miist  be  effected  without  de- 
priving American  labor  of  the  ability  to  compete  successfully 
with  foreign  labor  and  without  imposing  lower  rates  of  duty 
than  will  be  ample  to  cover  any  increased  cost  of  production 
which  may  exist  in  conseqiience  of  the  higher  rate  of  wages 
prevailing  in  this  country.  Sufficient  revenue  to  pay  all  the 
expenses  of  the  Federal  Government  economically  adminis- 
tered, including  pensions,  interest,  and  principal  of  the  public 
debt,  can  be  got  under  our  present  system  of  taxation  from  the 
custom-house  taxes  on  fewer  imported  articles,  bearing  heav- 
iest on  articles  of  luxury  and  bearing  lightest  on  articles  of 
necessity.  We,  therefore,  denounce  the  abuses  of  the  existing 
tariff,  and,  subject  to  the  preceding  limitations,  we  demand  that 
Federal  taxation  shall  be  exclusively  for  public  purposes,  and 
shall  not  exceed  the  needs  of  the  Government  economically 
administered. 

1888 
Our  established  domestic  industries  and  enterprises  should 
not  and  need  not  be  endangered  by  the  reduction  and  correction 
ol  the  burdens  of  taxation.  On  the  contrary,  a  fair  and  careful 
revision  of  our  tax  laws,  with  due  allowance  for  the  vlifference 
between  the  wages  of  American  and  foreign  labor,  must  promote 
and  encourage  every  branch  of  such  industries  and  enterprises 
by  giving  them  assurance  of  an  extended  market  and  steady 
and  continuous  operations.  In  the  interests  of  American  labor, 
which  should  in  no  event  be  neglected,  the  revision  of  our  tax 
laws  contemplated  by  the  Democratic  party  should  promote  the 
advantage  of  such  labor  by  cheapening  the  cost  of  necessaries 
of  life  in  the  home  of  every  workingman,  and  at  the  same  time 
securing  to  him  steady  and  remunerative  employment.  Upon 
this  question  of  tariff  reform,  so  closely  concerning  every  phase 
of  our  national  life,  and  upon  every  question  involved  in  the 
problem  of  good  government,  the  Democratic  party  submits  its 
principles  and  professions  to  the  intelligent  suffrages  of  the 
American  people. 

1892 
We  denounce  Republican  protection  as  a  fraud,  a  robbery  of 
the  great  majority  of  the  American  people  for  the  benefit  of  the 
few.    We  declare  it  to  be  a  fundamental  principle  of  the  Demo- 
cratic party  that  the  Federal  Government  has  no  constitutional 


TEE  TARIFF— PARTY  PLATFORMS  ON.  145 

power  to  impose  and  collect  tai'iff  duties,  except  for  the  pur- 
poses of  revenue  only ;  and  we  demand  that  the  collection  of 
such  taxes  shall  be  limited  to  the  necessities  of  the  Government 
when  honestly  and  economically  administered.  We  denounce 
the  McKinley  tariff  law  enacted  by  the  Fifty-first  Congress  as 
the  culminating-  atrocity  of  class  legislation ;  we  indorse  the 
efforts  made  by  the  Democrats  of  the  present  Congress  to  modify 
its  most  oppressive  featui'es  in  the  direction  of  free  raw  ma- 
terials and  cheaper  manufactured  goods  that  enter  into  general 
consumption,  and  we  promise  its  repeal  as  one  of  the  beneficent 
results  that  will  follow  the  action  of  the  people  in  trusting 
posver  to  the  Democratic  party.  Since  the  McKinley  tariff  went 
into  operation  there  have  been  ten  reductions  of  the  wages  of 
the  laboring  man  to  one  increase.  We  deny  that  there  has  been 
any  increase  of  prosperity  to  the  country  since  that  tariff"  went 
into  operation,  and  we  point  to  the  dullness  and  distress,  to 
the  ^vage  reductions  and  strikes  in  the  iron  trade  as  the  best  pos- 
sible evidence  that  no  such  prosperity  has  resulted  from  the 
McKinley  act.  We  call  the  attention  of  thoughtful  An  ericans 
to  the  fact  that  after  thirty  years  of  restrictive  taxes  against 
the  importation  of  foreign  wealth  in  exchange  for  our  agri- 
<'ultural  surplus  the  homes  and  farms  of  the  country  have  be- 
come burdened  with  a  real  estate  mortgage  debt  of  over  two 
thousand  five  hundred  million  dollars  exclusive  of  all  other 
forms  of  indebtedness:  that  in  ojie  of  the  chief  agriciiltural 
States  of  the  West  there  appears  a  real  estate  mortgage  debt 
averaging  $165  per  capita  of  the  total  population,  and  that 
similar  conditions  and  tendencies  are  shown  to  exist  in  the 
other  agricultural  exporting  States.  We  denoimce  a  policy 
which  fosters  no  industry  so  much_  as  it  does  that  of  the  sheriff. 

1896 
We  hold  that  tariff  duties  shoidd  be  levied  for  purposes  of 
i-eveniie,  such  duties  to  be  so  adjusted  as  to  operate  equally 
tla-oughout  the  country  and  not  iliscriminate  between  class  or 
section,  and  that  taxation  should  be  limited  by  the  needs  of  the 
Government  honestly  and  econonrically  administered.  We  de- 
nounce, as  disturbing  to  business,  the  Kepublican  threat  to  re- 
^n;ore  the  McKinley  law,  which  has  been  twice  condemned  by 
the  people  in  national  elections,  and  which,  enacted  under  the 
false  plea  of  protection  to  home  industry,  proved  a  prolific 
breeder  of  trusts  and  monopolies,  enriched  the  few  at  the  ex- 
jense  of  the  many,  restricted  trade,  and  deprived  the  producers 
of  the  great  American  staples  of  access  to  their  natural  markets. 

1900 
We  condemn  the  Dingley  Tariff  law  as  a  trust-breeding 
measure,  skillfully  devised  to  give  the  few  favors  which  they 
do  not  deserve  and  to  j)lace  upon  the  many  burdens  which  they 
should  not  bear.  We  reaffirm  and  indorse  the  princijiles  of  the 
.National  Democratic  platform  adopted  at  Chicago  in  1896, 

1904 
'I'lifc  Democratic  party  has  been,  and  will  continue  to  be, 
the  consistent  opponent  of  that  class  of  tariff  legislation  by 
which  certain  interests  have  been  permitted,  through  Congres- 
sional favor,  to  draw  a  heavy  tribute  from  the  American  peo- 
ple. This  monstrous  perversion  of  those  equal  opportunities 
which  our  political  institutions  were  established  to  secure  has 
caused  what  may  once  have  been  infant  industries  to  become 
the  g-reatest  combinations  of  capital  that  the  world  has  ever 
known.  These  especial  favorites  of  the  g-overnment  have, 
through  trust  methods,  been  converted  into  monopolies,  thus 
bringing  to  an"  end  domestic  competition,  which  was  the  only 
alleged  check  upon  the  extravagant  profits  made  possible  by 
the  protective  system.  These  industrial  combinations,  by  the 
financial  assistance  they  can  give,  now  control  the  policy  of 
the  Republican  .party.  We  denounce  protectionism  a^  a  robbery 
of  the  many  to  enrich  the  few,  and  we  favor  a  tariff  limited  to 
the  needs  of  the  Government,  economically,  effectively,  and  con- 
stitutionally administered,  and  so  levied  as  not  to  discriminate 


146  THE  TARIFF—PARTY  PhATFiUiM^  ON. 

against  any  industry,  class,  or  section  to  the  end  that  the  bur- 
dens of  taxation  shall  be  distributed  as  equally  as  possible. 

We  favoi"  a  rt^visiou  and  a  jjfvadual  reduction  of  the  tariff 
by  the  friends  of  the  masses  antl  for  tlve  coiunion  weal,  and  ui" 
by  the  friends  of  its  abuses,  its  extortions,  and  its  discrimina- 
tions, keeping-  in  view  the  idtimate  end  of  "equality  of  burdens 
oud  equality  of  opportunities"  and  the  constitutional  purpose 
of  mising  a  revenue  L5y  taxation,  to  wit,  the  suijjjort  of  the  J'Vd>  •- 
al  Government  in  all  its  integrity  and  virility,  but  in  simpli- 
city. 

1908 

We  welcome  the  belated  promise  of  tariff  reform  now  offered 
by  the  Republican  party  in  tardy  recognition  of  the  righteous- 
ness of  the  Democratic  position  on  this  question ;  but  the 
people  can  not  safely  entrust  the  execution  of  this  important 
work  to  a  party  which  is  so  deeply  obligated  to  the  highly,  pro- 
tected interests  as  is  the  IJepublican  party.  We  call  attention  to 
the  significant  fact  that  the  promised  relief  is  postponed  until 
after  the  coming  election — an  election  to  succeed  in  which  the 
Eepublican  party  must  have  that  same  support  from  the  bene- 
ficiaries of  the  high  protective  tariff  as  it  has  always  hereto- 
fore received  from,  them ;  and  to  the  further  fact  that  during 
years  of  uninterrupted  power  no  action  whatever  has  been  taken 
by  the  Eepublican  Congi-ess  to  correct  the  admittedly  existing 
tariff  iniquities.  W^e  favor  the  immediate  revision  of  the  tariff 
by  the  reduction  of  import  duties.  Articles  entering  into  com- 
petition with  trust-controlled  products  sho'^jd  be  placed  upon  the 
free  list,  and  material  reduction  should  be  made  in  the  tariff' 
upon  the  necessaries  of  life,  especially  upon  articles  competing 
with  such  American  manufactures  as  are  sold  abroad  more 
cheaply  than  at  home ;  and  gradual  reduction  shourl  be  made  in 
such  other  schedules  as  may  be  necessary  to  restore  the  tariff 
to  a  revenue  basis.  Existing  duties  have  given  to  the  manu- 
facturers of  paper  a  shelter  behind  which  they  have  organized 
combinations  to  raise  the  price  of  pulp  and  paper,  thus  imposing 
a  tax  upon  the  spread  of  knowledge.  We  demand  the  immediate 
repeal  of  the  tariff  on  wood  pulp,  print  paper,  lumber,  timber 
and  logs,  and  that  these  articles  be  placed  upon  the  free  list. 


PETROLEUM  DUTIES. 

Tl&e  Countervailing  Dnty  on  Petroleum— Originated  In  Demo- 
cratic   Tariff    Act. 

i  Much  criticism  has  been  made  in  recent  years  of  the  fact  that 
the  Dingley  tariff  law,  so  called,  the  law  now  in  operation,  places 
a  duty  on  petroleum,  or  mineral  oil,  imported  from  countries 
which  impose  a  duty  on  petroleum  or  its  products  exported  from 
the  United  States ;  and  the  charge  has  been  made  by  the  Demo- 
crats that  this  was  placed  in  the  Dingley  Tariff  Act  at  the  in- 
stance of,  or  through  the  secret  workings  of,  the  Standard  Oil 
Company.  If  this  be  true  it  merely  illustrates  the  danger  of 
accepting,  even  in  a  single  instance,  a  precedent  or  plan  es- 
tablished by  the  Democratic  party,  since  this  proposition  of 
placing  a  countervailing  duty  on  petroleum  from,  countries  which 
impose  duties  on  like  products  from  the  United  States  first  made 
its  appearance  in  the  Wilson  tariff  Act  of  1894.  The  provisions 
of  the  Wilson  and  Dingley  Acts  upon  this  subject  are  given  below 
in  parallel  columns. 

Tariff  Act  of  August  27,  1894.  Tariff  Act  of  July  24,   1897. 

(Wilson  Tariff  Act.)  (Dingley  Tariff  Act.) 

"Petroleum,      crude      or      refined,  "Petroleum,      crude      or      refined, 

free :  Provided,  That  if  there  be  im-  free  :  Provided,  That  if  there  be  im- 
ported into  the  United  States  crude  ported  into  the  United  States  crude 
petroleum  produced  In  any  country  petroleum  or  the  products  of  crude 
which  Imposes  a  duty  on  petroleum  petroleum  produced  in  any  country 
or  its  products  exported  from  the  which  imposes  a  duty  on  petroleum 
United  States,  there  shall  be  levied,  or  its  products  exported  from  the 
collected  and  paid  upon  said  crude  United  States,  there  shall  in  sucli 
petroleum  or  its  products  so  im-  cases  be  levied,  paid,  and  collected 
ported,   forty  percentum  advalorem."        a   duty    upon    said    crude    petroleum 

or  its  products  so  imported  equal 
to  the  duty  imposed  by  such  coun- 
try." 


THE  TARIFF. 


14T 


It  will  be  noted  by  a  careful  examination  of  the  above  that 
the  countervailing  duty  proposition  of  the  Dingley  Act  is  pre- 
cisely that  of  the  Wilson  Act,  except  that  the  Wilson  Act  made 
the  rate  of  duty  40  per  cent  irrespective  of  the  rate  enforced 
against  American  petroleum,  while  the  Dingley  jict  makes  the  rate 
of  duty  the  same  as  that  imposed  upon  our  petroleum  by  the 
country  from  which  the  product  is  imported. 


Number  and  Average  Price  and  Total  Valae  of  Slieep  in.  tlie 
United    States    in    eacli    year    from    1880    to    1907. 

This  table  shows  the  number  and  total  value  of  sheep  in 
the  United  States  in  each  year  from  1880  to  1908  and  the  aver- 
age value  per  head  on  January  1  of  the  years  named.  It  will 
be  noted  that  the  number,  the  value  per  head,  and  the  total 
value  fell  steadily  from  January  1  during  the  entire  Democratic 
and  low  tariff  period ;  the  number  falling  from  over  47  millions 
to  less  than  37  millions,  the  price  per  head,  from  $2.66  in  1893  to 
$1.58  in  1895  ;  and  the  total  value,  from  125  million  dollars  in 
1893  to  65  millions  in  1896 ;  while  with  the  restoration  of  pro- 
tection the  number,  price  per  head,  and  total  value  rapidly  ad- 
vanced:  the  number  in  1908  being  541/2  millions,  against  less 
^^han  37  millions  in  1896;  the  price  per  head,  $3.89,  against  $1.70 
in  1896,  and  the  total  value  212  millions,  against  65  millions  in 
1896  ;  the  value  of  the  sheep  in  the  United  States  having  thuJi 
more  than  trebled  in  the  12  years  since  the  election  of  Mc- 
Kinley. 

[Prom  report  of  Department  of  Agriculture.] 


Year 

Number 
of  -  heep. 

Average 

price 
per  head. 

Total 
value. 

January  1— 

1880                                        

40,765,900 
43,569,899 
45,016,224' 
49,237,291 
50,626,626 
50,360,243 
48,322,331 
4t,759,.S14 
43,514,755 
42,599,079 
44,336,072 
43,431,136 
44,9.38,365 
47,273,553 
45.048,017 
42,291,034 
38.298,783 
33,818,643 
37,658,960 
39,114.453 
41,883.065 
59,756,718 
62,039,091 
63.964,876 
51,630,144 
45,170,423 
50,631,619 
53,240,282 
51,631,000 

$2.21 
2.39 
2.37 
2.53 
2.37 
2.14 
1.91 
2.01 
2.05 
2.13 
2.27 
2.50 
2.. 58 
2.66 
1.98 
1.58 
1.70 
1.82 
2.46 
2.75 
2.93 
2.98 
2.65 
2.63 
2.59 
2.82 
3.54 
3.8t 
3.88 

$90,230,537 

1881                                         -—           

101,070,861 

1882                                         '  ■  - 

106,595,954 

1883                                         —      

124,365,835 

1884                                          ...^ 

119,902,708 

1885                                           --  

107,960,650 

1886                                       -     

92,443,867 

1887                                           -- 

89,872,839 

1888                                       

89,279,926 

1889                                         --•-     

90,640,369 

1890                                         — - 

100,659,761 

1891                                           

108,397,447 

1892                                                   -  — 

116,121,290 

1893 

125,909,264 

1894                                              ----- 

89,186,110 

1895                                         

66,685,767 

1896                                     -       

65,167,735 

1897                                   ,—     — -     

67,020,942 

1898                                 

92,721,133 

1899      __                        --     

107,697,530 

1900  .     —                   -        

122,665,913 

1901 

178,072,476 

1902 ^^- 

164,446,091 

1903 

168,315,750 

1904 

133, 530,  OM 

1905 

127,331,850 

1906 - 

179,056,144 

1907 

204,21Q>129 

1908 

211,736,000 

Wliolesale    Prices     of     Boot-s     and     Slioes,     1S07     to     1903. 

The  purpose  of  this  table  is  to  give  opportunity  to  de- 
termine whether  an  advance  in  prices  of  boots  and  shoes  fol- 
lowed the  enactment  of  the  Dingley  law,  which  placed  a  duty 
of  15  per  cent  on  hides  imported.  It  will  be  seen  that  after  the 
Act  had  been  four  years  in  operation,  prices  were  in  many  cases 
materially  less  than  in  the  first  week  of  1897,  and  prior  to 
the  enactment  of  the  Dingley  law;  that  in  certain  cases  prices 
in  1902  were  unchanged,  while  some  others  showed  but  a  slight 
advance,  indicating  that  no  general  advance  occurred  in  the  price 
of  boots  and  shoes  by  reason  of  the  duty  placed  on  hides  by  the 
Dingley  law.  vVhile  prices  advanced  in  later  years  coincidental! y 
with  the  advance  in  price  of  labor  and  materials,  the  fact  that  no 


148 


TEE  TARIFF. 


advance  occurred  for  four  years  after  the  imposition  of  the 
tariff  on  hides  shows  that  that  act  did  not  affect  home  prices, 
but   that   recent   advances  are   due   to   other   causes. 


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Coal    Production    In    tlie    United    Kinj^dom,    Germany    and    tlie 
United    StateH. 

This  table,  showing-  the  coal  production  and  consumption  in 
free  trade  United  King-doni  and  protective  Germany  and  the 
United  States  from  1875  to  1906.  is  given  with  the  purpose  of 
indicating  the  relative  growth  of  industries  in  the  two  countries 
under  protecti\e  tariffs  compared  with  that  of  free  trade  United 
Kingdom.  It  will  be  seen  that  the  consumption  of  coal  in  free 
trade  United  Kingdom  grew  from  115  million  tons  to   174  mil- 


THE  TARIFF. 


149 


lions;  in  protective  Germany,  from  47  million  tons  to  189  mil- 
lions; and  in  jjrotective  United  States,  from  48  millions  to  359 
millions  in  the  period  under  consideration. 

Goal  production  and  consumption  in  the  United  Kingdom,  Qer* 
many,  and  the  United  States,  for  the  years  named. 


United  Kingdom. 

Germany. 

United  States. 

Produc- 

Con- 

Produc- 

Con 

Produc- 

Con- 

Years. 

tion 

sumption 

tion 

sumption 

tion 

sumption 

In  gross 

In  gross 

in  gross 

In  gro^s 

in  gross 

in  gross 

( 

tons  of 

tons  of 

tons  of 

ton    ot 

tons  of 

tons  of 

2,240  lbs. 

2,240  lbs. 

2,240  lbs. 

2,240  lbs. 
46,810,000 

2,240  lbs. 

2,240  lbs.* 

1875 

133,306,000 

115,304,000 

37,049,000 

46,739,000 

47.892,000 

LS80 

146,969,000 

123,067,000 

58,185,000     56.102,000     63,823,000 

60,670,000 

1885- 

159,351,000 

128,585,000 

72,513,000      69,612,000      99,250,000 

106,832,000 

1890-. 

181,614,000 

142,954,000 

87,881,000'     89,364,000    110,867,000 

125,117,481 

1895 

189,661,000 

146,754,000 

102,317,000    101,201,000    172,426,000 

119,901,0:)0 

1900 

225,181,000 

166.776,000 

147,423,000    147,439,000    210,789,000 

221,067.000 

1!;01 

219,017,000 

101,261,000 

150,603,000    149,736,000'  201,875.000 

256, 374. W J 

1)02 

227, 09'),  000 

166,694,000 

118,222,000;   146,436,000    269,277,009 

266,143,000 

ia03 

230,334,000 

.  166,529,000 

159,892,000    157,250,0001   319,068,090 

312,00), or 

IWl 

232,428,000 

166,606,000 

166,775,000    163,773,000    314,122,00a 

306,136,000 

rx)5-. 

236,129,000 

168,968,000 

171,087,000,  170,218,000    350,615,000 

342,571,000 

lf)03 

251.068,000 

174,279.000 

190,482,000    188,626,000|  369,783,000 

359.131.000 

*  Inclusive  of  bunker  coal  laden  on  vessels  in  the  foreign  trade. 

Note. — The  amount  of  British  bunker  coal  loaded  on  vessels  in  the  foreign 
trade  not  found  prior  to  1875. 


Trade    Balances    nnder    Protective    and    Lo^v    Tarifla, 
Respectively,   1790-1908. 

This  table  shows  the  excess  of  exports  or  imports  in  the 
trade  of  the  United  States  in  each  year  from  1789  to  date, 
all  years  in  which  low  tariffs  were  in  operation  being-  shown  in 
one  column  and  all  those  in  which  protective  tariffs  were  in 
operation  shown  in  another  column.  In  49  of  the  60  years 
of  low  tariffs  imports  exceeded  exports,  and  the  net  excess  of 
importations  under  low  tariffs  from  1790  to  date  was  $514,954,941. 
In  36  of  the  59  years  of  protective  tariffs  exports  exceeded  im- 
ports, the  net  excess  of  exports  under  protective  tariffs  being- 
$5,933,348,822,  against  a  net  excess  of  imports  under  low  tariffs 
of  $514,954,941.  The  excess  of  exports  over  imports  in  the  fiscal 
year  1908  was  the  largest  in  the  history  of  our  commerce. 

Attention  is  especially  called  to  the  brief  statement  which 
immediately  follows  this  table,  comparing  the  net  excess  of  ex- 
ports over  imports  in  the  11  years  since  the  inauguration  of  Presi- 
dent McKinley  with  the  109  years  prior  to  his  inauguration.  It  will 
be  seen  that  the  net  excess  of  exports  over  imports  from  1790 
to  March  1,  1891i,  ivas  $383,028,497,  and  the  net  excess  of  exports 
over  imports  from  March  1,  1897,  to  March  1,  1908,  is  $5,550,550,- 
773,  or  more  than  14  times  in  tlie  11  years  from  1897  to  1908  as 
much  as  in  the  entire  109  years  preceding  that  date. 


I  believe  in  the  doctrine  of  protection  because  tbe  facts 
of  our  national  experience  thorouftlily  exemplify  its  trutli. 
No  great  American  statesman,  except  the  half-forg-otten 
leaders  of  the  slave  po^ver,  have  disowned  the  protective 
system.— Hon.   J.  P.   Dolliver.   in  the   American  {Economist. 

If  vre  assume  control  over  a  people  merely  in  the  spirit 
of  conquest  and  merely  to  extend  our  control  and  merely 
from  the  lust  of  po^ver,  then  we^  may  be  properly  denounced 
as  imperialists:  but  if  wc  assume  control  over  a  people  for 
the  benefit  of  that  people  and  *vith  the  purpose  of  develop- 
ing: them  to  a  self-jsfoverning-  capacity,  and  with'  the  inten- 
tion of  Kiving:  them  the  riglit  to  becoine  independent  when 
they  shall  shoiv  themselves  lit.  then  the  charge  that  ^ve  are 
imperialists  is  utterly  without  foundation. — Hon.  Wm.  H.  Taft, 
at     Cleveland,    Ohio. 

One  vital,  dominating-  fact  confronts  the  Democratic 
party  T^-hich  no  oratory,  ^vhich  no  elo<iuence,  ^vliich  no 
rheiorlc  can  obscure;  BRYAN'S  NOMINATION  MEANS  TAFTS 
E2LECTION.— New    York    World. 


TMB  TAMIFF  AVD  TRADE  BALANCE. 


TraA«  Balanoes  Under  Protection  and  Lour  Tarifl, 
N  Reapeotlvely,   1790-1908. 

Years  in  which  low  tariffs  and  protective  tariffs,  respective! u, 
have  been  in  operation  in  the  United  States,  showing  the  exccas 
of  imports  or  ecoports  in  each  year  and  the  total  exce&s  of  im- 
ports or  eaoports  under  each  system. 

[OompU«d  trom  offiolal  statement*  of  the  Bureau  of  Statistics.] 


Low  Tarlfls. 

^'IscalYear. 

Protective  TarlfTs. 

FlaoAlYMur. 

ExoesB  of 
Imports. 

Excess  of 
exports. 

Excess  of 
Imports. 

Excess  of 
exports. 

1790 

$2,794,844 

10,187,959 

10,746,902 

4,990,428 

1,556,275 

21,766,396 

22,861,539 

24,08t,696 

7,224,289 

403,626 

20,280,998 

IS, 342, 998 

4,376,189 

8,866,633 

7,300,926 

25,033,979 

27,873,037 

30,156,850 

34,559,040 

7,196,767 

18,642,030 

1813 

$5,851,017 

1791 

1814 

1815 

1816 

1825 

$6,037,559 
60,483,521 
66,182,948 

1792  „    

1798 

1794 

549,023 

1795    .    _- 

1826 

1827 

1828 

1829       

6.202,722 
161998^873' 

1796. .  

2,977,009 

1797    

1798       

345,736 

1799 

1830 

8,949,779 

1800       -    _ 

1831 

1832 

1833 _. 

1843 

23.589,527 
13,601,159 
13,519,211 

1801 

1802        



1803        -__- 

40,392,225 

1804 

1844 

3,141,226 

1905 

1845... 

1846* 

1862 

1863 

1864 

18^ 

1866 , 

1867 

1868 

1869 

1870— 

1871 _. 

1872 

1873 

1874 

71.44,211 
41,65,409 

"'3Q~37T,m' 
157,609,295 
72,716,277 
85,952,544 
101,254,955 
75,483,511 
131,388,682 
43,186,640 
77,403,506 
182,417,461 
119,6.56,288 

1806         _ 

1807 

1,313,824 

1808 

1809 

1810 

1811          "^_ 

$7,916,832 

1812 

38,502,764 
11,578,431 
28,468,867 
16^982,479 
4,758,381 

1817 

1818 



1819 

1820      _ 

1821 

75.489 

1822 

18,521,594 

4,155,328 

3,197,067 

6,349,485 

21,548,493 

52,240,450 

19,029,676 

1823 

18,876  698 

1824 

1875 

1876 

19,562,725 

1834 

79,643,481 
151,152,094 

1835    _     . 

1877 

1878 



18^6 

257,814  234 

1837 

1879 

264,661,666 

1838 

9,008,282 

1890 

1881 



167,683,912 

1839 

44,245,283 

259,712,718 

1840 

25,410,226 

1882 

25,902,683 

1841     

11,140,078 

1883 

1884 



100,658  488 

1812- 

3,802,924 

72,815  916 

1846  _     _-. 

4,165,408 

1885 

164,662  426 

1817        

34,317,249 

1886 

1887 

44  0S8  694 

1848 

10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54.604.582 

23,863,443 

1849 .     . 

1888 

1889 .. 

18^0 

28,002,607 
2,730,297 

1850._,._.__ 

i851i.!„... 

68,518,275 

1852 _. 

1891 

89,561,614 

1853 

1892 

202,875,686 

185  L 

1803 

1891 

18,735,728 

1855 

237,115,950 

1856 

1898 

615,132,676 

1857 - 

1899— 

529.874.813 

18^8 

81672,620 

1900 

544,511,808 

1859 

.38,431,290 
20,0  to,  0(12 
69,756,709 

1901 

661.592,826 

1860-. - 

1902 

478,. 398, 45  i 

1861.. 

1903 

394,422,142 

1895 

75.568,200 
102, 882,26 t 
286,263,144 

1901 

469,739,900 

1807:.  .— 

1905 

1906 



401,048,505 
517  302  O'l  I 

1007 

lt8.t?9  6-.^,/ 

1908- - 



660.431,55* J 1 

Total-.. 

1,068,872,171 

553,017,230 

Total— ^ 

1.371,397,a5l 

7,971. 375. 6*^1 

Elxcess    of    Tmiiorts    I'mlor    IjOiv    Tjjfif^'.    j«nrt    Exc«*ss    of    Exim>v1.s 
Under    Prote«*ti«ii. 

Nel  excess  of  imports  under  low  tariffs .— . $Ti  t.iJTi.'-M 

Net  excess  of  exports  under  protective  tarlfs..... .-_ 6.. 5)), 978. 021 

JS^et  excess  of  exp-rts  over  imii  irts  fr  >ti    r*-')  to   Mfirch  1.    ISV 38.3.028.4)7 

Net  excess  of  exports  over  in^ports   frniri   Mnrch  1.   1S97,  to  March 

1,   1908  _. ., 5,550.550..'';;! 


THE  TARIFF  AND  REVENUE. 


151 


Surplus    or   Deficit   under   IjOtt   and    Protective    Tariffs, 
Respectively,    from    17«(>   to    1fM>7. 

This  table. shows  the  deficit  or  surplus  of  revenue  in  each  year 
from  1790  to  date,  the  years  in  which  low  tariffs  existed  being 
stated  in  one  column  and  those  in  which  protective  tariffs  ex- 
isted in  another  column.  It  will  be  noted  that  protective  tariff's 
have  produced  a  surplus  of  revenue  in  practically  every  year 
except  those  of  war  periods  or  some  other  extraordinary  ex^pendi- 
tures  such  as  the  Panama  canal.  The  deficit  of  the  fiscal  year 
1908,  while  due  in  part  to  the  heavy  expenditures  including  the 
Panama  canal,  is  chiefly  the  result  of  the  unexpected  falling  off 
in  importation  of  dutiable  articles  (and  therefore  of  customs  re- 
ceipts), the  result  of  the  filiancial  depression  beginning  with  Oc- 
tober, 1907.  It  will  be  noted  that  deficits  occurred  in  24  of  the 
57  years  in  which  low  tariffs  were  in  existence  and  in  but  15  of 
the  60  years  of  protection,  and  that  nearly  all  these  were  war 
years. 

Tariffs  and  Revenues,   1790  to  1907. 

Years  in  which  low  tariffs  and  protective  tariffs,  respectively, 
have  been  in  operation  in  the   United  States,  showing  the 
excess  of  expenditures  or  receipts  of  the  Oovernment  in  each 
year. 
[Compiled   from   official   statements   of   the    Treasury   Department.] 


Low  tariffs. 

Protective  tariffs. 

llscal  year— 

Deficit. 

Surp  us 

Fiscal  year— 

Deficit. 

Surplus. 

17 

17 
17 
17 

91_ 

1 
$1,312,499 

1813 

$17,841,442 

23,53.^,3i)0 
17,216,744 

92 

93 

$4, 59;),  900 

1814 

[    War  pe- 

805,993 

1815 - 

riod. 

94 

865.917 
1,195,036 

1816_— 

$16,480,630 
5,983,640 

1795      _ 

1825-- 

17 
17 
17 

96 - 

2,586,879 

2,680.154 

292,909 

1826 ._ 

8,222,575 

97-     

1827 

6,827,198 
8,369,087 

98       

"ljl9',0oV 

1828 

1799      - 

1829 

9,643,574 

18 
18 
18 
18 
18 
18 
18 
18 
18 
18 

00 — 

34,778 
3,541,831 
7,019,542 
3,111,811 
3,188,399 
4.546,344 
6,110,753 
8,013,868 
7,999,249 

1830 

9,702,008 

01 

1831. 

13,289,004 

02 

1832 

14,578,500 
10,930,874 

03 

1833 

04 

1843 

3,5  J9, 0)1 

05    - 

1844 

6  837  148 

06    —    - 

1845 

7,034,278 
1,214,392 

07    . 

1846  (half  year) 
1862 

08  -    

417,650.981 
006, 63),  331 
621,536,130 
973,038,131 

OQ 

2,507,273 

1863 

1     War  pe- 

1810 

909,461 
6,244,594 

1864 

f      riod 

18 
18 
18 

18 

11 

1865 

1866 

12 

17 

10,479,638 

927,208 
116  .317  354 

13,108,157 
1,566,543 
3,031,370 

1867 

18      _     __ 

1868 

6,095  320 

1819- 

1869 

35,997,658 

1820 

44,685 
1,276,173 

1870 

102,. 302, 829 

1821      ^        

1871. 

1872 

91,270,711 
94,134,534 

18 
18 
18 
18 
18 
18 
18 

22- 

5,231,996 
5,834,036 

23 

1873 

36.i)38,348 

24 

34- 

8D2,4S9 

1874 

1875 - 

1,297,799 

3,164,365 
17,857,274 
■19,958,632 

9,397,379 

35 



1876 

24,965,500 

36 



1877 

39,666,167 

20,482,149 

5,374,253 

68  678  864 

ST 

12,289,061 
7,562,152 

1878— 

1879 



1838 

18 

18 

39 

4,585,967 

1880 

40 

4,834,402 
9,621,657 
5.158.689 

1881 

101  130  6")8 

1841 

1882             



145,543  811 

18 
18 

18 
18 

42        

1883    ■    „ 

132,879,444 

46  (half  year) 
47—    - 

1,219,392 

}  ''zr 

2.644,506 
4,803,561 
5,456,563 
13,843.043 
18,761,986 
6,719,912 
5,330,349 
1,330,904 

1881- 

104,393,626 

28,453,331 
11,919,521 
12,778,001 

1885 

63,463,775 

48 

1886 

93.956,589 

1849 

1887. 

103,471,098 

1850 

1888 

119,612,116 

IS 
18 
18 
IS 

m — 

1889 „ 



105,053,443 

52 

1890 

105,314,496 

53 

1891                  -  . 

37,239,763 

R4. 

1892 

9,914,454 

1855  _    



1893 

2,341,674 

185fi 

1894 

69,803,261 
38,047,247 
89,111,560 

18 
IS 
1« 

57 

1898- 

}    ""rfoT- 

58 

27,327,126 
16,216,492 
7,146,276 
25,173.914 
42,895,223 
25,203,246 
18,052,455 

1899 

59 

1900          

79,536,060 

IS 

60_— 

61 

1901 

1902 



77,717,984 

IS 

91,287,376 

IS 

95    



1903 

1904 

'411770^571' 
23,001,228 

54,297,667 

1« 

T6 

IS 

97 

1905 

1906 

25,669,322 

1907- 

84,236,586 

1908 

59,656,362 

162 


THE  TARIFF— COMMERCE  UNDER. 


Table  No.  1 — Total  value  of  imports  and  exportn  into  aud  from 
the  United  States  from  October  1,  1180,  to  June  SO,  1907, 
under  low  and  protective  tariffs,  respectively' 


•c  2 


S2 


£S 


Fiscal 
year. 


•5  o 


790. 
791. 
792- 
793. 
794. 
795- 
796. 
797. 
798. 
799. 
800. 
801. 
802. 
803. 
804. 
805. 
806. 
807. 
808- 
809- 
.810- 
811- 
812. 
813- 
814. 
815- 
816- 
1817- 
818. 
819- 
820- 
821- 
822- 
823- 
824- 
825- 
826- 
827. 
828- 
829- 
830- 
831- 
832- 
833- 
834- 
835. 


839-. 
840-. 
841.. 
842-. 
813-. 
8H-. 
845- 
846-. 
847-. 
848- 
840.. 
850- . 
851- . 
852.. 
853-. 
854.. 
855-. 
856-. 
857- 
858-. 
859-. 
860- . 
861.. 


867_. 
868- 
869.. 
870.. 
871- 
872- 
873-. 
874.. 
875-. 
876.. 


Merchandise. 


Imports. 


$23,000,000 

29,200,000 

31,500,000 

31,100,000 

34,600,000 

69,756,268 

81,436,161 

75,379,400 

68,551,700 

79,0<i9,148 

91,252,768 

111,363,511 

76,333,333 

64,666,666 

85,000,000 

120,000,000 

129,410,000 

138,500,000 

56,990,000 

59,100,000 

85,400,000 

53,400,000 

77,030,000 

22,005,000 

12,965,000 

113,041,274 

147,103,000 

99,250,000 

121,750,000 

87,125,000 

74,450,000 

54,520,834 

79,871,695 

72,481,371 

72,169,172 

90,189,310 

79,093,511 

71,332,938 

81,020,083 

67,088,915 

62,720,956 

95,885,179 

95,121,762 

101,017,943 

108,609,700 

136, 76!, 295 

176,579,154 

130,472,803 

95,970,288 

156,496,956 

98,258,706 

122,957,544 

96,075,071 

42,433,464 

102,604,606 

113,184,322 

117,914,065 

122,424,349 

148,638,644 

141,206,199 

173,500,526 

210,771,429 

207,440,398 

263,777,265 

297,803,794 

257,808,708 

310,432,310 

384,428,342 

263,338,654 

331,333,341 

353,616,119 

289,310,542 

189,356,677 

243,335,815 

316,447,283 

238,745,580 

434,812,066 

395,761,096 

357,436,440 

417,506,379 

435,958,408 

520,223,684 

626,595,077 

642,136,210 

567,406,342 

533,005,436 

460.741,190 


Exports. 


$20,205,156 

19,012,041 

20,753,0)8 

26,10),  572 

33,043,725 

47,989,872 

58,574,625 

51,294,710 

61,327,411 

78,665,522 

70,971,780 

93,020,513 

71,957,144 

55,800,033 

77,6:).>,074 

95,566,021 

101,536,963 

108,343,150 

22,430,960 

52,203,233 

66,757,970 

61,316,832 

38,527,236 

27,856,017 

6,927,441 

52,557,753 

81,920,052 

87,671,569 

93,281,133 

70,142,521 

69,691,669 

54,596,323 

61,350,101 

68,326,043 

68,972,10) 

90,738,333 

72,890,789 

74,309,947 

64,021,210 

67,434,651 

71,670,735 

72,295,652 

81,520,603 

87,528,732 

102,260,215 

115,215,802 

124,338,704 

111,443,127 

104,978,570 

112,251,673 

123,668,932 

111,817,471 

99,877,995 

82,825,689 

105,745,832 

106,040,111 

109,583,248 

156,741,598 

138,190,515 

140,351,172 

144,375,726 

188,915,259 

166,984,231 

203,489,282 

237,043,764 

218,909,503 

281,219,423 

203,823,760 

272,011,274 

292,902,051 

333,576,057 

219,553,833 

190,670,501 

203,964,447 

158,837,988 

166,029,303 

348,859,522 

294,506,141 

281,952,899 

286,117,697 

392,771,768 

442,820,178 

444,177,586 

522,479,922 

586,283,040 

513,442,711 

640,384,671 


Excess  of     Excess  of 
Imports.       exports. 


10,187,95.) 

10,746,'J02 

4,990,428 

1>  556, 275 

21,766,396 

22, 801,. 339 

24,084,096 

7,22  4,289 

403,626 

20,280,988 

18,342,998 

4,376,18:) 

8,860,633 

7,300,926 

25.033,979 

27.873,037 

30,156,850 

34,559,040 

7,196,767 

18.642,030 


38,502,764 


6,037,559 
60,483,521 
65,182,948 
11,578,431 
28,468,867 
16,982,479 

4,758,331 


18,521,594 
4,1.55,328 
3,197,067 


5,202,722 
16^998^873" 


23,589,527 
13,601,159 
13,519,211 
6,349,485 
21,548,493 
52,240,459 
19,029,676 


$7,916,832 


5,851,017 


75,489 


549,023 
1^977^009' 


44,245,283 
"ii'i40'073' 


315,730 
,949,779 


9,008,282 


7,144,211 
8,330,817 


10,448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54,604,582 


38,431,290 
20,010,062 
69,756,709 


39,371,368 
157,609,295 
72,716,277 
85,952,544 
101,254,955 
75,483,541 
131,388,682 
43,186,640 
77,403,506 
182,417,491 
119,656,288 


19,562,725 


25,410,226 


3,802,924 
40,392,225 
3,141,226 


1,313.824 


18,876,698 
'79^643^481" 


TEE  TARIFF— COMMERCE  UNDER. 


153 


Table  No.  1 — Total  value  of  imports  and  exports  into  and  from 
the  United  States  from  October  1,  1189,  to  June  30,  1907, 
under  low  and  protective  tariffs,  respectively — Continued. 


Fiscal 
^lar. 


Mercljandltje. 


Imports. 


Exports. 


Excess  of 
Imports. 


C 1877- 
J  1«78h 
^,  1879- 

i  18S0- 
18jl. 


H^  i  18..3- 


3SO| 


2^ 


I  18SL 

(  1885- 

1886- 

i  1887- 

i  1888- 

1889- 

18J0. 

1891- 

1892- 

1893- 

J  189  L 

i  1895- 

I  1896- 

1  1897- 

J  181 

)9- 

900- 

1901- 

1902- 

19P3- 

190t- 

l')0->- 

1906- 

1907- 

U968- 


)  1SI». 
1  18)9. 
1 1900. 
rL901. 


Total. 


451,323,126 
437,051,532 
445,777,775 
667,954,746 
612,664,628 
724,639,574 
723,180,914 
667,697,693 
577,527,329 
635,436,136 
692,319,768 
723,957,114 
745,l'31,652 
789,310,409 
841,916,196 
827,102,462 
8<  6,400,922 
651,9.54,622 
731,969,965 
779,724,674 
764,730,412 
616,019,654 
697,148,489 
849,911,184 
823,172,165 
903,320,948 
1.025.719,237 
991,087,371 
1,117,513,071 
1,226,. 562, 4- 16 
1.134,121,425 
1,194,341,792 


10,243,189.595 


602 

694 

710 

835 

902 

750 

823 

740 

742 

679 

716 

695 

742 

857 

881 

1,030 

847 

892 

807 

882. 

1,050 

1,231 

1,227, 

1,394, 

1,487, 

1,381, 

1,420: 

1,160. 

1,.518, 

1,743, 

1,880, 

1.860, 


28,002,607 
2,7;iO,277 


,475,220  I 

,805,766  ' 

,439,411 

,638,658 

,377,316 

,512,257 

.839,402 

; 513,609 

,189,7.55 

,524,830 

,183,211 

,951,507 

.401,375 

,828,681 

,480,810  

,278,118    

,665,191  I  18,735,728 

,140,572  I 

,538,165  ! _. 

,606,938    

,993,553   ' 

,482, .330    

,023,302  I 

,483,082 
,764,991 
,719.401 
,111,679 
,827,271 
,561,666 
,861,500 
,851,078 
,778,346 


46,328.278,311 


Excess  of 
exports. 


151,152,904 
257,814,234 
261,661,666 
167,683,912 
259,712,718 

25,902,683 
100,058,188 

72,815,916 
161,662,426 

44,038,691 

23,863,443 


Fiscal 
year. 


68,518,275 
39,561,611 
202,875,683 


2.37,145,950 
75,568,200 
102,882,261 
286,263,114 
615,432,676 
529,874,813 
544,511,898 
661,592,826 
478,398,453 
394,422,442 
469,739,900 
401,018.595 
517,302,054 
446,429,653 
6()4.431,554 


5,085,088,716 


1877-. 
1878.. 
1879-. 
1880- 
1881-. 
1882.. 
1883-. 
1884.. 
1885- . 
1888.. 
1887- 
1888- . 
1889- 
1890- 
1891- 
1892- 
1893- 
1894.. 
1895.. 
1896-. 
1897 -- 
1898- . 
1899- 
1900.. 
1901 -. 
1902-- 
1903- 
1901.. 
1905.. 
190i- 
1907-- 
1908.- 


J   = 


Protection  steadily  enlarjires  tlie  liome  market  for  farm 
products.— Hon.    L.    R.     Casey. 

I  am  a  protectionist  hecanse  our  country  has  prospered 
with  protection  and  Ian»nislied  witliont  It.— Hon.  B.  F.  Jones, 
in    tlie    American    Kcoiiomist. 

-4s  a  result  in  a  lar^e  decree  of  our  protective  tariff  sys- 
tem, tlie  United  States  lias  become  one  of  tlie  foremost  na- 
tions  of  the    world.— Hon.    S.    M.    CuIIom. 

The  present  husiness  system  of  the  country  rests  on  the 
protective  tariff  and  any  attempt  to  clian^e  it  to  a  free 
trade  hasis  vi^ill  certainly  lead  to  disaster.— Hon.  Wm.  H.  Taft, 
at  Columbus,  Ohio. 

The  Repul>lican  priciple  of  the  i»rotective  tariff  is,  as 
I  understand  it,  that  through  the  customs  revenue  law  a 
tariff  should  be  collected  on  all  imported  prodncts  that 
compete  with  American  products,  which  will  at  least  etiual 
a  difference  in  the  cost  of  i»ro<luction  in  this  country  and 
abroad,  and  that  proyer  allowance  sliould  be  made  in  this 
difference  for  the  reasonable  profits  to  the  American  manu- 
facturer.—Hon.    Wm.    H.    Taft,    at    Columbus,    Ohio. 

We  shall  continue  our  American  system  of  Protection 
developed  and  perfected  by  the  Republican  party.  We  shall 
continue  to  raise  a  large  portion  of  our  revenues  and  at 
the  same  time  protect  our  labor  and  industries  by  adeiiuate 
and  equitable  duties  on  competing  imports.  We  shall  con- 
tinue to  maintain  the  highest  '»vage  scale  on  earth  and 
keep  our  standard  of  living  the  best  of  all  nations  through 
the  home  market  that  is,  and  I  believe  al^vays  will  be,  the 
envy   of    the    civilized    w^orld. — Hon.    James    S.    Sherman. 

Under  our  policy  of  free  trade  wc  have  lost  that  com- 
mercial and  industrial  superiority  'we  acquired  under  the 
policy  of  strict  protection.  Our  policy  of  direct  taxation 
bears  heavily  upon  our  industries  and  reacts  on  the  "tvork- 
ing  classes  in  reduction  of  wages  and  employment.  Our 
agriculture  has  been  ruined  and  our  industries  are  strug- 
gling hard  for  existence.  Other  nations,  under  a  policy  of 
strict  protection,  are  beating  us  in  the  race  of  competition, 
not  only  in  neutral,  but  in  our  otts-u  markets. — Sir  Guilford 
L..  Moles^vorth    on    Free    Trade    in    England.' 

One  vital,  dominating  fact  confronts  the  Democratic 
party  which  no  oratory,  >vhich  no  eloquence,  tvhich  no 
rhetoric  can  obscure:  BR  VAX'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New    York    W^orld. 


154 


THE  TARIFF  AI^D  kEVENUB. 


Receipts  untl 'expenditures  of  the  United  States  (Jorcrnmcnt  from 
1191  to  1907. 

[Prom  official  reports  of  the  United  States  Government.  1907.] 


a  >   . 

•a  a?* 
< 


0    . 


Year 

endlug 

Dec. 

81- 


801. 
802. 
803. 
80i- 
80). 
1800, 


t\ 


O  X 


807. 


810_. 
811- 

18^3.. 
814^. 
815- 
816- 

817- 
818- 
810- 
820- 
621.. 
82^- 
823.. 
1824.. 


,827_._. 
828—. 
829—. 
830—. 
831-... 
832.... 
833.... 

834.... 

835.... 

S36-... 

837.... 

838.-. 

839.,-. 
1840-._. 

811-... 
1842.— 

843».-. 
844.... 
845-... 
1346.-.. 

847.... 
848..-. 
849.... 
850.-. 
8.51.... 

852 

853 

185t-... 
855.... 
856.... 
857-... 
858—. 
859.... 
860- ... 
861.-. 


S63_. 
864- 
865- 
866- 
807.. 


Total  net 
ordinary 
receipts. 


$4,409, 
3,669, 
4,652, 
6,431, 
6,114, 
8,377, 
8,(J88, 
7,900, 
7,516, 
10,848, 
12,935, 
14,995, 
11,031, 
11,826, 
13,560, 
15, 55.^, 
10,398, 
17,060, 
7,773, 
9,384, 
14,222, 


951.19 
960.31 
923,14 
901.87 
534.59 
529.65 
780.99 
495.80 
813.31 
749.10 
330.95 
793.95 
097.63 
307.38 
693.20 
931.07 
019.26 
661.93 
473,12 
214.28 
834.00 


9,801,132.76 
14,310,409.95 
11,181,625.16 
15,696,916.82 
47.676,985.66 

33,099,049.74 
21,585,171.04 
24,603,374.37 
17,840,669.55 
14,573,379.72 
20,232,427.94 
20,540,666.26 
19,381,212.79 

21,840,858.02 
25,260,434.21 
22, 966,36  j»P6 
24,763,929.23 
24,827,627.38 
24,844,116.52 
28,526,820.82 
31,867,450.66 
33,948,426.25 


21,791, 
35,430, 
50,826, 
24,954, 
26,302, 
31,482, 
19,480, 
16,860, 
19,976, 


935.55 
087.10 
796.08 
153.04 
561.74 
749.61 
115.33 
160.27 
197.25 


8,231,001.26 
29,320,707.78 
29,970,105.80 
29.699,967.74 


26,467, 
35,698, 
30,721, 
43,592, 
52,555, 
49.846, 
61,587, 
73,800, 
65,350, 
74,056, 
68,965, 
46,655, 
52,777, 
50,051, 
41,476, 


51,919,261.09 
112,094,945.51 
243,412,971.20 
322,031,158.19 
519,949,564.38 
462,816,679.92 
376,434,453.82 
357,188.256.09 


403.16 

077.'50 
888.88 
039.33 
815.60 
031.68 
341.40 
574.68 
693.24 
312.57 
365.96 
101.92 


Total  net 

ordinary 

expenditures. 


$3,097, 
8,269, 
3,846, 
6,297, 
7,309, 
5,790, 
6,008, 
7,607, 
9,295, 

10,813, 
9,393, 
7,976, 
7,952, 
8,637, 
9,014, 
9,449, 
8,354, 
9,031, 

10,280, 
8,474, 
8,178, 


425.55 
860.75 
929.90 
822.04 
600.78 
650.83 
627.25 
586.32 
818.13 
971.01 
499.96 
252.07 
286.60 
907.65 
348.84 
177.62 
151.37 
413.06 
747.04 
753.37 
040.43 


20,280,771.27 
31,681,852.14 
31,720,925.42 
32,913,661.24 
31,196,355.92 

19,990,892.47 
20,018,627.81 
21,512,001.00 
18,285,534.89 
15,819,552.86 
15,000,432.30 
14,706,629.99 
20,273,702.64 


15,857 
17,037: 
16,139 
16,394 
15,184 
15,142 
15,237 
17,288 
23,017 


217.34 

85:).  22 
167.16 
812.05 
053.63 
108.26 
816.64 
950.27 
551.98 


18,627,570.23 
17,572,813.36 
30,868,161.04 
37,243,214.24 
33,864,714.58 
26,896,782.62 
24,314,518.19 
26,481,817.84 
25, 134, 886'.  44 

11,780,092.51 
22,483,560.14 
22,935,827.79 
27,261,182.86 


54,920, 
47,618, 
43,499, 
40,948, 
47,751, 
44,390, 
47,743, 
55,038, 
58,630, 
68,726, 
67,631, 
73,982, 
68,993, 
63,200, 
66,650, 


734.09 
220.65 
078.30 
383.12 
478.41 
252.36 
989.09 
355.11 
662.71 
350.01 
408.93 
492.84 
599.77 
875.65 
213.08 


469,570,241.65 
718,734,276.18 
864,960,100.83 
1,295,099,289.58 
519,022,356.34 
346,729,325.78 
370.339,133.82 
321,190,597.75 


Excess  of 
receipts. 


$1,312,498.64 
865"993y24' 


2,586,878.82 

2,680,153.74 

292.909.48 


34,778.09 
3,511,830.99 
7,019,541.88 
3,111,811.03 
3, 188, 3  J;).  73 
4,516,314.36 
6,110,753.45 
8,013,807.89 
7,999,248.87 


909,460.91 
6,044,593.66 


16,480,629.74 

13,108,157.27 
1,536,543.23 
3,031,370.37 


5,231,995.64 
5,834,036.27 


5,983,610.68 

8,222,574.99 
6.827,196.80 
8,369,087.18 
9,613,573.75 
9,702,008.25 
13,289,001.18 
14,578,500.39 
10,930,874.27 

3,164,365.32 
17,857,273.74 
19,958,632.01 


4,585,966.99 


6,837,147.64 
7,034,278.01 
2.438,784.88 


2,644.505.76 
4,803,530.92 
5,156,533.24 
13,813,012.59 
18,761,986.29 
6,719,911.97 
5,330,349.23 
1,330,903.64 


927,208.01 

116,117,351.14 

6,095,320.00 

35,997,658.34 


Excestjof 
expendi- 
tures. 


$4,59a,900.44 


865,917.17 
1,195,068,19 


1,749,004. 


,507,273.92 


10,479,638.51 
17,311,142.11 
23,539,300.23 
17,246,744.42 


444,865.34 
1,276,173.14 


892,489.85 


12,289,061.20 
7,562,152.82 


4,834,402.86 
9.621,657.57 
5,158,689.19 

8,549,091.25 


28,453,330.93 

11,919,521.44 
12.778,000.89 


27,327,126.88 
16,216,491.85 
7,146,275.82 
25,173,913.59 

417,650,980.56 
606, 639, 3  JO,  67 
621,553,12v).63 
973,068.131.39 


THE  TARIFF  AND  REVENUE. 


155 


Receipts  and  expendiUtres  of  the  United  States  Government  from 
1191   to  1001— Continued, 


j   Year 
ending 

Dye. 

31- 

Total  net 
ordinary 
receipts. 

Total  net 

ordinary 

expenditures. 

ISxcess  of 
receipts. 

Excess  of 
expendi- 
tures. 

i 

i8ro.._. 

1S7] 

1872. _J. 

1873 

1874-.-- 
1875.... 
1876—. 

1877 

1878 

1879-.._ 

1880 

1881 

1SS2.... 

1883 

1884 

1885 

1886 

1S87 

1888 

1S89 

1 1800 

1891.... 
1892.... 
1893...- 
1894___- 

18D5-  — 

1896 

1897-..- 

1898. — 

1899 

1900.— 

ISKOl 

1902-... 

1993 

1904 

1905 

1906 

1907 

1908-  — 

395,959,833.87 
374,491,101.94 
364,694,229.91 
322,177,673.78 
299,941,000.84 
284,020,771.41 
290,066,584.70 
281,000,642.00 
257,446,776.40 
272,322,136.83 
333,526,500.98 
360,782,292.57 
103,525,250.28 
398,287,581.95 
348,519,869.92 
323,690,703.38 
336,439,727.06 
371,403,277.66 
379,266,074.76 
387,050,058.84 
103,080,982.63 
392,612,447.31 
351,937,784.24 
385,819,628.78 
297,722,019.25 

313,300,075.11 
328,976,200.38 
347,721,705.16 

W5, 321, 335. 60 
515,960,620.18 
537,249,851.89 
587,685,337.83 
562,478,233.21 
530,396,674.10 
510,631,749.00 
544,274,685.00 
594,451,122.00 
863,140,334.00 
599,895,763.00 

293,657,005.15 
283,160,393.51 
270,559,695.91 
285,239,325.34 
301,238,800.21 
274,623,392.84 
265,101,084.59 
241,334,474.86 
236,964,326.80 
266,947,883.53 
264,817,637.36 
259,651,638.81 
257, 981, 439.  ^^7 
265,408,137.51 
244,126,244.36 
260,226,931.11 
242,483,138.50 
267,932,179.97 
239,653,958.67 
281,996,615.60 
297,736,486.60 
355,372,684.74 
345,023,330.58 
383,477,954.49 
367,525,279.83 

356,195,298.29 
352,179,446.08 
365,774,159.57 

443, 368,. 582. 80 
605,072,170.85 
487,713,791.71 
509,967,353.15 
471,190,857.64 
.506,099,007.01 
.582,402,321,31 
567,278,913.45 
568.784.799.06 
578,903,717.75 
659,552,125.00 

102,302,828.72 
91,270,711.43 
94,131,534.00 
36,938,348.44 

^ 

2  i 

""1/297^33^37 

o 

9,397,378.57 

24,965,500.11 

39,666,167.14 

20,482,449.60 

5,374,253.30 

68,678,863.62 

101,130,653.76 

145,513,810.71 

132,879,411.41 

104,393,625.56 

63,463,775.27 

93,956,588.56 

103,471,097.69 

119,612,116.09 

105,053,443.24 

105,344,496.03 

37,239,762.57 

9,914,453.66 

2,341,674.29 

m 

<i3 

> 

-Si? 

5=*<l 

^ 



^ 

------- 

»^9 

-__ 

11; 

69,803,260.58 

42,895,223.18 
25.203,215.70 
18,052,454.41 

38,017,247.20   " 
89, 111, .559. 67 

,   ► 

3 

^r 

SSJ 

79,536,060.18 
7'/,  717, 98 1. 68 
91,287,375.57 
54,297,667.06 

"2^669^32.3^00' 
81,2.36,586.00 

f 

«  o 

^s 

SP5  [ 
|1' 

41,770,572.00 
23,004,228.00 

""55','656^362"00 

1 

Our  Government  slionld  be  as  exacting?  from  foreit^ners  as 
from  Americans.  Make  tliem  pay  duty  wliile  we  pay  taxes.— 
Hon.   P.   C.    Cheney. 

I  believe  in  the  reciprocity  of  Blaine  and  McKinley,  reci- 
procity in  non-competitive  {^oods,  tout  not  in  reciprocity  in 
competitive  g:oods,  wliicli  is  simply  free  trade. — Hon.  Andrew 
J.    Volstead,    in    Congress,    Feto.    8,    1904. 

Protection  furnishes  an  opportunity  for  every  person  to 
tind  the  employment  Best  adapted  to  his  or  her  i^enius  and 
capacity  that  vrill  secure  the  largest  income  or  the  greatest 
happiness. — Hon.   J.   S.    Morrill,   in   the   American   E^conomist. 

Everyone  ItnoTvs  that  the  average  American  consumer 
pays  more  than  the  average  British  consumer.  Yet  the 
British  consumer,  in  spite  of  that  advantage,  is  by  no  means 
so  ^vell  oft"  as  the  American  consumer. — The  London  Daily 
Telegraph. 

We  have  prospered  marvelously  at  home.  As  a  nation 
^ve  stand  in  the  very  forefront  in  the  giant  international 
competition  of  the  day.  We  cannot  afford  by  any  freak  or 
folly  to  forfeit  the  position  to  TV'hich  Tve  have  thus  trittm- 
plm'ntly  attained.— President  Roosevelt  at  Minneapolis,  April 
4,   1903. 

In  the  ten  years  Tvhich  has  elapsed  since  the  enactment 
of  the  Dingley  Tariff,  the  conditions  have  so  changed  as  to 
make  a  number  of  the  schedules  under  that  tariff  too  high 
and  some  too  Iotf.  This  rendex-s  it  ncjcessarj-  to  re-examine 
the  schedules  in  order  that  the  tariff  shall  be  placed  on  a 
purely  protective  basis.  By  that  I  mean  it  should  properly 
t^'•otect,  against  foreign  competition,  and  afford  a  reason- 
able profit  to  all  manufacturers,  farmers,  and  business  men, 
Imt  sliouTd  not  l»e  so  high  as  to  furnish  a  temptation  to  the 
forn»ation  of  monopolies  to  appropriate  the  undue  profit  of 
excessive    rates.— Hon.    W^m.    H.    Taft,    at    Kansas    City,    Mo. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  tvhich  no  oratory,  which  no  elotiuenee,  %vhicli  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAPT'S 
ELECTION.— New    Yorfc    World. 


THE  IRON  AND  STEEL  INDUSTRY. 


(  oiidltlons   in  United    States   Compared   wltb  Other  Conntrlea. 

The  world  produced  about  58,850,000  tons  of  pig  iron  in  1906, 
ol  which  over  forty-three  per  cent,  was  made  in  the  United 
States.  The  same  g-rent  devtilopment  is  shown  in  the  production 
of  steel,  of  which  the  United  States  produced  over  23,;U)8.000 
ton.s  in  1906;  Germany  over  11,307,000  tons,  and  Great  Britain 
6,575.000  tons.  The  United  States  produced  5,516,000  ton.s  more 
than  Germany  and  Great  Britain  combined,  in  1889  the  United 
States  produced  7,603,642  tons  of  pig  iron,  Avhich  at  that  time 
was  the  laigest  production  ever  made  in  this  country  in  one 
year.  Great  Britain  produced  in  that  year  8,323,824  tons,  and 
she  had  exceeded  the  production  of  the  United  States  in  each 
preceding  year.  But  under  the  McKinley  tariff  the  production 
of  ])ig  iron  increased  to  9,202,703  tons  in  1890,  in  which  year 
the  product  of  Great  Britain  fell  off  to  7,904,214  tons.  Since 
that  time  the  United  States  has  almost  trebled  its  production, 
while  Great  Britain  has  made  little  progress.  Germany,  which 
went  under  a  protective  tariff  in  1879,  produced  only  4,524,558 
metric  tons  (2,204  pounds)  of  pig  iron  in  1889;  but  in  1906 
Gernuiny  had  increased  the  production  so  that  her  pig  iron 
product  was  over  2.183.000  tons  greater  than  that  of  Great 
Britain,  and  in  steel  she  exceeded  Great  Britain  by  over  4,732,000 
tons.  In  1906  dGermany  produced  of  Bessenier  and  open-hearth 
s-teel  11,307,807  tons,  while  Great  Britain  produced  only  6,462,274 
tons.  The  United  States  produced  23,256,243  tons. 

The  "W€>rld'8  Greatest    Pigr  Iron   Prodncers. 

'J'he  following  table  gives  the  production  of  pig  iron  from 
1880  to  1907  by  the  three  great  pig  iron  making  countries.  For 
the  United  States  and  Great  Britain  tons  of  2,240  pounds  are 
used,  and  for  Germany  and  Luxemburg  metric  tons  of  2,204 
pounds. 


Years. 

United  States 
(gross  tons). 

Great  Britain 
(gross  tons). 

Germany  and 
Luxemburg 
(metric  tons). 

ISSO... 

1831 - 

3,835,191 

4,144,254 

4,623,323 

4, 595, 510 

4,097,868 

4,044,526 

5,683,329 

6,417,118 

6,489,738 

.       7,603.642 

9,202,703 

8,279,870 

9,157,000 

7,121,502 

6, 657,. 388 

9,4 16, .308 

8,fi23,127 

9,652,680 

11.773,931 

13.620,703 

13,789,2 '-2 

15,878,351 

17, 821,. 307 

18,009,252 

16,497,033 

22,992,380 

25,307,191 

25,781,361 

7,749,233 
8,144,449 

8,586,680 
8,529,300 
7,811,727 
7,415,169 
7,009,751 
7, 55),  518 
7,998,!)69 
8,322,824 
7,901,214 
7,106,061 
6,709,255 
6,976,990 
7,427,342 
7,703,459 
8,651,681 
8,796,-165 
8,609,719 
9,421,4.35 
8,959,691 
7,928,617 
8,679,5.35 
8,935,063 
8,693,650 
9,608,086 
10,109,4.53 
•9,923,856 

2.729.038 
2.914,009 
3,380,806 
3,469,719 
3,600,612 
3,687,4.34 
3,528,657 
4,023,9.53 

1JS8- - -_- 

1883 -k 

1881 

l^<85 .-_ 

las'? 

1»87 

1888 

4,337,121 

1889 

4,524,558 

18)0.- _ 

4,658,4,50 

1891-. 

4,641,217 

1892..- 

4,937,461 

1S93          

4,988,003 
5,380,039 
5,464,501 
6,372  575 

189'       

1895 

181)6 ___ 

1897 

6,881,466 
7,-312,766 
8,143,133 
8,. 520,. 540 

1898 _ 

1899 

19O0. 

1901 

1902 

7,880,087 
8  529  810 

1903 

1901 

10,017,901 
10  058  273 

1905. 

1906 

1907 

10.875,061 
12,292,819 
12,875,159 

•  British  Iron  Trade  Association. 

From  1880  to  1907  the  production  of  pig  iron  in  the  United 
States  under  protection  increased  from  3,835,191  gross  tons  to 
25,781,361   gross  tons,  a  gain   of    21,946,170  gross  tons,   and  in 

156 


THE  TARIFF—IRON  AAD  STEEL.  157 

Germany  and  Luxemburg-,  also  under  protection,  it  increased  in 
the  same  period  from  2,729,038  metric  tons  to  12,875,159  metric 
tons,  a  gain  of  10,146,121  metric  tons.  Under  free  trade  in  Great 
Britain,  however,  the  production  increased  in  the  same  period 
2,174,623  gross  tons  only,  the  gain  being  from  7,749,233  gross  tons 
in  1880  to  9,923,856  gross  tons  in  1907. 

Effect    of   Protective   Tariff    upon    Steel   Rail   Industry. 

The  development  of  the  steel  rail  industry  in  the  United 
States  has  been  of  enormous  benefit  to  the  country  and  has 
demonstrated  beyond  question  the  great  value  of  the*  protective 
tariff.  When  it  was  proposed  in  1870  to  place  a  duty  of  $28  a 
ton  on  steel  rails  the  Hon.  S.  S.  Marshall,  a  prominent  member 
of  the  liouse  of  Ivepreseutatives,  earnestly  protested  against  the 
proposed  duty  becaiise,  as  he  alley-ed,  it  would  so  increase  the  cost, 
of  foreign  steel  rails  that  our  rairroad  companies  coiild  not  afford 
to  import  them.  The  average  price  of  Bessemer  steel  rails  in 
this  country  at  that  time  was  $106.75  a  ton  in  currency.  The 
duty  of  $28.00  a  ton  was  imposed  in  that  year,  and  the  price 
of  steel  rails  fell  in  five  years  to  an  average  of  $68.75  a  ton,  and 
they  never  rose  above  those  figures,  but  steadily  fell  in  most  of 
the  succeeding  years.  The  i-ed  action  in  price,  owing  to  the  de- 
velopment of  this  industry,  has  led  to  the  substitution  of  steel 
for  iron  rails,  which  are  no  longer  manufactured  to  any  extent. 
The  durability  of  steel  rails  is  many  times  greater  than  that  of 
iron  rails,  and  this  has  enabled  the  railroads  to  increase  the  size 
and  power  of  their  engines  and  cars,  so  that  the  cost  of  trans- 
portation has  been  enormously  reduced.  The  United  States  long 
ago  became  the  largest  producer  of  steel  rails  in  the  world. 
Great  Britain  long  having  fallen  behind.  Formerly  a  large  per- 
centage of  the  rails  in  use  were  iron.  Now  they  are  practically 
all  steel.  The  tariff  on  steel  rails  in  1870  was  45  per  cent,  ad 
valorem.  That  has  been  gradually  reduced  until  now  it  is  $7.84 
a  ton.  In  1906  the  production  of  all  kinds  of  steel  Trails  in 
the  United   States  amounted   to  3,977,872   tons. 


The    United    States    Steel    Corporation    Not    a    Monopoly. 

To  refute  a  common  free  trade  charge  we  republish  from 
the  Annual  Statistical  Keport  of  the  American  Iron  and  Steel 
Association  the  following  table,  which  gives  the  percentages 
of  production  of  all  leading  iron  and  steel  products  by  the 
United  States  Steel  Corporation  and  by  independent  companies 
in  the  year  1906,  the  latest  year  for  which  statistics  are  avail- 
able. It  also  gives  for  the  same  year  the  percentages  of  ship- 
ments of  iron  ore  by  the  Corporation  and  by  the  independent 
companies  from  the  Lake  Superior  region  and  the  percentages 
of  the  total  production  of  iron  ore  and  coke  in  the  whole 
country  by  the  Corporation  and  by  the  independent  companies. 
The  statistics  of  the  total  shipments  of  iron  ore  from  the 
Lake  Superior  region  and  of  the  production  of  iron  and  steel 
we  have  obtained  from  the  Annual  Eeport  of  the  American 
Iron  and  Steel  Association,  and  the  statistics  of  the  country's 
total  production  of  iron  ore  and  coke  we  have  obtained  from 
the  publications  of  the  Division  of  Mining  and  Mineral  Ke- 
sources  of  the  United  States  Geological  Survey,  the  Cor- 
poration reporting  to  us  its  share  of  these  shipments  and  pro- 
duction. 


If  by  asserting;  complete  Federal  control  over  the  inter- 
state railTvays  of  the  country  we  can  snppr|^9S  secret  re- 
bates and  discriminations  of  other  kinds,  "*ve  shall  have 
eone  a  long;  way  in  the  suppression  of  the  nnlaTrfnl  trusts.— 
Hon.  TVm.  H.  Taft,  at  Columbus,  Ohio. 

Think  of  it,  men  of  Rochester;  you  producers  and  manu- 
facturers and  merchants  and  traders  and  bankers  and  trans- 
porters, think  of  it!  The  market  of  our  OTvn  country,  the 
home  market,  in  vrhich  you  can  transport  your  groods  from 
the  door  of  the  factory  to  the  door  of  the  consumer,  vFithout 
breaking:  bulk  a  single  time,  is  equal  to  the  entire  inter- 
national commerce  of  the  ivorld.— O.  P.  Austin,  at  Rocheater. 


158 


TUE  TARIFF— IRON  AND  STEEL. 


I'tDducts    of    the    United    States    Steel    Corporation    and 
of  Independent  Oouipanlea.     Comparative  Statement  by 
Percentages. 

•l» 

Corpo- 
ration. 

54.2 
43.2 
86.5 

06. 

Inde- 
pendents 

45.8 

'I'otHl  production  of  iron  ore  -                                 

56.8 

Production  of  coke — 

63.5 

All  kinds  of  pig  Iron                                                             -    

44.2 
68.4 

55.8 

Spiegelelsen   and   ferro  manganese 

31.6 

Total  pig  iron,  including  spiegel,  etc                    

44.5 

55.5 

Bessemer  steel  ingots  and  castings                              .      -    

65.7 
49.6 

34.3 

Opeu-heartti  steel  ingots  and  castings                                 -  — 

50.4 

Total  of  above  ingots  and  castings                __       --  - 

58.1 

41.9 

Bessemer   steel   rails 

Structural  shapes  _    . 

52.6 
64.6 
56.3 
71.7 
33.8 

47.4 
45.4 

Plates  and  sheets,  excluding  nail  plate 

Wire  rods  

Bars,  open-hearth  and  iron  rails,  etc 

43.7 
28.3 
66.2 

Total  of  all  finished  rolled  products 

48.1 

51.9 

Wire  nails 

Tin  plates  and  terne  plates 

65.5 
73.4 

34.5 
26.6 

This  table  completely  disproves  the  statement  so  often  made 
that  the  United  States  Steel  Corporation  is  a  monopoly  w^hich 
controls  the  iron  and  steel  industries  of  the  country,  and  that 
it  stifles  all  competition  in  these  lines  of  industrial  develop- 
ment. Indeed  there  is  one  branch  of  the  steel  industry  in  which 
it  is  not  engaged  at  all — the  manufacture  of  crucible  steel. 


In  tbe  years  tliat  have  grone  by  -we  Iiave  made  the  deed 
square  -witli  tlie  "word.— President  Roosevelt's  speech  accept- 
injs:  1904  nomination. 

We  have  kept  of  the  same  mind  for  a  Bafflcient  length  of 
time  to  give  our  policy  coherence  and  sahity. — li'rom  Presi- 
dent  Roosevelt's  speech   of   acceptance. 

It  appears  that  in  all  commercial  countries  export  prices 
are  at  times  from  various  causes  lower  than  domestic  prices. 
Hon.    E.    L..    Hamilton,    in    Congrress,    April    14,    li>04. 

The  highest  claim  of  William  McKinley  for  the  gratitude 
of  his  countrymen  is  that,  in  spite  of  the  abuse  and  con- 
tumely that  was  heaped  upon  his  head  for  this  policy,  he 
placed  our  country  in  the  forefront  of  nations  as  a  civillzer 
and  uplifter  of  unfortunate  peoples.— Hon.  Wm.  H.  Taft,  at 
Cleveland,   Ohio. 

The  United  States  is  a  continental  nation  and  should 
adopt  a  continental  policy.  Free  trade  is  adapted  only  to 
insular  nations,  and  no  continental  nation  has  adopted  a 
free-trade  policy.— Ex-President  Hill,  of  the  University  of 
Rochester,   now   Ambassador   to   Germany. 

I  believe  our  strong  party  with  its  great  principles  Is 
only  in  its  Infancy.  Our  glory  as  a  nation  has  but  Just 
begun.  There  are  mighty  problems  yet  to  Be  solved,  grave 
anestions  to  be  answ^ered,  complex  issues  to  be  wrought 
out,  but  I  believe  we  can  trust  the  Grand  Old  Party  and 
its  leaders  to  care  for  the  future  of  our  Nation  and  of  our 
people  as  it  has  cared  for  them  so  well  in  the  past.— Hon. 
James   S.  Sherman. 

The  Republican  principle  of  the  protective  tariff  is,  as 
I  understand  it,  that  through  the  customs  revenue  law  a 
tariff  should  be  collected  on  all  Imported  products  that 
compete  Tvith  American  products,  vrhich  will  at  least  equal 
a  difference  in  the  cost  of  production  in  this  country  and 
abroad,  and  that  proper  allovrance  should  be  made  in  this 
difference  for  the  reasonable  profits  to  the  American  manu- 
factnrer.— Hon.   W^m.   H.   Taft,   at    Columbus,   Ohio. 


One  vitnl,  dominating  fact  confronts  the  Democratic 
party  vrhich  no  oratory,  -which  no  eloquence,  which  no 
rhetoric  can  obscure  t  BRYAN'S  NOMINATION  MEANS  TAFT'5 
BISECTION.— Nsw    York    W^orld. 


A   tariff    which    protects    American    labor    and    industry    and    provides 
ample   revenues  has  been   written  in  public  law. 

— WILLIAM    MCKINLEY. 

THE  TIN-PLATE  INDUSTRY. 


l!]Mtablishe(l  under  McKinley  Protection,  Checked  by  Demo' 
cratic  Free  Trade,  it  has  Effected  a  Saving-  of  ^35,000,000 
to  the  Conntry  and  Notv  Gives  Employment  to  17,000> 
people.  Who  Earn  .f  10,000,000  a  Year  in  Wages. 

By  B.  E.  V.  LUTY,  Pittsburg. 

The  American  tin-plate  industry  is  the  best  illustration  of  the" 
benefit  of  a  protective  tariff.  It  is  for  this  reason  that  it  is  ■ 
singled  out  by  the  Democrats  for  especially  vicious  attack. 

The  McKinley  protective  duty  of  2.2  cents  a  pound  went  into* 
effect  on  July  1,  1891.  For  years  prior  to  that  time  there  wan  • 
a  revenue  tariff  on  tin  plate  of  one  cent  a  pound.  Under  it  no  tin 
plate  could  be  made  in  the  United  States,  our  supply  being-  all 
imported  from  Wales,  which  had  a  monopoly.  The  Welsh  manu- 
facturers had  an  understanding  among  themselves  which 
amounted  to  a  trust,  and  charged  exorbitant  prices.  The  dut^-, 
being  a  revenue  one,  was  paid  by  the  American  consumer.  The 
reduced  duty  of  1.2  cents  in  the  Wilson-Gorman  law  went  into 
effect  on  October  1,  1894,  and  caused  a  wage  dispute  which  kept 
all  the  American  tin  plate  works  closed  from  that  date  iintil 
the  latter  part  of  January,  1895,  when  they  were  put  in  oper- 
ation at  greatly  reduced  wages.  The  American  tin  plate  works 
were  then  enabled  to  operate  under  the  existence  of  the  Wilson- 
Gorman  tariff  law  because : 

Gi'o^vth  of  the  Industry. 

1.  The  industry  had  acquired  great  momentum  under  the 
McKinley   law. 

2.  Economies  and  new  processes  were  introduced  during  that 
period,   after   great  expenditures  of  time   and  money. 

3.  There  were  heavy  wage  reductions. 

4.  The  Wilson-Gorman  duty  of  1.2  cents  a  jjound  was  O.Z 
cent  higher  than  the  old  revenue  duty. 

5.  The  general  depression  in  the  iron  and  steel  and  other' 
industries,  caused  by  the  Wilson-Gorman  law,  brought  the  raw 
materials  of  tin  plate  manufacture  in  the  United  States  down  to; 
lower  points  thtin  had  ever  been  seen  before. 

The  Dingley  law,  effective  July  24,  1897,  increased  the  tin 
plate  duty  to  1.5  cents  per  pound,  and  two  wage  advances  were- 
made,  in  1897  and  1899,  giving  the  tonnage  men  an  average 
increase  of  17  per  cent,  over  the  wages  paid  under  the  Wilson- 
Gorman  Tariff. 

The  following  table  gives  the  imports  of  tin  plate  into  tjj:  • 
United  States   since   1889  in   long  tons: 

Year.  Long  tons:- 

1889 331,311' 

1890 329,435' 

1891 327,882: 

1892 258,472; 

1893 253,155 

1894 215,068 

1895 Bl9,545 

1896 119,171 

1897 83,851 

1898 67,222    ' 

1899 58,915 

.    1900 60,386 

1901 77,395 

1902 : 60,115 

1903  .• 47,360 

1904 70,652 

1905 65,740 

1906 56,983 

1907 57,773 

159 


160  THE  TARIFF— TIN  PLATE. 

The  tin  plate  imports  after  1897,  the  year  in  which  the 
Dingley  law  was  enacted,  has  been  practically  altogether  for 
"drawback"  purposes,  the  tin  plate  being  made  into  containers 
for  exported  oil,  fruit,  fish,  meat,  etc.,  and  being  used  in  the 
manufacture  of  carpet  sweepers  and  many  other  articles  foi* 
export.  On  the  exportation  of  such  articles  the  Government 
refunds  99  per  cent,  of  the  duty  originally  paid  on  the  amoiuil, 
of  tin  plate  actually  used  in  the  man\ifacture  of  such  exported 
articles. 

The  following  table  gives  the  production  of  tin  plate  in  the 
United  States  in  each  calendar  year  since   1891 : 

Year.  Long  tons. 

1891 552 

1893 18,803 

1893 55,182 

1894 74,260 

1895 113,666 

1896 160,362 

1897 256,598 

1898 326,915 

1 899 397,767 

1900 302.665 

1901 399,291 

1902 366,000 

1 903 480,000 

1904 458,000 

1905 493,500 

1906 577,562 

1907'. *495,000 

♦Estimated. 


Hig:Ii   and   Loiiv  Prices. 

The  following  table  sho-svs  the  highest  and  lowest  prices  in 
Wales  of  full  weight  coke  tin  plate  since  1889.  The  great  decline 
caused  bj^  the  American  industry  will  be  noted.  The  much  higher 
prices  in  1899-1900  and  in  1906-1907  were  caused  by  the  great 
advances  in  raw  materials,  especially'  steel  and  pig  tin,  which 
have  occurred  all  over  the  world  : 

Year.  Lowest.  Highest. 

1889 12s  9d  18s  Od 

1890 13  3  17  3 

1891 12  6  12  6 

1892 11  9  12  8 

1 893 10  1014  12  6 

1894 10  3  11  0 

1895 9  9  10  9 

1896 8  103/^  10  6 

1897 9  9  10  3 

1898 9  9  10  6 

1899 11  0  15  6 

1900 13  3  16  9 

1901 ,. 12  3  15  3 

1902 11  9  14  0 

1903 11  0  12  6 

1904 11  6  12  6 

1905 11  41/2  13  0 

1906 12  3  15  0 

1907 12  3  15  li/i 

The  following  table  gives  the  average  price  of  full  weight 
(  '08-pound)  coke  tin  plate  in  New  York,  imported  plate  for  1894 
:iiul  preceding  years  and  domestic  plate  for  subsequent  years: 

1890 $5.15 

1891 5.30 

1892 5.34 

1894 4.57 

1895 3.66 

1896 3.63 

1897 3.26 


THE  TARIFF— TIN  PLATE.  161 

1898 $2.99 

1899 4.50 

1900 4.82 

1902 4.20 

1  903 4.00 

1 904 3.70 

1905 •. 3.80    ■ 

1906 3.90 

1907 4.20 

1908    (first  half) 4.00 

The  followlDg-  table  shows  the  price  chang-es  in  the  past 
nine  years,  with  the  date  on  which  each  new  price  went  into 
effect.  These  prices  are  f.  o.  b.  Pittsburg-,  plus  freight  to  des- 
tination, and  are  for  100-ponnd  plates,  full  weight  (108-pound) 
being-  15  cents  additional.  When  imported  plate  controlled  the 
market,  New  York  was  the  cheapest  point,  deliveries  at  in  Ian 
points  being-  higher.  A  comparison,  at  New  York,  of  present 
prices  with  .prices  ruling  before  the  establishment  of  the  Ameri- 
can industry,  is  not  fair,  because  at  the  earlier  time  the  prices 
delivered  to  the  principal  inland  consuming  points  were  higher 
than  New  York  prices,  whereas  now  they  are  lower.  The  freight 
Pittsburg  to  New  York,  is  18  cents  a  hundred,  while  from  Pitts- 
burg- to  a  point  even  as  far  west  as  Chicago  the  rate  is  only 
18  cents. 

July   14,    1899    $4,371/2 

August    6,    1899    4.65 

September   24,    1900    4.00 

November  3,  1902 3.60 

March   3,    1903    3.80 

November   16,   1903 3.60 

January  25,  1904    3.45 

*Ji]ly  25,  1904 3.30 

November   15,   1901    3.45 

December   22,   1904    3.55 

October  3,    1905    3.35 

October  20,  1905 3.45 

November  20.  1 905 3.40 

January  8,  1906    3.50 

April  lb,  1906   3.60 

May  19,  1906   3.75 

October  25,  1906 3.90 

January  6,  1908 .  3.70 

*Discount  changed  to  2  per  cent.,  previously   1   per  cent.,   for 
cash  in  10  days. 

A    Savins   of  J?a5,(M)0,000. 

By  making  a  careful  estimate  of  what  tin  plate  would  have 
cost  the  consumer  from  the  beginning  of  1892  to  the  middle 
of  1900,  had  there  been  no  American  industry  and  no  protect- 
ive tarifC,  and  closely  calculating  what  it  actuall}'  cost  in  these 
years,  with  the  protective  tariff  and  the  American  industry,  it 
has  been  found  that  the  country  saved  to  that  date  fully 
$35,000,000  through  the  McKinley  tin  plate  schedule.  Most  of 
this  saving  was  due  to  the  American  product  selling  at  so 
much  below  the  imported,  but  part  was  due  to  the  lower  prices, 
at  which  the  foreign  was  sold,  on  account  of  the  competition, 
before  the  country  made  all  the  tin  plate  it  needed. 

The  average  weekly  earnings  of  the  skilled  labor  in  the 
American  tin  mills  are  from  two  and  a  half  to  three  times 
as  much  as  in  Wales,  while  the  earnings  of  the  common  labor 
are  fully  twice  as  much.  The  skilled  men  are  on  a  tonnage 
basis,  the  rates  per  ton  in  the  United  States  being  more  than 
double  what  they  are  in  Wales.  In  addition  to  this,  the  Ameri- 
can manufacturers  invest  a  great  deal  more  money,  probably 
three  times  as  much,  in  their  plants,  making  the  mills  heavier 
and  employing  more  convenient  arrangement,  whereby  the  men 
are  enabled  to  make  a  much  larger  tonnage  output  per  shi't. 
When  the  American  tin  plate  industry  was  first  established, 
the   average  output  per   hot  mill  per  turn  was  about  50  boxes. 


ie«  THE  TARIFF— TIN  PLATtJ. 

against  36  in  Wales.  Improved  pi-actice  and  still  heavier  mai- 
chinery  was  adopted  in  the  American  plants,  whereby  the  aver- 
age output  has  been  raised  to  fully  75  boxes,  while  following 
after  the  Americans  the  Welsh  manufacturers  have  made  some 
improvements,  and  brought  their  average  output  up  to  50  boxes, 
which -leaves  it  that  the  American  mills  lead  by  a  slightly  larger 
percentage  than  they  did  at  the  start. 

Tin  Plnte  U  Cheap. 

Tin  ijlate  is  cheap  at  present,  being  much  lower  than  at  any 
time  prior  to  the  passage  of  the  McKinley  law.  In  1890,  the 
year  before  the  McKinley  duty  became  effective,  and  when  pig 
tin,  which  is  in  no  respect  under  control  of  either  the  American 
or  the  Welsh  mills,  sold  at  less  than  three-fourths  the  pres- 
ent price,  tin  plate  delivered  Pittsburg  averaged  38  per  cent; 
higher  than  it  does  at  present.  'J'he  following  table  gives 
the  cost,  delivered  Pittsburg,  of  the  quantity  of  tin  plate  re- 
quired to  make  the  articles  named : 

Cents. 

Ordinary   2-lb.   or   No.    2   can    0.94 

Ordinary  3-Tb.  or  No.  3  can 1.34 

Half-pint    tin   cup    -. 0.79 

Quart  tin  cup  1.34 

3-qt.  dinner  pail 4.34 

3-qt.  dinner  pail,  plus  1-pt.  cup 5.26 

The  tin  plate  required  for  the  famous  dinner  pail,  therefore 
costs  only  what  the  workman  i^ays  for  an  ordinary  street  car 
fare. 

Workmen   Reconiriiize  Tariff'H  Re»i»onHibillty  for  Hig-li   Wa^eH. 

In  October,  1902,  the  Amalgamated  Association  of  Iron,  Steel, 
and  Tin  Workers  gave  the  clearest  recognition  that  has  ever 
been  given  of  the  fact  that  the  tariff  is  responsible  for  the 
wages  they  receive.  The  condition  was  that  while  the  American 
tin  mills  had  captured  practically  all  the  demand  for  the  tin  plate 
for  domestic  consumption,  the  Welsh  manufacturers  wei-e  still 
shipping  in  from  a  million  and  a  quarter  to  a  million  and  a  half 
boxes  (50,000  to  65,000  tons)  of  tin  plate,  which  was  made  into 
cans  for  exports  of  petroleum,  fruit,  fish,  etc.,  and  for  some  minor 
purposes.  Through  the  ojjeration  of  the  general  drawback  law 
the  Government,  on  the  export  of  these  commodities,  paid  to  the 
exporters  90  per  cent,  of  the  duty  which  had  originally  been 
paid  on  the  tin  plate  so  used.  Thus  the  tin  plate  used  in  this  "re- 
bate trade"  was  practically  duty  free.  The  Amalgamated  Associa- 
tion therefore  made,  in  October,  1902,  an  arrangement  with  the 
American  Tin  Plate  Company  whereby  they  would  work  up  plates 
intended  for  the  rebate  trade  at  wages  25  per  cent  less  than 
the  regular  scale  rate.  It  was  recognized  that  this  percentage 
did  not  represent  the  full  concession  needed  to  capture  this  re- 
maining trade  from  the  Welsh  makers,  but  the  company  was 
willing  to  make  up  the  balance  itself. 

The  plan  was  put  into  practical  operation  by  3  per  cent,  of 
the  men's  total  wages  being  set  aside  in  a  special  fund,  from 
which  withdrawals  are  made  as  cans,  etc.,  are  exported,  equal 
to  25  per  cent,  of  the  wages  originally  involved.  This  apparently 
complicated  system  was  adopted  partly  because  it  would  have 
been  inconvenient  to  identify  each  lot  of  tin  plate  as  it  went 
through  the  mill  as  being  intended  for  export  purposes,  and  the 
safer  plan  was  adopted  of  the  wage  rebate  being  payable  just 
as  the  actual  exports  were  made. 

By  this  action  the  men  recognized  that  the  tariff  wa^  directly 
responsible  for  the  wages  they  were  receiving,  and  showed  that 
they  were  willing,  in  competing  with  Welsh  manufacturers  opera- 
ting under  no  tariff,  to  make  a  concession  in  wages. 

This  arrangement  has  now  been  in  force  nearly  six  years, 
and  the  workmen  are  very  well  satisfied  with  it. 

The  following  table  gives  the  production  of  tin  plates  and 
terne  plates  in  the  United  States  from  the  beginning  of  the 
industry  in  1891  to  the  end  of  1906.  From  July  1,  1891,  to  June 
30,    1897,   the    statistics   we    present   were    collected    by    Colonel 


THE  TARIFF— TIN  PLATE. 


163 


Ira  Ayer  for  the  Treasury  Department.  On  the  latter  date  the 
Department  abandoned  the  collection  of  these  statistics.  From 
July  1,  1897,  to  December  31,  1899,  from  January  1,  1901,  to  De- 
cember 31,  1903,  and  from  January  1,  1905,  to  December  31,  1906, 
the  statistics  have  been  compiled  from  most  reliable  sources. 
For  the  census  years  the  production  is  given  by  the  Census  Bu- 


Production  of  tin  plat^  and  terne  plates,  1891-1906. 
[From  annual  report  of  the  American  Iron  and  Steel  Association.] 


Years  -  Pounds. 

'J  Inplates. 

Terne  plates 

I  otal  pounds. 

1801    (last  6  months) 

368,400 
13,921,296 
64,536,209 
102,223,407 
165,927,907 
270.151,785 
203,028,258 

1,868,343 
28,197,896 
59,070,498 
64,120,002 
88,683,488 
89,058,013 
49,545,643 

2,236,743 

1892  (calendar   year) 

42,119,192 

1893 

1894 

123,606,707 
166,343,409 
254,611,395 
359,203,798 

1895   _. 

1896 

mn  (first  6  months) . 

1897  (last  6  months) 

1898  (calendar  year) 

1899   . .. 

252,573,901 
322,205,619 
732,289,600 
808,360,000 

1900  (census  year  ending  May  31)_. 

1901  (calendar  year) 

707,718,239 

141,285,783 

849,004,022 
894,411,810 

1902  . 

806,400,000 

1903  

1,075, 200, OO'J 

]90i  (census  year  ending  Dec.  31)_. 
190^  (calendar  year) 

867,526,985 

158,857,866 

1.026,384,851 
1,105,440,000 

1906  _ 

1,100,373,000 

193,367,000 

1,293,740,000 

The  millions  xfc  formerly  sent  to  aliens  in  alien  lands  to 
pay  them  for  makiniir  tin  plate  for  us  ^ve  no-^v  pay  to  our  o^vn 
countrymen  in  the  United  States;  we  have  the  tin  plate  and 
Tve  have  the  money  expended  for  tin  plate  besides. — Hon.  Wm. 
S.  CJreene,  in  Congrress,  April  28,  1004. 
> 

Rememberingr  those  Repuhlican  promises  and  their  ful- 
ftllment  in  the  years  since,  calling  to  mind  the  unfulfllled 
Democratic  promises  and  the  hitter  years  of  1803-1806,  what 
will  you  grain  hy  voting  the  Democratic  ticket.— Representa-* 
tive    Chas.   Dick,   of   Ohio,    in    Congrress,   Jan.    5,    1004. 

The  difllculty  Tvith  the  Democratic  party  and  the  reason 
why  the  American  people  thus  far  have  manifested  their 
distrust  of  it  is  because  it  has  no  policy  which  the  country 
can  depend  upon.  lis  whole  stock  in  trade  is  that  of  ir- 
responsible criticism  and  obstruction,  but  Tvhen  charged 
w^ith  the  responsibility  for  doing:  anything  it  utterly  fails. 
—Hon.   "Wm.    H.   Taft,   at   Greensboro,    North    Carolina. 

By  the  policy  of  fostering:  American  industries  the  devel- 
opment of  our  manufacturing:  Interests  have  been  secured; 
the  inventive  genius  of  our  people  has  found  a  field;  Ameri- 
can labor  has  become  the  best  paid,  and  conseatiently  oui* 
laborers  are  the  best  housed,  clothed,  and  fed;  and  the  won- 
derful development  and  prog:ress  in  this  country  in  all  that 
makes  a  people  great,  have  elicited  the  admiration  of  the 
civilized    -world.- Senator    Cnllom,     in    the    American    Bcono- 


This  is  not  and  never  shall  be  a  g:overnment  of  a  plutoc- 
racy; it  is  not  and  never  shall  be  a  grovernment  by  a  mob. 
It  is,  as  it  has  been  and  as  It  -will  be,  a  g:overnment  in  which 
every  honest  man,  every  decent  man,  be  he  employer  or  em- 
ployed, ■wag:e-worker,  mechanic,  bankc%>,  laTFyer,  farmer,  be 
he  ^rho  he  may,  if  he  acts  squarely  and  fairly,  if  he  does  his 
duty  by  his  neighbor  and  the  State,  receives  the  full  pro-" 
tection  of  the  law  and  is  given  amplest  chance  to  exercise 
the  ability  that  there  is  Tvithln  him,  alone  or  in  combination 
with  his  fello-ws,  as  he  desires. — President  Roosevelt  at 
Butte,    Mont.,    May    27,    1003. 

In  the  ten  years  -which  has  elapsed  since  the  enactment 
of  the  Dingley  TariflP,  the  conditions  have  so  changed  as  to 
make  a  number  of  the  schedules  under  that  tariflP  too  high 
and  some  too  low^.  This  renders  it  necessary  to  re-examine 
the  schedules  in  order  that  the  tariif  shall  be  i>laced  on  a 
purely  protective  basis.  By  that  I  mean  it  should  properly 
protect  against  foreign  competition,  and  afford  a  reason- 
able profit  to  all  manufacturei's,  farmers  and  business  men, 
but  should  not  be  so  high  as  to  furnish  a  temptation  to  the 
formation  of  monopolies  to  appropriate  the  undue  profit  of 
excessive    rates.— Hon.    Wm.    H.    Taft,    at    Kansas    City,    Mo. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  -whiAi  no  oratory,  -which  no  eloauenoe.  -vvhich  no 
rhr-toric  can  obscure:  BRYA!V'S  NOMINATION  MEANS  TAFT'S 
ELECTION.- New    York    World. 


THE  TEXTILE  INDUSTRIES  OF  THE 
UNITED  STATES. 


How  Labor  and  Agrrionlture  have  been  Mutually  Aided  and 
Price*  to  tbe  Conituiiier  ileduoed  IJnder  tlie  I'roteetive 
System. 

IBy  Edward  Stanwood,   author  of  "A  History  of  the  Presidency,"  "American 
TariH'  Controversies  of  tlie  Nineteenth  Century,"  etc.] 

If  one  were  asked  to  designate  the  American  industries  which 
may  be  regarded  as  the  most  cons})i('noiis  trophies  of  the  pro- 
tective policy  the  answer  would  undoubtedly  be  :  Textiles,  iron, 
and  glass.  The  most  dramatic  conquest  the  policy  can  boast  is 
in  one  branch  of  the  iron  and  steel  iudustry,  namely,  that  of 
tin  plates.  Nonexistent  in  1890,  it  gave  employment  in  1900  to 
nearly  15,000  workmen,  and  provided  practically  the  whole  sup- 
ply of  tin  plates  for  the  innuense  ca;  ng  industry  of  the  coun- 
try at  prices  far  below  those  which  prevailed  when  the  market 
was  controlled    by   foreigners. 

Nevertheless,  the  mo8t  important  achievement  of  protection  is 
the  establishment  and  development  of  the  mills  in  which  is  spun 
and  woven  the  material  of  the  clothing  of  the  people — cotton, 
wool,  and  silk. 

The  Father  of  his  Country  in  his  first  annual  address  to 
Congress   used  the   following  language: 

"A  free  people  ought  not  only  to  be  armed  but  disciplined  ;  to  which 
end  a  uniform  and  well-diges-ted  plan  is  requisite;  and  their  safety  and 
Interest  require  thdt  they  should  promote  such  manufactories  as  tend 
to  render  them  independent  of  others  for  essential,  particularly  military, 
supplies." 

Although  clothing  was  one  of  the  articles  indispensable  in 
time  of  war,  the  manufacture  of  which  it  was  obviously  the  duty 
of  Congress  to  promote,  it  was  not  until  after  the  war  of  1813 
that  a  serious  thought  was  given  by  Congress  to  the  protection 
of  the  manufacture  of  cloth  of  any  material.  During  the  period 
of  nonintercourse  that  preceded  the  last  war  with  England 
ft  was  found  impossible  to  buy  in  the  co\intry  $6,000  wonn  of 
blankets  to  supply  the  Indians.  During  the  war  the  only  way 
in  which  clothing  could  be  procured  for  the  soldiers  of  our  Army 
was  by  importatioii  secretly  from  the  British  provinces  in  viola- 
ti®n  of  law — a  violation  at  which  the  Government  was  compelled 
by  the  necessity  of  the  case  to  connive. 

After  the  war  the  country  was  flooded  with  foreign  textiles, 
and  the  cotton  manufacture  which  had  been  established  under 
the  protection  of  nonintercourse  was  brougjit  almost  to  the  verge 
of  ruin.  Then  began  the  attempts  to  foster  the  cotton  and 
woolen  industries  by  means  of  a  protective  tariff,  which,  often 
interrupted,  have  continued  to  the  ^n-esent  time. 

The   Cotton    Industry. 

Cotton  manufacture  has  enjoyed  fairly  adequate  protection 
for  three-quarters  of  a  century.  Even  under  the  Walker  tariff 
of  1846  the  rate  of  duty  was  sufficient  to  give  the  home  manu- 
facturer fairly  complete  control  of  the  market  for  the  coarse 
and  medium  goods,  which  constitute  by  far  the  largest  amount 
of  goods  consumed  by  the  average  family.  Beginning  with 
the  Morrill  tariff  of  1861,  adequate  protection  has  at  all  times 
been  given  to  almost  all  classes  of  cotton  manufactures,  and 
the  results  have  been  a  great  growth  of  the  industry,  a  large 
employment  of  labor,  and  an  increasing  market  for  the  raw 
product  of  southern  plantations.  Keen  domestic  competition  and 
improved  machinery  have  reduced  the  prices  of  good%enormously. 
Thus  every  interest  connected  with  this  industry,  directly  or  in- 
directly, has  been  benefited — th-  -manufacturer  and  his  employees, 

164 


THE  TARIFF— THE  TEXTILE  INDUSTRY. 


165 


the  southern  planter,  and  the  whole  population  of  the  country,  be- 
cause all  are  consumers  of  the  products  of  cotton  mills.  In  re- 
cent 3^ears  the  United  States  has  begun  the  conquest  of  foreign 
markets.  An  export  trade  established  before  the  civil  war  reached 
in  i860  almost  $11, 000,000.  It  did  not  touch  these  tigures  again 
until  1878,  nor  did  it  greatly  exceed  them  until  1896,  when  the 
value  of  cotton  goods  exported  was  almost  $17,000,000.  Since  then 
the  increase  of  the  trade  has  been  rapid.  In  1906  the  \ahie 
ol  the  cotton  goods  exported  was  almost  $53,000,000.  Since  then 
there  has  been  a  large  decrease,  due  solely  to  the  cessation  of 
a  denumd  from  the  Chinese  Empire,  but  it  is  believ<Ml  that  llie 
fendenc}'   lo  decrease  j^:   hu.   leruporory. 

The  most  remarkable  feature  of  the  cotton  industry  is  its 
stupendous  growth  in  the  South.  The  determined  opposition 
to  the  protective  policy  led  b\^  Calhoun  involved  the  idea  that 
this  must  be  aa  agricultural  country,  and  that  the  cotton  raised 
should  be  exported.  Yet  to-daj^  the  State  of  John  C.  Calhoun 
contains  more  cotton  spindles  than  any  other  State  except  Massa- 
chusetts. In  1880  there  were  but  610,000  spindles  in  all  the  Souths 
ern  States.  In  1908  there  were  more  than  ten  million  spin- 
dles in  that  part  of  the  country,  and  the  industry  was  carried  on 
in  every  one  of  the  old  "slave  States"  except  Florida. 

The  accompanying  table  shows  the  progress  made  by  this 
industry  during  the  last  thirty-five  years  under  a  policy  of 
uninterrupted  protection,  for  the  Wilson  tariff  of  1894,  harmful 
to  other  manufacturers,  did  not  materially  reduce  the  protective 
duties   on   cotton    fabrics. 


1870. 


1900. 


1905. 


Number  of  estab- 
lishments   

Capital    

Wage-earners,  av- 
erage   number.. 

Total    wages 

Cost  of  materials 
used   

Value  of  products 

Active      spindles, 
number 

Looms,    number. 

Cotton  con- 
sumed, bales.— 

Cotton  con- 
sumed, pounds- 


956 

$140,706,291 


135,369 
$39,044,132 


$111,736,936 

$177,489,739 


7,132,415 
157,310 


398,308,257 


756 
$268,280,346 


174,659 
$42,040,510 


$102,206,34' 
$192,090,110 


10,653,435 
225.759 


1,570,344 
759,343,981 


905 
$354,020,843 


218,876 
$66,024,538 


$154,912,979 
$267,981,724 


14,188,103 
324,866 


2,261,600 
1,117,945,776 


973 

$460,842,772 


297,929 
$85,126,310 


$173,441,390 
$332,806,156 


19,008,352 
450,682 


3,639,495 
1,814,002.512 


$605 


$94 


$282, 
$442, 


1,077 
100,164 


310,458 
,877,696 


017,648 
451,218 


1,873 


,155,613 
540,910 


743,089 
,074,710 


The  Woolen   Industry. 

The  voyage  of  the  woolen  industry  has  been  through  seas 
much  more  stormy  than  those  over  which  the  cotton  manufac- 
turers have  passed.  The  difficulties  which  have  beset  it  have 
arisen  largely  by  reason  of  the  complication  of  protection  of 
wool  with  protection  of  wool  manufactures.  The  growers  of 
wool  have  rightly  contended  that  they  were  as  deserving  of  the 
fostering  care  of  government  as  were  the  users  of  their  product. 
The  concession  of  their  contention  has  resulted,  naturally  and  in- 
evitably, in  the  requirement  of  a  duty  on  finished  goods  which 
seems  excessive  to  those  who  are  not  aware  of  the  peculiar 
circumstances  of  the  case,  and  which  has  made  the  wool  and 
woolen  schedule  of  the  tariff  the  vulnerable  point  always  chosen 
by  the  opponents  of  protection  as  the  best  for  an  attack  and 
the  easiest  to  carry  by  assault.  There  have  constantly  been 
many  interruptions  and  variations  in  the  policj^  of  protection, 
which  have  prevented  the  full  and  healthy  development  of  the 
industry.  At  one  time,  in  1846,  a  blow  was  given  to  the  manu- 
facturers by  a  tariff  law  which  levied  no  higher  duty  on  finished 
goods  than  on  raw  wool.  At  another  time,  under  the  Wilson- 
Gorman  act  of  1894,  the  woolgrower  was  struck  by  a  provision 
making  wool  duty  fi-ee. 

Yet  in  spite  of  opposition  and  of  a  vacillating  policy  the 
woolen  industry  has  grown  to  large  proportions,  taking  ad- 
vantage of  favoring  laws  to  increase  and  gain  strength,  endur- 
ing  adverse    legislation   as    best    it    might,    and    holding    itself 


1fi« 


THE  TARIFF— THE  TEXTILE  INDUSTRY. 


rc^ady  to  make  a  forward  step  again  when  conditions  should 
ptu-mit.  Although  the  inherent  difficulties  and  the  artificial 
dilViculties  reyulting  from  tlie  lack  of  a  continuous  and  consistent 
policy  have  prevented  the  full  development  of  the  industry,  and, 
in  consequence,  that  unimpeded  home  competition  which  would 
bring-  prices  down  strictly  to  the  level  of  the  foreign  article, 
yet  the  difference  in  price  is  not  great.  Upon  many  varieties 
of  goods  the  price  of  American  fabrics  is  as  low  as  that  of 
European  fabrics  of  the  same  quality  plus  a  rate  of  duty  not 
higher  than  the  average  of  a  "revenue  tariff."  Protection  has 
not  placed  the  manufacturers  of  wool  in  a  position  so  favorable 
as  that  of  the  manufacturers  of  cotton,  but  under  the  j)resent 
tariff  they  are  making  good  progress,  and  if  the  policy  be  eon- 
tinned  they  will  be  able  to  intrench  themselves  strongly  in  the 
home  market,  to  the  great  advantage  of  American  wooigrowers 
in  a  steady  demand  for  their  product  at  reasonable  prices,  and 
of  200,000  wage-earners  in  continuous  and  remunerative  employ- 
ment, as  well  as  of  the  whole  American  people  in  an  abundant 
supply  of  honest  goods  at   fair  prices. 

The  extent  to  which  the  manufacturers  of  woolen  and  worsted 
goods  have  now  possessed  the  home  market  may  be  seen  from 
the  fact  that  the  value  of  the  goods  manufactured  in  Ameri- 
can mills  in  1905  was  $381,000,000,  and  the  foreign  goods  of 
the  same  classes  imported  were  valued  at  only  $16,500,000. 

The  main  facts  relating  to  the  woolen  and  worsted  indus- 
try and  to  the  allied  ..lanufacture  of  hosiery  and  knit  goods, 
covering  the  ascertainment  at  the  last  four  censuses,  are  pre- 
sented in  the  following  table : 


1880. 


1900. 


1905. 


Number  of  estabHshments- 

Capital    

Wage  -  earners,       average 

number    

Total   wages    

Oost  ol  materials  used 

Value  of  products 


2,689 
$159,091,869 

161,557 

$47,389,087 

$164,371,551 

$267,252,913 


$296,494,481 

213,859 

$70,917,894 

$203,095,572 

$337,768,524 


2,835 
$892,040,353 

242,495 
$82,292,444 
$232,230,986 
$392,473,050 


2  292 
$477,5251222 

283,691 
$102,333,548 
$319,154,878 
$517,492,142 


Tlie   Silk  Indastry. 

It  is  not  generally  realized  that  under  the  operation  of  a 
protective  tariff  the  United  States  has  risen  to  the  first  rank 
among  the  silk  manufacturing  countries  of  the  world,  bringing 
all  of  its  raw  material  from  abroad  and  most  of  it  from  the  oppo- 
site side  of  the  globe. 

The  Census  Bulletin  (No.  74)  on  Textiles  (Census  of  Manufac- 
tures, 1905)  shows  that  the  average  consumption  of  raw  silk 
in  the  three  years  1903,  1903,  and  1904  was  13,500,000  pounds, 
in  the  United  States;  and  in  France,  which  stood  next  on  the 
list,  only  9,500,000  pounds.  In  fact  this  country  consumed  al- 
mpst  exactly  one-half  as  much  as  all  European  countries  com- 
bined. 

In  1870  exactly  two-thirds,  in  value,  of  the  American  con- 
sumption of  silk  manufactures  was  of  foreign  importation.  In 
that  year  the  total  value  of  silk  goods  imported  and  produced 
at  home  was  $36,418,995,  of  which  only  $12,210,662  was  domestic. 
In  1905  the  value  of  such  goods  consumed  in  the  United  States 
had  increased  more  than  fburfold  and  amounted  to  $165,110,728, 
of  which  four-fifths  ($132,288,072)  was  of  home  manufacture. 
The  value  of  imported  silk  manufactures  increased  only  $10,- 
000,000  in  the  intervening  thirty-five  years;  the  value  of  the 
domestic  manufactures  increased  from  $12,200,000  to  $133,000,- 
000. 

The  protective  tariff  created  this  industry  in  the  Unite'd 
States  at  the  same  time  that  free  trade  killed  the  same  in- 
dustry in  Great  Britain.  Fifty  years  ago  the  silk  manufacture 
of  England  was  great  and  prosperous.  The  British  census  of 
1851  showed  that  there  were  117,000  hands  employed  in  the  King- 
dom in  the  silk  mills.  Even  in  1879  it  employed  more  than 
40,000  hands.  The  system  of  free  imports  has  rendered  it  almost 
extinct.     The  value  of  goods  produced  in  1900  wa»  but  $15,000,-. 


THE  TARIFF— TEE  TEXTILE  INDUSTRY. 


167 


000 — less  than  one-sixth  that  of  this  oeuntry.  The  destruction  of 
this  industry  by  invited  foreign  competition  is  one  of  the  chief 
points  in  Mr.  Chamberlain's  indictment  of  the  free-trade  policy. 

The  beginning-  of  a  protective  system  for  the  silk  manufac- 
ture was  made  in  the  tariif  of  1864,  but  tile  excessive  internal 
taxation  during  and  subsequent  to  the  war,  the  disorganization 
of  labor,  and  the  diversion  of  capital  to  more  ]3ressing  needs 
prevented  the  introduction  of  the  manufacture  on  a  large  scale. 
Indeed,  although  th-e  percentage  of  growth  of  the  industry  be- 
tween 1870  and  1880  wats  large,  it  was  not  until  the  tariff  act  of 
'1883  adjusted  the  rates  in  a  satisfactory  manner,  making  raw 
silk  free  and  allowing  an  adequate  protection  on  manufactured 
goods,  that  the  industry  began  to  assume  large  proportions.  It 
will  be  seen  from  the  following  table  that  it  gave  employment 
in  1905  to  more  than  80,000  employees  w^ho  earned  wages  of 
nearly  $27,000,000.  The  table  corresponds  to  those  already  given' 
for  the  other  industries. 


1900. 


1905. 


Numtmr     of    establish- 
ments     

•Capita;!    

Wage-eaioers,    average 

number  ... 

Total    wases 

rOost  of  materials  used 

•Value   of   products 

,Raw  silk  used,  pounds 


86 
$6,231,130 

6,649 

$1,942,286 

$7,817,559 

$12,210,662 

684,488 


$19,125,300 

31,337 

$9,146,705 

$22,467,701 

$41,033,045 

2,690,482 


$51 


472 
,007,537 

49,382 
,762,441 
,004,425 
,298,454 
,376.881 


$81,082 

65 

$20,982 

$62,406 

$107,256 

9,760 


$109,556,621 


$26 
$75 
$133 


79,601 
767,943 
,861,188 
,288,072 
572.783 


The  protective  system  is  establishing  the  flax,  hemp,  and  jute 
industries.  As  compared  with  cotton,  wool,  and  silk  they  are 
still  of  secondary  importance,  but  are  destined,  if  the  policy  be 
continued,  to  a  large  growth. 

"What  It  Meanei  to  Labor. 

In  the  aggregate  these  several  branches  of  the  textile  indus- 
try employed  in  1905  n6~  less  than  739,239  hands,  who  earned  in 
wages  tiie  sum  of  $249,357,277,  and  the  4,563  establishments  re- 
ported x^i'oduced  goods  of  the  value  of  $1,215,036,792.  The  niun- 
iber  of  hands  emj)lo3'ed  exceeded  by  more  than  175,000  the  total 
^population  in  1900  of  St.  Louis,  of  Boston,  or  of  Baltimore.  But 
it  is  always  to  be  borne  in  mind,  first,  that  on  the  average  each 
wage-earner  provides  bread  and  meat,  clothing,  and  lodging  for 
not  less  than  two  persons  besides  himself ;  and,  secondly,  that 
their  wages  reach  an  ever-widening  circle  of  persons  engaged  in 
other  occupations — grocers,  dry  goods  merchants,  carpenters,  and 
the  like  in  the  first  instance,  railroads  and  their  employees, 
farmers  and  j)lanters,  and  an  infinite  number  of  others  all  the 
way  between  the  first  and   the   last. 


Wliat   It  Means  to   tlie  Farmer. 

It  is  a  most  serious  mistake  to  suppose  that  the  effect  of 
prosperity  or  depression  in  the  manufacturing,  particularly  in 
the  textile,  industry  is  limited  to  those  employed  in  the  mills 
and  to  their  employers,  or  even  to  the  communities  and  States 
in  which  the  mills  are  located.  The  manufacturing  communities 
in  this  country  are  wholly  dependent  upon  the  agricultural 
regions  for  their  food.  New  England,  for  example,  does  not 
raise  enough  of  any  single  article  of  food  to  supply  its  own 
people.  Of  the  two  staples,  breadstuffs  and  meat,  it  does  not 
raise  the  one-hundredth  part  of  its  need.  It  is  therefore  virtually 
important  to  the  farmers  of  the  West  that  the  mill  hands  shall 
be  steadily  employed  and  that  their  wages  shall  be  sufficient  to 
enable  them  to  purchase  freely.  Eeduce  the  tariff,  introduce 
foreign  goods  instead  of  domestic,  dimiiaish  the  demand  for  the 
products  of  our  own  mills,  cut  wages,  close  the  mills  or  put  them 
on  short  time,  and  you  deal  a  blow  directly  at  the  great  agri- 
cultural regions  of  the  country.  You  restrict  the  cousuiaiing 
power  of  a  community — including  the  wives  and  children  of  the 
-operatives — almost  equal  in  number  to  the  population  of  Chicago, 


168 


THE   TARIFF     THE  TEXTILE  INDUSTRY. 


and  yoii  gain  nothings  in'Hhe  /onu  of  a  foreign  oxitlet  for  your 
grain   and  your    meat. 

The  history  of  the  textile  manufacture  in  brief  is  this:  A 
great  industry  luis  been  built  up  by  means  of  a  protective  tarilT; 
two-thirds  of  a  million  of  hands  have  employment  in  the  facto- 
ries;  the  country  has  become  almost  indej)endent  of  a  foreign 
supply  of  textile  goods;  the  growth  of  the  industry  has  been 
accompanied  by  a  steady  and  In  the  aggregate  a  great  decline 
in  prices,  so  that  t-o-day  the  clothing  of  the  peoi)le  is  not  only 
cheap,  but  nearly  or  quite  as  cheap,  quality  considered,  as  that 
of  any  other  nation  ;  and  in  no  branch  of  the  industry  is  there 
a  monopol}'  '"trust"  or  the  suspicion  of  a  monopoly.  No  great 
fortunes  have  been  built  up  in  the  textile  mauufacture.  The 
conquest  of  tht»  home  market  will  be  followed,  if  the  wise  policy 
be  continut^d.  liy  an  entrance  iuto  foreign  nuirkets,  and  by  the 
leadership  of  the  United  States  in  all  departments  of  this  in- 
dustry. 

The  textile  industries  of  the  United  States  at  decennial  periods, 
IMO  to  J900. 


Complied  from   Census  Reports.] 

-oM 

i  Num- 

L.  * 

1     ber 

^ 

0 

ill 

^■^P'^^'-     1  wage 

W  ages. 

Cost  of 
materlal.s. 

Value  of 
products. 

2 

>* 

!  eaiu- 
;    era. 

Wool  manu- 

facture (a) 

1859    1,760 

$32,516,336 

47,763 

iii29,24G,696 

$49,636,881 

18G0    1,67; 

42,810,932 

59,522 

"$13^361^602 

46,649,365 

80,734,606 

IsTO    3, 45 J 

132,382,310 

119,8  )J 

40,357,235 

134,151,615 

217,668,826 

16^0    2,C8J 

15), 0)1,8):.' 

161,557 

47,389,087 

161,371,551 

267,252,913 

1800 

2,489 

296,491,481 

213.950 

70,917,894 

203,095,572 

337,768,524 

1«00 

2.335 

392,0  0,35 J 

212,495 

82.292,444 

232,230,986 

392,473,050 

1905 

2,292 

477,525.222 

283,691 

102,333,518 

319,1.54,878 

517,492,142 

Cotton 

manufac- 

ture  (O) 

1850 

I.OOi 

74,500,931 

92  ,-286 

34,835,056 

61,869,184 

1860 

1 ,001 

98,  •585,269 

122,02c- 

23,910,108 

57. 28),  53  4 

115,681,774 

1870 

9i: 

1*0,703,291 

135,331 

39,011.132 

111,73  5.936 

177,489.739 

1880 

75« 

208,280,346 

171,05 

42, 00, 510 

102,203,317 

192,090,110 

'P90 

Po" 

351,020,842 

218,876 

66,021.538 

154,912,979 

267,981,724 

1900 

1,055 

467,240,157 

302,861 

86,680.752 

176,551, .527 

339,200,320 

1905 

1,151 

613,110,65- 

315,871 

96.205,796 

286,255,-303 

450,467.704 

Silk     manu- 

facture ... 

1851 

67 

678,300 

1,713 

1,093,860 

1,809,478 

18% 

130 

2,926,980 

.5.435 

"'1^050^224 

3.901,777 

6,607,771 

1870 

86 

6,231,130 

6,619 

1,912,286 

7,817,550 

12,210,662 

1880       382 

19,125,300 

31,. 337 

9,146,705 

22,467,701 

41,033,045 

18'X)!       472 

51, 007,5  {7 

49,382 

17,762,141 

51,004,425 

87,298,454 

VWii       483 

81,082,201 

i;5,416 

20,982,194 

62,408,665 

107.256,258 

1905       624 

109,553,621 

79,601 

26,767,943 

75,861,188 

133,288,072 

Dyeing    and 
finish  1  n  g 

1 

textiles  ... 

1850        10 { 

4,818,350 

5,105 

11,540,347 

15.451,4.30 

18601       15' 

5,718,671 

7,007 

'"'2^6017)28 

5,095,1.35 

11,716,463 

1870       202 

18,371.50^ 

13,066 

5,221,538 

99,539.992 

113,017,5.37 

, 

1880 1       191 

26,223,081 

16,608:       6. 474. .361 

13,681,295 

32,297,420 

1890       218 

38,450,800 

19,601        8.911,720 

12,385,220 

28,900,460 

1900        208 

60,613,101 

29.776      12.726,316 

17,958,137 

44.963,331 

Flax,    hemp 
and  jute,. 

1905       360 

88,708,576 

35,563      15,469,205 

19,621,253 

50.849,545 

1800        102 

27,731,649 

15, .519       4, 872, ,389 

26,U8,344 

37,313,021 

1000        1  <1 

41,901,762 

20,903 

6.3.31,741 

.32.197,885 

47,601,607 

Combined 

1905        133 

51,423,531 

21,. 508 

8.580,785 

44,800,546 

62,939,329 

textiles  — 

1850    3.025 

112,513,917 

1(6,877 

76,715,959 

128.769,971 

I860,  3,027 

150.080,852 

194,082j     40,353,462 

112,812,111 

214,740,614 

1870    4.790 

297.601,213 

274,943     86,565,191 

.353,219,102 

520,386,764 

1880    4,018 

112,721,496 

384,251 1  105,050,666    302,700,891 

5.32.673,488 

1890    4.276 

767.705,310 

,517,237;  168.488,982    417,516.510 

759,262,283 

1900    4.312 

1,0 '2,997,577 

661,451,  209 ,,022, 447 

521,345,200 

931,494,566 

1905j  4,553 

1,343,324,605 

739,239    249,357,277 

745,783,168 

1,215,036,792 

(a)  Includes  hosiery  and  knit  goods.        (b)  Includes  cotton  small  wares. 


Cotton    Production    and    Mannfactnriu^r    in    the    United    States, 
also    ImportN    and    Kxports    of    Cotton    Manufactnre. 

The  statement  showing  the  quantity  of  cotton  consumed  in- 
dicates unusual  activity  among  the  cotton  manufacturing  in- 
terests  of  the   United   States   during   recent   years,   the   number 


THE  TARIFF— THE  TEXTILE  INDUSTRY.  169 

of  bales  taken  for  home  consumption  being  in  1905,  1906,  and 
1907  much  larger  than  in  any  corresponding  period  in  the  his- 
tory of  our  manufacturing  industries,  while  the  raw  cotton 
imported  was  also  larger  than  in  any  corresponding  period 
of  any  earlier  year,  'ihe  export  of  cotton  manufactures  in 
1905  and  1906  were  more  than  double  those  of  any  two-year 
period  in  the  history  of  our  exporl  trade.  The  fall  of  22  mil- 
lion dollars  in  value  of  cotton  cx])orts  in  1907  was  due  solely 
to  a  reduced  demand  in  China,  resulting  from  over-importations 
into  that  country  in  1904  and  1905.  The  growth  in  importa- 
tion of  cotton  manufactures  shown  in  the  final  columns  suggest 
great  possibilities  in  our  own  markets  still  awaiting  our  own 
cotton  manufacturers,  especially  in  high  grade  manufactures, 
which  form  the  bulk  of  the  large  imports  of  recent  years. 


Our  appeal  l»  not  to  a  false  plillosopliy-  or  vain  tlieories, 
bnt  to  the  masses  of  tlie  Anieriean  people,  the  plain,  practi- 
cal people  Tt'lioni  I^incoln  loved  aud  trusted  and  wlioni  tlie 
Republican  party  lias  always  faithfully  striven  to  serve. — 
Maj.    McKinley    to    Notification    Committee,    189«. 

At  all  hazards,  and  no  matter  what  else  is  sought  for  or 
accomplished  hy  chun^es  of  the  tariff,  the  American  work- 
ing-man mnst  be  protected  in  his  standard  of  -wages — that  is, 
in  his  standard  of  living — and  must  be  secured  the  fullest 
opportunity  of  employment.— President  Roosevelt  at  Logans- 
port,   Ind.,   September,    IDOil. 

Laying-  aside  the  fact  that  trusts  are  organised  under 
Elngllsh  free  trade,  as  v*'ell  as  German,  Austrian,  an<l  Ameri- 
can protection,  it  is  susceptible  of  absolute  demonstration 
that  American  free  trade  would  operate  in  the  interests  of 
trusts  and  agaihst  the  interest  of  American  labor.— Hon. 
E.    L.    Hamilton,    in    Congress,    April    14,    1904. 

The  administration  of  exact  justice  by  courts  without 
fear  or  favor,  unmoved  by  the  influence  of  the  wealthy  or 
by  the  threats  of  the  demagogue,  is  the  highest  ideal  that 
a  government  of  the  people  can  stride  for,  and  any  means 
by  which  a  suitor,  ho^vever  unpopular  or  pooi*,  is  deprived 
of  enjoying  this  is  to  be  condemned.— Hon.  Wm.  H.  Taft,  at 
Columbus,  Ohio. 

The  man  who  tills  his  own  farm,  whether  on  the  prairie 
or  In  the  w^oodland,  the  man  who  gro^vs  w^hat  we  eat  and 
the  ra-»v  material  which  is  worlced  up  into  what  w^e  w^ear, 
still  exists  more  nearly  under  the  conditions  which  obtained 
when  the  "embattled  farmers"  of  '7«  made  this  country  a 
nation  than  is  true  of  any  others  of  our  people. — President 
Roosevelt,    at    Sioux    Falls,    S.    Dale.,    April    6,    1903. 

As  well  might  a  father  of  a  family,  just  started  in  a  pros- 
perous business  with  a  small  capital,  distribute  his  little 
property  equally  among  the  poor  of  his  neighborhood,  de- 
priving himself  of  the  means  of  providing  for  and  educating 
his  children,  as  for  this  nation  to  share  -with  the  Old  World 
every  Increment  of  power  and  superiority  to  be  found  in 
the  new^,  assuming  its  burtlens  of  mendicancy  and  debt,  and 
receiving  the  peasant  as  the  peer  of  the  American  citizen.— 
Ex-president  Hill,  of  the  University  of  Rochester,  present 
Ambassador    to    Germany,    in    the    American    Economist. 

We  were  passing  into  a  regime  of  an  Irresponsible 
plutocracy.  During  the  last  four  years  there  has  been  a 
srreat  moral  a-wakening  to  this  danger  among  the  people  and 
a  popular  demand  that  the  la-*vbrealcers— no  matter  ho-»v 
wi-ealthy  or  ho-w  high  or  powerful  their  position — shall  be 
made  to  suffer.  Under  the  leadership  of  Theodore  Roose- 
velt the  Republican  party  has  not  faltered  in  its  determina- 
tion to  meet  the  requirements  of  this  situation  and  to  en- 
act such  legislation  as  may  be  necessary  to  bring  to  a  clo»>e 
this  period  of  illegitimate  corporate  immunity.— Hon.  Wm. 
H.  Taft,  at  Kansas   City,   Mo. 

There  is  no  -worse  enemy  of  the  wage--vrorl£;er  than  the 
man  -who  condones  mob  violence  in  any  shape,  or  -who 
preaches  class  hatred;  and  surely  the  slightest  acquaint- 
ance -with  our  industrial  history  should  teach  even  the 
most  shortsighted  that  the  times  of  most  suffering  for  our 
people  as  a  -whole,  the  times  when  business  is  stagnant, 
and  capital  suffers  from  shrinkage  and  gets  no  return  from 
Its  investments,  are  exactly  the  times  of  hardship  and  -want 
and  grim  disaster  among  the  poor.— President  Roosevelt  at 
Syracuse,   N.   Y..    September    7.   1903. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  -which  no  oratory,  -which  no  eloquence,  -tvhich  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
SSLBCTIOlf.— New    York    W^orld. 


COMMERCE   OF  THE  UNITED   STATES 
BY  GREAT  GROUPS,  J  820  TO  J  908. 


The  tables  showing  the  commerce  of  the  United  States  by 
<:»Teat  groups  from  1820  to  1908,  which  occupy  the  pages  im- 
mediately following,  are  interesting  and  valuable  especially  iu 
their  relation  to  the  agricultural  and  manufacturing  industries 
of  the  country.  Both  imports  and  exports  are  grouped  in  a 
manner  to  show  foodstuffs,  and  to  indicate  whether  they  are 
imported  or  exported  in  the  natural  state  or  in  a  form  in  which 
labor  has  brought  them  into  condition  for  use,  and  thus  added 
to  their  value.  The  imports  and  exports  of  crude  materials 
for  use  in  manufacturing  are  also  separately  shown ;  also  the 
imports  and  exports  of  manufactures,  both  those  ready  for  con- 
sumption and  those  intended  for  further  use  in  manufacturing. 
In  each  case  the  percentage  which  a  given  class  forms  of  the 
total  imports  or  exports  is  stated.  A  study  of  these  tables 
gives  a  clear  and  interesting  picture  of  the  growth  of  our  agri- 
cultural and  manufacturing  industries,  and  especially  as  to  the 
importation  of  materials  for  use  in  manufacturing  and  the  ex- 
portation of  manufactures  and  the  growing  share  which  these 

fCiasses  form  of  the  total  imports  and  exports,  respectively,  of 
the  country.  It  will  be  noted  that,  notwithstanding  the  Demo- 
cratic assertion  that  a  protective  tariff  would  destroy  our  mar- 
kets abroad,  the  total  value  of  merchandise  exported  grew  from 
1  billion  dollars  in  1897,  the  year  of  the  enactment  of  the 
Dingley  protective  tariff,  to  1,854  millions  in  1907.  In  manu- 
factures, of  which  it  was  asserted  that  a  protective  tariff  at 
home  would  especially  injure  our  markets  abroad,  the  growth 
has  been  strongly  marked  since  1897 ;  exports  of  manufactures 
ready  for  consumption  having  grown  'from  213  million  dollars 
in  1897  to  481  million  in  1907,  while  manufactures  for  further 
use  in  manufacturing  grew  from  98  million  dollars  in  1897  to 
259  millions  in  1907,  and  1908  will  show  even  larger  totals. 
It  will  be  noted  also  that  the  share  which  finished  manufac- 
tures form  of  the  total  exports  grew  from  20.63  per  cent  in  3897 
to  25.93  per  cent  in  1907,  and  that  of  manufactures  for  further 
use  in  manufacturing,  from  9.52  per  cent  in  1897  to  13.99  per  cent 
in  1907.  While  it  is  not  practicable  at  this  time  to  give  complete 
figures  for  the  fiscal  year  1908,  an  estimate  based  upon  the  avail- 
able figures  up  to  the  latest  possible  date  indicates  a  continuation 
in  1908  of  the  growth  in  the  exports  of  manufactures.  In  the 
tables  of  importations  the  column  showing  the  value  of  crude 
materials  imported  for  use  in  manufacturing  is  especially  in- 
teresting in  its  evidence  of  the  activity  of  our  manufacturers 
in  recent  years,  showing  as  it  does  that  the  value  of  crude 
•materials    imported    grew   from    196   million    dollars   in    1897    to 

,  477  millions  in  1907,  and  that  the  share  which  this  class  of 
materials  formed  of  the  importations  grew  from  25.66  per  cent  in 

-4«97  to  33.25  per  cent  in  1907. 


In  twenty  years  tlie  Tvorksliop  of  tlie  Tvorld  lias  become 
<lie  dnmplng:  grronnd  of  tlie  TFOrld.— London  Daily  Telegfraph, 
December  10,  1903. 

You  cannot  afford  to  liave  tlie  anestion  raised  every  fonr 
years  -wliether  tlie  nation  -will  pay  or  repudiate  its  debts  in 
whole  or  in  part.— Hon.  "Win.  McKinley  to  delegation  of  farm- 
ers   at   Canton,    September   22,   1896. 

It  is  foolish,  to  pride  ourselves  upon  our  progress  and 
prosperity,  upon  our  commandlnier  position  in  the  interna- 
tional industrial  worltl,  and  at  the  same  time  have  nothins* 
but  denunciation  for  the  men  to  -whose  commanding:  position 
vie  in  part  o^ve  this  very  proj^ress  and  prosperity,  this  com- 
n»andinK  i»osltion.— President  Roosevelt  at  Cincinnati,  Ohio, 
September  ^O,  1902. 


170 


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CHIEF  MANUFACTURING  INDUSTRIES. 


173 


Chief  manufacturing  industries,  showing  sums  paid  in  tvages 
and  number  of  employees. 


[Prom 


reports   of  the  Bureau  of  the  Census,  Department  of  Commerce  and 
Labor.] 


Num- 

Wage-earuers. 

Value  of 
products, 

lUC;Udlllg 

custom 
work  aud 

Industry. 

Cen 

sus 
year. 

ber  of 
estab- 
lish- 
ments. 

Capital. 

Aver- 
age 

lllUil- 

Total 
wages. 

ber. 

repairing. 

Dollars. 

Dollars. 

Dollars. 

Agricultural    imple- 

1880 

1.943 

62, 10.), 668 

39,580 

15,350.610 

68,640,486 

ments. 

1890 

910 

115,313,997 

38,S27 

18,107,001 

61,271,651 

1900 

715 

157,707,y.51 

46,582 

22,450,680 

LO'1,207,1Z8 

1905 

tJ48 

196,740,700 

47,394 

25,002,050 

112,007,34* 

Boots    and   shoes 

1880 

1,959 

42,991,028 

111,152 

43,001,438 

166,050,351 

1«J0 

2,082 

95,2s2,311 

133,690 

60,66/, 145 

220,649,35a 

1900 

1,599 

99,810,233 

141,830 

58,4  0,683 

258,960,.5»0 

193 1 

1,316 

122,526,003 

149,924 

60,05  (,680 

320,107,458 

B  -ead  and  other  bak- 

1S80 

6,396 

19,155,266 

22,488 

9,411,328 

6. ,824, 8)6 

ery  products. 

18)0 

lO.iSl 

45,758, 4&0 

3s,ali 

19,1.0,529 

128,121,535 

1900 

11,8.36 

80,901,926 

60,192 

27,664,024 

1/5,368,682 

190t 

lb, 227 

122,363,327 

Si, 281 

43,170,622 

2J9,60'0,06i 

Carriages    and  .wag- 

18S0 

3,841 

37,973,493 

45,391 

18,988,615 

64,951.61/ 

ons. 

"1890 

1,572 

93,455,257 

56,525 

28,9/2,101 

102,680,314 

1900 

6,201 

100,875,865 

58, 425 

27,578,0,6 

113,234,5jJ 

1905 

4,953 

126,320,601 

60,722 

30,878,229 

12.5,332,076 

Cars,  shop  construc- 

1890 

716 

76,192,477 

106,632 

60,213,433 

12),  461, 3)8 

tion  and  repairs  by 

1900 

1,293 

119,580,273 

173,652 

96, 032,. 329 

218,2  j6,  .7/ 

steam  railrd  co's-- 

l'.X)5 

1,141 

146,913,720 

236,900 

142,188,336 

309,833,4)9 

Cars,  shop  construc- 

1890 

78 

2,351,162 

2,009 

1,411,20) 

2,966,3  47 

tion  and  repairs  by 

l.JOO 

108 

10,781,939 

7,025 

4,40  4,503 

9,3/0,811 

street  railway  to's_ 

190.-) 

86 

12,905,853 

11,052 

7,012,798 

13,4.i7,l21 

Oars,    steam    and 

18«0 

130 

9,272,680 

14,232 

5,50r,753 

27,9)7,5  1 

street    railr'd,    not 

1890 

88 

46,109,525 

33,139 

17,168,000 

73,385,852 

includ'g  operations 

1900 

85 

95,930,219 

37,038 

18,938,170 

97,815,5  8 

of   railway  co"s 

11)05 

87 

101,151,750 

38,788 

23,037,400 

122,019,503 

Cheese,    butter    and 

1880 

3,932 

9,601,893 

7,903 

1,546,495 

25,742,540 

condensed  milk. 

1890 

4,552 

16,016,573 

12,219 

4,248,854 

60,635,705 

1900 

9,242 

36,303,164 

12,799 

6,145,561 

130,783,3  9 

1905 

S,i)26 

-47,255,556 

15,557 

8,412,937 

168,182, /8) 

Chemicals    — - 

1880 

595 

28,983,458 

9,724 

4,222,663 

38,6  0,458 

1890 

563 

55,032,452 

15,038 

7,308,411 

59,352,518 

1900 

433 

89,060,450 

19,020 

9,393,236 

62,637,008 

1905 

448 

119,890,193 

2  4,. 525 

13,361,972 

92,088,378 

Clothing,   men's 

1880 

6,166 

79,861,6')6 

160,813 

45,940,353 

20),518.i  0 

1890 

4,867 

128,253,547 

141,026 

51,075,837 

251.010,600 

1900 

5,729 

120.547,851 

120,927 

45,496,728 

276,717,.^  )7 

1905 

4,50t 

153,177,500 

137,190 

57,225,506 

355,706,571 

Clothing,  women's... 

1880 

562 

8,207,273 

25,192 

6,661,005 

32,004,7)1 

1890 

1,224 

21,250,528 

39,149 

15,428,272 

63,164,019 

1900 

2,701 

48,431,541 

85,739 

32,586,101 

150, 33), 5  ;9 

1905 

3,351 

73,947,823 

115,705 

51,180,193 

247,661,530 

Confectionery   

1880 

1,450 

8,486,874 

9,801 

3,242,852 

25,637,0  ;3 

1890 

2,921 

23,326,790 

21,724 

7,783,007 

.55,907,101 

1900 

962 

26,319,195 

26,868 

8,020,453 

60,613,946 

190.1 

1,3 18 

43,125,408 

36,230 

11,609,257 

87,087,253 

Cooperage  

1880 

3,818 

12,178,726 

25,973 

8,992,603 

.33,714,7  0 

1890 

2,652 

17,803,55  4 

22,555 

10,056,249 

38,617,0% 

1900 

\,m\ 

21.777,636 

22,117 

8,786,428 

38,439,7  45 

1905 

1,517 

29,532,614 

21,149 

9,485,455 

49,424,30  4 

Cordage  and  twine.. 

1880 

165 

7,140,475 

5,435 

1,558,676 

12,402,171 

1890 

150 

23,351,883 

12,385 

3,976,232 

33,.312,55.> 

1900 

105 

29,275,470 

13,114 

4,113.112 

37,849,651 

1005 

102 

37,110,521 

14,614 

5,3  58,178 

18  017,1.59 

Cotton   goods 

1880 

1,005 

219,. 50  4,79! 

185,472 

45.614,419 

210,959,38  5 

1890 

905 

.354,020,843 

218,876 

63,024,538 

267,981,72  4 

1900 

1,055 

467,2  40, l'^7 

302,861 

86,680,752 

339,200,320 

1995 

1,151 

613,110,655 

.315,874 

96,205,796 

450,467,70' 

Electrical  machinery, 

1880 

76 

1,. 509, 7  58 

1.271 

683,164 

2, 655, 056 

apparatus  and  sup 

1-^90 

189 

18, 997,. 337 

8,802 

4,517,0-0 

19,114,7'4 

plies. 

1900 

581 

83,659,92  4 

42.013 

20,579,194 

92, 43 1, '35 

1905 

781 

174,066,026 

60,466 

31,841,521 

110, 800,. 33) 

Flour  and  grist  mill 

l-^SO 

21,3.38 

177,. %1, 878 

58,407 

-17,422,316 

505,185.712 

products. 

1890 

r-^,470 

208,473,500 

47,403 

18,138,402 

.513,971.174 

1900 

9  476 

189,281,330 

32,226 

16,285,163 

:tOl,3)6,301 

1905 

10,051 

265,117,4.34 

39,110 

19,822,196 

713,033,3)5 

Foundry    and    ma- 

ISSO 

4.9S4 

155,021,734 

145,650 

66,093.920 

215,442,011 

chine    shop     prod- 

1890 

6,500 

383,257,473 

231,331 

129,282,263 

413,197,118 

ucts. 

1900 

9,316 

663,414,323 

350,103 

182,006,007 

6!4,'5:!  216 

1905 

9.423 

936,416,978 

402,914 

220.869,297 

790,862,5>8 

Furnishing  goods. 

1880 

161 

3,724,664 

11,174 

2.644,155 

11,506  8  7 

men's. 

1890 

586 

12,299.011 

20,778 

6.078,026 

29,870,9 '6 

1900 

457 

20,575,961 

30,. 322 

9,730.063 

44,3  43,482 

1905 

547 

28,0  43,. 584 

27,185 

8,760,108 

49,031,5:;2 

Furniture  

1880 

5,227 

44,946,128 

59., 30  4 

23,695,080 

77,845,7^5 

1800 

1,919 

80,780,939 

72.869 

35,068,979 

111,713,0^0 

1001 

1,814 

104,484,-394 

87,262 

35,632.523 

125.315,0,^6 

1905 

'   2,482 

152,712,732 

110,133 

49,883,235 

170,446,825 

171 


CHIEF  MANUFACTUBINO  INDUSTRIES. 


Lliit/  inaiiufacturing  industries,  showing  sums  paid  in  wages 
and  number  of  employees — Continued. 


Cen- 
uus 
year 

Num- 
ber of 
estab- 
lish- 
meuts 

UapitaL 

Wage-earners. 

Value  of 

ludustry. 

Aver- 
age 
num- 

Total 
wages. 

products, 
Including 

cusioiu 
wok  aud 

ber. 

Dollara. 

repalrlug. 

Doilarg. 

Dollars. 

Glass    

1880 

169 

18,804,599 

24,177 

9,144,100 

21.154,571 
41,051.004 

1890 

29.' 

40,966,850 

44,892 

20,885,961 

I'JOO 

355 

61,423,903 

52,818 

27,084,710 

56.539.712 

li»05 

399 

89,389,151 

63,969 

37,288,148 

79.607.998 

Hardware 

1880 

492 

15,363.551 
£6,271,840 

16.801 

18,495 

6,840,913 
8,656,067 

22.658,693 
26,728.463 

mH) 

350 

lUQO 

381 

39,311,745 

26.463 

11,422,758 

35.846,656 

1905 

445 

52,884,078 

31,713 

14,580,589 

45.770,171 

Jewelry  

1880 

739 

11,431,164 
22,240,508 

12,697 
13,880 

6,441,688 
8,038,327 

22,201.621 
34,761,458 

1890 

783 

1900 

851 

27,871,924 

20.468 

10,613,887 

46.128.65J 

190.3 

1,023 

39,678,956 

22,080 

12,592,816 

53.225.681 

Leather,  tanned,  cur- 

IScSO 

5,628 

73,383,911 

40,282 

10,503,828 

200,264,944 

ried,  and  llnished. 

1890 

1,787 

98,088,698 

42,392 

21,249,989 

172,136,0a2 

1900 

1,306 

173,977,421 

52,109 

22,591,091 

204,068,127 

1905 

1,049 

242,584,254 

57,239 

27. 04]),  152 

252,620,986 

Liquors,   matt 

1880 

2,191 

91,208,224 

26,220 

12,198,053 

101,058,385 

1890 

1,248 

232,471,290 

30,257 

20,713,383 

182,731,aii2 

1900 

1,507 

413,767,233 

39,459 

25,770,468 

236,914,914 

1905 

1,531 

515,636,792 

48,139 

34,542,897 

298,358,732 

;            Lumber    and   timber 

1880 

25,758 

181,465,392 

148,290 

31,893,098 

233,608.883 

products. 

1890 

22,617 

557,881,054 

311,964 

87,934,284 

437.957.382 

, 

1900 

23,053 

400,857,337 

413,335 

148,007,845 

555,197.271 

1905 

19,127 

517,224,128 

404,626 

183, 021, .519 

680,022.690 

•            Lumber,  planing-mill 

1880 

2,491 

38,070,593 

37,187 

14,431,654 

73,424,681 

products,  including 

1890 

3,670 

120,271,440 

79,923 

42,221,856 

183,681,552 

sash,    doors,     and 

1900 

4,198 

118,948,556 

73,510 

32,621,704 

167.786,122 

blinds. 

1905 

5,009 

177,145,734 

97,674 

50,713,607 

247.441,956 

Marble    and    stone 

1880 

2,846 

16,498,221 

21,471 

10,238,885 

31,415,150 

work. 

1890 

1,321 

24,041,961 

21,950 

15,314,598 

41,924,264 

1900 

1,655 

39,559,146 

30,641 

16,328,174 

42,230,457 

1905 

1,642 

66,526,724 

40,905 

25,032,725 

63,059,812 

Paper  and  wood  pulp 

1880 

742 

48,139,652 

25,631 

8,970,133 

57,366,860 

1890 

649 

89,829,548 

31,050 

13,204,828 

78,937.184 

1900 

763 

167,507,713 

49,646 

20,746,426 

127,326,162 

1905 

761 

277,444,471 

65,964 

32,019,212 

188,715,189 

Petroleum,    reflning__ 

1890 

94 

77,416,296 

11,403 

5.^872,467 

85,001,198 

1900 

67 

95,327,892 

12,199 

6,717,087 

123,929,384 

1905 

98 

136,280,541 

16,770 

9,989,367 

175,005,320 

Silk  and  silk  goods. 

1880 

382 

19,125,300 

31,337 

9,146,705 

41,033,045 

1890 

•  472 

51,007,537 

49,382 

17,762,441 

87.298,454 

1900 

483 

81,082,201 

65,416 

20,982,194 

107,256,258 

1905 

624 

109,556,621 

79,601 

26,767,943 

133,288,072 

Slaughtering       and 

1880 

872 

49,419,213 

27,297 

10,508,530 

303,. 562, 413 

meat       packing. 

1890 

611 

98,190,766 

87,502 

20,304,029 

433,252,315 

wholesale. 

1900 

557 

173, 866,. 377 

64.681 

31,033,850 

697,056,065 

1905 

559 

219,818,627 

69,593 

37,090,399 

801,757,137 

Slaughtering,   whole- 

1890 

507 

18,696,738 

6,473 

4,000,947 

128,359,353 

sale,  not  including 

1900 

325 

14,933,804 

3,705 

2,358,403 

86,723,126 

moat  paeking. 

1905 

370 

17,896,063 

4,541 

3,236,573 

112,157,487 

Smelting    and    refin- 

1900 

47 

53,063,395 

11,324 

8,529,021 

165,131,670 

ing,    copper. 

1905 

40 

76,824,640 

12,752 

10,827,043 

240,780,216 

Smelting    and    refin- 

1900 

i 

72,148,933 

8,319 

5,088,684 

175,466,301 

ing,    lead. 

1905 

63,822,810 

7,573 

6,374,691 

185,826,839 

Structural   ironwork. 

1880 

220 

1.400.197 

1.934 

844.614 

3,410.086 

1890 

724 

21,968,172 

17,158 

10,235,701 

37,745,294 

1900 

697 

43,412,377 

24,903 

13,588,779 

66,927,305 

1905 

775 

76,598,507 

34,276 

19,760,210 

90,944,697 

Sugar  and  molasses, 

1880 

49 

27,432,500 

8.857 

2,875,032 

155,484,915 

refining. 

1890 

393 

24,013,008 

7,043 

2,385,654 

123,118,259 

1900 

a57 

184,033,304 

14,129 

6,917,829 

239,711,011 

1905 

344 

165,468,320 

13.549 

7,575,650 

277,285,449 

Tinware,  copper- 

1880 

7,693 

23,167,392 

27,116 

11,243,276 

.50,183,811 

smithing,  and  sheet 

1S90 

7,002 

38,434,900 

31,377 

15,610,265 

66,653,746 

iron  working. 

1900 

1,816 

35,724,739 

28,315 

13,193,307 

63,812,787 

1905 

2,366 

124,500,133 

39,475 

20,608,179 

97,974,838 

Tobacco,        chewing 

1880 

477 

17,207,401 

32,756 

6,419,024 

52,793,056 

and  smoking,   and 

1890 

395 

30.841,316 

29.790 

6,947,158 

65,843,587 

snuff.     . 

1900 

437 

43,856,570 

29,161 

7,109,821 

103,754,362 

1905 

433 

178,847,556 

23,990 

8,775,325 

116,767,630 

Tobacco,  cigars,  and 

1880 

7,145 

21,698,549 

53,297 

18,464,562 

63,979,575 

cigarettes. 

1890 

10,956 

59,517,827 

87,000 

36,475,060 

129,693,275 

1900 

14,522 

67,660,748 

103,365 

40,865,510 

159,958,811 

1905 

16,395 

145,135,945 

135,418 

55,864,978 

214,350,051 

Woolen  goods 

1880 

1,990 

96,095,564 

86,504 

25,836,392 

160,606,721 

1890 

1,311 

130,989,940 

76,915 

26,139,194 

133,577,977 

1900 

1,035 

124,386,262 

68,893 

24,757,006 

118,430,158 

1905 

792 

140,302,488 

72,747 

28,827,556 

x42,196,658 

Worsted  goods 

1S80 

76 

20,374,043 

18,803 

5,683,027 

33,549,942 

18)0 

143 

68,085,116 

42,978 

14,914,966 

79,194,652 

1900 

186 

132,168,110 

57,008 

20.092.738 

120. 314.. 344 

1905 

226 

162,464,929 

69.251 

26.269,787 

165.745.052 

GROWTH  OF  THE  COTTON  INDUSTRY. 


175-' 


^ 


Cotton  production  and  manufacturiny  hi  the  United  States,  also 
imports  and  exports  of  cotton  manufactures. 

[From  the  Statistical  Abstract  of  the  United  States.] 


Total 
com- 
iner- 
-cial 
crop. 


iak(3n  for  home  con- 
sumption. 


By 

North- 
ern 

mills. 


By 

South- 
ern 
mills. 


Total. 


1884 
1885 
188H 
1887 
1888 
188!) 
1890 
1891 
1892 
1893 
189  i 
1895 
189(5 
1897 
1898 
1899 
1900 
1901 
1902 
1903 
1904 
1805 
1906 
1907 


In  thousands  of  bales. 


5,718 

1,537 

340 

5,706 

1,437 

316 

6,575 

1,781 

381 

6,499 

1,687 

401 

7,047 

1,805 

456 

6,939 

1,790 

480 

7.297 

1.780 

545 

8,674 

2,027 

613 

9,018 

2,172 

684 

6,664 

1,652 

723 

7,532 

1,580 

.       711 

9,837 

2,019 

852 

7,147 

1,605 

900 

8,706 

1,793 

999 

11,216 

2,211 

1,254 

11,256 

2,217 

1,415 

9,422 

2,047 

1,597 

10,339 

1,964 

1,583 

10,768 

2,066 

2,017 

10,674 

1,966 

1,958 

10,002 

2,046 

1,889 

13,654 

2,292 

2,270 

11,234 

2,335 

2,292 

18.540 

2,510 

2,495 

1,877 
1,753 
2,162 
2,088 
2,261 
2,270 
2,325 
2,640 
2,856 
2,375 
2,291 
2,871 
2,505 
2,792 
3,465 
3,632 
3,644 


4,562 
4,627 
5.005 


Raw 

cotton 

Imported. 


Pounds. 
7,019,492 
5,115,680 
5,072,334 
3,924,531 
5,497,592 
7,973,039 
8,606,049 
20,908,817 
28,663,769 
43,367,952 
27,705,949 
49,332,022 
55,350,520 
51,898,926 
52,660,363 
50,158,158 
67,398,521 
46,631,283 
98,715,680 
74,874,426 
48,840,590 
60,508,548 
70,963,633 
104,791,784 


Exports 
of  manu- 
factures 
of  cotton. 


Dollars. 
11,885,211 
11,836,591 
13,959,934 
14,929,342 
13,013,189 
10,212,644 
9,999,277 
13,604,857 
13,226,277 
11,809,355 
14,340,888 
13,789,810 
16,837,396 
21,037,678 
17,024,092 
23,566,914 
24,003,087 
20,272,418 
32,108,362 
32,216,304 
22,403,713 
49,666,080 
52,944,033 
82,805.412 


imports 
of  manu- 
factures 
of  cotton. 


Dollars. 

29,074,626 

27,197,241 

29,709,266 

28,940,353 

28,917,799 

26,805,942 

29,918,055 

29,712,624 

28,323,841 

33,560,293 

22,346,547 

33,196,625 

32,437,504 

34,429,363 

27,267,300 

32,054,434 

41,296,239 

40,246,935 

44,460,126 

52,462,755 

49,524,246 

48,919,936 

68,043,322 

73.704,636 


Every  dollar  sent  abroad  to  pnrcltase  ffoodM  tliat  rve  can 
produce  at  home  makes  us.  a  dollar  the  poorer.T-H.  K.  Thur- 
ber,   in   the  American    Economist. 


Tbe  safety-  and  interest  of  tbe  people  require  that  thex' 
should  -promote  such  manufactures  as  tend  to  render  them 
independent    of    others. — Washing^ton. 

Above  all  things  ^ve  should  avoid  the  demagrojtrue  as  a 
pestilence  and  take  counsel  only  of  reason  and  rigrht. — Hon. 
C.  W.  Fairbanks,  at  St.  Paul,  Minn.,  Augrnst  31,  1903.' 

Mr.  Bryan  asks  me  what  I  would  do  fvith  the  trusts.  I 
answer  that  I  vrould  restrain  unlawful  -trusts  w^ith  all  the 
efficiency  of  injunctive  process  and  -would  punish  -with  all 
the  severity  of  criminal  prosecution  every  atempt  on  the 
part  of  a-ggregrated  capital  to  suppress  comipetition.— Hon. 
Wm.  H.  Taft,  at  Columbus,  Ohio. 

Duty  determines  destiny.  Destiny  -which  results  front 
duty  performed  may  bring  anxiety  and  perils,  but  nevex* 
failure  and  dishonor.  Pursuing  duty  may  not  al-ways  lead 
by  smooth  paths.  Another  course  may  look  easier  and  more 
attractive,  but  pursuing  duty  for  duty's  sake  is  al-ways  sure 
and  safe  and  honorable.— President  McKlnley  at  ChicasTO,  Oct. 
19,   1898. 

We  should  no  sooner  debase  our  currency  than  w^e  shoulA 
-weaken  our  coast  defenses.  "We  should  no  more  think  of 
introducing  unsound  currency  into  oxir  money  system  than 
•we  should  think  of  -weakening  the  steel  armor  plates  upon 
our  great  battle  ships  -which  are  gallantly  -withstanding  the 
storm  of  Spanish  shot.— Hon.  C.  W.  Fairbanks,  in  U.  S.  Senate, 
June  3,  1898. 

I  have  revie-wed  -what  have  properly  come  to  be  kno-vm' 
as  President  Roosevelt's  policies.  I  have  attempted  to  point 
out  one  or  tw^o  instances  in  which  I  -would  Qualify  details 
of  future  policies  which  he  has  sketched,  but  with  these 
minor  exceptions  as  to  method,  I  am  glad  to  express  my 
complete,  thorough,  and  sincere  sympathy  -with,  and  ad- 
miration for,  the  great  conserving  and  conservative  move- 
ment -with  -which  he  has  -with  w^onderful  success  initiated 
and  carried  so  far  against  bitter  oppositit>n,  to  remedy  the 
evils  of  our  prosperity  and  preserve  to  us  the  institutions 
w^e  have  inherited  from  our  fathers.— Hon.  IVm.  H.  Taft,  »t 
Columbus,   Ohio. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  -which  no  oratory,  -which  no  eloquence,  -which  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New    York    World. 


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IRON  AND  STEEL  INDUSTRY. 


177 


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178 


TTIE  WORLD'S  PIO   IRON  PRODUCTION. 


^Vorld's    Proilnctlon    of    PIk    Iron    from    IKOO    to    190T. 

This  table  is  g-iven  Avith  the  purpose  of  enabling  a  comparison 
of  the  growth  of  pig-  iron  consumption  in  Great  Britain  under 
free  trade  with  that  of  the  protective  countries,  France,  Ger- 
many and  the  United  States. 

The  world's  production  of  pig  iron  from  1800  to  1D07. 
[In  gross  tons  of   2240  lbs.] 


Year. 

United 
States. 

Great 
Britain. 

Germany. 

France. 

Various. 

Total, 

1800 

1810 

1850 

1820 

1830 

1840 

1860 

1870 

1880 

1885 

1889 

18;)5 

1806 

1397 

1898 

1899 

1900 

1901 

1902 

1903 

1901 

1905 

1903 

1907. 

Tons. 

40,000 

55,000 

561,000 

20,000 

165,000 

287.000 

820,000 

1,665,000 

3,835,000 

4,050,000 

7,603,000 

9,146,000 

8,623,000 

9,652,000 

11,773,000 

13,620,000 

13,789,000 

15,878,000 

17,821,000 

18,000,000 

16,497,000 

22,992,000 

25,307,000 

25,781,000 

Tons. 

190,000 

250,000 

2,250,000 

400,000 

680,000 

1,3.)0,000 

3,830,0:)0 

5,9'>0,000 

7,750,000 

7,420,000 

8,250,000 

7,703,000 

8,660,000 

8,796,000 

8,610,000 

9,421,000 

8,9eo,ooo 

7,929,000 
8,680,000 
8,935,000" 
8,694,000 
9,608,000 
10,109,000 
9.924,000 

Tons. 

40,000 

46,000 

402,000 

90,000 

120,000 

170,000 

530.000 

1,300,000 

2,730,000 

2,690,000 

4,530,000 

5,465,000 

6,271,000 

6,771,000 

7.196,000 

8,013,000 

8,384,000 

7,754,000 

8,395,000 

9,860.000 

9,899,000 

10,703,000 

12,099,000 

12,672,000 

Tons. 

60,000 

85,000 

570,000 

140.000 

220,000 

350,000 

900,000 

1,180,000 

1,730,000 

1,630,000 

1,720,000 

2,006,000 

2,302,000 

2,444,000 

2,485,000 

2,537,000 

2,671,000 

2,351,000 

2,367,000 

2,796,000 

2,927,000 

3,028,000 

3,267,000 

,    3.532,000 

Tons. 

130,000 

180,000 

270,000 

385,000 

480,000 

640,000 

1,100,000 

1,710,000 

2,090,000 

2,310,000 

3,060,090 

4,247,000 

5.001,000 

5,267,000 

5,808,000 

6,461,000 

6,686.000 

6,886,000 

6,876,000 

6,677,000 

7,322,000 

7,539,000 

7,360,000 

7,591,000 

Tons. 

460,000 

616,000 

920,009 

1,570,000 

2,677,000 

4,420,000 

7,180,000 

11,90.5,000 

18,135,000 

18,100,000 

25,163,000 

28,867,000 

30,857,000 

32,930,000 

35,872,000 

40,055.000 

40,490,000 

40,798,000 

44,139,000 

46,277,000 

45,339,000 

53,900,0<10 

58,142,00) 

*50,500,000 

♦Preliminary  estimate. 

Not*.— OfBcfal  flgfures  of  the  respective  national  statistical  offices  of  the 
T'nited  St^ates,  the  United  Kingdom,  Germany  and  France.  Figures  for  all 
(  llier  countries  taken  from  the  French  and  Swedish  Mineral  Statistics. 


EJvery  man  f\lio  has  made  fvealtli  or  nsed  it  in  developing? 
prreat  lesritimate  l»ti»iness  enterprises  has  heon  of  benefit  and 
not  harm  to  the  eonntry  at  large. — President  Roosevelt  at 
Spolvane,   Wash..   May  26,   190.3. 

The  exposure  and  pnnishment  "of  pnblic  corruption  is  an 
honor  to  a  nation,  not  a  disftpraee.  Tlie  disp^race  lies  in  tol- 
iM'ation,  not  in  correction. — President  Roosevelt's  annual  mes- 
sage,   second    session    Fifty-seventli    Congress. 

Whenever  the  Government  revenues  need  an  increase  or 
readjustment  I  should  strongly  favor  the  imposition  of 
u  graduated  Inheritance  tax  and,  if  necessary  for  the  reve- 
nues, a  change  in  the  Constitution  authorizing  a  Federal 
income   tax. — Hon.   Wm.    H.   Taft,   at   Columbus,   Ohio. 

Every  citizen  of  the  United  States  has  an  interest  and 
a  right  in  every  election  T*'ithin  tlie  Republic  where  na- 
tional representatives  are  chosen.  We  insist  that  these  laws 
relating  to  our  national  elections  shall  be  enforced,  not 
nullified.— President   Garfield. 

The  real  evils  connected  with  the  trusts  can  not  be  reme- 
die«l  by  any  change  in  the  tariff  laTvs.  The  trusts  can  be 
damaged  by  depriving  them  of  the  benefits  of  a  protective 
tariff  only  on  condition  of  damaging  all  their  smaller  com- 
petitors and  all  the  vrage-earners  employed  in  the  industry. 
President  Roosevelt,   at  Cincinnati,   September  20,   1902. 

Mr.  Bryan  is  continually  asking  -why  some  of  the 
managers  of  unlawful  trusts  have  not  been  convicted  and 
sent  to  the  penitentiary?  I  sympathize  vrith  him  in  his 
•wish  that  this  may  be  done,  because  I  think  that  the  im- 
prisonment of  one  or  tivo  would  have  a  jnost  liealthy  efFecf 
throughout  the  country;  but  even  Trithout  such  imprison- 
ment, I  believe  that  the  prosecutions  which  are  now^  on 
foot  and  the  injunctions  which  have  alreatiy  been  issued 
have  had  a  marked  effect  on  business  methods.— Hon.  Wm. 
H   Taft,   at   Columbus,    Ohio. 

One  vital,  dominating  fact  confronts  the  Democratic 
l»arty  vrhich  no  oratory,  which  no  eloau'^iice,  ^hich  no 
rhetoric  can  obscure:  BRYATV'S  NOMINATION  MEANS  TAFT'8 
ELECTION.— Ne^    York    World. 


AGRICULTURE. 


.4£rricn!tnral    Prosperity    Under    Republican.    Administration, 
Depression    Under    Democratic    Rule. 

The  farmers  of  the  country  create  most  of  its  wealth  and, 
during  the  last  eighteen  years,  sent  abroad  65  per  cent  of  our 
exports  in  addition  to  producing  much  of  the  material  from 
which  manufactures  are  made  that  are  used  at  home  and  abroad. 
The  Republican  administration  has  greatly  developed  agri- 
cultural investigation  in  the  last  eleven  years,  until  scientific  in- 
quiry is  being  made  in  all  our  States  and  Territories  and  in  the 
isles  of  the  sea  under  our  flag,  to  the  end  that  we  may  produce 
the  necessities  of  life  for  ourselves  and  those  for  whom  we  are 
responsible.  The  power  of  the  man  and  the  acre  to  produce 
is  being  increased  all  over  the  land ;  new  grains,  grasses,  legumes, 
fruits,  fibers,  and  vegetables  are  being  imported  from  foreign 
countries  into  continental  United  States  and  into  our  islands 
in  order  to  diversify  crops  and  bring  into  productiveness  sec- 
tions of  our  country  that  have  heretofore  been  barren.  The 
weather,  the  animals,  the  plants,the  forests,  the  soils,  our  roads 
our  foods,  our  insect  friends  and  enemies  are  being  studied 
from  the  farmer's  standpoint  by  over  2,000  scientists  in  the 
Department  of  Agriculture,  which  has  grown  in  helpfulness  every 
day  since  1896. 

The  farm  value  of  the  wheat,  corn,  and  oat  crops  in  1907  was 
nearly  two  and  one-half  times  that  of  1896,  the  last  year  of 
the  Cleveland  administration.  This  is  rather  a  startling  state- 
ment, but  it  is  borne  out  by  the  Yearbook  published  by  the 
Department  of  Agriculture,  and  made  up  from  ofiicial  figures 
which  have  no  partisan  bias. 

For  the  year  1896  the  farm  value  of  corn  was  $491,000,000; 
that  of  the  wheat  crop,  $311,000,000;  and  that  of  the  oat  crop 
$132,000,000;  the  total  farm  value  of  the  three  crops  for  that 
year   being   $934,000,000. 

The  farm  value  of  the  corn  crop  in  1900  was  $751,000,000 ; 
that  of  the  wheat  crop,  $323,500,000;  and  that  of  tK'e  oat  crop, 
$208,700,000,  making  the  total  farm  value  of  the  three  crops 
in  1900  $1,283,000,000,  or  $349,000,000  more  than  the  farm  value 
of  the  same  crops  in  1896. 

In  1907  the  farm  value  of  the  corn  crop  was  $1,337,000,000; 
that  of  the  wheat  crop,  $554,400,000;  and  that  of  the  oat  crop, 
$334,600,000 ;  a  total  farm  value  of  the  thi-ee  crops  in  1907  of 
$2,226,000,000,  or  $943,000,000  more  than  the  farm  value  of  the 
same  crops  in  1900;  and  $1,292,000,000  more  than  their  farm 
value  in  1896. 

Increase  in  Farm  .Values. 

This  increase  in  farm  value  under  Eepublican  administra- 
tions is  not  accidental.  It  is  a  matter  of  history  that  rural 
prosperity  and  Republican  rule  are  coincident ;  it  is  equally  a 
matter  of  record  that  agricultural  depression,  mortgage  fore- 
closures, and  low  prices  for  farm  products  accompany  Dem- 
ocratic administration  of  national  ait'airs.  The  prosperity  of 
the  farmer  depends  upon  the  prosperity  of  all  other  industrial 
elements  of  our  population.  When  the  industrial  classes  are 
employed  at  American  wages  their  consumption  mi  farm  pro- 
ducts is  on  a  liberal  scal^  and  they  are  able  and  willing  to 
pay  good  prices  for  the  necessities  and  luxuries  of  life.  Under 
such  conditions  there  is  a  good  market  for  all  the  farmer  hass 
to  sell.  When  the  reverse  is  true  and  the  workmen  are  idle  or 
working  scant  time  at  cut  wages,  they  are  forced  to  practice 
pinching  economy  and  the  farmer  necessarily  loses  part  of  his 
market.     The   American   farmer   is  prosperous   when   well   paid 

179 


180  AGRICULTURAL  PROSPERITY. 

workmen  are  carrying  well-filled  dinner  pails,  a  condition  which 
has  aeconipanied  Ivepublican  supremacy  since  the  birth  of  tlie 
party. 

The  records  for  the  last  six  administrations,  four  Republican 
and  two  Democratic,  show  that  the  farmers  received  more  for 
their  crops  under  Republican  administrations  than  under  Demo- 
cratic administrations. 

The  farm  value  of  the  corn'  crops  for  the  four  years  of 
Cleveland's  first  administration,  from  1885  to  1888,  aggregated 
$2,570,000,000. 

In  the  four  years  of  the  Harrison  administration  which 
followed,  the  farm  value  of  the  corn  crop  aggregated  $2,831,000,- 

000,  an  increase  in  value  of  more  than  $260,000,000  over  that  ol' 
this  crop  during  the  Cleveland  administration. 

For  the  next  four  years,  while  Mr.  Cleveland  was  President 
and  Democratic  policies  were  in  force,  the  farm  value  of  the 
com  crop  aggregated  $2,182,000,000,  a  decrease  of  $649,000,000 
from  that  during  the  Harrison  administration. 

Then  came  the  Republican  administration  of  William  Mc- 
Kinley  and  for  the  four  years  of  that  administration  the  farm 
value  of  the  corn  crop  aggregated  $2,434,000,000,  or  an  increase 
of  $252,000,000  over  that  of  the  last  Democratic  administration ; 
in  the  succeeding  four  years,  1901-4,  it  was  $3,979,000,000,  or 
nearly  double  the  value  of  the  crop  of  the  last  Democratic  ad- 
ministration; while  in  the  first  three  years  of  the  present  ad- 
ministration it  was  $3,620,000,000,  or,  in  three  years,  $1,438,000,000 
more  than  in  the  four  years  of  the  second  Cleveland  adminis- 
tration. 

The  value  of  the  live  stock  on  the  farms  of  the  country, 
which  was  reported  by  the  Agricultural  Department,    January 

1,  1897,  as  $1,655,000,000,  was  reported  at  $4,331,000,000  in  1907, 
an  increase  of  $2,676,000,000  in  eleven  years. 

With  the  increased  activity,  increased  earnings,  and  increased 
consimaption,  the  farmer  has  received  greatly  increased  prices 
for  his  productions. 

The  Agricultural  Department  reports  an  increase  of  $332,000,- 
000  in  the  farm  value  of  the  cereals  alone  in  1900,  as  compared 
with  1896,  and  a  further  increase  of  $1,036,000,000  in  1907,  as 
compared  with  1896,  making  a  total  increase  of  $1,363,000,000, 
these  figures  representing  the  actual  value  upon  the  farm  before 
leaving  the  hands  of  the  producer,  while  other  articles  of  farm 
production  show  an  equal  advance  in  value. 

The  exportation  of  agricultural  products  increased  from  $574,- 
000,000  in  1896  to  $845,000,000  in  1900,  and  to  $1,055,000,000  in 
1907,  a  total  increase  of  $481,000,000  in  the  mere  surplus  re- 
maining after  supplying  the  great  and  rapidly  expanding  home 
market. 

Wheat  and  Oats. 

The  same  law  of  fluctuation  according  to  political  policies 
in  administration  held  good  as  to  wheat  and  oats.  The  farm 
value  of  the  wheat  crop  for  the  four  years  of  the  first  Cleveland 
administration  aggregated  $1,285,000,000,  and  for  the  next  four 
years,  including  the  Harrison  administration,  the  farm  value 
of  the  wheat  crop  aggregated  $1,513,000,000,  an  increase  of 
$228,000,000  in  the  farm  value  of  the  wheat  over  that  for  the 
preceding  Democratic  administration. 

For  the  next  four  years,  under  the  second  Cleveland  admin- 
istration, the  farm  value  of  the  wheat  crop  aggregated  $988,000,- 
000,  a  shrinkage  of  $525,000,000  in  the  value  of  the  wheat  crop 
from  the  preceding  four  years  under  Republican  adminis- 
tration. 

Again  came  a  change  of  policy  in  government  and  during 
the  first  four  years  of  the  McKinley  administration  the  wheat 
crop  took  another  advance  in  value.  For  these  four  years  of  tTic 
McKinley  administration  the  farm  value  of  the  wheat  crop  ag- 
gregated $1,464,000,000,  an  increase  in  value  amounting  to  nearly 
$500,000,000, 

In  the  next  four  years,  or  during  the  McKinley-Roosevelt 
administration,  the  wheat  crop  was  worth  $1,843,000,000  to  the 
farmers,  or  $855,000,000  more  than  during  the  second  Cleve- 
land   administration.     For    the    succeeding    three    years    of    the 


AOBIGULTURAL  PROSPERITY.  181 

Republican  administration,  1905-7,  the  farm  value  of  the  wheat 
crop  amounted  to  $1,563,000,000,  almost  as  much  in  three  years 
as  in  the  preceding  four  years  and  $576,000,000  more  than  in  the 
four  years  of  the  second  Cleveland  administration. 

The  farm  value  of  the  oat  crop  in  the  four  years  of  the 
first  Cleveland  administration  aggregated  $762,000,000 ;  for  the 
next  four  years,  under  the  Harrison  administration,  the  farm 
vakie  of  the  oat  crop  increased  to  $835,000,000;  for  the  next 
four  years,  under  Cleveland,  this  crop  decreased  in  value  to 
$699,000,000 ;  for  the  next  four  years,  under  McKinley  admin- 
istration, it  increased  to  $741,000,000,  and  during  the  four  years 
of  the  McKinley-Roosevelt  administration,   it  was  $1,145,000,000. 

During  the  last  three  years  of  the  liepublican  administration 
its  aggregate  value  has  been  $918,000,000,  or  $219,000,000  more 
in  three  years  than  during  the  preceding  four  years  of  the  second 
Cleveland  administration. 

The  farm  value  of  the  hay  crop  in  1896  was  $388,000,000; 
in   1900  it  was  $445,500,000;    and   in   1907   it  was  $1,336,901,000. 

The  farm  value  of  the  potato  crop  in  1896  was  $72,000,000; 
in   1900  it  was  $90,800,000;   and  in   1907   it   was  $183,900,000. 

Farm    Animals. 

During  the  eleven  years  of  Republican  administration,  the 
farm  animals  of  the  country  have  increased  in  value  from 
$1,655,000,000  on  January  1,  1897,  to  $4,331,000,000  on  January 
1,   1908. 

The  number  of  horses  has  increased  from  14,365.000  to  19,- 
992,000;  and  their  value  from  $453,000,000  to  $1,868,000,000. 

The     number     of^"  mules     has     increased     from     2.216,000     to 
3,869,000  and  their  value  from  $92,000,000  to  $417,000,000. 

The  number  of  milch  cows  has  increased  from  15,942,000  to 
21,194,000,  and  their  value  from  $369,000,000  to  $650,000,000. 

The  number  of  cattle  other  than  milch  cows  has  increased 
from  30,508.000  to  50,073,000,  and  their  value  from  $508,000,000 
to  $846,000,000. 

The  number  of  sheep  has  increased  from  36,819,000  to  54,-» 
631,000  and  their  value   from  $67,000,000  to  $212,000,000. 

The  number  of  swine  has  increased  from  40,600,000  to  56,- 
084,000,  and  their  value  from  $166,000,000  to  $330,000,000. 

It  will  reacb'ly  be  perceived  from  the  foregoing  figui'es  that 
the  increase  %i  total  value  is  far  more  than  proportional 
to  the  increase  in  number.  The  total  value  of  sheep,  for  ex- 
ample, is  rnore  than  thrice ;  that  of  mules,  three  and  one-half 
times;  and  that  of  horses  more  than  four  times  as  great  as  it 
was  wiien  the  Eepublicans  took  hold  of  the  administration  of 
the  country  eleven  years  ago. 

The  "man  with  the  hoe"  has  only  to  look  at  the  record  to 
see  which  way  points  to  prosperity. 

Value    of   Farm    Animals    nnder    Harrison,    Cleveland,    McKin- 
ley and  Roosevelt. 

After  lands  and  improvements,  the  greatest  item  of  wealth 
of  the  American  farmer  is  his  live  stock,  and  the  value  of  such 
farm  stock  is  a  perfect  barometer  of  his  financial  condition. 
Practically  the  highest  point  ever  reached  up  to  that  time  was 
at  the  close  of  1892,  the  last  year  of  the  Harrison  administration, 
when  the  valuation  was  $2,462,000,000,  the  coimtry  being  pros- 
perous, labor  fully  employed,  and  wages  good.  The  lowest 
point  reached  in  the  last  23  years  was  at  the  close  of  1896, 
when  mills  were  closed,  fires  drawn,  labor  idle,  capital 
in  hiding,  and  business  confidence  destroyed  by  four  years  of 
Democratic  administration.  In  four  years  the  shrinkage  of  this 
form  of  farm  wealth  had  amotinted  to  33  per  cent,  making  $807,- 
000,000  the  price  which  the  owners  of  live  stock  paid  for  the 
Democratic  experiment  of  1892.  In  the  years  of  industrial  ac- 
tivity which  followed  the  election  of  McKinley,  the  value  of 
li\e  stock  has  kept  pace  uy:»ward  with  the  increased  earning 
and  spending  capacity  of  American  labor,  and  on  January  1. 
1900,  it  had  advanced  to  $2,288,000,000,  or  a  rise  of  $633.0o6.000 
or  32  per  cent,  from  the  depths  of  depression.  The  figures'  in 
detail,  as  shown  in  the  official  reports  of  the  Department  of 
Agriculture,  are  as  follows: 


lit 


A^miOULTURAL  PROSPERITY, 

Value  of  live  stock. 


Jan.  1. 1892, 
HarrlBon. 

Jan.  1, 1897, 
Cleveland. 

Jan.  1, 1900, 
McKInley. 

Jan.  1, 1904, 
Roosevelt. 

Jan.  1, 1908, 
Roosevelt. 

B#rafl8   

Mules 

Oows  — 

Cattle 

Sheep  

HoKS 

$1,007,598,636 
174,882,070 
351,378.132 
570,749,155 
116,121,21)0 
241,031,415 

$466,649,396 
92,302,000 
369,239,993 
607.929,421 
67,020,942 
166,272,770 

$603,969,042 
111,717,092 
514,812,106 
689,487,260 
122,665,913 
215,725,000 

$1,186,940,298 
217,582,832 
508,841,489 
712.178,134 
133,530,09!) 
289,224,627 

$1,867,530,000 
416,939,000 
650,057,000 
845,938,000 
211,736,090 
339,030,000 

Total 

2,461,756.698 

1,655,414,612 

2,288,375,413 

2,998,247,479 

4,331,230,000 

BXCHANGE  VALUE]  OP  FARM  PRODUCTS. 

Prloea   of  Ra^v  Materlala  as    Compared   with   Prices   of  Manu- 
factured  Articles,   1806   and   1907. 

During  the  last  few  years,  when  prices  in  general  have  ad- 
vanced, it  is  interesting  to  determine  in  what  degree  the  pro- 
ducer of  the  farm  products  has  been  benefited  by  the  rise. 

The  table  which  follows  has  been  prepared  from  official  fig- 
ures published  in  Bulletin  No.  75  of  the  United  States  Bureau  of 
Labor,  and  shows  the  per  cent  of  advance  in  1907  as  compared 
with  1896,  the  last  year  of  Democratic  administration,  the  com- 
modities being  grouped  as  in  the  original  source.  The  compari- 
sons are  between  wholesale  prices,  as  in  the  language  of  the  origi- 
nal report  "they  are  more  sensitive  than  retail  prices  and  more 
quickly  reflect  changes  in  conditions." 

Comparing  1907  with  1896,  farm  products  show  an  advance  of 
75.10  per  cent;  that  is,  for  every  $100  received  from  the  sale  of 
farm  products  in  1896  the  farmer  received  in  1907  $175.10  for  the 
same  quantity. 

Food,  etc.,  advanced  40.57  per  cent ;  cloths  and  clothing,  38.77 
per  cent ;  fuel  and  lighting,  29.43  per  cent,  etc.  It  is  seen  that  the 
advance  in  farm  products  has  been  much  greater  than  in  any  of 
the  other  groups  of  commodities,  as  compared  with  fuel  and 
lighting  and  with  house  furnishing  goods  it  being  more  than 
twice  as  great,  while  as  compared  with  drugs  and  chemicals  the 
advance  has  been  more  than  four  times  as  great,  ^t  will  likewise 
be  observed  that  the  wholesale  prices  of  food  have  increased 
much  more  than  the  retail  prices. 

The  purchasing  power  of  farm  products  in  1907  increased 
materially  over  1896.  The  same  quantity  of  farm  products  would 
purchase  in  1907  24.56  per  cent  more  food  than  in  1896.  It  would 
purchase  26.18  per  cent  more  cloths  and  clothing,  35.28  per  cent 
more  of  the  articles  included  in  the  fuel  and  lighting  group,  14.41 
per  cent  more  metals  and  implements,  11.33  per  cent  more  himber 
and  building  materials,  47.94  per  cent  more  drugs  and  chemicals, 
38.89  per  cent  more  house  furnishing  goods,  and  25.92  per  cent 
more  of  the  articles  included  in  the  miscellaneous  group. 

This  shows  that  no  one  Jias  been  benefited  by  the  advance  in 
prices  as  much  as  the  farmer;  that  in  1907  the  price  of  farm  pro- 
ducts was  15.10  per  cent,  or  three-fourths  greater  than  in  1896; 
that  even  when  the  advance  in  price  of  other  articles  is  consid- 
ered the  purchasing  power  of  farm  products  in  1907  was,  v)hen 
compared  with  other  groups  of  articles,  from  11.33  per  cent  to 
47.94  per  cent  greater  than  in  1896. 

The  following  table  shows  the  comparisons : 


Tlie  leader  of  tlie  Republican  party  dnrins'  the  Civil 
War  Tvas  Abraham  Lincoln.  In  all  the  varieties  of  contro- 
versy ^fvhich  it  has  since  had  to  deal,  it  has  never  lost  the 
inspiration  of  his  leadership.— Hon.  Wm.  H.  Taft,  at  Kansas 
City,  Mo. 

Tn  th«  stmgrele  for  hlgrher  things,  association  of  men 
and  of  women  everywhere,  orgraniKed  for  «vorthy  purposes, 
can,  because  of  the  streng-th  antl  po^ver  that  come  from  or- 
p;niii%ntion,  exert  a  lar^e  influence  for  ^ood. — Address  of  Sec- 
retary Cortelyou,  at  the  annual  banquet  of  the  Auburn  Busi- 
ness Men's  Association,  Auburn,  N.  Y.,  Wednesday,  April  22, 
li>08. 


PRICES  OF  FARM  PRODVCTki.  183 

Comparative  advance  in  the  price  of  farm  products  and  other 
groups  of  commodities,  1907,  compared  ivith  1896. 

[Oompiled  from  Bulletin  No.  76.  United  States  Bureau  of  Labor.] 

Groups.  Advance.    ^"/.tS^^ 


Farm  products.— — 

Food,   etc 

Cloths  and  clothing 

Fuel   and   lighting 

Metals    and  implements 

Lumber  and  building  materials. 

Drugs   and  chemicals 

House  furnishing  goods , 

Miscellaneous  articles 

All    commodities- 


It  is  interesting  to  notice  in  the  tables  which  follow  the  com- 
parative advance  in  the  price  of  certain  related  commodities.  The 
average  price  in  1907  has  been  compared  with  the  average  price 
in  1896.  In  practically  every  case  the  raw  material  advanced 
more  than  the  finished  product. 

The  first  table  shows  that  live  cattle  advanced  39.18  per  cent, 
while  fresh  beef  advanced  but  26.74  per  cent.^ With  the  same 
iveight  of  live  cattle  9.82  per  cent  more  fresh  heef  could  he  pur- 
chased in  1907  than  in  1896. 

Hogs  advanced  77.78  per  cent  and  smoked  hams  38.20  per 
cent.  With  the  same  weight  of  live  hogs  28.6^  per  cent  more  ham 
could  he  bought  in  1907  than  in  1896. 

Sheep  which  the  farmer  sells  advanced  61.25  per  cent;  mutton 
which  the  workingman  buys  advanced  39.93  per  cent.  With  the 
same  weight  of  sheep  15. 2\  per  pent  more  mutton  could  he  pur- 
chased in  1907  than  in  1896. 

Corn  advanced  104.72  per  cent,  while  corn  meal  advanced  but 
69.90  per  cent.  With  the  same  quantity  of  corn  20.5  per  cent 
more  corn  meal  could  he  purchased  in  1907  than  in  1896. 

Wheat,  which  the  farmer  raises,  advanced  41.45  per  cent,  while 
wheat  flour  for  everybody's  use  advanced  19.08  per  cent.  That  is, 
with  the  same  quantity  of  icheat  18.79  per  cent  more  flour  could 
he  purchased  in  1907  than  in  1896. 

Eaw  cotton  advanced  50.00  per  cent,  cotton  bags  51.20  per 
cent,  calico  27.50  per  cent,  cotton  flannels  48.56  per  cent,  cotton 
thread  35.34  per  cent,  cotton  yarns  43.98  per  cent,  denims  39.85 
per  cent,  drillings  46.91  per  cent,  ginghams  38.64  per  cent,  cotton 
hosiery  7.62  per  cent,  print  cloths  84.16  per  cent,  sheetings  35.73 
per  cent,  shirtings  40.35  per  cent,  and  tickings  34.79  per  cent.  The 
average  advance  for  cotton  goods  was  but  41.07  per  cent,  against 
50.00  per  cent  for  the  raw  cotton. 

With  the  same  quantity  of  raw  cotton  6.33  per  cent  more 
manufactured  cotton  goods  could  he  purchased  in  1907  than  in 
1896. 

Wool  shows  an  advance  of  72.10  per  cent,  blankets  (all  wool) 
33.26  per  cent,  broadcloths  46.30  per  cent,  carpets  36.59  per  cent, 
flannels  44.15  per  cent,  horse  blankets  (all  wool)  44.16  per  cent, 
overcoatings  (all  wool)  43.94  per  cent,  shawls  20.09  per  cent, 
suitings,  51.59  per  cent,  underwear  (all  wool)  24.92  per  cent, 
women's  dress  goods  (all  wool)  76.65  per  cent,  and  worsted  yarns 
75.45  per  cent — an  averag^e  advance  for  woolen  goods  of  44.06  per 
cent,  while  the  raw  material — wool — advanced  72.10  per  cent.  Or 
with  the  same  quantity  of  wool  19.46  per  cent  more  manufactured 
woolen  goods  could  he  hought  in  1907  than  in  1896. 

The  following  table  shows  this  information  in  tabular  form; 

Comparative  advance  in  prices  of  certain  related  commodities, 
1907,  compared  with  1896. 

[Complied  from  Bulletin  No.  75,  United  States  Bureau  of  Labor.] 

Per  cent. 

Cattle    39.18 

Fresh  beef 26.74 


1H4  r RICES  OF  FARM  PRODUCTS. 

Per  cent. 

1 1 (•^•s    77.78 

Hams    38.20 

Sheep    61.25 

iMiitton    39.93 

(  orn    104.72 

Corn  meal    69.90 

Wheat 41.45 

Wheat  flour 19.08 

Cotton — Ui)lanfl   middling-    50.00 

Cotton  bags    51.20 

Calico    27.50 

Cotton  flannels    48.56 

Cotton  thread 35.34 

Cotton   yarns    43.98 

Denims ' 39.85 

Drillingrs   46.91 

Hosiery    (cotton) 7.62 

Print  cloths    84.16 

Sheetings    35.73 

Shirtings    40.35 

Tickings 34.79 

Average  for  cotton  goods 41.07 

,     >  - 

Wool    72.10 

Blankets  (all  wool)    33.26 

Broadcloths 46.30 

Carpets 36.59 

Flannels    44.15 

Horse  blankets  (all  wool)    44.16 

0\ ei'coatings   (all  wool)    43.94 

ShaAvls    • 20.09 

Suitings    51.59 

Underwear  (aH  wool )    24.92 

Women's  di-ess  goods  (all  wool)   76.65 

W^orsted  yarns 75.45 

Average  for  woolen  goods    44.06 


Market  Value  of  Farm  Prodncts  in  1896  and  1907  ivlien  meais- 
nred   l>y    tlie   Wliolesale    Prices    of    Staple    Articles. 

The  farmer  and  stock  raiser  measures  the  value  of  his  grain 
and  sto(;k  not  only  by  the  amount  of  money  he  will  receive  per 
bushel  or  per  pound,  but  also  by  the  value  of  such  articles  as  he 
must  buy  for  use  by  his  family  and  on  the  farm. 

No  official  retail  prices,  other  than  for  certain  articles  of  food, 
liave  been  published  for  recent  years,  but  the  United  States  Bu- 
reau of  Labor  in  its  bulletin  of  March,  1908.  published  wholesale 
prices  of  the  staple  articles  in  general  iise.  From  this  publication 
the  following  tables  have  been  prepared,  showing  the  value  of 
corn,  wheat,  oats,  cattle,  hogs,  and  dairy  butter  in  1896  and  1907, 
when  measured  by  the  value  of  other  staple  articles  which  the 
farTner  must  buy. 

W'hile  these  figures  do  not  represent  the  actual  purchasing 
power  (as  all  prices  are  wholesale),  yet  the  figures  shown  for  the 
two  years,  1896  and  1907,  are  in  practically  the  same  proportion 
as  retail  prices  would  shovv^. 

Ten  bushels  of  corn  in  1896  was  equal  in  value  to  20.9  pounds 
of  Kio  coffee,  while  in  1907  it  was  equal  to  80.2  pounds,  or  about 
four  times  as  much.  In  1896  10  bushels  of  corn  was  equal  in  value 
to  56.9  pounds  of  granulated  sugar,  in  1907  equal  to  113.5  pounds; 
in  1896  equal  to  49.1  yards  of  calico,  in  1907  to  87.7  yards;  in  1896 
equal  to  54.7  yards  of  gingham,  in  1907  to  80.2  yards;  in  1896 
to  41.5  yards  of  Indian  Head  sheeting,  in  1907  to  63.2  yards ;  in 
i896  to  37.7  yards  of  Lonsdale  shirtings,  in  1907  to  51.5  yards;  in 
1896  to  19  bushels  of  stove  coal  (anthracite),  in  1907  to  30.7 
bushels;  in  1896  to  24.8  gallons  of  refined  petroleum,  in  1907  to 
39.2  gallons;  in  1896  to  95  pounds  of  8-penny  cut  nails,  in  1907  to 


PRICES  OF  FARM  PRODJJCTS. 


185 


244  pounds ;  in  1896  to  88  pounds  of  8-penny  wire  nails,  in  1907  to 
249  pounds;  in  1896  to  10.7  ounces  of  quinine,  in  1907  to  29.7 
ounces.  It  must  be  borne  in  mind  that  these  values  are  based  on 
the  average  yearly  prices  of  these  articles. 

The  comparative  values  of  corn,  w^heat,  oats,  cattle,  hogs,  and 
dairy  butter  presented  in  the  tables  which  follow  show  wonderful 
increases : 


Value  of  10  bushels  of  com  iit  1S96  and  1907  tchen  measured  by 

the  iDholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  75,  United  States  Bureau  of  Labor.] 


Articles. 


Coffee,   Rio,    No.    7 pounds- 
Sugar,    granulated pounds- 

Tea ,  Formosa ,  tine pounds- 
Shoes,  men's  calf  bal.,  Goodyear  welt pairs. 

Shoes,  women's  solid  grain . pairs. 

Calico,    Cocheeo    prints yards- 

Denims,    Amoskeag yards- 

Drillings,    brown,    PeppereU yards. 

GiQghams,    Amoskeag yards. 

Hosiery,  women's  cotton  hose,  26  to  28  oz . pairs. 

Overcoatings,  chinchilla,   cotton  warp yards. 

Sheetings,   bleached,  10-4,  Wamsutta  S.  T yards. 

Sheetings,   brown,  4-4,  Indian  Head yards. 

Shirtings,   bleached,   4-4,   Lonsdale yards. 

Suitings,  indigo  blue,   all  wool,  14  oz.  Middlesex yards. 

Tickings,  Amoskeag,  A.   C.   A yards. 

Wonen's  dress  goods,  cashmere,  cotton  warp,  Atlantic  F.. yards. 

Coal ,    anthracite,    stove bushels. 

Petroleum,    refined,    150°   test ..gallons. 

Nails,  cut,  8-penny,  fence  and  common pounds. 

Nails,  wire,  8-penny,  fence  and  common... pounds. 

Carbonate  of  lead  (white  lead),  American,  in  oil pounds. 

Cement,    Portland,    American barrels. 

Quinine,   American ounces. 

Glassware,  tumblers,  %  pint,  common 


20.9 

80.2 

56.9 

113.5 

10.0 

23.0 

a 

b 

c 

d 

49.1 

87.7 

26.1 

38.2 

45.0 

64.0 

54.7 

80.2 

39.0 

76.0 

5.9 

10.8 

8.8 

17.3 

41.5 

63.2 

37.7 

51.. 5 

2.3 

3.1 

25.3 

38.5 

20.3 

23.6 

19.0 

30.7 

24.8 

39.2 

95.0 

244.0 

88.0 

249.0 

49.9 

75.8 

1.3 

3.2 

10.7 

29.7 

172.0 

422.0 

a  1  pair  and  18  cents  over. 
c  3  pairs  and  3  cents  over. 


b  1  pair  and  $2.48  over, 
d  5  pairs  and  25  cents  over. 


Value  of  10  bushels  of  wheat  in  1896  and  1907  when  measured  hy 
the  ivholesale  prices  of  the  following  staple  articles. 

[Compiled  from  Bulletin  No.  75,  United  States  Bureau  of  Labor.] 


Articles. 


1907. 


Coffee,   Rio,  No.   7 pounds.. 

Sugar,    granulated pounds.. 

Tea,  Formosa,  fine .1 pounds- 
Shoes,  men's  calf  bal.,  Goodyear  welt pairs- 
Shoes,   women's  solid  grain pairs.. 

Calico,   Cocheeo  prints yards.. 

Denims,    Amoskeag yards.. 

Drillings,   brown,    PeppereU yards.. 

Ginghams,    Amoskeag yards.. 

Hosiery,  women's  cotton  hose,  26  to  28  oz pairs.. 

Overcoatings,  chinchilla,   cotton  warp yards.. 

Sheetings,  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings,  brown,  4-4,  Indian  Head yards.. 

Shirtings,  bleached,  4-4,  Lonsdale yards.. 

Suitings,  indigo  blue,  all  wool,  14  oz.,  Middlesex yards.. 

Tickings,  Amoskeag,  A.  C.   A yards.. 

Women's  dress  goods,  cashmere,  cotton  warp,  Atlantic  F.-yards.. 
Coal,  anthracite,  stove bushels- 
Petroleum,   refined,    150"   test gallons.. 

Nails,  cut,  8-penny,  fence  and  common pounds.. 

Nails,  wire,  8-penny,  fence  and  common pounds.. 

Carbonate  of  lead  (white  lead),  American,  in  oil pounds.. 

Cement,   Portland,   American pounds.. 

Quinine,  American ounces.. 

Glassware,  tumblers,  %  pint,  common 


52.0 

137.9 

141.5 

195.1 

24.8 

39.4 

a 

b 

c 

d 

122.2 

150.7 

64.9 

65.7 

111.9 

110.0 

135.9 

137.9 

98.0 

131.0 

14.7 

18.5 

21.9 

29.7 

103.1 

108.7 

93.6 

88.5 

5.6 

5.3 

62.9 

66.1 

50.5 

40.6 

47.3 

62.7 

61.7 

•  67.4 

^6.0 

420.0 

219.0 

429.0 

124.0 

130.2 

3.2 

5.5 

28.7 

61.1 

427.0 

7S«.0 

a  2  pairs  and  $1.61  over. 
0  7  pairs  and  56  cents  over. 


b  3  pairs  and  67  cents  over. 
d  9  pairs  and  1  cent  over. 


18b 


PRICEi^  OF  FARM  PRODUCTS. 


Value  of  10  bushels  of  oats  in  1S96  and  1907  when  mcnHured  by 
the  wholesale  prices  of  the  following  staple  articles. 
[Oompiled  from  Bulletin  No.  75.  United  States  Bureau  of  Labor.] 


Articles. 


CofTee,  Rio,   No.   7— pounds.. 

Sugar,    granulated pounds.. 

Tea,  Formosa.  (Ine _ — jO  luds.. 

Shoes,  men's  calf  bal.,  Goodyear  welt - pairs.. 

Shies,  women's  solid  grain ^ *. .,_.— ^ .^-.p.iirs— 

Calico,  Cocheco  prints yards.. 

Denims,    Amoskeag ► ■ yarls— 

Drillings,   brown,   Pepporell _ yar.'.s— 

Ginghams,    Amoskeag yards.. 

Hosiery,  women's  cotton  hose.  26  to  28  oz.-^ ..pairs.. 

Overcoatings,  chinchilla,  cotton  warp yards.. 

Sheetings,  bleached,  10-4,  Wani.sutta  S.  T ...yards.. 

Sheetings,  brown,  4-4,  Indiiin  Head _, yards.. 

Shirtings,  bleached,   4-4,   Lonsdale , .*. yards.. 

Suitings,  Indigo  blue,  all  wool,  14  oz.,  Middlesex.. ...yards.. 

Tidkings,  Amoskeag,  A.   0.   A yards.. 

Women's  dress  goods,  cashmere,  (Otton  warp,  Atlantic  P_.yards-. 

Coal,   anthradte,   stove b.ishels.. 

Petroleum,   refined,   150°   test gallons.. 

Nails,  cut,  8-penny,  fence  and  common V>ounds.. 

Nails,  wire,  8-penny,  fence  and  common pounds.. 

Carbonate  of  lead  (white  lead),  American,  in  oil pounds.. 

Cement,   Portland,   American barre's.. 

Quinine,  American oimcei-. 

Glassware,  tumblers,  %  pint,  common 


1893. 


1»07. 


14.6 

68.4 

39.7 

96.8 

7.0 

19.0 

a 

b 

c 

d 

34.3 

74.8 

18.2 

32.6 

31.4 

51.6 

38.2 

68.4 

28.0 

6'i.0 

4.1 

9.2 

6.2 

14.8 

29.0 

53.9 

26.3 

43.9 

1.6 

2.6 

17.7 

32.8 

14.2 

20.2 

13.3 

26.1 

17.3 

33.4 

CO.O 

208.0 

62.0 

212.0 

31.8 

61.6 

0.9 

2.7 

7.5 

25.4 

120.0 

360.0 

a  Lacks  60  cents  of  price  of  1  pair, 
c  2  pairs  and  10  cents  over. 


b  1  pair  and  $1.70  over, 
d  4  pairs  and  48  cents  over. 


Value  of  hogs  (heavy J  per  100  pounds  in  1896  and  1007   when 
measured  by  the  wholesale  prices  of  the  folloiviiig  staple 
articles. 
[Compiled  from  Bulletin  No.  75,  United  States  Bureau  of  Labor.] 


Articles. 

1893. 

1907. 

CofTee,  Rio,  No.  7 _ 

...pounds— 
.--pounds.. 
...pounds— 

pairs.. 

pairs.. 

yards— 

yards.. 

27.2 

74.1 

13.0 

a 

c 

64.0 

34.0 

58.6 

71.1 

51.0 

7.7 

11.5 

54.0 

49.0 

3.0 

33.0 

26.4 

24.8 

32.3 

124.0 

115.0 

64.9 

1.7 

14.0 

224.0 

92  .,4 

Sugar,    granulated 

130.7 

Tea,  Formosa,  fine. 

Shoes,  men's  calf  bal..  Goodyear  welt 

Shoes,   women's  solid  grain 

Calico,  Cocheco  prints _. 

Denims,   Amoskeag 

26.4 
b 
d 
101.0 
44.0 

Drillings,  brown,   Pepperell 

Ginghams,    Amoskeag 

Hosiery,  women's  cotton  hose,  26  to  28  os; 

Overcoatings,  chinchilla,  cotton  warp 

Sheetings,  bleached,  10-4,  Wamsutta  S.  T 

Sheetings,  brown,  4-4,  Indian  Head 

yards.. 

....yards.. 

pairs— 

yards.. 

yards-- 

yards 

73.7 
92.4 
88.0 
12.4 
19.9 
72.8 

Shirtings,  bleached,   4-4,   Lonsdale. 

Suitings,  indigo  blue,  all  wool,  14  oz.,  Middlesex 

^ricklngs,  Amoskeag,  A.   C.  A 

Women's  dress  goods,  cashmere,  cotton  warp,  Atlantic 

Coal,   anthracjte,   stove 

Petroleum,   refined,   150"  test... 

yards— 

.__ -yards.. 

yards.- 

F-. yards.. 
...bushels.. 
...gallons-. 
...pounds.. 
...pounds.. 
...l)ounds.. 
barrels.. 

59.3 
3.6 
44.3 
27.2 
35.3 
45.2 
281.0 

Nails,  wire,  S-penny,  fence  and  common ..— .. 

Carbonate  of  lead  (white  lead),  American,  in  oil 

Cement,   Portland,   American 

287.0 

87.2 

3.7 

Quinine,  American 

onnnes 

34.3 

Glassware,  tumblers.  %  pint,  common        

486.0 

a  1  pair  and  96  cents  over.              b  2  pairs 
c  3  pairs  and  81  cents  over.            d  6  pairs 

and  48  cents  over, 
and  4  cents  over. 

■Wlien*ver  tlie  InterHtate  commerce  commis.sion  tlee«is  it 
tniportant  as  an  aid  in  fixing?  rates  to  deteriniue  what  it 
vronld  cost  noTV  to  rebuild  any  railroad.  It  lias  complete 
power  to  do   so.—Hon.  Wm.   H.  Taft,   at   Columlbns,   Oliio. 

For  an  Individnal  as  for  a  party,  a  sood  record  is  a  lirood 
r)iatforni  to  stand  on.  Fremont,  Ijincoln  to  Mcltinley  and 
Roosevelt — "n-liat  a  record,  and  what  an  assnrniice  for  the 
future. — Hon.  Georere  B.  Cortelyou,  in  an  address  to  the 
Ne-»v  York  State  Leagrue  of  Republican  Clubs,  November  5, 
1»04. 


PRICES  OF  FARM  PRODUCTS. 


187 


Value  of  cattle  (good  to  extra  steers)  per  100  pounds  in  1896  and 
1907  when  measured  Jyy  the  wholesale  prices  of  the  following 
staple  articles. 


[Compiled  from  Bulletin  No.  75. 

United 

States 

Bureau  of  Labor.] 

Articles. 

1896. 

1907. 

Coffee,  Eio,  No.  7 

Sugar,    granulated 

Tea,    Formosa,    fine 

Shoes,  men's  calf  bal.,  Goodyear  welt- 
Shoes,  women's  solid  grain 

Calico,  Cocheco  prints 

Denims,    Amoskeag : 

pounds.. 

pounds— 

pounds.- 

pairs.. 

pairs.- 

yards.. 

yards 

36.0 
97.8 
17.2 

a 

c 

84.8 
44.9 
77.4 
.93.9 
68.0 
10.2 
15.2 
71.3 
61.7 

3.9 
43.5 
34.9 
32.7 
42.7 
163.0 
152.0 
85.8 

2.2 

18.4 

296.0 

93.9 
132.8 

26.9 

b 

d 
102.6 

44  7 

Drillings,  brown,   Pepperell 

Ginghams,    Amoskeag..    

ex 

"Atiant 

yards— 

yards— 

pairs.. 

yards.- 

yards.- 

yards— 

yards.. 

yards— 

yards.. 

ic  F--yards— 

bushels.. 

gallons.- 

pounds.. 

pounds.. 

pounds.. 

barrels- 
ounces 

74.9 
93  9 

Hosiery,  women's  cotton  hose,  26  to  28 
Overcoatings,  chinchilla,  cotton  warp.. 
Sbeetings,  bleached,  10-4,  Wamsutta  S. 

Sheetings,  brown,  4-4,  Indian  Head 

Shirtings,   bleached,  4-4,   Lonsdale 

Suitings,  indigo  blue,  all  wool,  14  oz., 

Tickings,  Amoskeag,  A.  C.  A 

Women's  dress  goods,  cashmere,  cotton 
Coal,   anthracite,   stove.. _. 

oz 

"t-II 

MTd'dfes 
warp. 

12;6 
20.3 
74.0 
60.3 
3.6 
45.0 
27.7 
35  9 

Petroleum,  refined,  150°  test 

Nails,  cut,  8-penny,  fence  and  common 

45.9 
286.0 

Nails,  wire,  8-penny,  fence  and  common 

Carbonate  of  lead  (white  lead),  American,  in 
Cement,  Portland,  American 

Quinine,  American 

oiill-I 

292.0 

88.6 

3.8 

34  8 

Glassware,  tumblers,  %  pint,  common- 

494.0 

a  1  pair  and  $2.03  over. 
c  5  pairs  and  18  cents  over. 


b  2  pairs  and  57  cents  over, 
d  6  pairs  and  14  cents  over. 


Value  Of  20  pounds  of  butter  (New  York  State  dairy)  in  1896 
and  1907  when  measured  by  the  ivholesale  prices  of  the  fol- 
lowing staple  articles. 

[Compiled  from  Bulletin  No.  75,  United  States  Bureau  of  Labor.] 


Articles. 


1907. 


Coffee,  Rio,  No.  7 pounds 

Sugar,    granulated pounds 

Tea,    Formosa,    fine p#unds 

Shoes,  men's  calf  bal.,  Goodyear  welt pairs 

Shoes,   women's  solid  grain.. pairs 

Calico,  Cocheco  prints yards. 

Denims,    Amoskeag yards. 

Drillings,   brown,    Pepperell yards. 

Ginghams,    Amoskeag yards 

Hosiery,  women's  cotton  hose,  26  to  28  oz pairs. 

Overcoatings,  chinchilla,  cotton  warp yards. 

Sheetings,  bleached,  10-4,  Wamsutta  S.  T yards. 

Sheetings,  brown,  4-4,  Indian  Head yards. 

Shirtings,   bleached,   4-4,   Lonsdale yards. 

Suitings,  indigo  blue,  all  wool,  14  oz.,  Middlesex yards. 

Tickings,  Amoskeag,   A.   C.  A yards. 

Women's  dress  goods,  cashmere,  cotton  warp,  Atlantic  F.. yards. 

Coal,    anthracite,    stove bushels. 

Petroleum,   refined,    150°   test ....gallons. 

Nails,  cut,  8-penny,  fence  and  common pounds. 

Nails,  wire,  8-penny,  fence  and  common pounds. 

Carbonate  of  lead  (white  lead),  American,  in  oil... ..pounds. 

Cement,    Portland,    American barrels. 

Quinine,  American ounces. 

Glassware,  tumblers,  %  pint,  common „ 


27.0 

81.2 

73.5 

114.9 

12.9 

23.2 

a 

b 

c 

d 

63.4 

88.7 

33.7 

38.7 

58.1 

64.8 

70.6 

81.2 

51.0 

77.0 

7.6 

10.9 

11.4 

17.5 

53.5 

64.0 

48.6 

52.1 

2.9 

3.1 

32.7 

38.9 

26.2 

23.9 

24.6 

31.0 

32.1 

30.7 

123.0 

247.0 

114.0 

252.0 

64.4 

76.6 

1.7 

3.2 

13.8 

30.1 

222.0 

427.0 

a  1  pair  and  93  cents  over, 
c  3  pairs  and  78  cents  over. 


b  1  pair  and  $2.54  over, 
d  5  pairs  and  31  cents  over. 


When  the  comparative  value  of  silver  is  shown  the  decrease 
is  remarkable.  The  value  in  1907  is  less  than  in  1896  when  meas- 
ured by  18  of  the  25  articles.  In  1896  the  value  of  10  ounces  of 
silver  was  equal  tcf  150.5  pounds  of  granulated  sugar,  in  1907  it 
was  equal  to  but  141.9  pounds ;  in  1896  equal  to  144.5 
yards  of  gingham,  in  1907  to  100.3  yards ;  in  1896  equal  to  109.3 
yards  of  Indian  Head  sheetings,  in  1907  to  79.0  yards ;  in  1896 
equal  to  50.3  bushels  of  stove  coal  (anthracite),  in  1907  *o  but 
38.3  bushels.    The  table  follows : 


188 


PRICES  OF  FARM  PRODUCTS. 


i  iilue  of  10  ounces  of  silver  {fine  bar)   in  1896  and  1907  when 
measured   by  the  wholesale  prices  of  the  following  staple 
articles. 
lOorapIled  from  BultetJn  No.  75.  United  States  Bureau  of  Labor.] 


Articles. 


1!)07. 


Coffee,  Rio,  No.  7 pounds.. 

Sugar,    granulated pounds— 

lea .    Porniosa ,    line. pounds.. 

Shoes,  men's  oalf  bal.,  Goodyear  welt — pairs.. 

Shoes,   women's  solid  grain. pairs.. 

Calico,   Cocheco  prints. yards.. 

Denims,    Amoskeag yards.. 

D.illings,   brown,   Pepperell - yart'-s-. 

Ginghams,    Amoskeag... yards.. 

flosiery,  women's  cotton  hose,  26  to  28  oz pairs.. 

Overcoatings,  chinchilla,  cotton  warp... yards.. 

Sheetings,  bleached,  10-4,  Wamsutta  S.  T yards.. 

Sheetings,   brown,   4-4,  Indian  Head ^ yards.. 

Shirtings,   bleached,   4-4,    Lonsdale yards.. 

Suitings,  indigo  blue,  all  wool,  14  oz.,  Middlesex. yards.j 

lickings,   Amoskeag,   A.   O.   A.. yards.. 

Women's  dress  goods,  cashmere,  cotton  warp,  Atlantic  F.. yards.. 

Coal,    anthracite,    stove bushels.. 

Petroleum,    refine,!,    ISO""   test gallons— 

Nails,  cut,  8  penny,  fence  and  common pounds.. 

Nails,  wire,  8-penny,  fence  and  common pounds.. 

Carbonate  of  lead  (white  lead),  American,  in  oil pounds.. 

Cement,    Portland,    American....... barrels.. 

Quinine,   American oances.. 

Glassware,  tumblers,  %  Dint,  common , 


55. 

150.) 

26.4 

a 

c 

129.9 

69.0 

119.0 

144.5 

104.0 

15.7 

23.3 

109.6 

9).  6 

G.O 

66.9 

53.7 

50.2 

65.6 

2'>1.0 

233.0 

131.9 

3.4 

28.3 

455.0 


100.3 

141.9 
28.7 
b 
d 

10). (J 
47.8 
80.0 

100.3 
9).0 
13.1 
21.6 
79.0 
61.4 
3.9 
48.1 
29.5 
38.3 
49.0 

303.0 

312.0 

94.7 

4.0 

37.2 

523.0 


a  2  pairs  and  $2.02  over, 
c  8  pairs  and  2  cents  over. 


b  2  pairs  and  99  cents  over, 
d  6  pairs  and  56  cents  over. 


Increase   in   Value  of  Farm    Lantk.^. 

The  Government  census  fig-nres  covering  the  periods  of  1900 
and  1905  show  that  medium  farm  lands  in  the  United  States  are 
valued  at  $22,745,420,567,  compared  with  $16,614,647,491  in  1900,  a 
gain  of  32  per  cent  in  five  years.  The  average  value  per  acre  in 
1905  was  $29.28,  compared  with  $20.50  in  1900. 

American    Antliracite    Sold    Clieaper    in    Canada    tlian    in    tlte 
United    Sta^s — yet    there    is    no    Tariff    on    Antliracite. 

[From  the  Trenton  Gazette.] 

They  vrail  over  the  fact  that  the  steel  people,  the  watchmakers, 
sewing  machine  manufacturers,  implement  builders  and  so  on 
sell  their  products  cheaper  in  Europe  than  they  da  in  their  home 
markets,  paying  the  ocean  freight.  This  fact  arises  more  from 
competition,  from  a  desire  to  enlarge  their  field  of  trade,  and 
more  to  the  tricks  of  trade  than  to  the  tariff. 

For  proof  of  this,  proof  that  can't  be  set  aside,  here  is  the  fact 
that  American  anthracite  coal  was  sold  cheaper  in  Montreal, 
Canada,  than  it  was  to  the  American  consumer.  There  is  no  duty 
either  way  on  coal.    Coal  is  an  unprotected  article. 

'Wealtb   of   United    Kingdom   and   United    States. 

The  New  York  Herald  in  1907  published  a  despatch  from  Lon- 
don announcing  that  two  well  known  statisticians.  Dr.  W.  J.  Har- 
ris and  Rev.  K.  A.  Like,  had  by  a  careful  calculation  estimated 
the  wealth  of  the  United  Kingdom  at  $46,000,000,000,  or  $1,035 
per  capita.  The  United  States  Census  Office  estimated  the  wealth 
of  the  United  States  in  1905  at  $107,000,000,000,  or  $1,310  per 
capita. 


As  a  party  shows  itself  homogreneons,  Uhle  to  irrasp  the 
truth  T»lth  respect  to  new  issaes,  able  to  discard  unimportant 
differences  of  opinion,  sensitive  -with  respect  to  the  suc- 
cessful maintenance  of  grovernment,  and  highly  charged 
with  the  responsibility  of  its  obligation  to  the  people  at 
large,  it  estublishes  its  claim  to  the  confidence  of  the  public 
and  to  its  continuance  in  political  po-wer.— Hon.  Wm.  H.  Taft, 
at    li^ansas    City,    Mo. 


AGRICULTURAL  PROSPERITY.  189 

VALUE  OF  THE  FACTORY  TO  THE  FARMER. 

Practical  and  Statisitical  Evidence  that  Mannfacturing  Es- 
tablislinients  Incitease  tlie  Earninj^rs  of  Farmers  in  tlie 
Section  "Wliere  Located  and  Advance  tlie  Permanent  Value 
of  Farm  Properties.— A  Comparison  of  Conditions  in  the 
Mannfacturingr  and  Nonmaunfacturini^  Sections,  Based 
Upon   Official  Fignres.    ^ 

The  table  here  presented  illustrates  by  figures  taken  from 
official  reports  the  value  to  the  farmer  of  the  location  of  manu- 
facturing- industries  in  his  immediate  vicinity.  That  the  exist- 
ence of  a  g-reat  manufacturing' industry  in  the  country — -an  indus- 
try which  employs  5  million  people  and  pays  wages  and  salaries 
amounting-  to  2J/2  billions  of  dollars  per  annum — is  of  great 
value  to  the  farming  interests  goes  without  saying,  but  that  the 
location  of  the  factory  in  the  immediate  vicinity  of  the  farm 
adds  to  the  value  of  that  farm  and  to  the  earnings  of  those 
who  own  or  occupy  it  is  also  true. 

Mr.  *]\IcKinley  remarked  in  the  House  of  Eepresentatives  in 
the  discussions  of  the  Fiftieth  Congress  that  "  the  establishment 
of  a  furnace  or  factory  or  mill  in  any  neighborhood  has  the 
effect  at  once  to  enhance  the  value  of  all  propert}^  and  all  values 
for  miles  surrounding  it;"  and  Thomas  H.  Reed,  of  Maine,  in- 
quired, "Which  is  it  better  for  the  farmer  to  do — send  his  sur- 
plus a  thousand  miles  to  the  seacoast,  3,000  miles  across  the 
water  and  sell  it  to  the  mechanic  who  gets  less  wages,  or  sell 
it  right  here  at  home  to  the  mechanic  who  gets  more  wages?" 
"Every  farmer  knows," said  Kepresentative  Brewer,  of  Michigan, 
in  the  Fiftieth  -Congress,  "that  he  cannot  send  to  foreigners  his 
potatoes,  vegetables,  and  many  other  things  which  he  s:rows 
upon  the  farm  and  that  he  must  rely  upon  the  home  market  for 
the  same,  and  this  is  why  the  lands  in  rough  and  rocky  New 
England  and  sterile  New  Jersey  are  more  valuable  than  are 
fertile  lands  in  Michigan  and  Minnesota." 

"The  extraordinary  effect,"  said  President  Grant,  in  a  mes- 
sage to  Congress,  "produced  in  our  country  by  a  resort  to  di- 
versified occupations  has  built  a  market  for  the  products  of 
fertile  lands  destined  for  the  seaboard  and  the  markets  of  the 
world.  The  American  system  of  locating  various  and  extensive 
manufactories  next  to  the  plow  and  the  pasture  and  adding 
connecting  railroads  and  steamboats  has  produced  m  our  dis- 
tant interior  country  a  result  noticeable  by  the  intelligent 
portions  of  all  commercial  nations." 

The  table  which  follo\A  s,  made  up  from  official  figures,  is  in- 
tended to  illustrate,  in  some  degree,  the  effect  upon  the  farm 
and  its  occupant  of  the  proximity  of  manufacturing  industries. 
In  preparing  this  table  that  part  of  the  United  States  lying 
north  of  the  Potomac  and  Ohio  rivers  and  east  of  the  Missis- 
sippi has  been  taken  as  the  chief  manufacturing  section  of 
the  country,  and  the  value  of  the  farm  lands  and  farm  products 
in  that  section  is  contrasted  with  that  in  the  other  part  of 
the  United  States,  which  has  comparatively  little  manufactur- 
ing and  may  be  termed  the  agricultural  but  non-manufacturing 
section.  The  portion  of  the  United  States  designated  as  the 
manufacturing  section  in  this  table  and  discussion,  then,  in- 
cludes all  of  the  New  England  and  Middle  States  and  Mary- 
land, District  of  Columbia,  Ohio,  Indiana,  Illinois,  Wisconsin, 
and  ^Michigan.  This  manufacturing  section  contains,  speak- 
ing in  round  terms,  one-half  (50.9  per  cent)  of  the  population 
of  the  TTnited  States,  while  the  agricultui-al,  but  non-manu- 
facturing section,  lying  south  of  the  Potomac  and  Ohio  rivers 
and  west  of  the  Mississippi  contains  the  other  half  (49.1 
per  cent.)  of  the  population.  In  the  section  north  of  the 
Potomac  and  Ohio  rivers  and  east  of  the  Mississippi  is  pro- 
duced 77  per  cent  of  the  manufactures  of  the  country,  and  in 
the  other 'section  23  per  cent,  as  shown  by  the  reports  of  the 
census  of  1900.  The  section  designated  as  the  manufacturing 
section  has  no  advantage  in  soil  or  climate  over  large  portions 
of  the  other  section. 

More  thnn  one-half  of  the  wheat,  two-thirds  of  the  corn,  all 
of  the  cotton,  and  by  far  the   largest   share   of  the   meat  and 


190  AGRICULTURAL  PROSPERITY. 

wool  supply  of  the  United  States  are  produced  in  the  agricul- 
tural and  non-manufacturii^g"  section,  while  more  tha*  three- 
fourths  of  the  manufactures  are  produced  in  the  manufactur- 
ings section,  the  .populatioM  in  the  two  sections  being  practic- 
ally equal. 

This  division  of  the  territory  of  the  United  States  into  these 
two  great  sections — each  containing-  one-half  of  the  population, 
the  one  performing  approximately  three-quarters  of  the  manu- 
facturing of  the  United  States  and  the  other  approximately 
three-fourths  of  the  agriciiltural  industry  of  the  country — 
gives  an  opportunity  for  a  broad,  intelligent  and  absolutely 
fair  study  of  the  effect  of  the  proximity  of  the  factory  upon  the 
farmer  as  relates  to  the  value  of  his  property  and  its  annual 
production  and  of  his  own  earning  power  as  an  individual.  It 
will  be  seen  by  a  study  of  the  table  that  the  average  value 
per  acre  of  all  farm  lands  in  the  manufacturing  section  in 
3900  was,  according  to  the  census,  $24  per  acre,  and  in  the  non- 
manufacturing  section,  $12  per  acre;  and  the  average, value  of 
lands  and  buildings  in  the  manufacturing  section,  $32  per 
acre,  and  in  the  non-manufacturing  section,  less  than  $15  per 
acre;  while  the  value  per  acre  of  improved  land  only,  incMding 
buildings,  was,  in  the  manufacturing  section,  $58  per  acre, 
and  in  the  other  section  but  $31.  The  average  value  of  build- 
ings, which  represent  in  some  degree  the  savings  of  the  farmer, 
was,  in  the  manufacturing  section,  $15  per  improved  acre,  and 
in  the  non-manufacturing  section  $5.50  per  improved  acre, 
while  of  implements  used  upon  the  farms  the  value  per  im- 
proved acre  in  the  manufacturing  section  was  nearly  twice  as 
great  as  in  the  non-manufacturing  section.  Coming  to  the 
value  of  farm  products,  the  average  value  per  improved  acre 
in  the  manufacturing  section  was  $141,  and  in  the  non-manufac- 
turing section  $101.  The  average  value  per  head  of  milch 
cows  in  the  manufacturing  section  was  $33,  and  in  the  other 
section  $27.  The  average  value  per  head  of  horses  in  the  manu- 
facturing section  was  $60,  and  in  the  non-manufacturing  sec- 
tion $43,  and  the  average  value  of  farm  products  per  person 
engaged  was,  in  the  manufacturing  section,  $619,  and  in  the 
non -manufacturing  section  $394. 

Thus  in  all  of  these  evidences  oi  prosperity,  earnings,  value 
of  propea-ty,  etc.,  the  condition"  of  the  farmer  in  the  manu- 
facturing section  was,  according  to  the  figures  of  the  last 
cen.sus,  much  higher  than  that  in  the  non-manufacturing  sec- 
tion, despite  the  fact  that  the  non-manufacturing  section  has 
soil,  climate,  landp,  and  producing  power  quite  as  favorable 
and  in  many  cases  more  favorable  than  those  of  the  manu- 
facturing section.  In  the  great  and  final  measure  of  relative 
prosperity  of  the  farmer  in  the  two  sections,  as  indicated  by 
the  item  "Average  value  of  farm  products  per  person  engaged," 
the  earnings  of  the  farmer  in  the  manufacturing  section  are 
57  per  cent,  greater  than  those  in  the  non-maniffacturing  sec- 
tion whose  soil,  climate,  etc.,  and  prducing  capacity  certainly 
equal,  if  they  do  not  surpass  as  a  whole,  those  of  the  manu- 
facturing section  as  a  whole. 

Another  measure  of  the  relative  prosperity  of  the  people  of 
the  two  sections  is  found  in  the  deposits  in  savings  banks,  in 
which  the  per  capita  in  the  manufacturing  section  is  $57,  and 
in  the  non-manufacturing  section  less  than  $7,  while  of  deposits 
in  all  banks  the  per  capita  in  the  manufacturing  section  is 
$153  and  in  the  other  section  $37.  The  assessed  value  of  real 
and  personal  property,  that  measure  of  accumulations  and  per- 
manent prosperity  is,  in  the  manufacturing  section,  $606  per 
capita  and  in  the  non-manufacturing  section  $278  per  capita, 
while  in  other  evidences  of  prosperity,  such  as  salaries  paid 
to  teachers  in  public  schools,  newspapers  circulated,  etc.,  the 
per  capita  is  also  greatly  in  favor  of  the  manufacturing  sec- 
tion. 

This  table  is  compiled  in  every  particular  from  official  sta- 
tistics, chiefly  those  of  the  census  of  1900,  though  in  a  few  in- 
stances those  of  the  Department  of  Agriculture,  where  the  lat- 
ter could  be  utilized  to  obtain  data  for  a  later  year  than  the 
census. 


AGRICULTURAL  PROSPERITY— WOOL. 


191 


Attention  is  called  to  the  map  of  the  United  States  on  the 
cover  of  this  volume,  which  indicates  the  two  sections  here  disir 
cussed  and  some  of  the  countries  presented. 

Relative  conditions  of  prosperity  in  the  manufacturing  and  non- 
manufacturing  sections  of  the  United  States,  respectively.* 

[Fi'om  Census  of  1900.] 


Per  cent  of  total  population  of  United  States.. 

Per  cent  of  total  area  of  United  States 

Gross  value  of  manufactures  in  1900 

Per    cent    of    total    manufactures    produced    in 

section 

Salaries  and  wages  paid  in  manufactures  in  1900. 
Number  of  persons  employed  in  manufactures 

in    1900   

Average  value  per  acre  of  all  farm  lands 

Average  value  per  acre  of  all  lands  and  build- 
ings     

Average    value    per    acre    of    land    (improved 

only)    and    buildings 

Average  value  of  buildings  iier  improved  acre.. 
Average    value    of    implements    owned    per    im- 
proved   acre    

Average  value  per  head  of  milch  cows 

Average  value  per  head  of  horses 

Average  value  of   all   farm  products,   per  im- 
proved   acre 

Average   value    of   farm   products,    per   person 

engaged    _. 

Deposits  ift  savings  banks,   total 

Deposits  in  savings  banks,    per  capita _J-_. 

Deposits  in  all  banks,  total 

Deposits  in  all  banks,  per  capita 

Bank    clearings,    total 

Bank  clearings,   average  per  capita 

Banking  resources,    total 

Banking  resources,    average  per  capita 

Real  and  personal  viropcrty,  assessed  valuation- 
Real  and  personal  property,   per  capita 

Salaries  paid  teachers  in  public  schools 

Newspapers  published,    number 

Newspapers,    aggregate    circulation 


'''SSn"f'"^  "'"-mates. 


50.9 

• 
49.1 

14.1 

85.9 

$10,021,718,461 

$2,988, 318, OjS 

77 

23 

$2,194,936,683 

$536,471,656 

4,437,714 

1,273,917 

$24.07 

$12.78 

$32.50 

$14.  as 

$58.60 

$31.65 

$15.25 

$5.54 

$2.54 

$1.47 

$33.62 

$27.46 

$60.87 

$43.32 

$141.00 

$101.40 

$619.25 

$394.53 

$2,200,439,838 

$249,108,047 

$56.90 

$6.67 

$5,949,981,845 

$1,384,066,395 

$153.80 

$37.10 

$76,356,970,422 

$8,225,479,659 

$1,973.50 

$220.40 

$8,613,200,003 

$2,167,500,000 

$222.65 

$58.10 

$23,445,809,898 

$10,388,667,238 

$503.25 

$278.50 

$85,234,951 

$52,452,785 

9.151 

9,075 

6,168,125,616 

2,000,023.133 

•Manufacturing  section  includes  area  north  of  the  Potomac  and  Ohio  and 
east  of  the  Mississippi,  viz.,  the  New  England  and  Middle  States,  and -Mary- 
land, District  of  Columbia,   Ohio,  Inciiana,  Illinois,   Michigan,   and  Wisconsin. 


SHEEP    AND    WOOIi    INDUSTRY. 

Some   Figures    on  tlie   Losses   niider   Free   Trade   in    Wool. 

The  losses  to  the  sheep  and  wool  producers  of  the  country 
throug-h  the  Wilson-Gorman  tariff  law,  which  placed  wool  on  the 
free  list,  are  well  remembered  in  g-eneral  terms,  but  the  actual 
fig"\ires  regarding-  the  fall  in  the  value  of  sheep  and  the  reduc- 
tioji  in  the  number  of  sheep  and  the  wool  produced  are  such  as 
to  justify  presentation.  The  figiires  of  the  Department  of  Agri- 
culture show  that  the  number  of  sheep  in  the  United  States  on 
January  1,  1893,  two  months  after  the  election  of  President 
Cleveland,  was  47,273,553,  and  their  value  $125,909,254.  The  same 
authority,  the  Department  of  Agriculture,  operating  under  a 
Democratic  Administration,  showed  on  Jan.  1,  1896,  the  closing 
year  of  President  Cleveland's  term,  36,818,643  sheep  in  the  United 
States  and  their  value  $67,020,942.  Here  is  a  decrease  of  more 
than  10  millions  or  nearly  25  per  cent,  in  the  number  of  sheep 
and  a  decrease  of  58  million  dollars,  or  nearly  50  per  cent,  in 
their  value  during  President  Cleveland's  term,  under  which 
wool  was  placed  on  the  free  list.  By  January  1,  1903,  the  num- 
ber of  sheep  had  reached  63,964,876,  and  the  value  $168,315,750, 
an  increase  of  practically  75  per  cent,  in  the  number,  and  150 
per  cent,  in  the  value  of  the  sheep  in  the  country.  This,  how- 
ever, is  not  all  of  the  loss  to  the  farmer — a  loss  of  nearly  60 
million  dollars  in  the  value  of  sheep  alone.  There  was  also 
a  great  loss  in  wool.     The  quantity   of  wool  produced  in  1893 


J»5i  AOltlVl'LTVUAL  PROSPERITY— WOOL. 

was  30:{  million  pounds  and  by  1895  hud  fallen  to  2(YJ  million 
pounds  and  did  not  ag-ain  reach  the  300  million  line  until  lUUl, 
\Nhen  it  was  :>02  millions  and  in  11)02,  iMO  niillions.  Here  was 
a  roduftion  of  practically  one-third  in  the  (juuntity  of  wool 
produced  in  1.S95  as  compared  with  1893.  But  even  this  does 
not  measure  the  loss,  since  the  value  per  pound  of  the  reduced 
production  was  far  below  that  of, prior  years.  Wool  price 
quotations  published  by  the  Bureau  of  Statistics  show  that 
grades  of  wool  which  sold  at  35  cents  per  pound  in  1891  had 
fallen  to  19  cents  per  pound  in  1896  and  by  1901  were  again 
above  the  price  of  30  cents  per  pound.  A  careful  estimate  of  the 
value  of  the  wool  product  of  the  United  States  made  by  an 
eminent  authority  on  the  suS»ject  puts  the  total  value  of  the 
wool  product  of  the  country  in  1892  at  79  million  dollars-,  and 
in  1896  at  32i^  millions,  a  loss  of  46i/^  millions.  Adding  this 
loss  in  wool  to  the  58  million  dollars  loss  in  value  of  sheep, 
above  quoted,  gives  a  grand  total  of  the  loss  to  the  farmer 
in  the  value  of  sheep  and  wool  of  over  100  million  dollars  for 
a  single  year  for  which  this  calculation  is  made,  or  ap{)roxi- 
mately  400  million  dollars  for  the  four  years  of  the  Cleveland 
Administration.  In  1907  the  value  of  wool  was  estimated  by 
experts  at  $78,000,000,  or  two  and  one-half  times  that  of  1896. 

Effect  of  Protection  and  Free   Trade  In   HeK'nrd  to   Sheep. 

The  official  reports  of  the  United  States  Government  upon 
the  subject  of  sheep  raising  and  sheep  values  teach  a  wonder- 
ful lesson. 

From  1878  to  1882,  inclusive,  the  Morrill  tariff  (protection) 
was  in  force,  and  the  number  of  sheep  throughout  the  country' 
increased  by  over  11,000,000  during  this  period. 

The  tariff  of  1883  was  in  force  from  1883  to  1889,  inclusive, 
The  duties  imposed  by  this  tariff  ujjon  raw  wool  amounted 
to  no  more  than  a  revenue  tariff  on  yarns  and  some  other 
goods  produced  from  wool;  consequently  the  result  of  this 
tariff'  as  a  whole  was  not  protective.  Under  its  operation  the 
number  of  sheep  throughout  the  United  States  decreased  by 
abt)ut  6,000,000. 

The  j\lcKinley  tariff,  passed  in  1890,  was  a  scientific  tariff  as 
applied  to  wool  growing,  with  the  result  that  the  number  of 
sheep  throughout  the  country  .increased  by  nearly  4,000,000 
before  the  free-trade  election  of  1892. 

The  Wilson  tariff,  with  free  trade  in  wool,  practically  went 
into  effect  when  Mr.  Cleveland  was  elected,  and  immediately 
the  flocks  throughout  the  country  began  to  decrease,  and  from 
1893  to  1896  decreased  by  about  9,000,000. 

The  Dingley  tariff  reimposed  the  scientific  schedules  of  the 
McKinley  tarift',  and  with  the  promise  of  protection  through  the 
election  of  William  McKinley  and  a  Republican  Congress  the 
.sheep-raising  industry  immediately  began  to  prosper.  From 
1896  to  and  including  1907  the  number  of  sheep  increased  by 
17  million  and  their  value  increased  144  million  dollars. 

The  effect  of  protection  and  free  trade  in  regard  to  the  num- 
ber of  sheep  owned  throughout  the  country  is  not  more  5m 
pressive  than  the  effect  as  to  value.  Under  the  Morrill  tariff 
rbe  lowest  price  per  head  was  $2.09  and  the  highest  $2.55. 
Under  the  tariff  of  1883  the  lowest  price  per  head  was  $1.91 
and  the  highest  price  was  $2.27.  Under  the  McKinley  tariff 
the  lowest  price  was  $2.49  and  the  h,ighest  price  $2.66.  Under 
free  trade  the  lowest  price  was  $1.58  and  the  highest  price 
$1.92,  Under  the  Dingley  tariff  the  lowest  price  was  $2.59 
per  head,  and  now  the  value  has  advanced  to  $3.95  per  head, 
the  highest  average  price  in  the  history  of  the  nation. 


IVell-paid  Tv-agre-ekrners  are  g^enerons  consnniers.— For- 
mer   Senator    Casey,    In    the    American    Economist. 

"When  we  reierard  the  history  of  the  forty  years  through 
tvhich  the  colored  man  of  this  country  has  heen  obliged 
to  struKKle,  the  progress  ^vhich  he  has  made,  material  and 
educational,  i«  vronderful.— Hon.  Wm  H  Taft,  at  Kansas  Cit>. 
Mo. 


AGRICULTURAL  PROSPERITY— WOOL. 


108 


Report  of  the  United  States  Government  on  sheep  raising  from 
1818  to  1898,  inclusive,  arid  report  for  1900,  based  upon  the 
sheep-raising  census  of  the  American  Protective  Tariff 
League. 


Year. 

Number 
of  sheep. 

Average 

price 
per  head. 

Total 
value. 

The    Morrill    tariff: 

1878... .._ 

1879                    _.     .„       

•38,123,800 
40,765,900 
43,576,899 
45,016,224 
49,237,291 

50,626,626 
50,360,243 
48,322,331 
44,759,314 
43,544,755 
42,599,079 
44,336,072 

43,431,136 
44,938,365 
47,273,553 

45,048,017 
42,294,064 
38,298,783 
36,818,643 

37,656,960 
39,114,453 
41,883,065 
59,756,718 
62,039,091 
63,96t,876 
51,630,144 
45,170,423 
.50,631,619 
53,240,282 
53,631,000 

$2.09 
2.21 
2.39 
2.37 
2.52 

1.37 
2.14 
1.91 
2.01 
2.05 
2.13 
2.27 

2.49 
2.58 
2.66 

1.98 
1.58 
1.70 
1.82 

2.46 
2.75 
2.93 
2.98 
2.fe5 
2.64 
2.59 
2.82 
3.54 
3.83 
3.88 

$79,023,984 
90,230,537 

1880... 

1881 _ 

1882 

The  tariff  of  1883: 

1883... _ _^ 

1884 

104,070,753 
106,594,954 
124,365,835 

119,902,706 
107,960,659 

1886 1-III.     I I 

92,443,867 

89,872,8.39 

1887  .     

89,279,926 

1888        ._  _._ 

90,640,369 

1889 

100,659,761 

The  McKinley  tariff: 

18J0 

108,397,447 

1891 . - 

116,121,290 

18f)2 

125,909,264 

The  Wilson  tariff,  free  trade  in  wool. 
1893. 

89,186,110 

18J4.. 

66,6S5,767 

1895 - 

65,167,735 

1896     

67,020,942 

The  Dingley  tariff: 

1897 

92,721,133 

1898 

107,6:J7,530 

1899 

122,665,913 

1900 

1901 

178,072,476 
164,446,0^1 

1902 

168,315,750 
133,530,019 
127,^31,850 

1903..... 

1904 

1905 

179,053,14' 

1906 

204,210,129 

1907 - 

211,738,00  1 

Wool    Production,   Imports,    Consumption,    Manufacture,    Price 
of  Wool,  and  Value  of  Sheep  on  Farms,  1875  to  190T. 

This  table,  showing-  the  home  prodnction  and  imports  of  wool, 
the  percentage  which  foreign  wool  forms  of  the  total  consump- 
tion, the  price  of  wool  in  the  United  States,  and  the  number 
and  value  of  sheep  on  farms,  covers  the  period  from  1875  to  1907, 
and  enables  a  comparison  of  conditions  under  the  protective 
system  with  those  under  free  trade,  since  wool  was  adqiitted 
free  of  duty  under  the  Wilson  Act,  which  went  into  effect  August 
27,  1894,  and  continued  in  operation  until  July  24,  1897.  It  will 
be  seen  that  the  quantity  of  wool  imported  increased  enormously 
during  that  time,  that  the  price  of  domestic  wool  fell  to  abput 
one-half  of  that  of  former  years,  that  the  number  of  sheep  oa 
farms  was  materially  reduced  and  their  price  per  head  also  great- 
ly reduced,  so  that  the  value  of  sheep  on  farms  fell  from  125 
million  dollars  shortly  before  the  enactment  of  that  law  to  G5 
inillions  in  the  latter  part  of  its  operation. 


Tlie  course  of  tlie  Republican  party  since  its  organiasation 
in  1S56.  and  its  real  assumption  of  control  In  1S;>1.  down 
to  the  present  day,  is  remarkable  fOr  the  foresight  and 
ability  of  its  leaders,  for  the  discipline  and  srtlidasrity  of 
its  members,  for  its  elllciency  and  dee?»  sense  of  respon- 
sibility for  the  preservation  and  successful  maintenance  of 
the  Koverument,  and  for  the  ftreatest  resourcefulness  in 
meetinpT  tlie  various  trying  and  diftlcult  issues  wl»ich  a 
historv  of  now  a  full  half-century  have  presented  for  so- 
lution.—Hon.    Wm.    H.    Taft,   at    Kansas    City,    Mo. 

Government  must  be  honest,  business  dealing  must  be 
square  with  the  principles  of  rlgrht  and  justice,  the  things 
that  are  vuvc  and  clean  and  of  i^ood  repute  must  be  exalted; 
and  underlying-  the  ^vhole  fabric  of  our  institutions  wc 
must  safe/rnard  our  sch«)ols  and  keep  pure  and  un<l«Hled,  as 
•  the  very  foundation  of  our  liberties,  the  American  home.— 
Postmaster-General  Cortelyou  on  Lincoln's  influence  on 
American    Life. 


194 


AGRICVLTVRAL  PROSPERITY— BEET  SUGAR. 


Wool  production,  iinportit,  vonsumittion,  and  manufacture  in  the 
United  Statv{<;  «/.so  price  of  wool  and  value  of  sheep  on  farms, 
J87J   to  loon. 

IFroin  the  Statistical  Abstract  of  the  United  States.  1907.] 


1875... 
Ih7tt..- 
1877- - 

1879... 
1880-.. 
JS6I.- 
18SI-2... 

18  L - 
186 1... 

1S»7_-. 
lS8.->-.. 

18)0--. 
IS'Jl--- 
1802.- 

is.)a... 

IbO'S.- 
1^  1"^^- 

I8s)a§.. 

18')^-. 
18):i-.. 

10)0--: 

1  IV 
1002.. 
IX);.-. 
IX)  .. 

1901- ._ 
1907... 


Produc- 
tion. 


Imports. 


'if 

Pa! 


Va'ue  of 

Imports  of  wool, 

and  inauuiac- 

turcM  of. 


Pounds. 

.181,000,000 
.  li)2,000,000 
.'200, 000, 000! 
.  20d,;J>0,000 
.:211,000,000 
.  232,500,000 
.i2»0i000,00j 
.'272,000,0)0 
.12:^0,000,000 
.liOO.000,090 
.1308,000,000 
.1. 102, 000, 000 
.285,000,000 
.26),  000,000 
Jiff), 000,900 
.|27f5,000,000 
.|i-.5,000,0;W 
.W  1,000,000 
-i  $0.1,153,000 
i9«,057,38! 
!!0),748»000 
1:72,474,708 
■'^a,  153, 251 
I  :i6, 720,681 
I  -2,191,330 
I  '88,636,621 
12,502,328 
:  :l8.Ta.0-32 
:  7,(57,000 
;)1,78],032 
;  '•»5,!8S.t.38 
1298,915,130 
208,294,750 


Fo  mds. 

54,^01,700  22. 

44,042,830  18. 

42,171,192il6. 

48,449,079  16. 

39,005,15)  14, 
128,131,747  31. 

55,984,236  17. 

67,861,744  19. 

70,575,478  18. 

78,350,651  20. 

70,59),  170  18. 
12^), 08 1,95b  28. 
114,038,030  27. 
113,558,753  28. 
126,487,720  31. 
105,431,285  27. 
129.303,618  30. 
118,670,652 
172,433,8;J8 

55,15: 
206,033,906 
230,911,4' 
350,852,026 
132,705,202 

76,736,209 
155,928,4.55 
103,583,505 
166,576, 963 
177,137,796137 
173-,7i2.83l|37, 
2 19, 1.35, 746145, 
201,688,688  39 
203,817,515  10 


Wool, 
raw. 


Dollars. 

11,071,250 

8,247,617 

7,158,941 

8,363,015 

5,031,545 

23,727,650 

9,703,968 

11,096,050 

10,949,331 

12,:«4,709 

8,879,923' 

16,746,081, 

16,424,479 

15,887,217: 

17,974,515 

15,264,083 

18,231.372 

19,688,108 

21,084,180 

6,107,438 

25,5)6,421 

32,151,212 

53,213,191' 

16,783,692 

8,322,8971 

20,2(0,936 

12,. 529, 881' 

17,711,788' 

22,152,i)61 

21,813,5)1 

16,225.558 

39,038,372 

41,531,028 


Manu- 
fuctures 

Oi  WOOi 


Dollars. 
44,600,704, 
33, 20),  800' 
25,701,922 
25,2.30,1511 
21,355,821 
.33,911,0.)3, 
31,1,53,426 
37, a  1,520 
41,274,952 
41,1.71,583 
35,776,55) 
41,421,319: 
14,902,718; 
47, 71!),. 393! 
52,-)81,912' 
.56,5,S2,132 
41.030,080 
35,505.879 
.38,018,515 
10,439,372 
.38,530,890 
53,491,400 
49,162,9)2 
14,823,771: 
13,832,621 
16,161,416 
14,585,306 
17.381,463 
19,516,385 
17,733,788 
17,803,663 
23,080,683 
22,321,460 


"o 


Cents. 
52 
38 
50 
33 
37 
46 
42 
42 
39 
35 
32 
33 
31 
29 
35 
33 
31 
28 
21 
20 
18 
17 

21 1^ 
28 
20 

25 
26 
31 V^ 
321/2 
33 


Sheep  on  farms 

In  the  United 

iStates. 


Num- 
ber. 


!  33, 783 
135,935 
135,804 
35,740 
38,123 
40,765 
43,560 
45,016 
49,237 
50,626 
50,360 
48,322 
44,750 
44,514 
42,599 
44,336 
43,421 
44,938 
47,273 
45,018 
42,201 
.38,298 
36,818, 
37,6)6, 
39,111, 
41,883, 
59.758, 
62,03), 
63,961, 
51.630 
15,170, 
50,631, 
53,210, 


Value. 


Dollars. 
,  94,320,652 
300    93,600,318 
2001  80,892,683 


80,603,062 
79,023,984 
90,230,-537 
101,070,759 
103,505,951 
124,366,335 
119,902,706 
107,960,650 
92,443,867 
80,872,839 
89,279,926 
90,610,339 
100,650,761 
108,397,140 


.335;  116, 121,200 
553  125,900,260 
017 1  89,186,110 
031'  66,685,767 
7a3(  65,167,735 
613  07,020,912 
960 '  92,721,133 
453:107,697,530 
065;122,665,913 
718178, 072, 476 
001  161,446,001 
876  168,315,7.50 
114  133,530,0)9 
123  127.331,8.0 
619.179,056,114 
282  201,210,129 


8  Democratic   and  low   taiilT   years. 


BEKT     SI  GAR. 

The  fact  that  about  a  hundred  million  dollars'  worth  of  sugar 
is  broi  ght  from  foreign  countries  each  year  to  meet  the  demands 
of  the  people  of  the  United  States,  coupled  with  the  belief  that  the 
pruii  ttioii  of  this  great  sugar  supjoly  by  our  larmers  is  possible, 
renders  proper  a  careful  consideration  of  the  effect  of  the  recent 
legislation  by  which  sugar  from  Porto  Jvico  and  the  Hawaiian 
Islands  is  admitted  free  of  duty,  that  from  the  Philippines  at 
2.>  per  cent,  below,  and  that  from  Cuba  at  20  per  cent,  below  the 
regi.lar  tariff  rates.  Will  the  absolute  removal  of  all  duty  on 
SI  gar  from  Porto  l?ico  and  the  Hawaiian  Islands  and  the  rediic- 
tion  of  25  per  cent,  on  sugar  from  the  Philippines  and  20  i)er 
cent,  on  that  from  Cuba  destroy  the  beet-sugar  industry  of  the 
I'nited  States  or  work  to  its  disadvantage?  Vvhue  it  is  a  lact  tnat 
the  annexation  of  Hawaii  and  its  organization  as  a  Territory 
and  'Mi.stoms  di.strict  of  the  United  States  removed  permanently 
ull  tariff  on  merchandise  from  tho.se  islands  or  passing  into  them 
from  the  United  States,  that  fact  made  no  change  in  the  rates 
of  duty  on  sugar  from  the  islands,  its  only  effect  beino-  to  render 
absolutely  permanent  the  conditions  which  had  existed  ever 
since  the  treaty  of  1876,  by  which  sugar  from  the  Hawaiian 
Islands  was  admitted  free  on  agreements  that  products  of  the 
United  States  should  be  admitted  into  the  Hawaiian  Islands  free 
of  duty,  and  that  condition  continued  down  to  the  annexation  of 
Hawaii,  when  it  was  made  permanent,  as  above  indicated.  In  the 
case  of  Porto  Pico  all  of  the  dr.ty  except  15  per  cent,  was  removed 
by  the  acL  est'iblishing  the  government  of  Porto  Rico,  and  the 
remainder  of  that  duty  disappeared  as  soon  as  the  Porto  Rican 


AGRICULTURAL  PROSPERITY— BEET  SUGAR.  195 

g-overnment  announced  its  abHity  to  provide  its  own  revenues. 
The  reduction  of  25  per  cent,  in  the  rates  of  duty  on  merchan- 
dise from  the  Philippine  Islands  occurred  on  Marrch  8,  1902. 

Kffect  on  the  Home   Producer. 

All  of  these  removals  of  duty  on  sugar  from  our  own  posses- 
sions have  been  in  force  a  sufficient  len<>th  of  time  to  give  oppor- 
tunity to  test  their  effect  upon  domestic  sugar  production.  The 
quantity  of  sugar  imported  from  Porto  Rico  increased  from 
86,007,317  pounds  in  the  fiscal  year  1897  to  408,149,992  jjounds 
in  the  fiscal  j'ear  1907.  The  sugar  imports  fx'om  the  Hawaiian 
Islands  have  increased  from  431,196,980  pounds  in  1897  to  822,- 
014,811  poimds  in  the  fiscal  year  1907 ;  and  those  from  the 
Philippine  Islands  decreased  from  72,463,577  poimds  in  the  fiscal 
year  1897  to  25,164,756  pounds  in  the  fiscal  year  1907 — the  re- 
duction in  imports  of  sugar  being,  of  course,  due  to  the  de- 
struction of  plantations  and  nuichinery  during  the  war.  Thus 
the  quantity  of  sugar  imported  from  Porto  Rico,  HaAvaii,  and  the 
Philippine  Islands  in  1907  was  practically  double  that  of  1897. 
The  entire  quantity  of  sugar  brought  into  the  United  States  in 
the  fiscal  year  1907  amounted  to  5,224,259,732  pounds.  Of  this 
total  importation,  1,230,164,803  pounds  came  from  Porto  Rico 
and  the  Hawaiian  Islands,  and  was  absohitely  free  of  duty,  and 
this  formed  23.5  per  cent.,  or  practically  one-fourth  of  the  total; 
while  that  from  the  Philippine  Islands,  which  amounted  to 
25,164,756  pounds,  came  in  with  a  reduction  of  25  per  cent,  of 
the  regular  duty  and  formed  about  i/,  of  1  per  cent,  of  the  total. 
Thus  practically  one-fourth  of  the  sugar  coming  into  the  United 
States  in  1907  was  admitted  absolut^^ly  free  of  duty  from  the 
Hawaiian  Islands  and  Porto  Rico.  In  1897  the  amount  which 
came  in  free  of  duty  from  the  Hawaiian  Islands  was  431,196,980 
pounds,  and  this  formed  8.9  per  cent,  of  the  total  sugar  impor- 
tation of  that  year. 

Increase    of   Beet    SwRur    Production    since    the    Annexation   of 
Hawaii    nnfl    Porto    Rico. 

Here,  then,  is  a  fair  basis  upon  which  to  determine  the  effect 
of  the  importation  of  sugar  from  our  own  possessions  free  of 
duty.  In  1897  practically  9  per  cent,  of  the  sugar  im-^orted 
came  in  free  of  duty.  In  1907  practically  25  per  cent,  came  in 
free  of  duty.  If  such^  free  importation  were  likely  to  a.iect 
disadvantageously  beet  sugar  production  at  home,  an  increase 
from  9  per  cent,  to  25  per  cent  in  the  importations^,  of  free 
sugar  would  doubtless  have  made  itself  apparent  by  a  reduction 
in  the  sugar  prod*iction  of  the  United  States,  But  let  us  see 
what  the  beet  sugar  production  of  the  country  was  in  the  two 
years  in  question — 1897,  when  9  per  cent,  of  th-^  sugar  was  im- 
ported free,  and  1907,  when  25  per  cent,  was  imported  free.  The 
reports  of  the  Department  of  Agriculture  and  Bureau  of  Sta- 
tistics show  that  the  beet  sugar  produced  in  the  United  States 
amounted  in  1897  to  88,892,160  pounds.  By  1899  it  had  in- 
creased to  141,230,160  pounds;  by  1901  to  279.682,160  pounds; 
and  i.*i  1906  was  967,224.000  pounds.  Here,  then,  is  an  increase  of 
988  per  cent,  in  the  beet  sugar  prodiiction  of  the  United  States 
during  the  very  period  in  which  free  importation  of  sugar 
from  Porto  Rico  was  established  and  that  from  Hawaii  made 
absolutely  permanent  by  annexation  and  its  establishment  as 
a  customs  district  of  the  United  States,  in  which  period  the 
quantity  of  sugar  imported  free  of  duty  increased  185  per 
cent,  if  an  increase  of  185  per  cent,  in  the  quantity  of  sugar 
imported  free  of  duty,  coupled  with  absolute  assurance  that 
the  sugar  fields  of  Porto  Rico  arid  Hawaii  are  to  have  i^ei'- 
manently  free  access  to  the  markets  of  the  United  States,  was 
accompanied  by  an  increase  of  988  per  cent,  in  the  production 
of  beet  sugar  at  home,  there  seems  little. ground  for  any  anxiety 
as  to  the  effect  of  free  sugar  importation  from  our  own  terri- 
tory in  depressing  beet  sugar  production  at  home. 

Tables  published  on  another  page  show  the  importation  of 
sugar  into  the  United  States,  the  home  production  of  various 
kinds  of  sugar,  and  the  total  home  consumption  for  a  term  of 


«6 


■1  GRYcUlJTtfWAL  PROSPERITY— BEET  SUGAR. 


years;  also  the  quantity  brought  into  the  United  States  from 
Pbrto  Rico  and  Hawaii'  resiJectively,  from  1895  to  1903;  also 
the  total  product  of  beet  and  cane  sugar,  respectively,  in  the 
world  during  a  long  term  of  years. 

Production  of  cane  and  hect  sugar  in  the  principal  producing 
countries  of  the  World  for  the  sugar  year  1907-8.* 


Countries. 

Cane  sugar 
production. 
Gross  tons. 

Countries. 

Beet sugar 
produc- 
tion. 
Gross  tons 

Tfl-n        '-n''..'     Ui''      i-l' 

:' .1,153.477 
1,000,000 
420,000 
181,000 
1*5,0  JO 
214,-00 
335,000 
3.4^8.900 

6,951,877 

2,132,000 
1,4(50,000 

Cuba      J ..  i.__^_    .n 

Austria   , 

Hawaiian   Islands 

France  

725,000 

Brazil    

Russia   _ _ 

4,410,000 
235,000 

Australia 

Holland 

175,003 
435,000 

Louisiana ! 

All  other 

All  other  

■M^'- 

6.893,000 

*  Figures  for  cane  sugar  production  taken  from  Willett  and  Gray's  Sugar 
Trade  Journal,  March  19,  1908;  figures  for  beet  sugar  production  taken  from 
F.  O.  Licht's  estimate  in  the  same  journal,  February  6,  190«. 


•World's  supply  of  heet  and  cane  sugar,  from  WfO  tCTWOl. 
tOpmplled  Iroin  London  Statist,  Census  Bulletin,   and  Willett  &  Gray.] 


Years. 


1840iJi.... 

1850  _ 

1860 

1870  -._— 

1873-74  ... 

187t-75 

187*'76  -ii. 

1876-77 

1877-78  _-. 

1878-79 

•1879;^.^.. 


•ii£86:qir_:!:;:i: 

■1886-87  LJil'.._'Ji:I.— 


a8&d-9io.ii!:]iik 

18»l-92'^_.4-,--^- 


'ig9»-94 .::.... .. 

1894-9S' .'_.._ _._ 


»s- 

■  1898-fie. .  j -LUji.  J.-Ui£l 

1897-1900  __.^ 

ifiOO-1901 

1901-Z .'• .. .. 

'1902r»3  _^-....^„- 

lOo*;  ._.,.il;.„.....:. 
isoB .:.'.. .......J...'. 


Beet  sugar 
(tons). 


\[>  1    f .. 

,(f  •  50,000 

200,000 

389,000 

831,000 

859,479 

1,124,313 

l,145,8t9 

1,165,336 

1,350,921 

1,083,739 

1,398,373 

1,549,276 

1,430,952 

1,746,501 

1,831,581 

'2,113,070 
2,323,548 
2,503,608 
2,185,490 
2,707,543 

,2,743,679 

.2,442,981 
3,578,409 

•-3,655,709 
3,451,936 
3,383,423 
3,818,241 
4,738,883 
4,216,924 
4,876,422 

•■4,795,813 
4,935,837 
5,503,815 
5,972,274 
6,816,614 
5,659,886 

.6,089,468 
4,918,480 
7,216,060 

1:7,143,818 


(a) 
Cane  sugar 

(,tous>. 


1,100,000 

1,200,000 

1,510,000 

1,581,000 

1,791,184 

1,810,986 

1,711,763 

1,7.56,681 

1,692,828 

1,682,531 

1,715,900 

1,965,990 

1,903,316 

1,902,346    ' 

2,016,084 

2,104,072 

2,517,531 

2,592,617 

2,702,850 

2,805,735 

2,480,700 

2,612,000 

2,175,800 

2,868,900 

3,231,561 

3,015,186 

3,531,621 

3,510,670 

2,809,477 

2,841,857 

2,861,255 

2,995,438 

3,056,291 

3,646,059 

4,078,944 

4,144,4.53 

4,214,206 

4,594,782 

5,0l?;87O 

5viL48.»TO  1, 


Total  sugar 

(tons). 


1,150,000 

i,400,;j()0 

1,839,000 
2,416,000 
2,650,663 
2,965,329 
2,857,612 
2,922,017 
'  3,013,749 
2,766,270 
3,114,273 
3,515,266 
3,334,268 
3,648,847 
3,817,668 
4,217,142 
4,871,079 
5,099,255 
4,888,3(0 
5,513,278 
5,224,379 
5,081,981 
6,0->4,209 
6, .52 1,600 
6,683,497 
6,431,699 
7,379,862 
8,247,5.53 
7,056,401 
7,718,279 
7,660,068 
7,9.31,275 
8,-560,109 
9,618,333 

10,895,588 
9,801,339 

10,333,674 
9,513,262 

12,232,930 

12,292,768 


Per  cent 

supplied  by 

beet. 


4.4 
14.3 
20.4- 
34.4 
32.4 
37.9 
40.1 
39.9 
44.4 
39.2 
44.9 
44.1 
42.9 
47.9 
47.6 

«:J 

49.2 
44.7" 
49.1 
52.5 
48.0 
.59.1 
.58.0 
51.7 
52.7 
52.1 
.57.4 
60.2 
63.2 
62.6 

64^3 
62.1 
62.6 
57.7 
58.9 
51.7 
58.9 
58.1 


-:j'ji'"  ^xclusiye.  of  production  of 
reofefnt  years,  about  12,000,000  tons 

Kf.ti    ..■  •   1  ;•      ,  1  ■ ;  ■  ■    ,■       ■■  i     ,  . 


cane  sugar  In  British  India,   averaging, 
a  year,  and  which  is  consumed  locally. 


for 


:JflW«>«>"     ImpoJ^ea,     Prortwceil     and     Con  mimed     in     the     United 
i"  .     ;    states,    and   the   Growth   of   the    Sn^ar    Production. 

Thi.«i  table  show.s  the  quantity   of  sugar  imported  from   for- 
eign countrTes,  the  qnantity  tai'Onght  from  our  own  islands,  the 
■^tynahtity  of  cfine  and  of  beet  sugar,  respectively,  produced  in  the 
ilttited   States;  the   quantity  exported  and  total  quantity   con- 


AGRICDLTURAL  PROSPERITY—SUGAR.  197 

sumed,  the  consumption  pet*  capita,  and  the  share  of  the  con- 
sumption supplied  by  our  own  factories,  including-  in  this  term 
only  those  of  continental  United  States  and  not  of  Hawaii  or 
the  Philippine  Islands.  The  separate  statement  of  the  quantity 
broug-ht  from  Porto  llico  and  Hawaii  begins  with  the  year 
1901,  prior  to  which  time  the  sugar  brought  from  those  islands 
was  included  in  the  figures  of  sugar  imported  from  foreig-n 
countries. 

An  interesting  feature  of  this  table  is  the  rapid  growth  in 
beet  sugar  production  shown  by  the  column  which  states  the 
number  of  pounds  of  beet  sugar  produced  in  the  United  States. 
The  production  of  beet  sugar  in  the  United  Sates  has  grown 
from  163  million  pounds  in  1900  to  967  millions  im  1907,  despite 
the  fear  entertained  by  some  that  the  free  admission  of  sugar 
from  Hawaii  and  I'orto  llico  coupled  with  the  reduction  in  i-ates 
of  duty  in  that  imported  from  Cuba  and  the  Philippine  Islands 
might  seriously  interfere  with,  if  not  actually  destroy,  that  in- 
dusti-y  in  the  United  States.  It  will  be  noted  that  the  production 
of  beet  sugar,  which  in  1901  was  but  one-fourth  as  much  as  that 
of  cane,  was  in  1907  nearly  twice  as  great  as  that  of  cane. 
The  number  of  beet  sugar  factories  has  grown  from  15  in  1900 
to  63  in  1907.  The  share  of  our  sugar  consumption  supplied  by 
production  within  continental  United  States  which  in  1900  was 
but  11.1  per  cent,  was  in  1907  22.3  per  cent,  while  about  30 
per  cent  of  the  ccmsumption  was  supplied  by  sug-ar  from  Porto 
llico  and  Hawaii.  The  production  of  sugar  in  Porto  llico 
has  grown  with  great  rapidity  since  the  enactment  of  the 
law  admitting  the  products  of  that  island  free  of  duty  to 
the  markets  of  the.  United  States,  The  shipments  of  sugar 
from  Porto  llico  to  the  United  States  in  the  fiscal  year  1901, 
the  first  year  following  that  Act,  amounted  to  but  137  mil- 
lion pounds,  and  in  1907  408  million  pounds,  and  in  the  fiscal 
year  1908  will  aggregate  approximately  430  million  pounds,  or 
practically  three  times  as  much  in  1907  as  in  1901.  The  quan- 
tity shipped  from  Hawaii  in  1900  was  691  million  pounds,  and 
in  1907,  822  millions,  while  for  the  fiscal  year  1908  the  total 
will  approximate  one  billion  pounds.  '  Naturally  the  percentage 
of  gain  has  been  niiich  larger  in  the  case  of  Porto  Rico  than 
in  that  of  Hawaii,  since  sugar  from  Hawaii  was  admitted  free 
under  the  reciprocity  agreement  for  many  years  pr-ior  to  an- 
nexation, while  that  from  Porto  Rico  paid,  prior  to  annexation, 
the  same  rate  of  duty  as  that  from  other  foreign  countries. 
The  actual  growth  in  quantity  imported  from  Porto  Rico  and 
Hawaii  has  be^^i  in  each  case  about  300  million  pounds,  com- 
paring the  figures  of   1901  wnth  the  prospective  figures  of   1908. 

Speaking  in  very  general  terms,  it  may  be  said  that  the 
quantity  of  sugar  annually  consumed  in  the  United  States  is 
between  6  and  7  billion  pounds,  of  which  about  one-fifth  is 
produced  in  continental  United  States,  another  fifth  in  Port*) 
Rico,  Hawaii,  and  the  Philippines  and  the  remaining  three-fifths 
brought  from  foreign  countries  ;  and  of  the  3.873  million  pounds 
brought  from  foreign  countries  in  the  calendar  year  1907,  3,032 
million  pounds  were  from  Cuba,  598  millions  from  the  Dutch 
East  Indies,  23  millions  from  Gei'many,  and  a  little  less  than 
3  million  pounds  from  Austria-Hungary,  the  sugar  from  European 
countries  being  presumably  beet.  The  quantity  brought  from 
the  Philippine  Islands  in  1907  was  25  million  pounds  or  a  little 
more  than  one  day's  supply,  the  average  daily  consumption  in 
the  United  States  being  now  about  20  million  pounds  per  day.   '■ 

With  all  this  rapid  growth  in  home  production  and  importa- 
tion duty-free  from  Porto  Rico  and  Hawaii,  the  quantity  required 
from  foreign  countries  has  not  been  diminished,  but  on  the  con- 
trary steadily  increases.  The  imports  of  sugar  from  foreign 
countries  in  the  fiscal  ,year  1907  were  larger  than  in  any  year  of 
our  foreign  connmerce  except  1897,  when  excessively  large  quan- 
tities were  rushed  in  in  anticipation  of  an  approaching  changf^ 4^ 
tariff.  ■ 1,  .'n 

With  reference  to  Philippine  sugar,  it  may  be  said  that'  the 
importations  from  those  islands  have  averaged  40  million  pounds 
per  annum  during  the  last  ten  years,  while  the  consumption  of 
the  United  States  now  averages  about  20  million  pounds  a  day, 
so  that  the  Philippines  have  since  annexation  furnished  on  an 


198 


AGRICULTURAL  PROSPERITY. 


averag-e  about  two  days'  supply  per  annum  of  our  sugar  require- 
ments and  during-  the  more  recent  part  of  that  time  Philippine 
sii^ar  has  been  admitted  at  a  reduction  of  25  per  cent  of  the 
refjfiilar  rates  of  duty  ;  or,  in  other  words,  has  paid  75  per  cent  of 
the  rates  of  duty  paid  on  sugar  from  foreign  countries. 

Imports  of  t<uuur  into  the  United  States  from  Porto  Rico,  the 
Hanmiiaii  and  Philippine  Ishinds  in  each  year  from  1901  to 
n     iWOl  {in  pounda). 


Fl-calyear. 

Porto  Rico. 

Hawaii. 

Philippine 
Islands. 

1901               ^■i.u^ 

137,201,828 
183,817,019 
226, 143, 508 
259,231,607 
271.319,993 

4io,5y,r.i8 

408,149,992 

690,877,934 
720,553,357 
774,825,420 
736,491,992 
832,721,387 
746,602,637 
822,014,811 

4,693,333 

1902. :.„„,^-„^. , 

190*'                              m]'  t    •  i.Cl  '  -  ■  ■.   ■ 

11,424,000 
18,773.333 
61,570,614 

1905                                      -           * 

77,997,424 

1903 - 

1907 : 

69,373,602 
25,164,756 

"We  seek  pliysleal  no-»ver  because  It  may  advance  onr 
moral  and  Intellectnal  'ivell-beinB-.— Hon.  C.  "W.  Fairbanks,  at 
Lancaster,    Mass.,    Jane    JtO,    1J)()3. 

We  shall  send  onr  flas:  into  all  ports  of  trade,  not  as  a 
menace,  but  as  tbe  harbinger  of  peace  and  Koo<l-wilI. — Hon. 
t".  W.  Fairbanks,  at    Freehold,  N.   J..  .June  27,   lJ>Oa. 

The  policy  of  expansion  Is  Avhat  d'stinuulwhes  the  adinln- 
istration  of  McKInley  and  adds  another  to  the  list  of  patri- 
otic victories  of  the  Rcijublican  party.  By  tliis  policy  the 
I'nlted  States  has  become  a  worltl  povrer. — Hon.  Wni.  H. 
Taft.  at  Kansas  City,  IVio. 

It  in  a.s  much  our  imperative  duty  to  i»rotect  capital  and 
labor  in  the  fr^ie  and  proper  exercise  of  their  functions  as  it 
is  to  restrain  and  fcrl»!d  the  encroaclinicnts  of  ^vrong-. — Hon. 
C.    W.    Fairbanks,    at    St.    Paul.   Minn..    Auf^ust    31,    1I)03. 

The  mints  ^111  not  fnrnisli  the  farmer  vrith  more  con- 
sumers. The  only  market  that  he  can  rely  upon  every  day 
of  the  year  is  the  American  market. — Maj.  McKlnley  to  In- 
diana   deleK'ation.    at    Canton,    September   29,    189Ct. 

The  dollar  paid  to  the  farmer,  tlie  wage-earner,  and  the 
pensioner  must  continue  forever  cciual  in  purchasing-  and 
debt-payin»-  poiver  to  the  dollar  paid  to  any  Government 
creditor. — MaJ.    McKlnley    to    IVotiflcation    Committee,    l.SJ)«. 

No  amount  of  intelligence  and  no  amount  of  energry  Avill 
save  a  nation  Avhich  Is  no*  honest,  and  no  srovernment  can 
ever  l»e  a  nermanent  success  if  administered  in  accor.dance 
Tvith   base   ideals. — Theo<l<»re  Roosevelt,   In   "American  Ideals." 

In  this  ase  of  frenuent  interchange  and  mutual  depend- 
ence, ive  can  not  shirk  our  international  responsibilities 
If  ive  would:  they  mnst  be  met  with  courage  and  wisdom, 
and  ^ve  must  follow  duty  even  if  desire  opposes. — President 
McKlnley    at    Omaha.    Oct.    12,    189S. 


No  matter  how  capital  combines  or  hoiv  labor  combines 
or  ho-w  they  ditfer  anions'  themselves,  their  interests  are  in- 
separable and  it  ought  to  be  plain  to  both  that  they  can  not 
aflord  to  go  out  of  business  in  favor  of  foreign  labor  ai-.<l 
foreign  capital  by  abandoning  the  policy  of  protection.— 
Hon.    F.    L.    Hamilton,    in    Congress,    April    14,    1904. 

Only  twice  in  all  that  remarkable  history  of  48  years 
have  we  lost  the  confidence  of  the  people  of  the  United 
States  to  the  point  of  their  turnisig  over  the  government 
to  a  Democratic  executive.  I  venture  to  say  that  neither 
in  this  nor  in  any  other  country  can  be  disclosed  such  a 
remarkable  record  of  arduous  dee<ls  done  as  in  that  history 
of  a  half  a  century  of  the  Republican  party. — Hon.  Wm.  H. 
Taft.  at  Kansas  City,  Mo. 

As  a  party  shows  itself  homogeneous,  able  to  grasp  the 
truth  with  respect  to  new  issues,  able  to  discard  unimportant 
dilVeren<«es  of  opinion,  sensitive  viith  respect  to  the  suc- 
cesiful  maintenance  of  government,  and  highly  charged 
with  the  responsibility  of  its  obligation  to  the  people  at 
large,  it  establishes  its  claim  to  the  confidence  of  the  public 
and  to  its  continuance  in  political  power.— Hon.  Wm.  H.  Taft, 
at    Kansas    City,    Mo. 

One      vital,      dominating     fact      confronts      the     Democratic 
party     which     no     oratory,     which     no     elonuence,     which     no 
rhetoric    can    obscure:    BRYAN'S    NOMINATION    MEANS    TAFT'S       ! 
ELECTION.— New    York    W^orld.  i 


SUGAR  PRODUCTION,  CONSUMPTION  AND  PRICES. 


190 


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JOO  PRICES  OF  FARM  PRODUOTION, 

RELATIVE  PRICES  OF  ARTICLES  OF  FARM  PRODUCTION  AND 
FARM     CONSUMPTION. 

The  accompanying  tables  showing  prices  of  articles  of  farm 
production  and  farm  consumption,  respectively,  are  presented 
with  the  purpose  of  giving  oppoi'tunity  to  compare  the  relative 
advance  in  the  prices  received  by  the  farmer  for  his  products 
with  those  which  he  must  pay  for  the  articles  which  he  consumes. 
That  there  has  been  an  advance  the  world  over  in  prices  of  prac- 
tically all  articles  is  quite  apparent  not  only  from  our  own  ex- 
perience in  the  United  States,  but  from  official  statements  made 
by  our  consuls  and  others  regarding  prices  in  all  parts  of  the 
world  and  in  all  the  leading  articles  produced  in  various  parts 
of  the  world.  Elsewhere  in  this  book  will  be  found  a  large 
number  of  statei  ents  from  our  consuls  in  various  parts  of  the 
world  indicating  a  rapid  advance  in  prices  in  practically  all 
parts  of  the  consuming  world  and  in  practically  all  of  the  arti- 
cles entering  consumption.  These  articles  in  which  prices  have 
advanced  abroad  include  many  of  those  necessarily  imported  into 
the  United  States  for  manufacturing  purposes,  such  as  fibers, 
silk,  wool,  hides  and  skins,  india  rubber,  tin,  and  many  other 
articles;  also  requirements  for 'food,  including  sugar,  coffee,  tea, 
etc.,  practically  all  of  which  must  be  imported  because  of 
the  fact  that  they  are  not  produced  in  the  United  States,  or  at 
least  in  sufficient  quantities  for  our  own  population.  In  addition 
•to  these  advances  in  prices  of  the  raw  materials,  the  higher 
prices  of  labor,  fuel,  and  transportation  have  resulted  in  higher 
prices  of  manufactures  in  the  United  States  and  6ther  parts  of 
world.  The  following  tables  are  given  with  the  purpose  of  sup- 
plying information  as  to  the  relative  advance  in  the  prices  of 
articles  of  farm  production  and  of  farm  consumption,  and  will 
show  in  most  cases  a  more  rapid  advance  in  the  natural  products 
than  in  articles  in  the  manufactured  state. 


That  hiarlier  wniBre  level  aimed  at  l»y  the  fathers  of  the  Re- 
public, the  policy  of  protection,  which  they  inaugrnrated,  se- 
cured, and  still  maintain.— Hon.  George  H.  Ely,  of  Ohio,  in  the 
American  Economist. 

Vigrorous  action  and  measures  to  stamp  out  exlstinjer  abuses 
and  effect  reform  are  necessary  to  vindicate  society  as  at 
present  constituted.  OtlierTvlse,  Tve  must  yield  to  those  Tvho 
seek  to  introduce  a  ne^v  order  of  thing's  on  a  socialistic 
basis.— Hon.   Wm.    H.   Taft,   at    Kansas    City,   Mo. 

The  panic  -was  doubtless  chiefly  due  to  the  exhaustion 
of  the  free  capital  of  the  Avorld  by  reason  of  the  over- 
investment in  ei»teri>rises  that  have  not  been  as  productive 
as  expected.  The  enormous  industrial  expansion  has  at 
last  tied  up  nearly  all  the  Tvorld's  capital  -»vhich  warn  avail- 
able and  iietv  investments  had  to  halt.  This  result  vras 
world-wide,— Hon.  AVm.  H.  Taft,  at  Kansas  City,  Mo. 

I  -^vould  rather  hove  my  bo^s  taught  to  think  the  ftuest 
thing  in  life  Is  the  honesty  an<l  frankness,  the  truth  and 
loyalty,  the  honor  and  the  devotion  to  his  country  of  Theo- 
dore Roosevelt  llian  to  have  them  in  poss.ession  of  all  the 
■wealth  in  this  great  metropolis. — Hon.  Elihu  Root,  at  Ne-»v 
York,   Feb.   3,   1904. 

Experience  of  more  than  forty  years  in  business  has 
taught  me  that  under  a  low  or  revenue  tariff  business  depres- 
sion and  financial  distress  has  been  the  rule,  vt^hile  under 
protection  good  linsiness  and  general  prosperity  has  been 
the  result. — Hon.  N.  D.  Sperry,  M.  C,  of  Nevr  Haven,  Conn.,  in 
the   American   Economist. 

In  the  Post-Office  investigation  the  source  of  corruption, 
the  fountain  head  from  vrhich  ffo-wed  the  -whole  miserable 
business,  xxas  found  not  in  a -Republican,  but  in  a  Democratic 
Administration,  and  it  ivas  a  Republican  Administration 
which  applied  the  lancet  and  let  free  the  poison.— Hon.  Al- 
bert   J.    Beveridge,    in    the    Senate,    April    1,    1904. 

In  the  ballot-box  our  liberties  are  compounded.  See  to  it 
that  it  gives  true  expression  to  the  public  wWl.  Preserve  it 
from  pollution;  protect  and  defend  it  as  you  would  the  Ark 
of  the  Covenant,  for  it  has  been  purchased  by  the  priceless 
blood  of  countzess  heroes  ui)on  the  battlefields  of  the  Re- 
public—Hon. C.  W.  Fairbanks,  at  Baldwin,  Kas.,  June  7,  1»01. 


PRICES  OF  FARM  PRODUCTION. 


201 


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pr-^eoMeoeoeocoeoece^iNfrir-ic^eJMooc-ie^iMeceoMW 


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1   o 


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't-05<r>i>e<30ot^oo-*©u5t^U50t>eot-Off^oo500»or^ 

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202 


PR!(^Ef^   OF  FARM   PRODUCTION. 


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©C§o5oOOOCIOOOOOOOOOT)<'-rCXDOJOiCOi— t-iM©«Do4;06 

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$87.67 
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60.75 
57.40 
53.05 
51.77 
51.60 
55.20 
50.40 
52.80 
46.80 

s 

2? 

40.80 
43.20 
46.80 
45.60 

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i^giiiiii^s^iiii^ggiii 


PRICES  OF  FARM  PRODUCTS. 


203 


Price*  o£  Principal  Agrricaltnre  Prodnets  on  the  Farm  Decem- 
ber   1,    1892,    to    December    1,    1»07. 

[rrom  report  of  Department  of  Agriculture.  1 

Farm  prices  of  wheat  per  bushel. 


state  or  Territory. 


Maine    

New  Hampshire 

Vermont  

Conneeticut   _ 

New   York  

New  Jersey  

Pennsylvania 

Delaware    

Maryland    — 

Virginia    

West  Virginia 

North  Carolina  

South   Carolina  

Georgia  

Ohio  

Indiana 

Illinois 

Michigan    

Wisconsin    

Minnesota   

Iowa  

Missouri  

North  Dakota 

South  Dakota 

Nebraska  

Kansas    

Kentucky  

Tennessee 

Alabama    

Mississippi 

Texas  

Indian  Territory 

Oklahoma  . 

Arkansas  

Montana    

Wyoming 

Colorado  

New  Mexico  

Arizona 

Utah 

Nevada  

Idaho  

Washington  

Oregon    

California   


General  average  


1892 


$1.02 

85 


$0.79 
80 
67 


.535 


.51 
.55 
.51 
.63 
.65 
.88 
1,00 
..53 


.43 
.57 


$0.82 
76 


$0.81 
1.00 


.509 


.89 

.8;i 

.87 
.88 
.80 

.78 

.as 

.89 
.8') 
.78 
.80 
.74 
.84 
.70 
.68 

:fo 

.64 


$1.06 

1.10 

1.01 

1.00 

.90 

.93 

.91 

.91 

.93 

.92 

.89 

.91 

1.18 

1.03 

.88 

.89 

.89 

.87 

.84 


.726 


.75 


.74 

.81 

.95 

1.01 


$0.90 
.92 

.78 
.82 

'.74 
.72 
.70 
.71 
.72 
.77 
.82 
1.01 
.95 
.71 
.70 
.61 
.69 
.64 
.63 
.59 
.63 
.5S 
.58 
.53 
.55 
.69 
.79 
.8.) 
.81 
.64 


.619 


Farm  values,  corn  per  bushel. 


state  or  Territory. 

1892 

1895 

1896 

1897 

1900 

1903 

1904 

1907 

Maine 

Cts.. 
67 
65 
64 
62 
63 
62 
60 
58 
57 
44 
45 
53 
56 
51 
57 
56 
60 
42 
40 
.37 
46 
38 
37 
32 
36 
40 

Cts. 
54 
51 
48 
52 
56 
51 
45 
42 
39 
34 
37 
37 
40 
38 
46 
41 
47 
27 
23 
22 
32 
.30 
20 
18 
20 
24 

Cts. 
47 
45 
38 
46 
49 
42 
38 
36 
33 
25 
32 
32 
34 
37 
46 
43 
53 
21 
19 
18 
24 
22 

'19 
14 
20 
25 

Cts. 

47 
45 
43 
47 
54 
49 
40 
38 
34 
30 
30 
38 
40 
43 
49 
48 
55 
25 
21 
21 
27 
25 
24 
17 
24 
82 

Cts. 
55 
58 
50 
54 
67 
55 
47 
45 
45 
38 
41 
49 
50 
57 
64 
57 
60 
34 
32 
32 
37 
33 
29 
27 
32 
42 

Cts. 
66 
63 
62 
66 
81 
67 
60 
57 
57 
49 
51 
53 
64 
61 

69 
73 
47 
36 
36 
46 
43 
38 
38 
34 
42 

Cts. 
81 
72 
73 
72 
84 
73 
64 
58 
59 
49 
50 
59 
64 
62 
70 
71 
75 
46 
41 
39 
52 
46 
36 
33 
44 
40 

Ots. 
75 

New  Hampshire 

75 

Vermont 

75 

Massachusetts                         -  -- 

75 

Rhode  Island 

80 

Connecticut  

75 

New  York  

71 

63 

Pennsylvania       _. 

64 

Delaware         

52 

Maryland        _-                - 

54 

Virginia               ..             _-  

64 

West  Virginia 

72 

North  Carolina                -        

74 

South  Carolina                       - 

78 

Georgia 

76 

Florida 

80 

Ohio    '    _. 

52 

Indiana                              -- 

45 

Illinois                              -  -    

44 

Michigan          .—          

55 

55 

Minnesota  

50 
^   43 

Missouri                                     __  __ 

47 

North  Dakjta  —. 

60 

204  PRICES  OF  FARM  PRODUCTS. 

Farm  values,  corn  per  bushel — Continued, 


State  or  Territory. 

1892 

1895 

1896 

1897 

1900 

1903 

1904 

1907 

South  Dakota  

Cts. 
38 
28 
31 
40 
43 
52 
51 
50 
45 

Cts. 
23 
18 
19 
27 
27 
37 
37 
40 
31 

Cts. 
18 
13 
18 
25 
28 
45 
44 
45 
41 

Cts. 

21 
17 
22 
35 
36 
46 
45 
45 
41 

Cts. 
29 
31 
32 
40 
49 
58 
58 
50 
47 

Cts. 
35 
28 
36 
56 
49 
57 
54 
.58 
48 
39 
38 
51 
62 
58 
54 
75 
90 
70 
57 
65 
67 
74 

Cts. 
36 
33 
41 
49 
50 
60 
96 
57 
52 
40 
39 
63 
68 
57 
54 
78 
91 
72 
70 
66 
61 
78 

Cts. 
48 
41 

Nebraska         

Kensas   

Kentucky  

44 
53 
57 

75 
75 
70 
60 

Mississippi    . 

Louisiana  — — — 

Texas    

Indian  Territory _. 

Oklahoma 

26 
43 

59 
60 
48 
64 

44 

Arkansas       ._    __ 

47 
70 
61 
40 
72 

32 
75 
57 
41 
56 

37 
60 
78 
36 
55 

40 

65 
60 
38 

58 

68 

Montana  

^Wyoming   

Colorado    

68 
70 
65 

New  Mexico  .— _ 

Arizona    :. 

72 
90 

Utah   . 

58 

49 

51 

55 

63 

72 

Idaho    ... 

70 

Washington " 

60 
56 
55 

40 
55 
53 

57 
56 
53 

55 
63 
56 

59 
57 
61 

70 

Oregon  . 

74" 

California 

85 

General   average 

39.4 

25.3 

21.5 

26.3 

35.7 

42.5 

44.1 

61.6 

Farm  prices  of  oats  per  bushel. 

State  or  Territory. 

1892 

1893 

1895 

1896 

1897 

1900 

1904 

1907 

Maine                                 

Cts. 
45 
44 
43 
48 
49 
45 
39 
41 
40 
38 
38 
39 
41 
45 
52 
52 
55 
35 
34 
31 
35 
29 
28 
26 
30 
28 
23 
23 
26 
37 
38 
51 
50 
50 
88 

Cts. 
45 
43 
42 
42 

11 

35 
38 
35 
35 
38 
44 
53 
52 
55 
30 
28 
27 
32- 
27 
26 
23 
25 
28 
25 
22 
27 
34 
31 
51 
47 
44 
42 

Cts. 
34 
35 
33 
34 
39 
31 
28 
29 
27 
29 
27 
30 
32 
38 
49 
46 
65 
22 
20 
17 
23 
18 
14 
14 
18 
16 
17 
14 
17 
26 
27 
42 
39 
36 
26 

Cts. 
31 
35 
31 
35 
31 
31 
26 
28 
24 
21 
23 
26 
28 
35 
48 
41 
53 
17 
16 
15 
19 
17 
15 
12 
17 
18 
13 
11 
16 
24 
26 
41 
44 
34 
34 

Cts. 
32 
38 
32 
33 
34 
34 
27 
30 
27 
23 
26 
29 
30 
37 
45 
42 
53 
20 
19 
18 
23 
19 
19 
16 
19 
26 
18 
15 
18 
27 
28 
43 
44 
38 
27 

Cts. 
38 
38 
36 
38 
38 
35 
32 
31 
30 
30 
31 
37 
34 
45 
48 
49 
50 
26 
23 
23 
26 
23 
24 
20 
23 
32 
24 
24 
23 
31 

46 
40 
30 

47 
44 
45 
47 
44 
38 
40 
38 
41 
36 
43 
44 
52 
60 
65 
60 
32 
30 
30 
33 
28 
26 
26 
34 
24 
26 
25 
33 
40 
37 
64 
52 
45 
44 
38 
86 
43 
46 
39 
46 
57 
74 

i 

50 
43 
47 
67 

Cts. 
60 

New  Hampshire                       

61 

63 

60 

66 

Connecticut           --  -- 

60 

New  York                          

67 

66 

54 

60 

Maryland 

49 

Virginia              — 

60 

West  Virginia   , 

54 

60 

72 

Georgia   

Florida  

Ohio 

Indiana   

lUInois   

Michigan  

72 
75 
45 
42 
41 
48 

47 

KInnesota  _     —   — 

41 

lowii                     _   _ __ 

38 

Missouri    

North  Dakota  

South  Dakota  

41 
40 
39 

Nebraska    

Kansas  »  «« 

37 
42 

Kentucky  

Tennessee   

Alabama  

Mississippi    

49 
50 
67 
65 

Louisiana  

Texas    

Indian  Territory , 

Oklahoma 

55 
48 

Arkansas  __ _    

Montana 

40 
40 
38 
34 
56 

39 
37 
40 
37 
51 

32 
44 
39 
28 
45 

31 
31 
53 
30 
40 

33 
33 
35 
32 

41 

35 
42 
47 
43 
48 

51 

46 

V^^yoming 

Colorado    1 

New  Mexico 

Arizona   ._ 

63 
50 

55 
'60 

Utah    

40 

33 

30 

39 

33 

44 

48 

Nevada  

72 

Idaho   — 

37 
35 
37 
40 

41 
35 
37 
38 

29 
28 
27 
39 

30 
40 
33 
44 

32 
35 
35 
49 

40 
40 
41 
46 

42 

Washington 

45 

Oregon  

45 

California 

71 

General  average  

31.7 

29.4 

19.9 

18.7 

21.2 

25.8 

31.3 

44.3 

• 

FREIGHT  RATES,  1868  to  190: 


20- 


Grain,  Chicago  to   'New  York,  and  average  rates,  in  cents,  per 

hushel. 

[Prom  Bulletin  No.  15,  Revised.    Misoelluneous  Series,  of  Division  of 
Statistics.] 


Wheat. 

Corn. 

Via  lake  and  rail. 

Via  all  rail. 

Via  lake 
aud  ruii. 

Via  all 
rail. 

Ye«r. 

As  re- 
ported 

by  New 
York 

Produce 
Kx- 

chauge. 

As  re- 
ported 

by  Chi- 
cago 

Board  of 
Trade 

As  re- 
ported 
by  New 

York 
Produce 

Ex- 
change. 

As  re- 
por  ed 
by  Chi- 
cago 
Board  of 
Trade. 

As  re- 
ported 
by  Chi- 
cago 
Board  of 
Trade. 

;  ■ 

Cents. 

As  re- 
ported 
by  Chi- 
cago 
Board  of 
Trade. 

1868 

Cents. 

29.00 

25.00 

22.00 

25.00 

28.00 

26.90 

16.90 

14.60   . 

11.80 

15.80 

11.40 

13.30 

15.70 

10.40 

10.90 

11.50 

9.95 

9.02 

12.00 

12.00 

11.00 

8.70 

8.50 

8.53 

7.55 

8.44 

7.00 

6.95 

7.32 

7.37 

4.96 

6.63 

5.05 

5.57 

5.78 

6.17 

5.02 

6.44 

6.48 

6.93 

Cents. 

Cents. 
42.6 
35.1 
33.3 
31.0 
33.5 
33.2 
28.7 
24.1 
16.5 
20.3 
17.7 
17.3 
19.9 
14.4 
14.6 
16.5 
13.12 
14.0 
16.5 
al5.74 
al4.5 
15.0 
14.31 
15.0 
14.23 
14.7 
12.88 
12.17 
12.0 
12.32 
11.55 
11.13 
b9.98 
9.92 
10.60 
11.33 
11.11 
10.20 
10.50 
11.30 

Cents. 
37.84 
35.57 
30.00 
31.80 
34.99 
31.02 
26.25 
24.00 
16.86 
20.50 
17.70 
17.74 
19.80 
14.40 
14.47 
16.20 
13.20 
13.20 
15.00 
15.75 
14.50 
15.00 
14.. 30 
15.00 
13.80 
14.63 
13.20 
11.89 
12.00 
12.50 
12.00 
11.60 
9.96 
9.88 
10.62 
11.29 
11.12 
9.90 
10.20 
c 

Cents. 
35.32 

1869 

25.20 

22.50 

25.42 

29.50 

24.61 

17.09 

13.89 

11.36 

15.46 

12.09 

13.13 

15.80 

10.49 

10.91 

11.63 

10.00 

9.02 

12.00 

12.00 

11.14 

8.97 

8.52 

8.57 

7.59 

8.48 

7.00 

6.96 

6.61 

7.42 

4.91 

6.63 

5.10 

5.54 

5.89 

6.37 

5.50 

6.40 

6.35 

c 

23.55 

22.20 

23.72 

26.60 

22.98 

13.88 

13.03 

10.79 

14.06 

10.53 

12.20 

14.43 

9.42 

10.28 

11.00 

8.50 

8.01 

11.20 

11.20 

10.26 

8.19 

7.32 

7.53 

7.21 

7.97 

6.50 

6.40 

6.15 

6.92 

4.41 

5.83 

4.72 

5.16 

5.51 

5.78 

4.82 

5.19 

5.72 

c 

33.20 

1870 

28.00 

1871 

29.68 

1872 

32.66 

1873 

28.93 

1874 

24.50 

1875- -- 

22.40 

1876 

15.74 

1877 - 

18.90 

1878- 

16.. 52 

1879 -- 

14.56 

1880 

17.48 

1881 

1882 _ 

13.40 
13.50 

1883       

15.12 

1884..                

12.32 

ISS') 

12.32 

1SS6 

1887                   _. 

14.00 
14.70 

1888                      -      

13.54 

1889a         : 

12.60 

18J0 

11.36 

1891 

14.00 

1892 

12.96 

1898 

13.65 

1894- 

12.32 

1895    -  — 

10.29 

1896          -        .        _    __ 

10.50 

1897    _  -X 

11.43 

1898  . 

9.80 

1899    ...              .     

10.08 

1900        --     .             

9.19 

1901 

9.21 

1902 

9.94 

1903 

10.54 

1904 - 

10.38 

1905 

9.40 

1006 

9.52 

1907 

e 

a  Average  based  upon  officially  published  tariffs;   actual  rates  lower, 
b  After  1899,  for  domestic  consumption;   rates  for  export  lower. 
c  Data  not  available. 


Average  annual  freight  rates  from  1870  to  1907. 
[From  Statistical  Abstract.] 


Freight  rates  on 
wheat  per  bushel. 

Freight  rates  on  can- 
ned goods,  per  cwt., 
from  Pacific  coast 
to  New  York. 

Year. 

Chicago 

to  New 

York,  by 

rail. 

Buffalo 

to  New 

York,  by 

canal. 

Les~8 
than  car- 
loads. 

In  car- 
loads. 

1870 

1871 

Cents. 
33.3 
31.0 
33.5 
33.2 
28.7 
24.1 
16.5 
20.3 
17.7 
17.3 
19.9 

Cents. 

11.2 

12.6 

13. 

11.4 

10.0 

7.9 

6.6 

7.4 

6.0 

6.8 

«.5 

13.66 
8.76 
8.74 
3.69 
3.78 
3.66 
3.77 
4.06 
4.17 
4.20 
4.20 

13.66 
3.76 

1872 

1873 

3.74 
3.69 

1874 

3.78 

1S75 

3.66 

1876 

1877 

8.77 
4.06 

1878 - 

4.17 

1879 

4.20 

4.a» 

206  FREIGHT  RATES.  1S68  to  1907. 

innual   average  freight   rates  from  ISHO   to   1901 — Continued. 


Year. 

Freight  rates  on 
wheat  per  bushel. 

Freight  rates  on  can- 
nod  goods,  per  cwt., 

Irom    Pacillc    coast 

to  New  York. 

Chlcaao 

to  New 

York,  by 

rail. 

Buffalo 

to  New 

York,  by 

caual. 

LesH 
than  car- 
loads. 

In  car- 
loads. 

1881 - 

1«82 

14.4 
14.6 
16.5 
13.125 
14.0 
16.5 
15.71 
11.5 
15.0 
14.31 
15.0 
14.23 
14.7 
12.88 
12.17 
j2.0 
12.32 
11.55 
11.13 
9.98 
9.92 
10.60 
11.33 
•11.11 
10.20 
10.50 
11.30 

4.7 
5.4 
4.9 
4.2 

3.8 

'  li 

3.4 
4.8 
3.8 
3.5 
3.5 
4.6 
3.2 
2.2 
3.7 
2.8 
2.8 
3.0 
2.5 
3.5 
3.8 
4.0 
3.2 
3.9 
4.2 
5.0 

2.54 
1.50 
1.50 
1.50 
1.50 
1.18 
1.55 
1.89 
2.30 
2.30 
2.30 
2.30 
2.30 
2.30 
2.30 
1.91 
l.(X) 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 
1.90 

2.51 
1  59 

1883 

1.50 

16S1 

1885                                                          >  _ 

1.41 
1.2  > 

1886 

1.01 

1887 ^ - 

1883 7. 

1.20 
1.13 

1889 

1890- 

1.03 
1.00 

1891  _ _... 

1.09 

1892 

1.05 

1893 -..--. 

18J4 : 

1.00 
1.00 

1895 

1.00 

1896 

.75 

1897 _ 

.76 

1898 .:-. 

.75 

lt99    - 

.75 

1900      - 

.75 

1901 

.75 

1902 

.75 

1903 . 

190t _ 

.75 
.75 

1905  - 

.75 

1903    _. 

.75 

1907    - 

.75 

The  State  1m  potent.  Corporattonii  and  conil>tnatlons  ^vliieh 
derive  tlieir  breath  from  the  State  are  within  its  absolute 
and  perpetual  control. — Hon.  C.  W^.  FairbankN.  at  St.  Paul, 
Minn..  AusrnNt  31.   1{)<>3. 

Corporations  that  are  handled  honestly  and  fairly,  so  far 
from  beinK'  an  evil,  are  a  natnral  business  ev«»lntlon  and 
make  for  the  jJieneral  prosperity  of  our  land.  "We  do  no< 
>vl»«h  to  destroy  corporations,  but  ^ve  do  Tvisli  to  make  them 
subserve  the  public  icood. — I*resi«lent  Roosevelt  at  Cincinnati. 
Ohio.    September    20.    19<>:2. 

We  must  regard  and  have  an  interest  In  what  our  neitirh- 
bors  arc  doinv^.  and  ^vhen  we  can  assist  them,  "tve  cannot 
pa.ss  by  on  the  other  side  as  the  Levlte  di»i,  but  T»e  must 
take  them  up  as  the  Good  Samnriian  did  and  bind  up  their 
wounds  and  prepare  to  send  them  on  their  -tvay  rejoicinjBf. — 
Hon.    Wm.    H.    Taft,    at    Cleveland.    Ohio. 

l^et  nothin;^;:  distract  us;  let  no  discordant  voice  intrude 
to  embarrass  us  in  the  solution  of  the  mitchty  probleius 
which  involve  such  vast  conseiiuences  to  ourselves  and  jios- 
ierlJy.  Let  us  remember  that  God  bestows  supreme  oppor- 
tunity upon  no  nation  >vhicli  Is  not  ready  to  respond  to  the 
call  <:f  supreme  duty. — President  McKinley  at  St.  Louis,  Oct. 
14,  1.S08. 

>  .  ■■\    ■.;'^  , ,    • 

It  is  probable  that  the  strlngrency  which  reached  its 
helK'ht  on  that  dark  day  of  October  24  miftht  In  part  have 
been  alleviated  had  we  had  a  currency  ^vhich  could  uuto> 
mntically  enlargre  Itself  to  meet  the  tremendous  demand  of 
a  day  or  a  >veek  or  a  month,  while  public  confidence  '  ivas 
beinK  restored. — Hon.  Wm.  H.  Taft,  to  Merchants  and  Manu- 
facturers*   Association,    Boston,    Mans. 

The  riiBTht  of  railway  corporations  to  a  fair  and  profit- 
able return  ui»on  their  investments  and  to  a  reasonable 
freedom  in  their  regulations  must  be  recounixed;  but  it 
seems  only  Just  that,  so  far  as  its  constitutional  authority 
Tivill  permit,  Con«:ress  should  protect  the  people  at  lars'e 
in  their  interstate  traffic  against  acts  of  injustice  -tvhich  the 
State  «-overnments  are  poTterless  to  prevent. — President 
Arthur. 

But  the  most  sratlfyln}^  feature  of  this  picture  of  bunk- 
ingr  and  financial  conditions  in  our  country  is  the  fact  that 
deposits  in  savinfirs  banks— those  institutions  for  the  safe- 
keepin^r  of  the  earniuK's  of  ^vorkiufi^men  and  wido^vs  and* 
orphans  and  children  of  the  country— have  increased  from 
i^.'S;i,4».OCM).<XH>  in  1870  to  spa.SOO.OOO.tXM),  In  1»08.  What  say  you 
business  men,  of  the  future  of  a  country  whose  workln^'- 
mnn  and  working  woman  and  children  have  three  and  a 
half  billion  dollars  laid  aside  for  a  "rainy  day."— O.  P.  Austin. 


-NVMBER  AND  VALUE  OF  FARM  ANIMALS. 


207 


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(^C<5-»t"lCcpi^XCTl©i-l0>lcC-^lOCD^5£ 

)XXXxxxxxS«Scn*otSsS 


LABOR  CONDITIONS  UNDER  REPUBLI- 
CAN AND  DEMOCRATIC  ADMINIS- 
TRATIONS. 


EMPLOYMENT,  HOURS  OP  LABOR,  AND  ^ITAGBS. 

The  prosperity  of  a  nation  is  always  evidenced  by  the  con- 
dition of  its  wage-earners.  Good  wages  and  steady  employ- 
ment are  invariably  indicative  of  sound  business  conditions  and 
public  confidence  in  those  who  direct  the  country's  destinies. 
That  the  unexampled  prosperity  which  has  been  manifest  since  the 
return  of  the  Kepublican  party  to  control  and  the  enactment 
of  a  protective  tariff  has  continued  under  the  second  administra- 
tion of  President  Roosevelt  is  amply  demonstrated  by  the  bulletin 
on  wages  and  hours  of  labor  recently  issued  by  the  United 
States  Bureau  of  Labor.*  To  obtain  this  information,  which 
is  published  annually,  special  agents  of  the  bureau  were  sent 
to  representative  establishments  in  various  parts  of  the  country 
to  copy  directly  from  the  pay  rolls  the  figures  showing  the  num- 
ber of  persons  employed,  the  average  wages  paid,  and  the  hours 
worked  per  week.  This  investigation  was  conducted  with  the 
greatest  care  by  experts  specially  trained  for  this  class  of  work, 
and  the  results  shown  are  believed  to  be  trustworthy  in  every 
respect. 

The  following  tables,  which  have  been  compiled  from  this  and 
preceding  numbers  of  the  bulletin,  show  in  actual  and  relative 
figures  the  number  of  employees,  the  average  number  of  hours 
worked  per  week,  and  the  average  wages  per  hour  in  15  leading 
occupations  during  each  of  the  years  1890  to  1907.  The  number 
of  establishments  furnishing  the  data  is  given  at  the  head  of 
each  table. 

To  facilitate  the  study  of  the  figures  the  lureau  of  Labor 
computed  a  relative  number  to  accompany  each  actual  number. 
These  relative  numbers  serve  a  double  purpose — ^first,  they  pre- 
sent to  the  mind  of  the  reader  more  clearly  than  the  actual  or 
concrete  numbers  the  measure  of  difference  between  the  data 
for  a  series  of  years,  and,  second,  by  their  use  combinations 
are  made  possible  that  cannot  be  made  with  concrete  numbers. 
In  making  comparisons,  therefore,  between  data  for  individual, 
years  the  relative,  rather  than  the  actual,  numbers  should  be 
relied  upon.  While  all  comparisons  might  have  been  made 
with  1890,  or  any  other  year,  it  was  thought  best  to  take  as  a 
basis  for  comparison,  or  100.0,  not  any  one  year,  but  the  aver- 
age during  the  ten  years  from  1890  to  1899,  owing  to  the  fact 
that  the  conditions  in  any  one  year  might  be  abnormal.  On 
the  first  line,  therefore,  of  the  table  given  below  (for  black- 
smiths) appears  the  niimber  576,  which  was  the  average  num- 
ber employed  during  the  ten  years  from  1890  to  1899  in  the 
166  establishments  investigated.  In  the  second  column  is  the 
relative  number  100.0,  indicating  that  the  number  576  is  taken 
as  the  basis,  or  100.0.  In  the  second  line,  second  column,  is 
given  the  relative  number  99.5,  indicating  that  in  1890  the 
number  of  employees  was  99.5  per  cent  of  the  average  number 
employed  during  the  ten-year  period  from  1890  to  1899.  The 
other  relative  figrires  may  be  used  in  a  similar  manner.  In 
computing  the  relative  number  of  employees  for  different  years 
account  was  taken  of  the  increase  or  decrease  in  the  number 
of  establishments  considered. 

•  The  bi-monthly  bulletins  of  the  Bureau  of  Labor  are  published  for 
frM  distribution  and  can  be  obtained  on  application  to  the  bureau. 

208 


EMPLOYMENT,  HOURS  OF  LABOR  AND  WAGES.        209 


Blacksmiths. 
[Data  from  166  establishments  1S9(>-1.X)3;  J92,  1901;  178.  1905;  188,  1906;  197,  1907.1 


Number  of 

Average  hours 

Average  wages 

Tear. 

employees. 

per  week. 

per  hour. 

Actual. 

Relative. 

Actual. 

Relative. 

Actual.    Relative. 

Average  IS^O-Qa. 

576 

100  0 

59.00 

100.0 

$0,2539             100.0 

1890 

573 

93.5 

59.41 

100.5 

.2677 

101.4 

1S91 

579 

100.5 

59.20 

100.2 

.2681 

101.6 

1892 

583 

101.2 

59.37 

100.5 

.2672 

101.2 

1893- 

.586 

101.7 

59.03 

99.9 

.2677 

101.4 

1894 

510 

88.4 

58.68 

99.3 

.2611 

99.1 

1895 

511 

93.9 

59.18 

100.2 

.2002 

98.8 

1893 

548 

95,1 

68.93 

99.7 

.2643 

100.1 

1897- 

541 

93.9 

58.96 

99.8 

.2301 

98.6 

1898 

635 

110.2 

59.20 

100.2 

.2=i87 

98.0 

1899 

665 
695 

115.5 
120.7 

58.98 
58.87 

99.8 
99.6 

.2037 
.2685 

99.9 

1900 

101.7 

1901 

753 

130.7 

57.78 

97.8 

.2757 

104.4 

1902 

802 

139.2 

57.17 

96.8 

.2841 

107.7 

1903 

818 

142.5 

56.65 

95.7 

.2902 

111.8 

1904.. 

776 

130.6 

56.40 

95.5 

,2^79 

110.2 

1905 

751 

187.6 

58.77 

93.0 

.3030 

111.7 

1906.. 

861 

158.4 

58.80 

98.1 

.3130 

114.7 

1907-. 

804 

147.4 

56.52 

97.8 

.3200 

118.0 

Boilermakers. 
[Data  from  97  establishments  1890-1903;  93,  1904;  91.  1905;  93.  1908;  94,  1907.] 


Average  1890-99. 

1,263 

100  0 

58.55 

100.0 

$0.2609 

100.0 

1890.. 

1,3.36 

105.8 

•      59.25 

101.2 

.25J4 

99.4 

1891 

1,231 

102.2 

59.23 

101.2 

.2577 

98.8 

1892 

1,327 

^.05.1 

58.88 

100.8 

.2585 

93.1 

1893 

1,280 

101.3 

.58.39 

99.8 

.25S3 

99.0 

1891. 

1,105 

87.5 

58.83 

99.9 

.2614 

100.2 

1835. 

1,136 

58.47 

99.9 

.2629 

100.8 

1896 

1,236 

97.9 

58.02 

99.1 

.2626 

100.7 

1897 

1,197 

91.8 

58.11 

99.3 

.2607 

93.9 

1898 

1,354 

107.2 

58.30 

99.6 

.2617 

100.3 

1899 

1,309 
1,477 

108.4 
116.9 

58.06 
57.36 

99.2 
98.0 

.2654 
.2773 

101.7 

1900 

10S.3 

1901 

1 ,  585 

125.5 

53.82 

97.1 

.2794 

107.1 

19^ 

1,624 

128.6 

56.33 

96.3 

.2800 

107.8 

1903 

1,700 

131.6 

56.24 

96.1 

.2818 

109.2 

1904 

1,289 

121.3 

55.98 

95.0 

.2312 

113.2 

1905 

1,182 

120.9 

55.92 

9t.8 

.30:J7 

115.4 

1906 

1,227 

130.4 

56.09 

95.2 

.3135 

118.2 

1907 

1,241 

130.3 

55.73 

94.7 

.3290 

123.0 

Bricklayers.  ^ 

[Data  from  212  establishments  1830-1903;  229.  1901;  209,  1905;  215,  1906;  222,  1907.] 


Average  1890-99 

4,355 

100.0 

51.57 

100.0 

$0.4387 

100.0 

1890 

4,422 

101.5 

53.22 

103.2 

.4316 

98.4 

1891 

4.892 

112.3 

52.80 

102.4 

.4365 

93.5 

1892 

4,967 

114.1 

52.19 

101.2 

.4431 

101.0 

18<)3 

4,5.35 

104.1 

51.63 

100.1 

.4436 

101.1 

1894 

4,055 

93.1 

51.93 

100.8 

.4325 

98.6 

1895. 

3,841 

88.2 

51.53 

100.0 

.4857 

93.5 

1896... 

3,998 

91.3 

51.50 

99.9 

.4337 

98.9 

1897 

4,010 

92.1 

•    51.11 

99.1 

.4361 

^•1 

18)8     

4,150 

L         95.3 

50.47 

97.9 

.4331 

98.7 

1899 .- 

4,675 

^        107.3 

49.24 

95.5 

.45)7 

104.8 

1900 

4,576 

105.1 

49.32 

95.6 

.4672 

105.5 

1901 

5,112 

118.1 

48.62 

94.3 

.4912 

112.0 

1902 

4,781 

109.8 

48.27 

93.6 

.5313 

118.0 

1903 

5,061 

116.3 

47.83 

92.7 

.5171 

124.7 

1901... 

4,644 

111.2 

47.32 

92.1 

.5-86 

127.3 

190.5 

4,365 

111.8 

46.79 

92.0 

.5917 

182.1 

1906 

5,101. 

124.0 

46.82 

91.9 

.6205 

138.6 

1907. _. 

4,819 

115.7 

46.62 

91.8 

.6313 

140.9 

Thiis  brinssrs  me  to  the  nnestion  of  arb-iration.  It  Spes 
Ti^thont  Mayingr  that  where  an  adjustment  eannot  be  reached 
by  nesotiation.  It  la  far  better  for  the  community  at  largre 
that  the  differences  be  settled  by  submission  to  an  imimrtlal 
tribunal  and  agreement  to  abide  its  judftment  than  to  resort 
to  a  trial  of  resistance  and  endurance  by  lockouts  and 
strilces.— Hon.   Wm.   H.  Taft,   at   Cooper  Union,  New   York   City. 


210 


EMPLOY )n:\'r.  noch's  of  lauor  -iy/)  ^y^r,Efi. 


Carpenters. 
TData  from  227  establishments  1890-1908;  242,  liK)!;  213,  1005;  216,  liWO;  225,  IIWT.] 


Year. 


Average  1890-99. 
1890. 
1891. 
1892. 
1893. 
1894. 
1895. 
1896. 
1897. 
1898. 
1899. 
IJKK). 
1901. 
1902. 
1903. 
190  k 
190>. 
1906. 
1907. 


Numbet  of 
employees. 


Xctual.    ItelRtlve. 


5,655 
5,923 
6,231 
6,481 
5,528 
5,019 
5,021 
5,413 
5,403 
5.402 
6,120 
6,338 
6,630 
6,903 
6,580 
6,748 
6.652 
7.168 
7.386 


100.0 
104.8 
110.2 
114.3 
97.8 
89.3 
88.8 
y5.7 
95.4 
95.6 
108.2 
IW.O 
117.8 
122.1 
116.4 
108.6 
108.3 
121  6 
124.7 


Average  hours 
per  week. 


Actual.    Relative.  I  Actual. 


54.85 
55.94 
5'>.5() 
.55.12 
55.22 
55.27 
55.05 
54.67 
54.20 
54.02 
53.42 
51.88 
50.74 
19.70 
49.41 
-18. 99 
48.64 
48.26 
47.87 


100.0 
102. 0 
101.3 
100.5 
100.7 
100.7 
100.3 
99.7 
95.4 
98.5 
97.4 
94.5 
92.5 
90.6 
90.2 
89.9 
90.1 
89.7 
8ji.9 


Average  wages 
per  hour. 


Relative. 


.2751 

.2713 

.2730 

.2825 

.2744 

.2693 

.2602 

.27  to 

.2748  i 

.2790 

.283) 

.3040 

.3190 

.3103 

.3591 

.3833 

.3773 

.4017 

.4338 


100.0 
98.6 
90.2 
102.7 
99.7 
97.9 
97.9 
99.0 
100.0 
101.4 
103.3 
110.8 
U5.9 
123.7 
130.6 
129.9 
133.6 
141.6 
15U9 


Compositors. 

[Data  for  employees  from  91  establishment.s  1810-1903.  Data  for  hours  and 
w;i«:es  from  01  establishments  IHOO;  92,  1801,  1802;  93.  18J3;  01.  1804;  05,  189.")- 
loa.{.     Data  from  135  establishments  1904;  118,  1905;   149.  1903;   151,  1907. J 


Average  1890-99.. 

1,148 

100.0 

.52.5  5 

100. 0 

$0.3939 

100.0 

1890 

1,.598 

131.4 

53.15 

101.2 

.3180 

101.0 

1801 

1,530 

133.3 

52.62 

103.2 

.3997 

101.5 

1892 

1,491 

130.1 

.52.-58 

100.1 

.4013 

101.9 

1893 

1,327 

115.6 

53.13 

101.1 

.3)33 

99.8 

1894 

1,055 

91.9 

52.75 

100.4 

..379  J 

96.4 

189.5 

915 

79.7 

52.73 

100.1 

..3827 

97.2 

1896 

883 

76.9 

52.. 58 

100.1 

.3897 

98.9 

1897 

928 

80.8 

52.47 

m.a 

.3925 

99.6 

1808 

898 

78.2 

.52.06 

9.1.1 

.3931 

99.9 

1899. 

944 

82.2 

.51.26 

97.6 

.4086 

103.7 

1930- 

969 

84.4 

51.00 

97.3 

.1071 

103.  1 

1901. 

950 

83.5 

50.37 

95.9 

.4252 

107.0 

1002     

954 
1,009 

83.1 

87.9 

49.96 
49.81 

95.1 

94.8 

.4352 
.4467 

110.5 

1003. 

113.4 

1004.. 

1,795 

92.4 

47.23 

93.0 

.4916 

115.6 

1905 

2.193 

.     100.7 

47.42 

93.  4 

.5061 

118.3 

vm 

2,205 

108.7 

47.25 

92.8 

.5120 

120.3 

1907 

2,357 

114.8 

46.92 

92.3 

.5« 

124.1 

»  Hod  carriers. 

[Data  from  250  establishments  1890-1903;  262,  1904;  255,  1905;  260,  1906;  311,1907.] 


Average  1890-99.. 
1830.. 
1891.. 

1802... 
1893.- 
1894... 
180.5.-, 
1806... 
18)7... 
1808... 
1899... 
1000... 

vm... 

1902... 
1903... 
1904... 
100.5... 
1.903... 
1907... 


4,242 
4,327 
4,644 
4,894 
4,455 
3,698 
3,844 
3,959 


4,685 
4,417 
5,037 
5,032 
5,212 
4,811 
4,618 


100.0 
102.0 
109.5 
115.4 
105.0 
87.2 
90.6 
93.3 
94.2 
92.4 
110.4 
104.1 
120.2 
119.3 
123.5 
124.3 
128.1 
146.3 
131.1 


100.0 
102.3 
101.8 
100.4 
103.1 
100.8 
99.9 
90.7 
99.7 
98.9 
96.5 
96.5 
95.6 
91.1 
93.0 
92.8 
93,0 
92.9 
92.7 


$0.2.329 
.22"^9 
.2248 
.2314 
.2325 
.2303 
.2320 
.23:^5 
.2322 
.2313 
.2518 
.2408 
.2516 
.2676 
.2863 
.2866 
.2933 
.3192 
.3202 


100.0 

97.0 

96.5 

99.4 

99.8 

98.9 

99.6 

100.3 

99.7 

100.6 

108.1 

107. » 

103.3 

114.9 

122.0 

123.8 

124.7 

134.5 

135.9 


An  injunction  suit  does  not  diJfer  in  tlie  slierhtest  deg^ree 
from  a  suit  bi'OUf^lit  after  tlie  event,  «o  far  as  the  function 
of  tbe  court  is  concerned  in  declaring-  tlie  la^v.  except  that 
the  court  declares  the  la^'''  in  r«'*:»ie**t  of  anticipated  facts 
rather  than  in  respect  of  those  which  have  happened.  The 
court  has  no  authority  to  mal<:e  law.— Hon  Wm.  H.  Taft,  at 
Cooper    Unlouj    New    York    City. 


WMPL07MENT,  HOURS  OF  LABOR  AND  WAGES.        211 


Iron  molders. 
[Datft  from  183  establishments  1890-1903;  179,  1904;  169,  1905;  168.  1906;  171,  1907.] 


Number  of 
employees. 

Average  hours 
per  week. 

Average  wages 
per  hour. 

Actual. 

Relative, 

Actual. 

Relative. 

Actual. 

Relative. 

ATwage  1890-99-. 

1890— 

1891-. 

1892. 

1893 

1894. 

1895... 

1896 

1897— 

1898. 

2,974 
2,962 
2,952 
3,032 
3,181 
2,519 
2,781 
2,519 
2,781 
3,234 
3,439 
3,790 
3,793 
3,968 
4,218 
3,408 
3,637 
4,094 
4,354 

100.0 
99.6 
99.3 
102.0 
107.0 
84.7 
93.5 
97.8 
91.9 
108.7 
115.6 
127.4 
127.5 
133.4 
141.8 
116.2 
134.9 
147.6 
154.4 

59.31 
59.51 
59.60 
.59.49 
59.18 
59.10 
59.29 
59.24 
59.17 
59.34 
59.14 
59.07 
58.47 
57.65 
56.80 
56.13 
56.09 
56.08 
55.74 

100.0 
100.4 
100.5 
100.3 
99.8 
99.7 
100.0 
99.9 
99.8 
100.0 
99.7 
99.6 
9S.6 
97.2 
95.8 
95.1 
95.1 
95.1 
94.8 

$0.2526 
.2540 
.2505 
.2548 
.2557 
.2472 
.2476 
.2507 
.2525 
.2503 
.2568 
.2694 
.2739 
.2894 
.3036 
.3072 
.3078 
.3217 
.3317 

100.0 
100.6 
101.5 
100.9 
101.2 
97.9 
98.0 
99.2 
100.0 
99.1 
101  7 

1900... 

1901 

1902 

106.7 
108.4 
114  6 

1908 

1901 

1905 

1906 

1907 

120.2 
119.5 
119.3 
123.8 
127.0 

Laborers. 
[Data  from  146  establishments  1890-1903;  172,  1901;  192,  1905; 


1906;  190,  1907.] 


Average  1890-99 

4,460 
5,118 

100.0 

58  84 

100.0 

$0.1467 
.1507 

100.0 

1890 ^ 

1891 J? 

114.8 

59.02 

100.3 

102.7 

4,«61 

109.0 

59.02 

100.3 

.1511 

103.0 

1892 

4,812 

107.9 

.59.02 

100.3 

.1519 

103.5 

1893 

4,516 

101.3 

58.80 

100.0 

.1493 

101.8 

1894 

4,128 

92.6 

58.76 

99.9 

.1419 

96.7 

1895... 

3,796 

85.1 

58.88 

100.1 

.1440 

98.2 

1896 

4,018 

90.1 

58.92 

lOO.l 

.1415 

96.5 

1897 

4,000 

89.7 

58.80 

99.9 

.1445 

98.5 

1898 

4,524 

101.4 

58.44 

99.3 

.1466 

99.9 

1899 

4,b22 

108.1 

58.71 

99.8 

.1457 

99.3 

1900 

5,275 

118.3 

58.27 

99.0 

.1461 

99.6 

1901 

4,618 

104.2 

.57.98 

98.5 

.1585 

108.0 

1902 

5,317 

119.2 

.56.66 

96.3 

.1614 

112.0 

1903. 

5,082 

113.9 

.56.13 

95  ..8 

.1676 

114.2 

1901 

5, 012 

96.8 

55.38 

95.8 

.1781 

114.3 

1905 

7,017 

109.1 

.54.77 

95.8 

.1867 

114.4 

1906 

7,187 

130.1 

54.85 

95.4 

.1956 

122.5 

1907 

7,366 

137.8 

54.56 

94.9 

.2037 

127.2 

Machinists. 
[Data  from  218  establishments  1890-1903;  228,  1904; 


1905;  205,  1906;  209,  1907.] 


Average  1890-99. 

5,414 

100.0 

59.12 

100.0 

$0.2404 

100.0 

1890 

5,302 

97.9 

59.52 

10O.7 

.2413 
,2435 

100.5 

1891-. 

5,414 

100.0 

59.47 

100.6 

101.2 

1892 

5,409 

5,677 

99.9 
104.9 

59.24 
59.03 

100.2 
99.8 

.2459 
.2450 

102.3 

18;)3. 

101.9 

1894. 

4,339 

80.1 

59.07 

99.9 

.2347 

97.5 

1895 

4,917 

90.8 

59.08 

99.9 

.2347 

97.5 

1S96-. 

5,176 

95.6 

59.01 

99.8 

.2397 

99.6 

1897 

5,050 

93.4 

58.96 

99.7 

.2397 

99.7 

1S98. 

6,058 

111.9 

£9.11 

100.0 

.2377 

99.0 

1899 ... 

6,793 

125.5 

58.72 

99.3 

.2417 

100.8 

1900- 

7,088 

130.9 

58.56 

99.1 

.2485 

103 .6 

1901... 

7,646 

141.2 

57.37 

97.0 

.2555 

106.8 

1002. 

8,221 

151.8 

56.56 

95.7 

.2646 

110.3 

15X)3.. 

8,. 576 

158.5 

56.12 

9i.9 

.2709 

112.9 

1904         .... 

7,769 

135.7 

55.57 

94.0 

.2726 

112.8 

1905       

7,i30 

151.0 

56.12 

94.5 

.2795 

113.1 

1906       

7,8<9 

16:);0 

.55.98 

94.4 

.2922 

116.4 

1907 ^. 

8,268 

179.4 

55.40 

93.7 

.3051 

120.4 

A  hijsrher  Htandard  for  our  Judiciary:  fewer  laws  ami 
better  enforeiiiont  of  tliem;  a  wider  public  appreciation  of 
tbe  essentials  of  democracy  and  of  tbe  principles  upon  wblcli 
this  ftovernment  was  founded,  will  belp  us  to  the  solution 
of  the  problems  before  us,  and  as  the  very  basis  and  founda- 
tion of  our  national  life,  we  must  conserve  those  forces 
wiiich  insure  the  etilciency  of  our  schools  and  safe-gruard 
the  puritv  of  our  homes.— Hon.  Georare  B.  Cortelyou,  at  U»- 
bana,    Illinois,    June    7,    1906. 


212        E}fPLOYMENT,  JJOVRS  OF  LABOR  AND  WAGES. 


Painters. 
[Data  from  203  estobJJshinents  189(>-190C^;  208,  l»Ol;  206,  1905;  210,  1906;  211,  1907.] 


Tear. 


Average  1890-99 

ISJO 

1S91.. 

l»ii... 

i»M 

1804. 

1895 

1«96. 

1897— 

1898 

1899 

1900 

1901- 

1902 

1903 

1904 

190S- 

1906- 

1907 


Number  of 
employees. 


Actual.    Belative. 


8,e7« 
i.m 
8,708 
«,S77 
S,66i 

S,4«0 
S,t4S 

X,7»7 
8,7M 
t.WS 

4,060 
4,251 
4,2U 
4,021 
4,1»4 
4,S04 
4, §02 
4,497 


100.0 
90.3 
100.9 
105.5 
99.7 
»8.9 
»4.1 
99.2 
101.7 
101.8 
107.5 
111.2 
116.5 
US. 7 
109.4 
109.9 
111,5 
1W.2 
114.4 


Arerage  hours 
per  week. 


Actual.    Itelative. 


100.0 
102.  C 
101.9 
101.1 

loe.i 

100.4 
100.1 
99,8 
99.0 
98.1 
97.1 
94.6 
92.6 
91.5 
90.8 
90.4 
90.» 
89.7 


ATfrage  wages 
per  hour. 


Actual.    Relatlre. 


^.2763 
.2SftO 
.2712 
.2747 
,2795 
.2737 
.2720 
.2742 
.2778 
.2827 
.2892 
,8054 
.8170 
,3308 
.8450 
,8548 
.8642 
.8842 
.8967 


100.0 
97.0 
9S.2 
99.4 
101.2 
99.1 
98.4 
»»).2 
100.5 
102.3 
164.7 
110.5 
114.7 
119.5 
124.9 
127.9 
129.5 
136.8 
142.0 


Plasterers. 

[Data  from  146  establishments  1890-1903;  15«,  1904;  164,  1905;  166,  1906;  166,  1907.) 


Average  1890-90 

1,681 

100.0 

81.83 

100.0 

^.3969 

100.0 

1890— 

1,084 

100.2 

63.50 

103.2 

.86-18 

98.4 

1»»1— 

1,782- 

106.0 

92.67 

lQik.6 

.3966 

99.2 

1892-. 

1,857 

110.5 

52.09 

100.5 

.4100 

102.6 

1893_ 

1,721 

102.4 

51.97 

100.8 

.4019 

100.8 

1894— 

1,547 

V2.0 

52.01 

100.3 

.8915 

97.9 

1895 

1.547 

92.0 

W.e3 

99.6 

.1924 

98.1 

W96-. 

1,64B 

97.7 

SI. SO 

99.4 

.8985 

99.7 

1897— 

1,587 

'J4.4 

81.96 

100.3 

.8903 

97.6 

1898- 

1,680 

97.0 

SI.  11 

98.6 

.8974 

99.4 

1899. 

1,817 

108.1 

49.82 

96.1 

.4254 

106.4 

1900— 

1,875 

111.5 

48.75 

94.1 

.4378 

109.5 

1901... 

1,769 

105.2 

48.27 

93.1 

.4570 

114.8 

1902.. 

2,061 

120.8 

47.29 

91.2 

.4516 

123.7 

1903... 

1,895 

112.7 

47.04 

90.8 

.5268 

131.8 

1901 

1.793 

110.5 

46.64 

90.5 

.5398 

133.8 

1905 

2.069 

123.8 

46.56 

90.1 

.5608 

139.6 

1906... 

2.286 

138.1 

46.56 

90.0 

.5977 

148.7 

If07 

2,414 

141.1 

46.30 

89.6 

.6177 

163.3 

Plumpers. 
[Data  from  221  establishments  189(^-1902;  2.32,  1904;  207,  1905;  215.  1906;  219,  1907.] 


1,880 

100.0 

53.23 

100.0 

Average  1890-99 

$0.8550 

100.0 

liOO 

1,36* 

99.1 

SI. 38 

102.1 

.8464 

97.4 

1891 

1,3*4 

100.8 

S4.09 

101.6 

!8511 

98.1 

1892. 

1.427 

108.4 

S3.i6 

101.2 

98.7 

vm. 

i.r7 

f9.* 

S3.Si 

100.2 

.3552 

99.9 

1894. 

1,908 

94.4 

53.28 

leo.i 

.8515 

98.8 

1895.. 

1,301 

M.8 

63.08 

99.7 

.8516 

99.7 

1896. 

1,865 

n8.9 

52.86 

99.8 

.3505 

100.4 

1897 

1,387 

rfO.l 

52.67 

98.9 

.3598 

101.2 

1898- 

1,448 

104.6 

52.53 

98.7 

.8638 

102.8 

1890 

1,466 

106.2 

52. 2S 

98.2 

.3684 

108.6 

1900. 

1,523 

110,4 

81.40 

96.6 

.8811 

107.1 

1901 

1,633 

118.3 

50.77 

96.4 

.3935 

110.6 

1902^ 

1,627 

117.9 

49.52 

93.0 

.4122 

117.6 

1903 

1.595 

115.7 

48.97 

91.9 

.4371 

124.  S 

1901 

1,771 

117.2 

47.98 

91.3 

.4679 

128.3 

1905 

1.818 

124.5 

47.32 

91.1 

.4912 

181.2 

1906 

2,216 

139.8 

46.84 

90.2 

.5392 

141.9 

1907 

a.265 

,136.7 

46.51 

90.0 

.5582 

148.1 

No  man  Is  -w^arranted  la  feelinar  pride  li^  tbe  deeds  of  the 
Army  and  Navy  of  the  past  if  he  does  not  back  up  the  Army 
and  the  Navy  of  the  present.—Presldent  Roosevelt  at  Sher- 
man   statue    nnvellingr,    Oct.    15,    1903. 

Protection  has  already  made  us  th«  richest  and  stronsewt 
nation  on  earth,  and  under  a  properly  restricted  Immiirra- 
tion  -will  bringr  to  us  much  tliat  is  most  valuable  in  the  pop- 
ulation of  other  lauds.— Senator  Hoar«  in  the  American  Econ- 
omist. 


EMPLOYMENT,  HOURS  OF  LABOR  AND  WAOES.        213 

Stone  cutters,  granite. 
[Data  from  72  establishments  1890-1903;  83,  1901;  87,  1905;  89,  1906;  99,  1907.] 


Tear. 

Number  of 
employees. 

Average  hours 
per  we«k. 

Average  wagw 
p«r  hour. 

Actual.   ^RolatlTe. 

Actual. 

R«la«T«. 

A«tu«l. 

lUlatlTS. 

Average  1830-99 

1890 

1891 

1892 

1S93 

1894 

1S95 

1806 

1897 

1898 _ 

1809 

1900 ._. 

1901 

1902- 

1903 

1904 - 

1905 

1506. 

1907... 

775 
9.i6 
8i0 

S82 

nn 

705 
68) 
70J 
678 
6JS 
71^ 
901 
852 
S53 
900 
925 
919 
l,Vli 
1J53 

100.0 
121.0 
113.5 
113.8 
100.4 
91.0 
88.4 
»1.5 
87.5 
i^O.l 

ww.o 

116.3 
109.9 
110.5 
IKJ.l 
109.3 
95.3 
107.1 
107.5 

52.71 
52. 7S 
52.  W 
52.70 
5i.Vi 
52.84 
52.67 
52.77 
52.99 
58.04 
SI.  70 
50. «0 
49,96 
49.67 
48.67 
48.71 
48.65 
47.52 
47.07 

loo.d 

100.0 
9"J.7 
100.0 
100.8 
100.2 
99. W 
100.1 
100.5 
100.6 
9b. 1 
96. S 
94.8 
94.2 
92.3 
92.2 
92.6 
91.3 
91.1 

$o.sa28 
.iJio 

.S^3 

.2618 

.3J11 
.■i5J0 
.^524 
.3167 
.'iVii 

.ma 

.S363 
.»3.58 
.42i.5 
.4191 
.4052 
.43JJ 
.4438 

100.0 

102.8 

104. S 

103.4 

99.7 

99.0 

9  J.  5 

99.0 

97.1 

95.6 

9J.1 

108.1 

lOb.o 

108.5 

116.5 

119.1 

116.7 

121.7 

126.5 

Stone  masons. 
[Data  from  115  establishments  1890-1903;  110,  1901;  102,  1905;  100,  1906; 


1907.] 


Average  1890-93 
1890. 
1831. 
1892. 
1893. 
1894. 
1895. 
1836. 
1897. 
1898. 
1899. 
1900. 
1901. 
1902. 
1903. 
1904. 
1905. 
1906. 
1907. 


917 
1,021 
984 
89S 
799 
798 
828 
796 
9S2 
S«0 
»35 
9'27 
954 
1,073 
965 
868 
819 
735 


100.0 

106.9 

115.2 

111.1 

■"01.4 

90.2 

'JQ.I 

93.5 

^9.8 

105.2 

^7.1 

105.8 

l»4.0 

107.7 

121.1 

117.7 

116.8 

114.3 

100.9 


54.54 
54.51 
.54.49 
»4.17 
5>t.84 
»4.0I 
W.97 

58. oe 
as. 48 
5J.78 
61.80 
51.28 
90.19 
40.54 
49.87 
<7.'97 
47.81 
47.57 


100.0 
101. 8 
101.3 
101.2 
10O.8 
100.9 
100.4 
lOO.S 
•8.6 
9T.4 
98.0 
88.4 
95.2 
88.1 
92.0 
01.4 
91.3 
91.2 
90.6 


$0.8617 
.8722 
.8732 
.8678 
.8c44 
.8440 

.iM 

.8547 
.8388 
.8^1 
.8719 
.8788 
.4fl07 
.4S04 
.44S6 
.4«SS 
.4i)51 
.51S8 
.5256 


100.0 

102.9 

103.2 

101.5 

100.7 

95.1 

96.4 

98.1 

100.8 

99.0 

102.8 

104.7 

110.8 

119.0 

126.6 

120.4 

129.5 

185.2 

139.7 


Structural    iron    workers. 

[Data  for  employees  from  19  establishments  1890-1903.  Data  for  hours  and 
wages  from  19  establishments  1830-ls;>2;  20.  169.3-1903.  Data  from  87  estab- 
lishments 1904;  50,   1905;  f-2,   1906;  62,   1907.] 


Average  1890  99 

561 

lOO.O 

65.14 

100.0 

t3,884« 

180.0 

1890 

436 

77.7 

56.78 

102.9 

.2475 

»8.6 

1891 

561 

96.8 

88.18 

101.8 

.2591 

98.0 

1S92- 

302 

107.8 

W.77 

»t.8 

.2358 

100.6 

IS'JS.. 

SM 

98.8 

85.18 

100.1 

.2638 

100.9 

1S94 

418 

74.2 

56.20 

101.9 

.2470 

98.5 

J895 

446 

79.5 

85.28 

100.1 

.2581 

97.7 

1896. 

648 

115.5 

54.32 

98.5 

.2576 

07.5 

1897 

628 

111.9 

58.47 

97.0 

.^751 

104.1 

1898 

685 

122.1 

58.90 

»7.8 

.8784 

106.3 

1893 

616 

115.5 

55.44 

109.5 

.2878 

m.i 

1900 

798 

142.2 

54.03 

98.0 

.8183 

1901 

1,037 

195.5 

.53.30 

96.7 

.8659 

iae.4 

1902_ _. 

1,280 

228.2 

50.. 52 

91.6 

,4121 

156,9 

1903 

1,15? 

206.6 

50.8.5 

92.2 

.4115 

159.8 

1901 

l,79t 

205  5 

50.38 

90.6 

.4289 

171.4 

1905 

1,731 

194.3 

49.61 

90,1 

.4402 

171.8 

1906 

2,105 

281.8 

49.67 

90.9 

.4730 

180.4 

1907- 

1,914 

216.5 

49.35 

91,3 

.4767 

190.3 

The  following-  tables  show  the  percentage  of  increase  or 
decrease  in  the  relative  number  of  employees,  the  i-elative  hours 
of  work  per  week,  and  the  relative  wages  per  hour  in  the  15  lead- 
ing occupations  in  1907,  compared  with  each  preceding  year  from 
1890  to   1906: 


114   BMPL07MENT,  HOURS  OF  LABOR  AND  WAGES. 


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216   EMPLOYMENT,  HOURS  OF  LABOR  AND  WA0E8, 


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EMPLOYMENT,  HOURS  OF  LABOR  AND  WAGES.        217 

Explanation. — The  figures  in  these  tables  g-ive  under  each 
year  the  per  cent  of  increase  or  decrease  (indicated  by  -f  or 
— )  in  the  number  of  persons  employed,  the  hours  worked  per 
week,  and  the  wages  paid  per  hour,  which  the  relative  figures 
for  1907  show  as  compared  with  those  for  the  year  specified. 
For  example,  under  the  year  1896  (the  last  year  of  Cleveland's 
administration)  opposite  carpenters  there  appears  -|-30.3  in  the 
table  showing  the  per  cent  of  increase  or  decrease  in  the  num- 
ber of  employees, — 10.8  in  the  one  giving  the  same  facts  with 
regard  to  hours  of  work  per  week,  and  +52.5  in  that  relating 
to  wages  per  hour.  This  means  that  the  number  of  carpenters 
employed  in  the  esjbablishments  covered  by  the  figures  was  30.3 
per  cent  greater  in  1907  than  in  1896,  that  their  weekly  hours 
of  work  had  decreased  10.8  per  cent,  and  that  they  were  paid 
52.5  per  cent  more  per  hour  in  wages.  Similar  results  are  shown 
for  other   occupations. 

These  figures  show  that  during  the  administrations  of  Presi- 
dents McKinley  and  Roosevelt  there  were  more  persons  em- 
ployed in  industrial  establishments  and  that  fewer  hours  were 
worked  and  higher  wages  were  paid  than  during  the  period 
of  Democratic  rule. 

Taking  up  each  occupation  separately  for  discussion,  we  find 
that  there  were  55  per  cent  more  blacksmiths  employed  in  the 
establishments  considered  in  1907  than  in  1896,  and  that  the 
wages  per  hour  of  these  blacksmiths  were  17.9  per  cent  higher  in 
1907  than  in  1896. 

There  were  33.1  per  cent  more  boilermakers  employed  in  the 
establishments  considered  in  1907  than  in  1906,  and  that  the  wages 
hour  of  these  boilermakers  were  22.1  per  cent  higher. 

There  were  26  per  cent  more  bricklayers  employed  in  the 
establishments  investigated  in  1907  than  in  1896,  and  these 
bricklayers  received  an  average  of  42.5  per  cent  more  wages 
per  hour. 

There  were  30.3  per  cent  more  carpenters  in  the  establish- 
ments furnishing  data  in  1907  than  in  1896,  and  they  were  paid 
52.5  per  cent  more  wages  per  hour. 

Compositors  were  49.3  per  cent  more  in  number  and  received 
an  average   of   25.5   per  cent  more   hourly  wages. 

Hod  carriers  increased  40.5  per  cent  in  number  and  received 
35.5  per  cent  more  wages  per  hour. 

Iron  molders  increased  57.9  per  cent  in  number  and  received 
28  per  cent  more  wages  per  hour. 

Day  laborers  increased  52.9  per  cent  in%iumber  and  received 

31.8  per  cent  more  wages  per  hour. 

Machinists   increased   87.7   per   cent   in   number   and   received 

20.9  per  cent  more  wages  per  hour. 

Painters  increased  15.3  per  cent  in  number  and  received  43.1 
per  cent  more  wages  per  hour. 

Plasterers  increased  34.2  per  cent  in  number  and  received  53.8 
per  cent  more  wages  per  hour. 

Plumbers  increased  38.2  per  cent  in  number  and  ijeceived 
47.5  per  cent  more  wages  per  hour.    ,  \-  '*',.'/. Vi 

Stone  cutters  increased  16.1  per  cent  in  number  and '  received 
27.8  per  cent  more  wages  per  hour. 

Stone  masons  increased  7.8  per  cent  in  number  and  received 
42.4  per  cent  more  wages  per  hour.  .: .  < 

Structural  iron  workers  increased  87.4  per  cent  in  number 
and  received  95.2  per  cent  more   in  wages  x^cr  hotir.  ; 

If  these  figures  are  representative  of  labor  conditions  gei)- 
erally  for  the  occupations  considered,  and  there  is  no  reason 
why  they  should  not  be,  they  show  the  following  interesting 
facts: 

Employment. 

For  every  100  blacksmiths  employed  in  1896  there  were  155 
blacksmiths  employed  in  1907;  for  every  100  boilermakers  em- 
ployed in  1896  there  were  133  employed  in  1907  ;  for  every  100 
bricklayers  employed  in  1896  there  were  126  employed  in  1907; 
for  every  100  carpenters  employed  in  1896  there  vvere  130  em- 
ployed in  1907 ;  for  every  100  compositors  employed  in  1890 
there  were  149  employed  in  1907 ;  for  every  100  hod  carriers 
employed  in  1896  there  were    140   employed  in   1907 ;   fcfr  every 


218        EMPLOYMENT,  HOURS  OF  LABOR  AND  WAQES. 

100  iron  molders  employed  in  189G  there  were  158  employed  in 
1907;  for  every  100  day  laborers  employed  in  1896  there  were 
153  employed  in  1907;  for  every  100  maciiiiiists  employed  in  1896 
there  were  188  employed  in  1907;  for  every  100  jminters  em- 
ployed in  1896  there  were  115  employed  in  1907;  for  (;very  100 
plasterers  employed  in  1896  there  were  i:U  emphn^ed  in  1907; 
for  every  100  plnmbers  employed  in  1896  there  were  138  em- 
ployed in  1907;  for  every  100  stone  cutters  employed  in  1896 
there  were  116  employed  in  1907;  for  every  100  stone  masons 
employed  in  1896  there  were  108  employed  in  1907 ;  for  every 
100  structural  iron  workers  employed  in  1896  there  were  187 
employed  in    1907. 

For  every  dollar  paid  to  a  blacksmith  in  1896,  $1.18  were 
paid  in  1907  for  the  same  amount  of  labor:  for  every  dollar 
paid  to  a  boilermaker  in  1896,  $1.22  were  paid  in  1907 ;  for  every 
dollar  paid  to  a  bricklayer  in  1896,  $1,421/2  were  paid  in  1907 ^ 
for  every  dollar  paid  to  a  carpenter  in  1896,  $1.52 V2  were  paid 
in  1907;  for  every  dollar  paid  to  a  compositor  in  1896.  $1.2oVi 
were  paid  in  1907 ;  for  every  dollar  paid  to  a  hod  carrier  in 
1896,  $1,351/2  were  paid  in  1907 ;  for  every  dollar  paid  to  an 
iron  molder  in  1896,  $1.28  were  paid  in  1907 ;  for  every  dollar 
paid  to  a  day  laborer  in  1896,  $1.32  were  paid  in  1907 ;  for 
every  dollar  paid  to  a  machinist  in  1896,  $1.21  were  paid  in  1903; ; 
for  every  dollar  paid  to  a  painter  in  1896,  $1,43  wei-e  paid  in 
1907  ;  for  every  dollar  paid  to  plasterer  in  1896,  $1.54  were  paid 
in  1907;  for  every  dollar  paid  to  a  plumber  in  1896,  $1.47V1>  were 
paid  in  1907 ;  for  every  dollar  paid  to  a  stone  cutter  in  1896, 
$1.28  were  jmid  in  1907  ;  for  every  dollar  paid  to  a  stone  mason 
in  1896,  $1.42  were  paid  in  190*7 ;  for  every  dollar  paid  to  a 
structural  iron  worker  in  1896,  $1.95  were  paid  in  1907. 

The  15  occupations  for  which  figures  have  been  shown  in 
detail  are  among  the  great  representative  occupations  that  are 
to  be  found  in  every  section  of  the  country.  There  are  also 
many  occupations  that  are  very  important  in  certain  particular 
sections  of  the  country.  Figures  for  such  additional  occui)ationa 
are  given  in  detail  in  the  bulletin  of  the  Bureau  of  Labor  from 
which  the  figures  here  quoted  are  taken,  but  the  limited  space 
in   this   book  will    not   permit  a   reprint  of  all  occupations. 

In  the  bulletin  named  the  figures  for  the  several  occupations 
of  each  of  the  industries  represented  are  also  combined  to 
form  a  summary  tdt  each  industry,  thus  giving  an  opportunity 
to  study  the  figures  for  each  industry  as  a  whole. 


"What  the  eapitallHt,  -^vlio  is  the  employer  of  lalior.  mast 
face  is  tliat  tlie  organixation  of  labor— tbe  labor  nnioii — is 
a  permaueiit  condition  in  tbe  industrial  world.  It  lias  come 
to   stay — Hon.  Wm,   H.   Taft,  at   Cooper   Union,   JVew    York    City. 

Under  exlstiniir  conditions  the  blindest  coarse  tlia*  an 
employer  of  labor  can  pursae  is  to  decline  to  recojAuize 
labor  anions  as  tbe  controlling  inflnence  in  tbe  labor  market 
and  to  insist  n^xon  dealing  only  with  bis  oarticalar  em- 
ployees.—Hon.  Wm.   H.  Taft,  at   Cooper   Unioii.  New   York   City. 

We  believe  in  reciprocity  with  foreign  nationM  on  tbe 
terms  oatlined  in  President  McKinley's  last  speech,  wliicb 
ariced  the  extension  of  oar  foreigrn  markets  by  reciprocal 
agrreements  whenever  they  coald  be  made  -ivilbout  injnry 
to  American  in<lastry  and  labor.— President  Roosevelt's 
.Mpeeeh    accepting:    1904   nomination. 

Not  only  mast  oar  labor  be  protected  by  tbe  tariff,  but  it 
should  also  be  protected  so  far  as  it  is  possible  from  tbe 
presence  in  this  country  of  any  laborers  brouKbt  over  by 
contract,  or  of  those  who,  coming-  freely,  yet  represent  a 
standar<l  of  livingr  so  depressed  that  they  can  nndersel'  our 
men  in  tbe  labor  market  and  dra)?  them  to  a  lower  level.— 
Pre»i«lent    Roosevelt,    in    messaj^e    to    Congress.    Dec.    «.    t«'.»I. 

Tbe  farmer  of  the  liVest  has  learned  and  the  farmer  of  the 
South  ouK'bt  to  learn  that  -when  the  factory  is  closed  he  not 
only  loses  customers  for  his  products,  but  also  meets  at!  11- 
tlonal  competitors  in  his  production.  Tbe  workinim.  oslMi? 
bis  employment  in  tbe  factory,  settles  uiion  a  truck  fji-in  jiiul 
becomes  a  producer  of  tbe  products  be  formerly  boii;;bt  t'.-om 
tbe  farmer.  Tbe  prosperity  of  the  farmer  depends  aivou  llie 
»roM|»i|rity  of  those  ^'bo  buy  tiis  products.— Ho«».  P<  l*:  C 
bell,    In    Congress,    April    1,    1004.  T     U    I-j^i 


EMPLOYMENT,  HOURS  OF  LABOR  AND  WAGES.        219 


Summary    by    IndnMtrieM. 

The  summaries  tor  a  few  important  iudii.stries  are  here 
reproduced,  namely,  agricultural  impleuieuts,  bakery  producti^ 
(bread),  building-  trades,  cigars,  cotton  goods,  and  bjvr  iron  and 
steel.  The  explanation  given  of  the  preceding  tables  applies  tc 
these  tables  as  well. 


Agricultural  im piemen ts 


Employees. 

Hours  per  week. 

Wages  per  hour. 

Per    cent    of 

Per    cent    of 

Per    cent    of 

increase  (  +  ) 

increase  (  +  ) 

increase  (+) 

Year. 

Relative 
Number. 

o  r   deci-ease 
(-)    in    1.0 
ii.s  c  Miipn  •. 
w  i  t  h    year 

Relative 
Nunibe. 

o  r   (lecre  use 
(— )    in    1907 
as  compared 
with    year 

Relative. 

o  r   decrease 
(— )    in   1907 
as  compared 
with    year 

specified. 

specified. 

specified. 

18')0.. 

86.2 

+  51.4 

100.3 

—  4.0 

97.1 

+34.8 

1891-- 

88.2 

4-18.0 

100.3 

-  4.0 

100.8 

+29.9 

1892- 

95.1 

+  37.2 

iorj.3 

—  4.0 

101.6 

+28.8 

1893-- 

105.1 

+2  (.2 

100.3 

—  4.0 

102.5 

+27.7 

18':)4.- 

9.-).  8 

+36. 2 

99.2 

—  2.9 

97.3 

+34.5 

189o- 

98.1 

+  33.0 

100.3 

—  4.0 

96.4 

+  35.8 

1896- 

9L5 

+  38.1 

99.9 

—  3.6 

102.0 

+28.3 

1897— 

95.3 

+  .33.9 

99.0 

—  2.7 

99.4 

+31.7 

1898- 

120.9 

+  7.9 

100.2 

—  3.9 

101.0 

+29.6 

1899- 

120.6 

+  8.2 

100.2 
100.2 

—  3.9 

—  3.9 

101.8 
105.8 

+28.6 

1900- 

130.7 

-  0.2 

+23.7 

1901- 

105.9 

+23.2 

100.2 

—  3.9 

107.6 

+21.7 

1902- 

115.8 

+  12.7 

100.2 

—  3.9 

112.8 

+16.0 

1903- 

12f.8 

+  4.6 

99.4 

—  3.1 

117.2 

+11.7 

1904- 

108.5 

+20.4 

97.3 

—  1.0 

122.5 

+  6.9 

1905- 

123.7 

+  5.5 

97.1 

—  0.8 

12 1. 4 

+  5.2 

1906- 

133.3 

-  2.1 

96.6 

—  0.3 

129.3 

+  1.2 

1907- 

130.5 

96.3 

130.9 

Balcery  prodvcts  (bread.) 


1890- 

93.3 

+  71.1 

109.8 

—  9.1 

99.3 

+».8 

1891— 

9t.6 

+68.7 

190.8 

—  9.1 

99.9 

+29.0 

1892— 

9(i.l 

+66.1 

100.9 

—  9.2 

100.3 

+28.5 

1893- 

96.0 

+66.3 

100.5 

—  8.9 

100.2 

+28.6 

1894— 

97.2 

+61.2 

100.4 

—  8.8 

98.4 

+31.0 

1895— 

100.2 

+59.3 

99.9 

—  8.3 

98.7 

+30.8 

1898_- 

102.1 

+  .56.3 

93.6 

—  8.0 

99.6 

+29.4 

1S97__ 

102.6 

+55.6 

'      100.2 

—  8.6 

99.8 

+29.2 

1898- 

107.9 

+  47.9 

99.1 

—  7.6 

100.6 

+28.1 

1899.. 

109.8 

+  45.4 

97.8 

—  6.3 

103.1 

+25.0 

1900 

114  0 

+  40  0 

96  9 

—  5.5 

-4.9 

106.6 
108.8 

+20.9 
+18.5 

1901.. 

121.0 

+31 !  9 

96.3 

1902- 

130.4 

+22.4 

95.8 

-4.4 

113.9 

+13.2 

1903.. 

133.7 

+19.4 

93.9 

-2.4 

118.9 

+  8.4 

190L. 

142.6 

+  11.9 

93.6 

—  2.1 

121.1 

+  8.4 

1905.. 

1J8.1 

+  7.8 

92.5 

—  1.0 

123.5 

+  4.4 

1906.. 

155.6 

+  2.6 

91.8 

-0.2 

127.4 

+  1.2 

1907.. 

159.6 

91.6 

... 

128.9 

* 

. 

Building 

trades. 

1890- 

96.5 

+42.4 

102.5 

—11.6 

97.0 

+49.1 

18)1.. 

100.0 

+37.4 

101.8 

—11.0 

97.9 

+47.7 

1892- . 

106.8 

+27.7 

100.7 

—10.0 

99.9 

+44.7 

1893.. 

101.7 

+35.1 

100.5 

—  9.9 

100.0 

+44.« 

1894.- 

90.2 

+52.3 

100.7 

—10.0 

97.6 

+48.2 

1895- 

92.4 

+  48.7 

100.3 

—  9.7 

98.4 

+47.0 

1896.- 

99.2 

+38.5 

99.2 

—  8.7 

99.9 

+44.7 

1897.. 

99.7 

+37.8 

98.6 

—  8.1 

101.3 

+42.7 

1898— 

104.1 

+32.0 

98.1 

-7.6 

102.8 

+40.7 

1899  - 

103.8 

+25.1 

97.5 

—  7.1 

105.3 

+37.8 

1900- 

113.6 

+21.0 

95.5 

-5.1 

109.9 

+81.6 

1901.. 

119.8 

+  14.7 

94.4 

—  4.0 

114.5 

+26.3 

1902.. 

126.1 

+  9.0 

92.6 

—  2.2 

121.1 

+19.4 

1903.. 

123.2 

+  11.5 

91,8 

—  1.3 

126.8 

+14.0 

1904— 

122.5 

+12.2 

91.3 

—  0.8 

12917 

+11.5 

1905— 

128.0 

+  7.3 

91.2 

—  0.7 

132.2 

+  9.4 

15(06- 

140.0 

—  1.9 

90.9 

—  0.3 

140.2 

+  3.1 

1907 

137.4 

90.6 

144,6 

Onr  oi»i»oiients.  If  trlninphant.  may  be  trusted  to  proTe 
falfie  to  every  principle  -vvliieli,  during  tlie  last  eislit  years, 
they  liave  laid  doTvn  as  vital. — Froiu  President  Roosevelt's 
•peecli  9l  p,c(!^ptance. 


220 


EMPLOYUBNT,  SOURS!  OF  LAUOU  AND  WAaES, 


Employeea. 

Uouirg  per  week; 

Wages  per.  hourw.  j  ■  .-i 

telative 
Xuraber. 

Per    cent    of 
increase  (+, 
o  r   decrease 
(— )   in   190 ( 
as  compare.! 
with    year 
specified. 

Relative 

Nuinbci-. 

Per    cent    of 

'  increase  (+> 
o  r    decrease 
(— )    in    1)07 
as  compared 
with    year 
specilicd. 

Relative. 

Per    cent    6i 

increase  (+) 
or   doerease 
(-)    in    11)07 
as  poniparel 
with    year 
specilied. 

76.0 

85.2 

100 -. 

109.9 
95.2 
107.4 
107.7 
119.9 
93.9 
103.1 
116.0 
118.8 
118.1 
123.5 
116.6 
116.6 

+53.4 
+38.9 
+29.1 
+  16.0 
+  12.7 
+  6.1 
+22.5 
+  8.6 
+  8.3 

—  2.8 
+24.2 
+  9.9 
+  0.5 

—  1.9 

—  1.3 

—  5.6 

100.1 
99.6 
99.2 
99.7 
99.9 
99.8 
100.4 
109.0 
100.3 
101.0 
99.  S 
100.6 
100.9 
.01.4 
100.4 
lOJ.l 
99.7 

-0.6 

—  0.1 
+  0.3 

—  0.2 

—  0.1 

—  0.3 

—  0.9 

—  0.5 

—  0.8 

—  1..') 

—  0.3 

—  1.1 

—  1.4 

—  1.9 

—  0.9 

—  0.6 

—  0.2 

100.3 
100.6 
99.6 
100.0 
9».0 
97.2 
!)8.6 
102.4 
101.1 
101.3 
10.).  8 
112.5 
110.0 
116.9 
119.0 
120.9 
131.1 
132.4 

+32.0 
+31.6 
+  32.9 
'+o2.4 
+  33.7 
+36.2 
+34.3 
+29.3 
+31.0 
+30.7 
+31.3 
+  17.7 
+20.4 
+13.3 
+11.3 
+  9.5 
+  1.0 

99.5 

Cotton  goods. 


1890.. 

87.7 

+39.5 

99.9 

—  3.1 

102.8 

+53.2 

1891._ 

98.3 

+21.4 

100.7 

—  3.9 

98. 9 

+59.3 

1892-1 

95.8 

+27.7 

101.2 

—  4.3 

J00.3 

+57.0 

1893.. 

98.2 

+21.5 

P9.9 

—  3.1 

103.6 

+52.0 

1894.. 

96.1 

+27.3 

98.6 

—  1.8 

96.9 

+62.5 

1895- 

91.9 

+28.9 

100.0 

—  3.2 

96.9 

+  62.5 

1896.. 

98.8 

+23.8 

99.5 

2  7 

104.9 

+50.1 

1897- . 

101.6 

+16.9 

99.4 

—  2.6 

101.2 

+55.6 

1898- 

112.5 

+  8.7 

100.3 

—  3.5 

97.4 

+61.7 

1899.- 

112.1 

+  9.1 

100.4 

—  3.6 

9V.3 

+61.9 

1900- 

115.5 

+  5.9 

100.2 

—  3.4 

10).  2 

+44.2 

1901— 

109.0 

+12.2 

100.0 

—  3.2 

110.4 

+42.7 

1902- 

117.2 

+  4.4 

99.2 

—  2.4 

116.2 

+35.5 

1903-. 

107.2 

+14.1 

99.0 

—  2.2 

123.2 

+27.8 

1P04- 

105.3 

+  16.1 

99.1 

—  2.3 

11). 7 

+31.6 

1905- 

101.9 

+16.6 

99.1 

•-  2.3 

125.5 

+25.5 

1903— 

117.5 

+  4.1 

98.3 

—  1.5 

13).  5 

+12.9 

li/07— 

122.3 

90.8 

1.57.5 

Iron  and  steel  (bar.) 


1890- 

99.4 

—  0.9 

102.7 

—  4.7 

110.3 

+27.3 

1891- 

98.4 

+  0.1 

101.6 

—  3.6 

-101.9 

+33.8 

+40.4 
+46.7 

1893- 

105.9 

-  7.0 

101.4 

—  3.5 

95.7 

1891- 

100.2 

—  1.7 

101.3 

—  3.4 

90.1 

+55.8 

1895— 

103.7 

—  5.0 

100.7 

—  2.8 

91.7 

+53.1 

1896- 

93.9 

+  4.9 

101.0  y 

—  8.1 

4).^.3 

+41.4 

1817.. 

97.7 

+  0.8 

97.1 

+  0.8 

98.0 

+  43.3 

1898— 

<X).7 

—  1.2 

96.6 

+  1.3 

96.3 

+  45.8 

14;93.- 

101.6 

—  3.1 

C5,9 

+  2.1 

113.7 

+23.5 

1900-- 

las.o 

—  9.6 

97.3 

+  0.6 

118.2 

+18.8 

1901— 

100.7 

—  2.2 

98.4 

-  0.5 

119.7 

+17.3 

1902- 

101.1 

-  5.4 

98.8 

—  0.9 

132.8 

+  5.7 

i:)0.i— 

10). 2 

—  9.8 

98.4 

-  0.5 

1.36.5 

+  2.9 

1W)1._. 

100.2 

—  1.7 

•     97.9: 

125.6 

+  11.8 

1905- 

103.6 

-       —  4.9 

98.1 

-  0.2 

126.9 

+10.6 

1903 

97  0 

+  1.5 

97.9 

135.7 

+  3.5 

1907 

98.5| 

"~               - 

97.9 

140.4 

Taken  ajlljin'all  ihe  preceding-  fignires  show  that,  as  far  as 
wag-es  and  ernployment  are  concerned,  this  country  has  never 
seerf  siich  an  era  of  prosperity  as  that  which  was  inaugurated 
when  industry  was  enabled  to  adjust  itself  to  the  sta!)le  and 
conservative  protective  policy  of  a  Eepublican  administration. 
Never  in  modern  times  has  em^plopment  been  as  secure  and 
general,  and  never  in  the  history  of  the  country  have  wages  been 
as  high  as  during  the  past  ten  years. 


WAGES  AND  COST  OF  LIVING.  221 

WAGES    AND    COST    OF    LIVING.  * 

Comparison  of  Day  Waffes  witlx  Retail  Prices  in  1896  and 
1907.— A  Day's  Wages  W^ill  Buy  More  of  tlie  Req[iiirement8 
of  Daily   Life   Now   Tlian    in   1896.— Labor   Bureau   Figures. 

A  workingman's  earnings  are  measured  only  by  their  purchas- 
ing power  when  used  in  the  supplying  of  his  wants.  An  in- 
crease in  wages  is  of  no  real  benefit  to  the  workingman  unless 
that  increase  enables  him  to  buy  more  of  the  necessaries  of  life 
than  before. 

This  obvious  truth,  coupled  with  the  undeniable  rise  in  the 
market  price  of  many  articles  of  family  consumption  during 
recent  years,  has  caused  some  persons  to  doubt  the  actual  profit 
to  the  wage-earner  of  the  higher  rates  of  wages  which  have 
accompanied  the  increased  cost  of  living. 

Let  us  see  what  facts  are  disclosed  by  a  careful  and  impartial 
study  of  the  question.  The  United  States  Bureau  of  Labor  has 
recently  conducted  a  thorough  investigation  of  the  retail  prices 
of  food  in  connection  with  the  wages  paid  in  leading  occupa- 
tions. The  results  of  this  investigation  are  published  in  the 
bulletin  of  the  Bureau  of  Labor  for  July,  1908,  and  are 
thus  the  very  latest  available  data  on  the  subject.  The 
price  •  data  collected  by  the  Bureau  were  secured  by 
its  agents  directly  from  the  books  of  over  1,000  retail  mer- 
chants whose  patrons  largely  belong  to  the  class  of  small  con- 
sumers covering  actual  sales  in  all  parts  of  the  country.  The 
figures  may,  therefore,  be  considered  thoroughly  representative 
as  well    as   trustworthy. 

A  comj)arative  study  of  the  price  figures  and  those  for  wages 
given  in  the  preceding  article  shows  that  the  increased  hourly 
wages  of  bricklayers,  carpenters,  hod  carriers,  iron  moulders, 
laborers,  stone  masons,  house  painters,  plasterers,  plumbers, 
stone  cutters,  etc.,  have  not  only  kept  pace  with  food  prices, 
but  that  their  purchasing  power,  when  measured  by  retail  prices 
of  food,  was  greater  in  1907  than  in  any  other  year  of  the 
series  with  the  exception  of  1906  alone. 

Even  if  wages  and  prices  had  increased  in  the  same  propor- 
cion  it  must  not  be  forgotten  that  with  such  higher  wages  and 
prices  the  difterence  between  the  income  and  expenditures  is 
greater  in  actual  dollars  and  cents.  For  instance,  if  a  work- 
ingman earned  $800  in  1896  and  expended  $700  he  would  have 
saved  $100.  If  in  1907  both  the  wages  and  the  prices  had 
increased  25  per  cent  his  wages  would  then  be  $1,000,  and  his 
expenditures  $875,  and  his  savings,  in  consequence,  would  be 
$125.  As  a  matter  of  fact,  however,  with  the  exception  of  1907 
alone,  wage  rates  in  all  the  leading  occupations  have  increased 
more  than  prices,  and  not  only  have  the  wage  rates  increased, 
but  those  employed  have  had  much  more  constant  employment 
in  1907  than  1896. 

In  the  Bureau  of  Labor  report  the  average  price  of  each 
commodity  as  a  whole  could  not  be  stated  in  dollars  and  cents 
because  the  articles  for  which  retail  prices  wei'e  shown  vary 
more  or  less  as  to  kind  and  quality  in  different  localities.  The 
averages  have,  therefore,  been  computed  on  a  percentage  repre- 
sented as  100,  or  the  base,  the  prices  from  year  to  year  being 
indicated  by  relative  figures. 

These  relative  figures  consist  of  a  series  of  percentages  show- 
ing the  per  cent  the  price  in  each  year  was  of  the  average 
price  for  the  ten-year  period  from  1890  to  1899.  This  average 
for  the  ten-year  period  was  selected  as  the  base  because  ^  it 
represented  the  average  conditions  more  nearly  than  the  price 
in  any  one  year  which  might  be  selected  as  a  base  for  all 
articles.  The  following  table  shows  the  relative  price  of  the 
30  principal  articles  of  food  considered  in  the  Bureau  of  Labor 
BTilletin.  In  order  to  make  clear  the  manner  of  using  the 
relative  figures  we  take,  for  example,  the  column  showing  the 
figures  for  "beef,  fresh,  roasts."  It  is  seen  that  the  price  in 
1890  was  99.5  per  cent  of  the  average  price  for  the  period  from 
1890  to  1899.  In  1891  the  price  was  exactly  the  average  price 
for  the  ten-year  period— that  is,  100.0.  The  lowest  point  reached 
was  in  1894,  when  the  price  was  98.3  per  cent  of  the  average 
price   for   the  ten-year  period.     The  highest  point  reached  was 


122 


WAQE8  AND  COST  OF  LIVIXO. 


in  1907  when  it  stood  at  119.1,  or  19.1  per  cent  liighor  than  the 
uveruf^v  price  for  tlie  base  period,  1890  to  1899.  In  190;},  1904 
and  1905.  a  considerable  decline  from  tl>e  ])rice  iji  1902  is  seciv 
the  relative  price  for  tlie  last-named  year  being  112.2,  or  12.2 
per  cent  higher  than  llic  price  foi-  ilic  I'asc 
follows : 


iod.      The   table 


Relative  retail  prices  of  the   principal  articles  of  food   in    the 
United  i<tates.  IHiU)   to  WOT. 

[Average  price  for  1890-1899=100.0.] 


1 

>> 

J3 

JS 

a 

OS 

il 

o,  > 

< 

c 

1 

1^ 

DD 

1 

it 

1 

D 

O 

'.> .     to 

1890 

101.0 

103.3 

9a.5 

98.8 

97.5 

100.3 

99.2 

98.8 

101.3 

105.4 

1891 

110.3 

106.2 

100.0 

99.1 

98.3 

100.3 

106.4 

100.3 

101. 0 

105.2 

1892 

99.3 

102.4 

99.6 

9).  3 

99.5 

100.3 

106.8 

101.5 

103.8 

103.  S 

1S98 .- 

107.0 

105.0 

99.0 

99.6 

100.3 

100.1 

io:k9 

101.8 

104.2. 

101.8 

189t 

10ft.  8 

102.8 

98.3 

98.2 

98.9 

99.9 

101.7 

101.6 

98.6 

103.3 

18)5 

97.4 

103.5 

98.6 

99.1 

99.6 

99.7 

97.0 

90.2 

98.4 

101.7 

180(5 

88.6 

02.7 

m.i 

9-).  5 

99.8 

90.9 

92.7 

97.9 

97.1 

99.6 

1897 

87.8 

91.5 

100.3 

100.2 

100.9 

100.0 

93.1 

99.0 

94.0 

94.6 

iS^iS 

95.4 

95.-) 

101.7 

102.0 

102.1 

99.8 

95.1 

97.5 

96.8 

91.1 

]^"f) 

9').  5 

90,7 

Wi.7 

103.9 

103.2 

90.6 

97.7 

102.4 

101.8 

90.5 

1!)00 

95.2 

110.0 

103.5 

103.4 

103.7 

99.7 

101.  t 

103.0 

100.8 

■  91.1 

1  n 

96.8 

113.9 

110.7 

111.0 

106,1 

99.4 

103.2 

1(«.3 

103.0 

90.7 

1912 

lot. 4 

116.8 

118.6 

118.5 

116.0 

99.4 

111.5 

107.3 

113.2 

'^.'3 

!  ".>!  _ 

100.8 

118.1 

113.1 

112.9 

108.8 

100.2 

110.8 

100.4 

118.5 

1  '•)• 

99.2 

llf5.8 

112.8 

113.4 

108.3 

103.9 

100.0 

107.4 

120.7 

91.8 

l')')". 

106.0 

116.3 

112.2 

112.9 

107.9 

lot. 5 

112.7 

110.9 

123.6 

93.6 

ViO'y 

11.-).  6 

115.2 

115.7 

116.5 

UO.S 

102.3 

118.2 

115.5 

129.1 

94.7 

\M7 

124.6 

118.8 

119.1 

120.6 

U4.1 

104.5 

127.6 

123.2 

131.4 

95.0 

da')[   io 


■ 

CS 

c 

t-l 

s 

<u 

c 

be 

>> 

1890 

100.0 

100.6  ; 

1^01 

100.7 

106.0  1 

18)2 

105.^2 

106.8 

Ks)3 

103.1 

105.1  ; 

1894 

102.2 

06.3  1 

i-05 

100.8 

99.3  1 

1S)6 

95.0 

92.8 

ISI7 

93.7 

91.4 

is'os 

95.0 

93.2  ! 

ls'»9 

95.1 

101.1 

I>00 

97.4 

!X).9 

1001  -. 

107.1 

105.7  1 

1002 

118.8 

119.1 

I'OS.. 

120.7 

125.3 

loot  - 

121;5 

130.9 

'  w  

122.2 

131.6 

]m 

123.2 

131.2  I 

1907..„-1-'- 

t'Jt'.fi 

•137.7  1 

9  J.  3 

')0.6 
100.1 
100.1 
100.  t 

99.8 
100.2 

99.8 
103.5 
100.2 
100.4 
101.4 
105.0 
107.3 
107.9 
too.  9 
116.2 
120.6 


100.7 

101.7 

102.2 

103.4 

101.5 

98.9 

07.5 

95.2 

OS. 8 

10,0.2 

90.1 

100.9 

102.8 

108.4 

111.7 

113.8 

116.8 

121.6 


4J 

.=! 

•S 

5 

t; 

g,, 

'3< 

•   r^r// 

■  ''i,i 

i&y.7 

li8.2 

112.5 

99.8 

105.1 

103.6 

96.1 

117.9 

88.7 

106.9 

80.0 

100.1 

02.7 

92.5 

104.3 

89.8 

107.4 

93.9 

94.6 

97.1 

94.3 

lot. 4 

91.4 

118.1 

94.9 

134.3 

101.2 

126.7 

110.9 

117.3 

1  110.5) 

116.6 

108.1 

128.0 

1'17.7  ' 

184.2 

EB 


J) 


100.5 
100,5 
100.6 
100.4 
100.2 
100.0 
90.9 
99.7 
9:).  4 
98.9 
90.9 
101.1 
103.3 
105.8 
106.3 
107.0 
108.9 
116.8 


101.7 
101.7 
101.2 
100.6 
100.3 
99.0 
98.7 
97.7 
97.9 
98.2 

102.2  j 

101.3  ' 
102.1  I 
103.8  ! 
lOt.O  ! 
lot. 4 
105.3 
107.7 


100.7 
100.6 
101.0 
99.9 
97.8 
98.7 
98.7 
93.6 
100.4 
102.6 
105.6 
109.0 
114.7 
112.6 
114.1 
117.8 
124.1 
130.1 


97.0 

98.7 

100.5 

107 .0 

101.8 

99.7 

97.4 

97.6 

96.6 

101.7 

107.7 

117.9 

128.3 

127.0 

124.0 

126.6 

137.7 

142.5 


'I'll  in  i»  iiol  iin«l  never  nIihII  lie  a.  «overiiiii<'iit  of  i»lu- 
toeraey:  it  Im  u«it  hjuI  never  mIihII  be  a  Roveriinn'nt  by  a  niub. 
— PreMldent    Uoo«evelt    at   Bntte,    Mont..    May   27,    1J»o:j. 

Our  worksboiiH  never  -tvere  so  liiisy,  our  trade  at  home 
waH  never  .mo  larK'e,  and  our  f<irei»n  trade  exceeds  that  of 
any  like  period  in  all  our  liistory. — President  MeKinley  at 
Chiea»o,  Oet.    lU.   ISJM). 


The  Rate  la^v  does  not  ko  far  enouKli.  Trie  practiee  under 
it  has  already  disclosed  the  necessity  for  ne^v  aniendiuents 
and  will  doubtless  suKR'est  niore^.  Such  is  tlie  true  method 
— tlie  emiiirical  and  tentative  method — of  securiuK"  iiroper 
remedies  for  a  new  evil. — Hon.  Wm.  H.  Taft,  at  Columbus, 
Ohio. 


WAGES  AND  COST  OF  LIVING. 


223 


If  (la  fur 


reidil   prices   of  the   principal   articles   of  food   in    the 
United  States,  1890  to  i.907— Continued. 


G-O 


1891  .. 

1892  ._ 
189:]  .. 
1891  — 

1893  -. 
1896  „ 
18)7.. 
1S9S  ._ 
1899  .. 
UKX)-. 

1901  -. 

1902  ._ 
VMi  ._ 
1901  _. 
1905  .. 
IPOrt  _. 
1)07  - 


95.8 
9C.6 
99.1 
10).0 
105.6 
99.4 
96.7 
97.4 
100.2 
102.9 
103.7 
121.0 
lS=i.6 
1:59.8 
187.9 
l-iS.8 

i')a.4 

157.3 


95.3 
98.9 
100.5 
108.7 
103.4 
99.2 
95.5 
97.3 
99.1 
101.8 
107.7 
11^5 

129.0 
125.8 
126.0 
136.9 
141.2 


98.7 
9d.'S 
101.9 
10).  3 
101.9 
98.8 
97.6 
98.2 
95.1 
99.2 
105.3 
110.2 
119.4 
121.3 
118.4 
118.5 
127.2 
130.7 


109.3 
116.6 
95.7 
112.3 
102.6 
91.8 
77.0 
93.0 
105.4 
96.1 
9:5.5 
116.8 
117.0 
114.8 
121.3 
110.2 
111.4 
120.6 


116.8 
113.5 
113.5 
115.6 
100.9 
91.2 
86.8 
81.3 
86.3 
85.1 
83.0 
^.6 
83.4 
80.2 
79.6 
81.4 
&5.1 
88.4 


101.3 
102.5 
101.3 
9S.4 
99.0 
98.8 

m.7 

97.9 
101.7 
102.4 
102.4 
10  5.5 
10"..  5 
10  5.9 
101.6 
102.6 
105.7 
108.5 


118.6 
102.7 
96.2 
101.5 
93.8 
91.8 

m.Q 

95.7 
101.3 
101.7 
104.9 
103.0 
96.0 
96.1 
101.9 
105.9 
98.2 
99.6 


100.0 
100.4 
1O0.2 
100.1 
98.7 
98.5 
98.8 
98.5 
100.7 
104.4 
105.5 
100.7 
107.2 
lOfi.O 
105.8 
105.7 
105.5 
105.3 


99.6 
100.0 
100.0 
98.7 
98.5 
99.5 
99.9 
101.2 
103.7 
101.9 
108.8 
115.2 
114.9 
115.5 
117.7 
123.2 
125.0 


102.9 
105.5 
lOi.7 
99.5 
99.8 
98.9 
97.2 
97.4 
97.9 
98.3 
98.5 
98.9 
99.5 
99.1 
98.9 
100.3 
102.6 
104.5 


The  following-  table  shows  the  relative  wages  per  hour,  the 
relative  retail  prices  of  food,  and  the  relative  purchasing-  powei- 
of  hourly  wag-es  when  measured  by  retail  prices  of  food,  for 
each  year  from  1890  to  1907.  The  prices  are  "weighted"  accord- 
ing to  the  importance  of  each  article  in  jaiiiily  consumption, 
the  degree  of  im])ortance  having  been  determined  by  a  special 
inquiry  covering  over  2,500  families.  In  the  computation  of  a 
"simple  average"  for  all  food  the  same  importance  is  given  to 
each  article,  flour,  for  example,  being  given  the  same  weight 
as  cheese.  To  overcome  the  unfairness  of  such  an  average,  the 
exact  quantity  of  each  commodity  of  food  used  was  ascertained 
and  each  commodity  was  then  given  its  proper  importance 
as  an  article  of  consmnption.  The  result  is  the  "Aveighted"  aver- 
age given.  It  shoild  l)e  stated  in  this  connection,  however,  that 
the  "weighted"  average  as  shown  does  not  differ  materially 
from   the   simple  average. 

Relative  loages  per  hour,  retail  prices  of  food,  and  purchasing 
pover  of  hourly  ioages,  measured  by  retail  prices  of  food, 
1S90  to  1901. 

[Relative  numbers  computed  on  basis  of  average  for  1890-189&=100.0.] 


Year. 

Wages  per 
hour. 

0> 

Retail  prices 

of  food 
weighted  ao- 

cording  to 
family  con^ 

sumption. 

Purchasing 

power  of 

hourly  wages 

measured  by 

retail  prices 

of  food. 

1^90                                       --  

100.3 
100.3 
100.  S 
100.9 
97.9 
98.3 

m.7 

99.6 
100.2 
102.0 
105.5 
108.0 
112.2 
116.3 
117.0 
118.9 
124.2 
1-28.8 

102.4 
103.8 
101.9 
104.4 
99.7 
97.8 
95.5 
96.3 
98.7 
99.5 
101.1 
105.2 
110.9 
110.3 
111.7 
112.4 
115.7 
1-20.6 

97.9 

1891                                       

96.6 

1892 

98.9 

1893 

96.6 

1894 

98.2 

1895 

100.5 

1898                                                     ...    

104.4 

1897                                                 

103.4 

1898                                            --     

101.5 

1899 

1900                                           .-     

102.5 
104.4 

1)01                                           

102.7 

1902 

130?                              .  -  -.- 

101.2 
105.4 

1901 

1905 

1906 

104.7 
105.8 
107.3 

1907                                                     -        —     — - 

103.8 

'ilie  method  of  using  the  relative  figures  has  ali-ead\  been 
explained.  The  important  facts  disclosed  by  tjjis  table  Jire  thtit 
wages  per  hour  and  i-etail  prices  of  food  weighted  according  to 
family  consumption  were  both  higher  in  1907  than  in  any  other 
year  of  the  eighteen-year  period  and  that  the  increase  in  wages, 


224  WAQE8  AND  COST  OF  LIVING. 

as  compared  with  the  averag-e  for  1890  to  1899,  was  8.2  per 
cent  greater  than  the  increase  in  prices  of  food.  As  compared 
with  1896,  the  year  of  lowest  prices,  the  increase  of  wages 
was  from  99.7  to  128.8,  or  29.2  per  cent,  while  the  increase  in 
food  prices  was  from  99.5  to  120.6,  or  26.3  per  cent.  Again,  the 
purchasing  power  of  an  hour's  wages  measured  by  retail  prices 
of  food  was  104.4  in  1896  and  106.8  in  1907,  a  difference  of 
2.4,  or  2.3  per  cent,  in  favor  of  the  latter  year. 

The  changes  in  the  cost  of  living,  as  shown  by  tlie  bulletin 
of  the  Bureau  of  Labor,  relate  to  food  alone,  representing  42.54 
per  cent  of  all  family  expenditures  in  the  2,567  families  furnish- 
ing information.  With  respect  to  the  remaining  articles  of 
expenditure  in  the  average  workingman's  family,  a  preceding 
number  of  the  bulletin  states  that  they  are,  from  their  nature, 
affected  only  indirectly  and  in  very  slight  degree  by  any  rise  or 
fall  in  prices.  Such  are  payments  on  account  of  princifial  and 
interest  of  mortgage,  taxes,  property  and  life  insurance,  labor 
and  other  organization  fees,  religion,  charity,  books  and  news- 
papers, amusements  and  vacations,  intoxicating  liquors,  and  sick- 
ness and  death.  These  together  constituted  14.51  per  cent  of 
the  family  expenditure  in  1901  of  the  2,567  families  investigated. 
Miscellaneous  purposes,  not  reported,  for  which,  from  their  very 
character,  no  prices  are  obtainable,  made  up  5.87  per  cent,  and 
rent,  for  which  also  no  prices  for  the  several  years  are  avail- 
able, made  up  12.95  per  cent.  The  remaining  classes  of  family 
expenditure,  24.13  per  cent  of  all,  consist  of  clothing  14.04  per 
cent,  fuel  and  lighting  5.25  per  cent,  furniture  and  utensils  3.42 
per  cent,  and  tobacco  1.42  j)er  cent.  For  these  no  retail  prices 
covering  a  series  of  years  are  available,  but  it  is  probable  that 
the  advance  of  the  retail  prices  was  considerably  less  than  the 
advance  in  wholesale  prices,  as  the  advance  in  wholesale  prices 
of  articles  of  food  in  1907,  as  compared  with  1896,  was  40.6  per 
cent,  while  the  advance  in  the  retail  prices  of  similar  articles 
or  groups  of  articles,  as  shown  by  the  results  of  this  investiga- 
tion, was  but  26  per  cent.  An  examination  of  the  relative  whole- 
sale prices  of  these  classes  of  articles  in  Bulletin  No.  75,  giving 
them  their  proper  weight  according  to  family  consumption,  leads 
to  the  conclusion  that  the  retail  prices  of  these  articles  as  a 
whole  in  1907  >could  have  been  but  little,  if  at  all,  above  the 
level  indicated  for  food. 

If  all  classes  of  family  expenditures  as  above  be  taken  into 
consideration,  it  is  apparently  a  safe  and  conservative  conclu- 
sion that  tjhe  increase  in  the  cost  of  living  as  a  whole,  in  1907, 
when  compared  with  the.  year  of  lowest  prices,  was  less 
than  26  per  cent,  the  figui'es  given  above  as  the  increase  in  the 
cost  of  food  as  shown  by  this  investigation.  It  is  shown  on 
the  succeeding  pages  that  the  increase  in  wages  in  1907  over  the 
year  of  lowest  wages,  as  shown  by  the  same  bulletin  of  the 
Bureau  of  Labor,  WAS  GREATER  THAN  THE  INCREASE  IN 
COST  OF  (LIVING,  BEING  31.6  PER  CENT. 

"Wasem    Have   Advanced   More    Tlian    Prices. 

A  comparison  of  the  table  showing  prices  with  that  on 
another  page,  entitled  "Per  cent  of  increase  or  decrease  in 
the  relative  wages  per  hour  in  15  leading  occupations  in  1907, 
compared  with  each  preceding  year,"  discloses  the  following 
interesting  facts : 

Bricklayers'  wages  advanced  42.3  per  cent  from  1896  to 
1907 ;  carpenters'  wages,  52.5  per  cent ;  hod-carriers  wages, 
35.5  per  cent;  iron  moulders  wages,  28.0  per  cent;  building  la- 
borers' wages,  31.8  per  cent;  stone  masons'  wages  42.4 
per  cent;  painters'  wages,  43.1  per  cent;  plasterers'  wages,  53.8 
per  cent ;  plumbers'  wages,  47.5  per  cent ;  stone  cutters'  wages, 
27.8  per  cent;  structural  iron  workers'  wages,  95.2  per  cent, 
etc.,  while  during  the  same  period  the  retail  prices  of  fresh 
beef  roasts  increased  20.2  per  cent;  beef  steaks,  21.2  per  cent; 
salt  beef,  14.3  per  cent;  bread,  4.6  per  cent;  butter,  37.6  per 
cent;  cheese,  25.8  per  cent;  coffee  decreased  4.6  per  cent;  fresh 
fish  increased  20.4  per  cent;  salt  fish,  24.7  per  cent;  wheat 
flour,  27.0  per  cent;  fresh  milk,  16.9  per  cent;  molasses,  9.1 
per  cent;  rice,  12.2  per  cent;  sugar,  3.1  per  cent,  and  tea,  6.6 
per  cent.       All  food  of  ordinary  consumption  has  increased  an 


WAGES  AND  COST  OF  LIVING.  '        225 

average  of  26  per  cent;  pork  products,  which  are  included  in 
this  general  average,  advanced  from  33.9  to  62.7  per  cent, 
owing  to  the  high  price  of  hogs,  the  wholesale  price  of  which 
advanced  77.8  per  cent  during  the  same  period,  as  is  shown 
in  the  chapter  on  the   exchange   value  of  farai   [Ji-oducts. 

By  measuring  the  purchasing  power  of  an  hour's  wages  of 
these  various  articles  of  food  in  1896  and  in  1907,  a  very  in- 
teresting result   is  obtained. 

In  the  case  of  a  bricklayer,  it  shows  that  for  an  hour's 
wages  in  1907,  as  compared  with  an  hour's  wages  in  1896,  he 
could  buy  18.5  per  cent  more  beef  roasts ;  17.5  per  cent  more 
beef  steak ;  24.6  per  cent  more  salt  beef ;  36.3  per  cent  more 
wheat  bread ;  3.5  per  cent  more  butter ;  13.2  per  cent  more 
cheese;  49.4  per  cent  more  coffee;  18.3  per  cent  more  fresh  fish; 
14.3  per  cent  more  salt  fish;  7,4  jjer  cent  more  wheat  flour; 
30.9  per  cent  more  fresh  milk;  30.6  per  cent  more  molasses; 
'27  j)er  cent  more  rice ;  38.4  per  cent  more  sugar,  and  33.7  per 
cent  more  tea. 

A  carpenter  could  buy  for  an  hoiir's  wages  in  1907,  as  com- 
pared with  1896,  26.9  per  cent  more  beef  roasts ;  25.8  per  cent 
more  beef  steak ;  33.4  per  cent  more  salt  beef ;  45.8  per  cent  more 
wheat  bi'ead ;  10.8  per  cent  more  butter;  21.2  per  cent  more 
cheese ;  59.9  per  cent  more  coffee ;  26.7  per  cent  more  fresh 
fish;  21.3  per  cent  more  salt  fish;  "JO.l  per  cent  more  wheat 
flour ;  30.5  per  cent  more  fresh  milk ;  39.1  per  cent  more  mo- 
lasses;  35.9  per  cent  more  rice;  47.9  per  cent  more  sugar,  and 

43.1  per  cent  more  tea. 

A  day  laborer  could  buy  for  an  hour's  wages  in  1907,  as 
compared  with  1896,  9.7  per  cent  more  beef  roasts ;  8.7  per 
cent  more  beef  steak;  15.3  per  cent  more  salt  beef;  26  per 
cent  more  wheat  bread ;  4.7  per  cent  more  cheese ;  38.6  per 
cent  more  coffee ;  9.5  per  cent  more  fresh  fish ;  5.7  per  cent  more 
salt  fish ;  3.7  per  cent  more  wheat  flour ;  12.7  per  cent  more 
fresh  milk ;  20.9  per  cent  more  molasses ;  17.5  per  cent  more 
rice ;  27.9  per  cent  more  sugar,  and  23.7  per  cent  more  tea. 

A  painter  could  buy  for  an  hour's  wages  in  1907,  as  com- 
pared with  1896,  19.1  per  cent  more  beef  roasts;  18.1  per  cent 
more  beef  steak ;  24.6  per  cent  more  salt  beef ;  36.8  per  cent 
more  wheat  bread ;  4  per  cent  more  butter ;  13.7  per  cent  more 
cheese ;  49.9  per  cent  more  coffee ;  18.9  per  cent  more  fresh 
fish ;  14.6  per  cent  more  salt  fish ;  12.7  per  cent  more  wheat 
flour;  22.4  per  cent  more  fresh  milk;  31.2  per  cent  more  mo- 
lasses ;  27.6  per  cent  more  rice ;  38.9  per  cent  more  sugar,  and 
34.3   per  cent  more  tea. 

An  iron  moulder  could  buy  for  an  hour's  wages  in  1907,  as 
compared  with  1896,  6.5  per  cent  more  beef  roasts;  5.6  per  cent 
more  beef  steak ;  12  per  cent  more  salt  beef ;  2.2  per  cent  more 
wheat  bread ;  1.7  per  cent  more  cheese ;  34.2  per  cent  more 
coffee ;  6.4  per  cent  more  fresh  fish ;  2.7  per  cent  more  salt 
fish ;  0.8  per  cent  more  wheat  flour ;  9.5  per  cent  more  fresh  milk ; 
17.3  per  cent  more  molasses ;  14.1  per  cent  more  rice ;  24.3 
per  cent  more  sugar,  and  20.4  per  cent  more  tea. 

A  plumber  could  buy  for  an  hour's  wages  in  1907,  as  com- 
pared with  1896,  24.8  per  cent  more  beef  roasts ;  23.7  per  cent 
more  beef  steak;  31.1  per  cent  more  salt  beef;  43.3  per  cent 
more  wheat  bread;  9  per  cent  more  butter;  19.2  per  cent  more 
cheese ;  57.3  per  cent  more  coffee  ;  24.7  per  cent  more  fresh  fish ; 
20.3   per   cent  more  salt  fish;    18.2   per  cent  more  wheat  flour; 

28.2  per  cent  more  fresh  milk;  37.5  per  cent  more  molasses; 
32.9  per  cent  more  rice ;  45.4  per  cent  more  sugar,  and  40.8  per 
cent  more  tea. 

A  stone  cutter  could  buy  for  an  hour's  wages  in  1907,  as  com- 
pared with  1896,  6.3  per  cent  more  beef  roasts;  5.4  per  cent 
more  beef  steak;  11.8  per  cent  more  salt  beef;  22.1  per  cent 
more  wheat  bread;  1.5  per  cent  more  cheese;  34  per  cent  more 
coffee ;  6.2  .  per  cent  more  fresh  fish ;  2.4  per  cent  more  salt 
fish;  0.6  per  cent  more  wheat  flour;  9.3  per  cent  more  fresh 
milk;  17.1  per  cent  more  molasses;  13.9  per  cent  more  ric»; 
23.9  per  cent  more  sugar,  and  19.9  per  cent  more  tea. 

.    A   stone  mason   could  buy  for  an  hour's   wages  in  1907,   as 
compared  with  1896,   18.6  per  cent  more  beef  roasts ;    17.5  per 


226 


WAGES  AND  COST  OF  LIVJNG, 


cent  more  beef  steak ;  24.6  per  cent  more  salt  beef ;  36  per  ' 
cent  more  wheat  bread;  3.5  per  cent  more  butter;  13.2  per  cent  ■ 
more  cheese ;  49.3  per  cent  more  cofl'ee ;  18.3  per  cent  more  ] 
fresh  fish;  14.2  per  cent  more  salt  fish;  11.9  per  cent  more  wheat  j 
flour;  21.8  per  cent  more  fresh  milk;  30.5  per  cent  more  mo- 1 
lasses ;  26.9  per  cent  more  rice ;  38.1  per  cent  more  sugar,  and  ■ 
33.6  per  cent  more  tea.  ] 

A  structural  iron  worker  coidd  buy  for  an  hour's  wag-es  in  1 
1907  ,  as  compared  with  1896,  62.4  per  cent  more  beef  roasts  ;1 
61  per  cent  more  beef  steak;  70.7  jjer  cent  more  salt  beef;j 
86.6  per  cent  more  wheat  bread;  41.8  per  cent  more  butter;; 
55.6  per  cent  more  cheese  ;  104.6  per  cent  more  coffee ;  62,2  per  ; 
cent  more  fresh  fish ;  56.5  per  cent  more  salt  fish ;  53.7  per ! 
cent  more  wheat  flour;  66.9  per  cent  more  fresh  milk;  80.7! 
per  cent  more  molasses ;  74  per  cent  more  rice  ;  89.3  per  cent ' 
more  sugar,  and  82.3  per  cent  more  tea.  < 

Similar  comparisons  could  be  made  with  many  more  occu- 
pations, but  it  is  believed  that  the  above,  which  all  relate  to  ] 
leading  and  well-defined  occupations,  are  sufficient  to  prove  the  i 
fallacy  of  the  assertion  that  wages  have  not  kept  up  with  i 
prices  since  the  great  industrial  depression  during  the  last  Demo-  j 
cratic  administration.  /     ^. 

As  a  summary  of  results  of  the  investigations  relative  io] 
wages  and  cost  of  living,  the  two  following  tables  are  given  ] 
in  the  Bulletin  of  the  Bureau  of  Labor.  The  first  shows  relative  ■ 
figures,  while  the  second  shows  the  increase  or  decrease  in  the  ^ 
year  1907  as  compared  with  each  preceding  year  of  the  period] 
considered.  ^  i 

Relative  employees,  hours  per  week,  wages  per  hour,  full-timm 
weekly  earnings  per  employee,  retail  prices  of  food,  and  pur-] 
chasing  power  of,  hourly  wages  and  of  full-time  weekly  earn-] 
ings  per  employee,  measured  'by  retail  prices  of  food,  1890  ^ 
to  1907.     -  I 


[Relative  numbers  computed  on  basis  of  average  for  1890-1899=100.0.] 

Employ- 
ees. 

• 

Hours 
per  week. 

Wages 
per  hour. 

Pull-time 
weekly 

earnings 
per  em- 
ployee. 

Retail 
prices  of 

food, 
weighted 
accord- 
ing to 
family 
consump- 
tion. 

Purchasing  power, 
measured  by  retail 
prices  of  food,  of- 

Year 

Hourly 
wages. 

Pull-time 
weekly     , 

earnings  . 
per  em-    i 
ployee. 

1890 

94.8 

97.3 

99.2 

99.4 

94.1 

.   96.4 

98.6 

•    100.9 

106.4 

112.1 

115.6 

119.1 

128.6 

126.5 

125.7 

133.6 

142.9 

144.4 

100.7 
100.5 
100,5 
100.3 
99.8 
100.1 
99.8 
99.6 
99.7 
99.2 
98.7 
98.1 
97.3 
96.6 
95.9 
95.9 
95.4 
95.0 

100.3 

100.3 

100.8 

100.9 

97.9 

98.3 

99.7 

99.6 

100.2 

102.0 

105.5 

108.0 

112  2 

116.3 

117.0 

118.9 

124.2 

128.8 

101.0 

100.8 

101.3 

101.2 

97.7 

98.4 

99.5 

99.2 

99,9 

101.2 

104.1 

105.9 

109.2 

112.3 

112.2 

114.0 

118.5 

122.4 

102.4 

103.8 

101.9 

104,4 

99.7 

97.8 

95.5 

96.3 

98.7 

99.5 

101.1 

105.2 

110.9 

110.3 

111.7 

112.4 

115.7 

120.6 

97.9 

96.6 

98.9 

96.6 

98,2 

100,5 

104,4 

103.4 

101.5 

102.5 

104.4 

102.7 

101.2 

105.4 

104.7 

105.8 

107.3 

106.8 

98  6 

1891 

97  1  1 

1892 

99  4 

1,993 

1894 

iwr, 

1896 

1897  ... _,!.__ 

96,9  ; 

98.0 
100.6 
104,2 
103,0 

1.998 

101  2 

1890 

1900 

101  ,'7 
103.0  1 

1901 ... 

1902         •        - 

100.7 
98  5 

1903 

KK)1 

1001  -_.. 

101.8 
100.4 
101.4  \ 

11(06 . 

1907 

102.4 
101  5 

Note. — In  explanation  of  relative  figures  it  should  be  stated 
that  each  figure  in  the  above  table  represents  the  per  cent  which 
the  actual  figures  were  of  the  average  figures  for  the  ten-year 
period  from  1890  to  1899,  the  latter  being  presumed  to  represent 
normal  conditions  more  accurately  than  the  figures  for  any 
one  year. 

In  the  first  column,  for  example,  the  number  of  employees 
in  1890  is  shown  to  have  been  94.8  per  cent  of  the  average 
number  for  the  ten-.year  period ;  the  number  in  1894  was  94.1 
per  cent  of  the  average  for  the  ten-year  period ;  the  number  in 
1907  was  144.4  per  cent  of  the  average,  or  44.4  per  cent  greater 
than  the  averag^e  for  the  t«n-year  period,  etc. 


WA0E8  AND  COST  OP 

Per  cent  of  increase  (-j-)  or  decrease  ( — )  in  1901,  as  borripared 
ivith  prci'ious  years,  in  employees,  hours  per  week,  wages  per 
hour,  full-time  weeJcly  earnings  per  employee,  retail  prices  of 
food,  and  purchasing  power  of  hourly  wages  and  of  full-time 
weekly  earnings  per  employee,  measured  hy  retail  prices  of 
food,  1890  to  1907. 


Per  cent  ol  increase  (+)  or  decrease  (— )  in  1907  as  compared  with 
previous  years. 

Vear. 

'Impioy- 
ecs. 

Tionrs 

■or  weel< 

Wages 
•er  liour 

Full-time 
weekly 

earnings- 
per  eni- 
;>.oye, 

Retail 
prices  of 

faod, 
s-eighted 
accord- 
ing to 
amily 
nsumii 
tiou. 

Purchasing  power, 
measured  by  retail 
prices  of  food,  of— 

Hourly 
wages. 

rull-time 
weekly 

earnings 
per  em- 
ployee. 

Average 

1890-1899  - 
1890 

+  44.4 
+  52.3 
+48.4 
+45.6 
+45.3 
+  53.5 
+49.8 
+46.5 
+43.1 
+35.7 
+28.8 
+24.9 
+21.2 
+  16.8 
+  14.2 
+14.9 
+  8.1 
+  1.0 

-5.0 
-5.7 
-5.5 
-5.5 
—5.3 
—4.8 
—5.1 
-4.8 
—4.6 
—4.7 
—4.2 
—3.7 
—3.2 
-2.4 
-1.7 
—0.9 
—0.9 
-0.4 

+28.8 
+28.4 
+28.4 
+27.8 
+27.7 
+31.6 
+31.0 
+29.2 
+29.3 
+28.5 
+26.3 
+22.1 
+19.3 
+14.8 
+10.7 
+10.1 
+  8.3 
+  3.7 

+22.4 
+21.2 
+21.4 
+20.8 
+20.9 
+25.3 
+2L4 
+23.0 
+23.4 
+22.5 
+  20.9 
+  17.6 
+  15.6 
+  12.1 
+  9.0 
+  9.1 
+  7.4 
+  3.3 

+20.6 
+  17.8 
+  16.2 
+  18.4 
+  15.5 
+21.0 
+23.3 
+26.3 
+25.2 
+22.2 
+21.2 
+19.3 
+  14.6 
+  8.7 
+  9.3 
+  8.0 
+  7.3 
+  4.2 

+  6.8 
+  9.1 
+10.6 
-t-  8.0 
+10.6 
+  8.8 
+  6.3 
+  2.3 
+  3.3 
+  5.2 
+  4.2 
+  2.3« 
+  4.0 
+  5.5 
4    1.3 
.+  2.0 
+  0.9 
—  0.5 

+1.3 
+2.9 

1891 

+4.5 

18)2  _.. 

1893 

+2.1 
+4.7 

1894 

1895 

+3.6 
+0.9 

1896 

-2.6 

1897  __ 

—1.5 

18)8 

+0.3 

1S99 ._ 

V)00 

-0.2 
—1,5 

1901 

+0.» 

1902 

l'>0'.    ...       . 

+3.0 

mot  ..   .. 

+''  ' 

1905 

+0.1 

1906 

V    -^.9 

Note. — The  fig-iires  in  this  table  g-ive  for  each  year,  and  for 
the  average  of  the  ten-year  period  from  1890  to  1899,  the  per 
cent  of  increase  or  decrease  (indicated  by  -|-  or  — )  which  the 
figures  for  1907  show  as  compared  with  the  year  specified. 
For  example,  the  first  column  shows  that  the  number  of  em- 
ployees in  1907  was  44.4  per  cent  greater  than  the  average 
number  in  the  ten-year  period,  53.5  per  cent  greater  than  the 
number  in  1894,  1  per  cent  greater  than  the  number  in  1906, 
etc.,  etc. 


Better   Employment,   Shorter   Working-   Hours,   Higlier   IVaffes 
and    Higher    Purcliasing   Power    of    Wages. 

The  foregoing  table,  which  presents  the  facts  in  the  con- 
venient form  of  percentages,  discloses  most  important  infor- 
mation with  j-eference  to  conditions  in  1907,  as  compared  with 
the  period  of  industrial  depression  which  reached  its  lowest 
depths  during  the  j^ears  1894,    1895  and  1896. 

First — Employment  Afforded — As  regards  the  number  of 
employees  iu  the  manufacturing  and  mechanical  industries,  it 
is  seen  that  over  one-half  more  workmen  (53.5  per  cent) 
were  employed  in  1907  than  in  1894,  and  that  during  the  ad- 
uiiuistratioiis  of  President  ISIcKinley  and  President  Eoosevelt 
the  number  given  employment  has  steadily  and  rapidly  increased 
even  u]>  to  and  including  the  last  year  of  the  period  1907.  And 
even  the  wonderful  increase  in  1907  over  1894  as  shown  above 
does  not  mark  the  extreme  limit  of  the  betterment  of  industrial 
conditions  as  regards  employment  afforded ;  for  it  must  be  re- 
meml)ered  that  the  various  establishments  covered  in  the  in- 
vestigation' of  the  Bureau  of  Labor  were  practically  all  in 
ojieration  each  year  during  the  entire  period  and  the  figures 
seciu-ed  thei-efrom  do  not  reflect  conditions  in  the  hundreds 
of  important  establishments  which  were  closed  entirely  during 
the  jieriod  of  depression.  Were  figures  available  showing  the 
thousands  of  workmen  thrown  into  absolute  idleness  hy  the 
closing  doicn  of  factories  and  mills  during  Democratic  rule, 
and   the  thousands  given  employment  during  Republican  rule, 


S8V  WAGES  AND  COST  0¥   MATING. 

th4  p«r  emit  of  hicrca.sv  in  <nn>lai/cc,s  al  ivoric  in  lUOl  over 
tlis  number  shown  for  lS9/f  ivoiihl  doubtless  be  double  thai 
jjiven  hy  the  Bureau  of  Labor  in  the  tabic. 

Second — Working  Hours — As  regards  hours  of  work  in  the 
establishments  covered,  it  is  seen  that  almost  tcithoiit  a  halt 
the  work-day  has  yradually  been  shortened  during  the  period. 
The  Hverug-e  hours  worked  per  week  in  1907  were  5.7  per  cent 
less  than  in  1890;  5.1  per  cent  less  than  in  1895;  3.7  per  cent 
less  than  in  1900,  and  .4  per  cent  less  than  in  1900.  I'he  gen- 
eral betterment  of  industrial  conditions  is  nowhere  better  shown 
than  in  the  figures  lohich  indicate  that  slowly  but  surely  the 
hours  of  labor  arc  decreasing  and  a  consequently  longer  time 
is  afforded  the  icorkmen  for  rest,  recreation,  and  improvement. 

Third — Hourly  Wages — The  table  shows  quite  conclusively 
the  reduction  in  wages  during  the  ^-ears  of  depression  and  the 
gradual  and  rapid  increase  year  by  year  since  1896.  It  is  seen 
that  the  hourly  wages  in  1001  were  28.Jf  per  cent  hiffher  thati 
in  1800;  they  were  in  ^lOOl  31.6  per  cent  higher  than  in  180 Jf, 
the  year  of  lowest  wages;  they  were  31  per  cent  higher  than 
in  1805,  and  20.2  per  cent  higher  than  in  1806,  etc.  It  is  most 
inttjresting  to  note  the  steady  and  strong  tendency  towards 
higher  wiges  during  the  last  ten  years,  nor  should  the  fact 
be  overlooked  that  the  wages  of  1001,  the  last  year  covered, 
were  higher  than  in  any  previous  year,  being  3.1  per  cent  higher 
than  the  year  1006.  The  figures  do  not  }n  any  way  indicate 
that  a  retrograde  movement   has   began. 

Fourth — Weekly  Earnings  per  Employee — It  has  been  stated 
that  while  hourly  wages  have  increased  greatly  the  daily  hours 
of  work  have  gradually  decreased.  While  the  decrease  in  hours 
has  doubtless  been  due  to  the  movement  of  workmen  them- 
selves for  a  shorter  work-day,  it  should  be  noted  also  that  when 
tl),e  decrease  An  hours  per  iceek  is  taken  in  connection  with  the 
increase  in  wages  the  resvlting  iceekly  earnings  still  shotc  a 
marked  increase  in  1001  over  preceding  years.  For  example. 
the  weekly  earnings  in  1001  iverc  25.3  per  cent  greater  than  in 
180 Ji ;  24.4  per  cent  greater  than  in  1805,  etc.,  etc.  While  the 
increase  as  shown  above  is  qnite  considerable,  it  should  be  re- 
membered that  it  does  not  by  any  means  indicate  the  conditions 
as  to  weekly,  monthly,  or  annual  earnings  in  1907.  as  compared 
with  the  years  of  depression,  inasmuch  as  the  figures  given  are 
based  on  the  presumption  that  each  emph:)yee  worked  full  time. 
While  figures  are  not  available  showing  the  eMetit  to  which 
establishments  icorked,  ''half -time''''  or  "three-quarter  time'''  dur- 
ing the  years  of  depression,  or  closed  down  entirely,  it  is  safe 
to  say  that  were  it  possible  to  compare  average  iceekly,  monthly, 
or  yearly  earnings  in  1001  with  those  for  180^,  1895,  and  1S06, 
the  per  cent  of  increase  in  .1901 -^over  tlie  latter  years  would 
be  much  greater  than  that  shown  in  the  Bulletin  of  the  Bureau 
of  Jjubor. 

Fifth— Retail  Prices  of  Food — As  previously  indicated,  the 
fiffi^res  given  in  this  colmim  are  stated  by  the  Bureau  of  Labor 
to  fairly  represent  not  only  the  trend  of  cost  of  living  so  far 
as  food  is  concerned,  but  also  to  mark  the  possible  limits  of 
advance  and  decline  in  the  cost  of  all  articles  of  family  con- 
sumption. The  results  are  especially  important  as  they  are 
derived  from  a  most  comprehensive  investigation  into  retail 
prices  covering  a  long  series  of  years.  Heretofore  wholesale 
;prices  have  been  used  to  indicate  the  trend  of  cost  of  living, 
althorgh  it  was  recognized  that  they  were  more  sensitive  to 
conditions  than  retail  prices,  that  their  fluctuations  were  con- 
siderably greater,  and  that  they  could  not  be  used  to  indicate 
even  a])proximately  the  extent  of  increase  or  decrease  from 
year  to  year  in  the  cost  of  living.  The  collection  of  retail  prices 
which  forms  the  basis  of  the  figures  in  the  table  is,  therefore, 
of  great  value  as  indicating  with  great  exactness  the  cost  of 
Uving  based  on  prices  actually  paid  by  the  small  consumer.  ■  It 
,fs  seen  that  the  cost  of  living  increased  in  1901  over  the  year 
of  lowest  prices,  1896,  not  more  than  26.8  per  cent;  over  1801, 
25.2  per  cent;  over  1808.  22.2  per  cent;  etc.,  etc. 

Sixth — Purchasing  Power  of  Wages — The  last  two  columns 
of  the  table  show  the  percentages  representing  the  purchasing 


WAGES  AND  COST  OF  LIVING.  S&% 

power  of  wages.  The  first  of  the  two  columns  shoAvs  the  facts 
for  hourly  wag-es,  while  the  second  shows  those  for  weekly 
earnings.  Considering  the  retail  prices  of  food  or  cost  of 
living  in  coifnection  with  hourly  wages,  it  is  shown  that  the  pur- 
chasing power  of  hourly  wages  in  WOl  was  10.6  per  cent  greater 
than  in  1893;  8.8  per  cent  greater  than  in  1894;  6.3  per  cent 
greater  than  in  1895;  2.3  per  cent  greater  than  in  1896,  etc., 
etc.  .In  other  words,  an  hour's  wages  in  1901  would  purchase 
10.6  per  cent  more  of  the  commodities  and  articles  entering 
into  the  cost  of  living  of  the  workingman's  family  than  would 
an  hour's  wages  in  1893,  etc.  The  last  cokimn,  which  does  not 
present  so  accurate  a  figure  for  reasons  stated  previoiisly  in 
connection  with  weekly  earnings  confirms  the  conclusion  justified 
by  the  preceding  column  that,  considering  hoth  ivages  and  cost 
of  living,  the  workingman  has  benefited  to  a  measurable  degree 
from  the  increase  in  wages  despite  the  increase  in  cost  of  living 
and  shortening  of  work  hours. 

When  it  is  remembered,  also,  that  the  betterment  of  indus- 
trial conditions  has  been  greater  than  the  figures  indicate  in 
some  cases,  as  previously  explained,  that  it  has  extended  in 
many  directions  not  covered  by  the  figures  and  not  even  sus- 
ceptible of  demonstration  by  the  statistical  method,  and  that 
the  savings  of  the  workman  during  a  period  of  high  wages, 
although  accompanied  by  high  prices,  is  considerably  greatrr 
than  during  a  period  6f  depression,  it  seems  a  safe  and  con- 
servative conclusion  that  at  no  time  in  the  history  of  this  or 
any  other  country  has  there  been  an  era  of  prosperity  so  pro- 
ductive of  material  benefit  to  both  the  workingman  and  the 
employer  as  the  last  twelve  years  of  Republican  r"le. 


WAGES    IN    THE    UNITED    STATES    AND    IN    GREAT    BRITAIN. 

A  comparison  of  wage  conditions  in  the  United  States  with 
those  of  our  free-trade  neighbor,  Great  Britain,  is  interesting. 
It  is  said  that  in  no  country  is  labor  better  organized  than  in 
Great  Britain.  Organized  labor  has  therefore  exerted  at  least 
as  gi-eat  an  influence  for  higher  wages  there  as  it  has  in  this 
country.  Industrial  conditions,  under  fi-ee  trade,  have,  how- 
ever, made  it  impossible  for  employers  of  labor  to  pay  anything 
like  the  wages  received  by  American  workingmen. 

At  the  same  time  that  the  figures  relating  to  wages  in  1903 
were  being  collected  in  this  country,  a  special  agent  of  the 
United  States  Bureau  of  Labor  visited  Great  Britain  for  the 
purpose  of  obtaining  wage  statistics  from  the  pay  rolls  of 
British  industrial  establishments  doing  business  continuously 
during  the  period  from  1890  to  1903,  so  that  statistics  might  be 
obtained  for  that  country  that  are  entirely  comparable  with 
those  gathered  in  the   United    States. 

The  following  table,  which  was  compiled  from  the  July,  1904, 
Bulletin  of  the  Federal  Bureau  of  Labor,  shows  the  general 
results  of  this  investigation  abroad  as  compared  with  the  figures 
obtained  for  this  country  : 


Tliere  are  more  than  twenty-five  tliousand  local  labor 
unions  in  tlie  Lnited  States,  witli  a  niembership  of  more 
tli«n  two  millions.  Wliat  infinite  «ood  can  be  accomplislied 
by  this  niisltty  army  of  peace  and  indnstry  if  lield  true  to  Its 
o^jisortnnity.— Hon.  C.  \V.  'Fairbanks,  at  Kansas  City,  Mo., 
September    1,    11>02. 

Yon  asli  me  wliat  I  think  of  a  provision  tliat  no  restrain- 
iiiK  order  or  injunction  shall  issue  except  after  notice  to 
<he  defendant  and  a  hearinft-  had.  This  was  the  rule  under 
the  Federal  statutes  for  many  years,  but  was  subsequently 
abolished.  In  the  class  of  cases  to  which  you  refer  I  do 
not  see  any  objection  to  the  re-enactment  of  that  Federal 
statute.  Indeed.  I  have  taken  occasion  to  say  In  public 
speeches  that  the  |)owev  to  issue  injunction  ex  i»arre  has 
jiiven  rise  to  certain  abuses  and  injustice  to  the  laborers 
in  n  peaceable  strike.— Hon.  Wm.  H.  Taft,  in  correspondence 
with  President  Llewelyn  Lewis,  of  the  Ohio  Federation  of 
Labor. 


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These  statistics  show  a  remarkable  difference  between  wage 
conditions  in  the    United   States  and  in   Great  Britain.     During: 
the    14-year  period  from   1890  to   1903   the  average  wage  returns 
for  each  year  as  shown   in  the  table,   range  as  follows:      Black- 
smiths, in  the  United  States.  $0.26  to  0,29]^,  and  in  Great  Britain 
$0.16^    to    17^    per   hour;    boilermakers.    in   the   United    States. 
$0.26   to  $0,281^.  and  in   Great  Britain   $0.16  to  0.1 7i^  per  hour; 
bri'klayer.s,   in  the  United    States,   $0.43  to  0.54i/^,   and   in   Great 
J^ritain    $0.17^    to   0.20i^    per   hour;    carpenters,    in    the    Uuiteff 
States,   $0.27  to  0.36.   and   in   Great  Britain   $0.17   to  $0.20i/,   per 
honr:  compositors,   in  the  United  States,  $0.38   to  0.44^^,  and  in 
•Great  Britain  $0.15i^  to  0.18  per  hour;  hodcurriers,  in  the  United 
.,JTtates.   $0.22]^    to  0.28^.  and   in   Great  Britain  $0.12   to  0.13   per 
ihovr:  iron  moulders,  in  the  United  States,  $0.24i/^  to  0.30i/2.  and  in 
,*5?^at    Britain   $0.17   to   0.18   per    hour;    general    laborers,    in    the 
jUnifeaJStates,  $0.14  to  0.17.  and  in  Great"  P.ritain  $0.09r.^  to  0.ia;4 
per  iiour;  machinicits,  in  the   United  States,  $0.23i/^  to   0.27,  and 


WA.QES  AND  COST  OF  LIVING. 


231 


in  Great  Britain  $0,151/^  to  0.17  per  liour;  house  painters,  in  the 
United  States,  $0.27  to  0.343/^,  and  in  Great  Britain  $0.15^  to 
0.17^  per  hour;  plumbers,  in  the  United  States,  $0.34^  to  0.43^^2^ 
and  in  Great  Britain  $0.17i/^  to  0.20i^  per  hour;  stone  cutters,  in 
the  United  States,  $0.34^  to  0.42,  and  in  Great  Britain  $0.17  to 
0.20  per  honr ;  stone  masons,  in  the  United  States,  $0.34i/^  to  0.45, 
and  in  Great  Britain  $0.17 y^  to  0.21  per  hour. 

The  claim  is  sometimes  made  that  tlie  ipcreased  wages  in 
this  country  since  the  years  of  depression  (1893  to  1897)  were 
accompanied  by  lil<e  increases  in  Great  Britain.  That  this  is 
not  the  case  can  be  shown  by  examining-  the  following  table,  in 
which  the  wages  in  1896  and  in  1903  and  the  percentage  of  in- 
crease in  the  United  States  and  in  Great  l>i-itain  during  that 
period  are  placed  side  by  side  : 


Wages  in  the  United  States  and  Greajt  Britain  in,  1896  and  1903. 

iCompiled  from  Bulletin  No.  51,  United  States  Bureau  of  Labor.] 

Wages  per  hour. 


Occupation. 


Blacksmiths 

Boilermakers 

Bricklayers 

Carpenters 

Compositors 

Hod -carriers 

Iron  molders 

Laborers,  genera 

Machinists 

Painters,  house. - 

Plumbers 

Stone  cutters 

Stone  masons 


United  States. 


$0.2043 
.2626 
.4337 
.27:0 
.3897 
:233') 
.2537 
.1U5 
.2  5)7 
.27t2 
.3W5 
.3i90 
.3547 


1903. 


$0.2962 
.2«  8 
.5*71 
.3591 
.4167 
.286} 
.3036 
.1076 
.270.T 
.3t50 
.4371 
.4225 
.4486 


Per 
cent 

j     in- 

I  crease. 


12.1 
8.5 
26.1 
31.2 
U.G 
22.6 
21.1 
18.4 
12.0 
26.5 
25.8 
24.7 
17.7 


Great  Britain. 


$0.1716 
.168S 
.1960 
.1893 
.16)5 
.1250 
.1698 
.0358  ■ 
.1607 
.1656 
.  1926 
.  1893 
.1977 


Per 
cent 
In- 
crease. 


$0. 1740 
.1719 
.2032 
.2028 
.17y5 
.1250 
.1787 
.1019 
.1677 
.1774 
.2027 
.1994 
.2078 


1.4 
2.1 
5.2 
7.1 
5.9 
Q.O 
5.d 
6.4 
4.4 
7.1 
5.2 
5.3 


The  tendency  of  wages  in  all  industrial  countries  is  to  increase 
gradually  from  year  to  year  except  at  times  of  industrial  depres- 
sion, and  while  such  a  normal  increase  is  noticeable  in  the  figures 
for  Great  Britain  from  1896  to  1903,  the  figures  for  the  U  ited 
States  during  this  period  plainly  show  that  the  increase  here 
has  been  phenomenal.  Thus,  whilie  from  1896  to  1903  the  wages 
of  blacksmiths  inci-eased  1.4  per  cent  in  Great  Britain  they  in- 
creased 12.1  per  cent  in  the  United  States;  the  wages  of  boiler 
makers  increased  2.1  per  cent  in  Great  Britain  and  8.5  per  cent 
in  the  United  States ;  the  wages  of  bricklayers  increased  5.2 
per  cent  in  Great  Britain  and  26.1  per  cent  in  the  United  States; 
the  wages  of  carpenters  increased  7.1  per  cent  in  Great  Britain 
and  31.2  per  cent  in  the  United  States;  the  wages  of  compositors 
increased  5.9  per  cent  in  Great  Britain  and  14.6  per  cent  in  the 
United  States ;  the  wages  of  hod  carriers  showed  no  change  in 
Great  Britain  and  increased  22.6  per  cent  in  the  United  States ; 
the  wages  of  iron  moulders  increased  5.9  per  cent  in  Great 
Britain  and  21.1  per  cent  in  the  United  States;  the  wages  of 
general  laborers  increased  6.4  per  cent  in  Great  Britain  and 
18.4  per  cent  in  the  United  States ;  the  wages  of  machinists 
inQreased  4.4  p^r  cent  in  Great  Britain  and  12.6  per  cent  in 
the  United  States ;  the  wages  of  house  painters  increased  7.1 
per  cent  in  Great  Britain  and  26.5  per  cent  in  the  United  States; 
the  wages  of  plumbers  increased  5.2  per  cent  in  Great  Britain 
and  25.8  per  cent  in  the  United  States ;  the  wages  of  stone 
cutters  increased  5.3  per  cent  in  Great  Britain  and  24.7  per 
cent  in  the  United  States ;  and  the  wages  of  stone  masons 
increased  5.1  per  cent  in  Great  Britain,  w^hile  they  increased 
17.7   per   cent   in   the   United    States.  • 

Thus,  while  the  percentage  of  increase  in  these  13  occupations 
ranged  from  0.0  to  1.1  per  cent  in  Great  Britain,  it  ranged  from. 
8.5  per  cent  to  31.2  per  c^nt  in  the  United  Sftntes.  '- 

^  ,:    More  recent  figures  showing  the  difFerence  in   wages  in  this 
country  and  in   Great  Bi-itain   are  contained    in  the   two   follow- 


233 


WAQES  AND  COST  OF  LIVING. 


inj?  table.s.  The  data  for  the  United  States  are  taken  from  the 
July.  1907,  Bulletin  of  the  Federal  liureau  of  Labor,  and  rep- 
resent the  avera«^e  wages  per  hour  and  hours  of  work  per  week 
in  the  occupations  and  cities  specified.  The  figures  for  the  three 
cities  of  Great  Britain  are  found  in  a  report  published  by  the 
British  Board  of  Trade,  Labor  Department,  in  November,  1906, 
and  are  the  standard  wage  rate  per  hour  and  hours  of  labor 
per  week  observed, in  the  several  localities  at  the  date  mentioned. 
AJll  of  the  six  occupatione  for  which  the  facts  are  shown  belonjf 
to  the  building  trades. 


Average  wages  per  hour  and  hours  of  labor  per  week  in  three 
representative  American  cities  in  1906. 

[Compiled  from  Bulletin  No.  71,  United  States  Bureau  of  Labor.] 


Average  wages  per  hour. 

Average  hours  per  week. 

Occupation. 

New 
York. 

Balti- 
more. 

Chi- 
cago. 

New 
York. 

Balti- 
more. 

OhI. 
cago. 

Bricklayers                       -_-- 

$0.7000 
.5746 
.2097 
.4695 
.6875 
.5945 

$0.6365 
.4085 
.1802 
.3750 
.6250 
.4094 

$0.6265 
.5500 
.2939 
.4811 
.6875 
.5625 

44.00 
44.00 
50.38 
44.10 
44.00 
44.00 

48.00 
48.00 
53.66 
48.00 
48.00 
48.00 

45.24 

Carpenters 

Laborers 

Painters 

Plasterers 

44.00 
50.90 
44.00 
44.00 
44.00 

Standard  wages  per  hour  and  hours  of  labor  per  week  in  three 
representative   cities   of  Great   Britain  on   October  1,  1906 » ^ 

[Compiled  from   Standard  Time  Rates   of   Wages  in   the  United  Kingdom  At 
1st  October,   1906— Board  of  Trade  (Labour   Department).] 


Standard  wages  per  hour. 

Standard  hours  per  week. 

Occupation. 

Lon- 
don. 

Man- 
chester. 

Glas- 
gow. 

Lon- 
don. 

Man- 
Chester. 

Glas- 
gow. 

$0.2129 
.2129 
.1419 
.1825 
.2230 
.2230 

$0.2027 
.1926 
.1216 
.1774 
.2027 
.1926 

$0.1926 
.1926 
.1216 
.1825 
.1926 
.1825 

50.00 
50.00 
50.00 
50.00 
50.00 
50.00 

54.50 
49.50 
•52.00 
52.00 
52.00 
49.50 

Bricklayers 

Carpenters — 

Laborers                -      . 

51.00 
51.00 
51.00 

Painters            _      —         

51.00 

Plasterers           -    

51.00 

Plumbers 

51.00 

htn;   uif 

(I!      ((»' 

UJ      ill      1 
»•'     -l-Hf 

i-r,     I  M| 

'y 

The  New  York  Journal  of  Commerce  (Democratic)  recently 
printed  a  table  giving  in  the  currency  of  the  United  States  the 
average  wages  paid  per  hour  for  12  classes  of  labor  in  the  United 
States  as  compared  with  certain  European  countries  in  the  cal- 
endar year  1903.  The  table  was  compiled  from  a  bulletin  issued  a 
short  time  ago  by  the  Bureau  of  Labor  at  Washington,  in  which 
the  average  rate  of  wages  paid  in  each  year  from  1890  to  1903 
inclusive  for  twelve  classes  of  employment  are  given  in  detail 
for  the  countries  named  above. 

:riiil-)»:ni 


Occupation. 

United  States. 

Great  Britain. 

$0.2951 
.2848 
.5472 
.3594 
.4487 
.2863 
.3036 
.1675 
.2707 
.4429 
.3450 
.4579 

!               $0.1740 
.1719 

Bricklayers 

Carpenters . 

— . ._ • 

.2060 
.2028 
.1795 

Hod  carriers 

.1250 

Iron  molders 

.1787 

Geqeral  laborers- 
Machinists  



.1019 
1677 

Painters 

Plumbers 

.2027 
.1774 

Stone  masons 

.2078 

tor  12  classes 

Wages  per  hour 

4.2071 

2.09M 

RAILWAY  LABOR. 


23* 


RAILIVAY    liABOR    DURING    REPUBLICAN    AND    DEMOCRATIC 
ADMINISTRATIONS. 

There  is  no  better  index  to  the  industrial  condition  of  a  coun- 
try than  the  amount  of  business  done  by  the  railways,  and  as 
the  railways  in  this  country  employ  over  one  and  one-half 
million  persons,  the  increase  pr  decrease  in  traffic  materially 
affects  a  larg-e  proportion  of  the  population. 

During-  the  fiscal  year  ending  June  30,  1896  (Cleveland's  Ad- 
ministration), there  were  82b, 62U  railway  employees  in  the 
United  States,  receiving  a  total  yearly  compensation  of  $468,- 
824,531.  In  1907,  there  were  1,672,074  railway  employees  re- 
ceiving $1,072,386,427.  This  shows  an  increase  in  12  years  of 
845,454  railway  employees  and  of  over  five  hundred  million  dol- 
lars in  aggregate  salaries  and  wages.  In  other  words,  more 
than  twice  as  many  persons  were  employed  by  the  railways 
in  the  United  States  on  June  30,  1907,  than  on  June  30,  1896, 
when  the  Democratic  party  was  in  power,  and  more  than  twice 
as  much  was  paid  in  wages  and  salaries. 

The  following  table  shows  the  numoer  of  railway  employees 
and  the  total  and  average  salaries  and  wages  paid  in  each  class 
in  1896  and  1907  : 


W  o 

O  w 

e 


CD  5"  o 


t^  I 

II I 

■I",  s 

■2  fc   "^ 

i^  I 
1     § 


OJ  - 

OS  a 


>  ® 

< 


_ 

■^ 

SgS£SSrfifSSo?S§2?S5SS3g 

i 

SS!!:1SSS8'oiS2Si5;:^rt:S5^S 

CMf5(NrHi-HCO<MC<5r-IC^C<lrHi-lr-lr-r-lrHr-t 

»  C^  r--  O  -iPt^  O  M  M  <&JCij~.  ?D  ■*  ;i;  fl^- 


3?$; 


as  Cl  «  v*^  fr-  IC  9-3  l'^  r-  r-i  ■*  05  O  ~1  ir  ^.  'M  ro 


CO  I-  :c  1^  »)  c»  t^  -*_^55_4^i_»  «  CO  55  'S  ^^I'S^- 
in  (m  «0  ^  l(^  •'"  r?  ir  -f  «  X)  ir  q  ->  ■«;<  r-<  m  ( 
-M  i?4  i~  CO  (7i  (M  ys  *i  ^3  OS  «  CO  ■♦  (M       < 


. 

%tiiiim%iim%'^%%n 

I 

^ 

«'-!2c^^SS58g;SS^:5^S?5*| 

t84 


REPORTS  OF  STATE  LABOIi  lUlfKAlS. 


REPORTS  OF  STATE   LABOR   BlRlilAlS. 

A  mimber  of  State  labor  biii'eau.s  publi.sh  from  year  to  year 
infonnation  showing-,  among-  other  tilings,  the  number  of  per- 
sons employed  in  leading-  industries,  the  total  and  average  wages 
paid  employees,  the  value  of  prodiiets,  etc.  Unfortunately  in 
many  eases  these  annual  statistics  are  not  comparable,  one  year 
with  another,  becaune  they  do  not  relate  to  identical  establish- 
ments or  industries.  As  far  as  recent  comparable  liguves  were 
obtainable  from  State  labor  reports  they  are  shown  helow.  Th  \ 
include  in  all  cases  the  latest  availal)le  figures. 

Maemachuaetta    Labor    ReportM. 

The  annual  statistics  of  manufactures  in  Massachusetts,  pul»- 
lished  by  the  Massachustetts  Bureau  of  Statistics  of  Labor,  pre- 
sent reports  from  a  large  number  of  maniifacturing  establish- 
ments in  the  State,  and  each  year  compare  conditions  with  the 
previous  year,  in  the  same  establishments. 

The  following  table  compiled  from  the  Massachusetts  reports 
shows  the  ])ercentage  of  increase  or  decrease  each  year  over  the 
year  preceding  in  the  same  establishments,  in  the  number  of  per- 
sons employed,  the  average  yearly  earnings  per  employee,  and 
the  value  of  goods  made  and  work  done : 


Percentage  of  increase  or  decrease  in  the  number  of  employees, 
average  earnings  per  employee,  and  value  of  goods  made  and 
tcork  done  in  manufacturing  establishments. 

[Compiled   from    the  "Annual   Statistics   of   Manufactures   in   Massachusetts," 
published  by  the  Massachusetts  Bureau  of  Statistics  of  Labor.] 


Peraous  em- 
ployed. 

Average  yearly 

Value  of  goods 

earnings  per 

made  and  work 

Numbef 

of  es- 
tablish- 
ments 
report 
lug. 

employee. 

done. 

i Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Years 
compared. 

1   ofln- 
i  crease 

of  de- 
crease 

of  In- 
crease 

of  de- 
crease 

of  in- 
crease 

of  de- 
crease 

las  com- 

as com- 

as com- 

as com- 

as com- 

as com- 

pared 

pared 

pared 

pared 

pared 

pared 

with 

with 

with 

with 

with 

Mlth 

prev  ous 

previous 

previous 

previous 

previous 

prevloui 

year. 

year. 

year. 

year. 

year. 

year. 

1888-1889 

1,364 

0.89 

1.45 

2.45 

1885)-18.'K) 

3,041 

2.70 



1.58 



4.37 

18JK)-1891 

3,745 
4,173 
4,397 

1.72 
4.53 

0.91 
1.51 

1.33 
5.87 

1891-1892 

SM 

1892-18i)3 

4.26 

8.10 

1893-18)4 

4,093 
3.6-29 
4,609 
4,695 
4,701 
4,740 

6  22 

3  28 

10.27 

1891-1895 

9.02 

2.19 

9.18 

1895-18  J6 

2  94 

.06 

5.51 

189>-1897 

2.72 
1.80 
9.58 

1.16 
0.18 

3.04 

4.62 

15.59 

1897-1898 

1898-18')9 

1.86 

18^9-15)00 

4,645 

3.77 

2.80 

8.51 

1900-1901 

4,6')6 
4,658 
4,673 
4,730 
5,010 
5,055 

3.60 
6.46 
3.25 

1.82 
2.29 

2.28 



5.36 
8.66 
4.66 

1901-1902  -     . 



190-2-190S 

1903-1901 

2.73 

0.87 

0.90 

190:    1905  

7.66 
6.97 

1.02 
3.75 

10.55 
12.12 

1905-1906 

New  Jersey   Labor  Reports. 

The  thirtieth  annual  report  of  the  Bureau  of  Statistics  of  La- 
bor and  Industries  of  New  Jersey  contains  data  relating  to  the 
wages  paid  and  hours  of  labor  observed  in  a  number  of  identical 
establishments  engaged  in  the  building  industry  in  Essex  county 
for  a  j)ej;iod  of  years.  This  information,  while  lacking  for  sev- 
er.il  of  the  years  included  in  the  period  covered,  is  nevertheless 
sufficient  to  indicate  very  clearly  the  decidedly  upward  trend  of 
wages  and  the  deci-easing  working  hours  in  these  establishments, 
which  were  selected  as  being  representative  of  their  class.  The 
following  tables  present  the  facts : 


REPORTS  OF  STATE  LABOR  BUREAi'S. 


23i^< 


Wafjes   and    liours   of   labor   in   identical    establishnicntfi    in    the 
building  industry  in  Essex  county,  N.  J.,  by  years.    ^ 

fFrom  the  Thirtieth  Annual  Report  of  the  Bureau  of  Statistics  of  Labor  and 

Industries  of  New  Jersey.] 

Painters,  decorators,    and  paperhangers. 


Year. 

Wages 

Hours 

of  labor. 

Per  hour. 

Per  weelj. 

Per  day. 

Per  week. 

1896 

$0.25 

.28 

.3iy4 

.34 

.371/2 

.41 

$13.50 
13.50 
15.00 
16.50 

18.00 
18.04 

'  9 

54 

1897 

8 
8 
8 
8 
8 

48 
48 

1900 

4» 

190.J 

48 

1900     .- 

44 

Carpenters. 


Year                                                .  — 

1891 

9 

$2.50 

1896 

9 

$3.00 

1897 

8 

$3.00 

1903 

8 
$3.28 

igO-i       1906 

Hours  of  labor                      -         

8             8 

Wages   per   day                           -        -  - 

$3.60  1  $3.80 

1 

Bricklayers  and  masons. 


Wages. 

Houis  oflabor. 

Year. 

Per  hour. 

Per  week. 

Per  day. 

Per  week. 

1890 

$0.33% 
.44% 
.50 
.55 
.60 
.65 

'  $18.00 
24.00 
24.00 
24.20 
26.40 
28.60 

9 

8 
8 
8 
8 
8 

54 

1896 

54 

1901 

48 

1903. _ 

44 

1905 

44 

1906 

44 

New    York    Labor    Reports. 

Since  1897  the  New  York  Bureau  of  Labor  Statistics  has  col- 
lected (lata  concerning-  the  actual  earnings  of  wage-workers 
through  the  officers  of  workingnien's  organizations,  reaching  in 
this  way  thousands  of  wage-earners  where  few  could  have  been 
reached  by  means   of  individual  schedules. 

The  New  York  statistics  are  based  on  quarterly  reports  col- 
lected twice  a  year  and  thus  cover  one-half  of  each  year.  The 
following  table  shows  the  average  earnings,  with  per  cent  of  in- 
crease over  1897,  and  the  average  days  of  employment  of  organ- 
ized workingmen  for  each  of  the  years  1897  to  1906  : 

Average  earnings  of  organized  worJcingmen,  1897-1906. 

[Compiled   from   the  Twenty-fourth  Annual  Report   of   tlie  Bureau  of   Labor 
Statistics  of  New  York.] 


Year. 

Average 
quarterly 
earnings. 

(First 
and  third 
quarters.) 

Average 
earnings 

per  day. 

(First 
and  third 
quarters.) 

Estimated 
average 
for  year. 

Per  cent, 
of  Increase 
over  1897. 

Avfrage 
days  of 
emp  oy- 

ment 
In  year. 

1897 

$162.50 
169.49 
186.63 
179.11 
189.05 
191.33 
188.28 
186.20 
203.77 
218.96 

$2.56 
2.66 
2.73 
2.70 
2.75 
2.75 
2.73 
2.76 
2.92 
3.07 

$650.00 
678.00 
747.00 
716.00 
758.00 
765.00 
753.00 
745.00 
815.00 
876.00 

227 

18)8 

189-) 

1900 

1901 

1902 

19'>3 

1001 

ItWi 

1906 

4.31 
14.92 
10.15 
16.31 
17.69 
15.85 
14.62 
25.38 
34.77 

232 

258 
246 
260 
264 
256 
2.53 
272 
278 

The  report  from  which  the  foregoing  table  was  compiled 
states  that  "in  1897  the  average  wage  for  a  day  of  work  among 
organized  wage-earners  was  $2.53  or.  taking  the  first  and  third 
quarters  alone,  $2.56.  In  1906,  in  the  first  and  third  quarters,  the 
average  per  diem  earnings  of  all  members  employed  was  $;j.()7. 
In  the  ten  years  there  had  consequently  been  an  average  increase 
of  51  cents  a  day,  which  is  almost  exactly  equivalent  to  20  per 
cent.  This  result,  which  is  based  on  actual  earnings,  is  probably 
a  close  approximation  to  the  general  movement  of  wages  in  New 


336 


REPORTS  OF  STATE  LABOR  BUREAUS. 


York  in  the  paat  decade.  The  retuniM  on  which  the  statistics  are 
based  include  nearly  all  occ\ipations,  except  agriciiUural  labor 
and  domestic  serrioo,  and  there  is  little  question  that  both  of 
these  classes  of  workers  have  gained  similar  advances." 

The  following-  table,  which  is  taken  from  the  same  source, 
g^ives  the  percentaj^e  of  working'  time  in  which  organized  work- 
ingmen  and  women  wei*e  employed  and  idle  : 

Percentage  of  working  time  iti  which  organized  workifigmen  and 
women  were  employed  and  idle,  1897-1906. 


Year. 

Employed. 

Idle. 

1897 - 

73.8 
75.3 
83.6 
80.0 
81.4 
85.7 

a^.i 

88.8 
88.3 
90.3 

26.2 

1838 

24  7 

1899 

16  4 

1900            — — _ 

20.0 

1901        . 

15  6 

1902. 

14.3 

1903 

16.9 

lJ)Oi ^ 

lt(.2 

1905 

11.7 

1906... _ 

9.7 

In  1897,  when  recovery  from  the  industrial  depression  of  1893 
was  just  bejj^inning.  wage-worKcrs  io.st  fully  one-fourth  of  their 
income  throug-h  \inemployment  of  one  kind  or  another.  As  the 
industrial  revival  gained  headway  the  percentage  of  idleness 
decreased,  with  slight  relapses  in  1900,  1903,  and  1904,  when  large 
numbers  of  the  organized  workmen  were  involved  in  labor  dis- 
putes. 

The  following  table,  which  is  also  compiled  from  the  twenty- 
fourth  annual  report  of  the  Bureau  of  Labor  Statistics,  shows 
the  average  earnings  per  day  of  organized  workingmen  for  each 
of  the  years  1897  and  1902  to  1906,  inclusive,  in  forty  selected 
occupations : 

Average  earnings  of  orgatiized  workingmen  for  each  day  of  loork 
in  third  q'tsartet  1S97  and  190^-1906;  men  only. 


Occupation. 

Num- 
ber 
rtiii  >rt- 
iug. 

18  J7 

190i 

1903 

1904 

1905 

1908 

Gakers  and  confectioners 

3,360 
2,289 
3,734 
1,6J4 
2,293 
2,492 
6,816 

12,881 
2,287 
2,267 

28,901 
7,713 
1,639 
2,-)18 
8,384 
2,332 
4,834 
4,137 
4,114 

18,141 
2,403 
7,2d6 
2,17.) 
2,172 
2,15.i 
7,811 

13,279 
1,401 

2,2St 
6,161 
5.8cl 
3,131 
4,018 
7,312 
4,416 
3,033 
1,937 
1,966 
2.170 
6,638 

$2.01 
1.71 
1.87 
2.63 
2.92 
1.94 
2.45 
3.81 
2.19 
2.46 
3.03 
1.5<. 
2.19 
1.83 
3.40 
2.90 
2.61 
8.64 
2.16 
2.38 
2.48 
2.56 
1.72 
3.00 
3.41 
2.24 
3.25 
1.42 

1.70 
3.32 
3.49 
3.43 
3.15 
3.00 
2.3) 
3.74 
2.. 33 
1.81 
2.0) 
1.06 

^.23 
l.sl 
1.97 
2.74 
3.03 
1.97 
2.60 
4.65 
2.27 
3.U 
3.10 
1.89 
2.04 
2.« 
8.39 
3.18 
2.78 
3.8J 
2.29 
2.8ii 
3.71 
3.06 
2.27 
3.79 
3.76 
2.70 
3.22 
2.31 

2.5S 
4.81 
3.67 
3.07 
3.35 
2.85 
2.13 
3.85 
3.82 
1.96 
2.19 
2.12 

$2.30 

1.83 

3.00 
2.12 
2.61 
4.5. 
2.3) 
3.15 
3.27 
1.92 
2.10 
2.4« 
3.43 
3.18 
3.S4 
3.73 
2.43 
2.75 
4.32 
3.00 
2.27 
3.44 
3.77 
2.69 
3.34 
2.63 

2.69 
5.29 
3.72 
3.21 
3.24 
2.92 
2.17 
4.11 
3.91 
2.00 
2.3S 
2.24 

$2.40 

i2.U 

$2.60 

Barbers..- 

Bartonders 

1.94  i   1.93 

a. 16  i  2.2i 

2.07 

2.^7 

Boilermakers  and  iron-ship  builders 

B'  olfbin.'.ers  (all  branches) 

Boot  and  shoe  workers . . 

Brewery  workaen , 

2.89 
3.02 
2.16 
2.66 
4.73 
2.36 

i.m 
3.07 
2.13 
2.68 
5.11 
2.45 

2.95 
3.12 
2.42 
2.67 
5.03 

2.6iJ 

3.35      3.40 

3.. 53 

Carpenter.?  and  joiners 

3.30 
I.IK) 
2.19 
2.44 

3.45 
2.01 
2.24 
2.14 
8.52 

3.78 
1.9:i 

Clerks  and  salesmen.. -■ 

2.26 
l.U 

Compositors 

3.5") 

Conductors,  rai'wij --. .- 

3.28 

2.89 

3.37 
2.9i 

8.11 
3.20 

Engineers,  locom  )t!ve ^_. 

Firerhen,  locomotive 

S.77      8.94 
2.53  .  2.53 
2.75  j  2.87 

4.36  1   4.38 
2.98  i  3.04 
2.15     2.15 
4.38      4.92 
4.09     3.87 
2.79      2.86 

3.37  1  8.47 
2.13      2.49 

2.61  1  2.54 
5.31  i  5.46 
3.79     4.31 
3.13  I  3.10 
3.55  i  3.63 
3.27  ,  3.21 
2.07      2.31 
4.23  !  4.3-) 
3.95      4.13 
1.91      2.11 
2.46  '  2.66 

8.92 
2.66 

Hod  carriers 

2.99 

Housesmiths  and  bridgeinen 

Iron  molders 

4.28 
3.22 

Jacket  makers 

2.13 

Latliera 

4.70 

Mthograj)hers . - 

Machinists            ....           

4.01 
3.02 

3.  .5 

Pants  makers.. 

Piano     and     organ     workers     (all 
branches) 

2.31 

2.51 
5.5i 

Plumbers  and  gas  fitters 

Pressmen 

Roofers,  sheet  metal  workers 

Stationary  engineers 

4.21 
3.5) 
4.05 
3.37 
3.03 

Store  cutters 

4.19 

Stone  masons 

4.2.) 

Street  railway  empioyees 

Tailors 

2.11 
2.11 

Trainmen 

2.26 

2.29 

2.43 

REPORTS  OF  STATE  LABOR  BUREAUS. 


237 


Pennsylvania  Labor  Reportt*. 

The  secretary  of  internal  affairs  of  the  State  of  Pennsylvania, 
in  his  report  for  1905,  publishes  a  series  of  tables  showing-  cf)in- 
parative  statistics  in  710  identical  establishiMents  for  the  years 
1896  to  1905.  The  following-  table  has  been  compiled  from  this 
report : 


Comparative  statistics  of  110  identical  tnaniifacturing  estahUnh- 
ments,  1S96  to  1905. 

[Compited  from  tha  Thirty-third  Aanual   Report   ol  the  Bureau  of  Industrial 
Statistics  of  Pennsylvania.] 


Average*  per- 
soas  employed 

Aggregate  wagfs 
paid. 

Average  yearly 

earnings  p^r 

•mpioytfe. 

Value  of  product. 

Bai 

m 

=  =l 

isl 

ti 

^ 

c 

Amount. 

i 

Amount. 

c 

^  *  ?> 

^«ll 

m 

^1^ 

a 

s 
< 

isi 

S2S 

1896- 

122,138 

$46,736,124 

$382.65 

$169,806,501 

1897- 

127,461 

4.4 

47,852,604 

2.4 

375.43 

ai.9 

182,572,176 

7.5 

1898- 

141,819 

16.1 

57,312,659 

22.6 

40i.l2 

5.6 

217,514,078 

28.9 

189:-)- 

IBS,  (583 

84.0 

70.944,181 

51.8 

4S3.42 

13.3 

287,635,100 

69.4 

L900- 

175,-501 

43.7 

76,838,628 

64.4 

4.S7.82 

14.4 

325,181,818 

•  91.5 

1901— 

183, IgS 

50.0 

82,1»0,?37 

75.8 

448.52 

17.2 

33'c»,027.496 

99.7 

1902- 

19<,945 

53.6 

93,947,766 

101.2 

481.92 

25.9 

388,803,5% 

128.4 

1903- 

•203,838 

66.9 

98,2'59,»05 

IIS.O 

482.04 

26.0 

390, '224, 118 

1-29.8 

l»Oi- 

183,853 

50.5 

84,18.5,803 

89.8 

459.57 

20.1 

334,343,735 

96.9 

1905- 

•202,401 

65.7 

97,463,104 

108.6 

481. S4 

25.8 

400,311,210 

135.7 

ft  Decrea 

86. 

The  following  tables,  compiled  from  the  thirty-fourth  annual 
report  of  the  secretary  of  internal  affairs,  show  the  principal 
data  for  pig  iron  and  tin  plate  production  for  the  years  1896  to 
1906. 

Comparative  statistics  of  pig  iron  and  tin  plate  production,  1896 

to   1906. 


[Compiled  from  the  Thlrty-foirth  Annual  Report  of  the  Bureau  of  Industrial 
Stati&^tics  ol  Pennsylvania.] 

Pig  Iron. 


Average  per- 
Bong  «mployed. 

Aggregate  wages 
paid. 

Average  yearly 

earnings  per 

employee. 

Value  of  product. 

i=t 

AST 

iot 

sij 

Num- 
ber. 

Amount. 

its 

-  *  m 

fl 
s 

Amount. 

0+<j) 
fl  »  s 

£ 
< 

1896 

11,580 

$1,589,165 
4,676,970 

$393.30 
414.92 

$15,172,039 

48,884,854 

1897 

11, -272 

—  2.7 

+  1.9 

+  4.7 

+  8.2 

189S 

11,911 

+  5.6 

.5, -268, 593 

+  12.6 

442.. 32 

+  6.6 

.53,331,228 

+  9.1 

1899 

15,317 

+•28.8 

7,599,!^33 

+44.2 

495.18 

+  11.9 

98,203,803 

+84.1 

1900 

15,785 

+  2.8 

8,500,191 

+11.8 

.538.50 

+  8.8 

105,449,923 

+  7.4 

19U1 

]4,7t9 

—  6.6 

8,616,479 

+  1.7 

5SC.-24 

+  8.9 

103.883,000 

+   1.4 

v.m 

17,101 

+  15.9 

10,101.759 

+17.9 

597.95 

+   1.7 

126,857,2.31 

+  18.7 

1903 

16,912 

—  1.1 

10,602,196 

+  4.6 

630. 45 

+  5.8 

131,775,613 

+  3.9 

liX)t 

11,087 

-16.7 

7,iK);),3:i5 

-25.8 

561.46 

—10.9 

101,830,467 

—22.7 

190') 

16,7 17 

+  1S.9 

10,532,928 

+33.2 

628.94 

+  12.0 

162,716,176 

+  59.3 

191/3 

18,637 

+  11.8 

12,063,556 

+  14.5 

647.29 

+  2.9 

187,909,541 

+  15.2 

The  enoruions  effort  of  tlie  wliole  iieople  as  a  Nation, 
and  tlie  burdens  tltex  yladiy  amaunie  to  uiain^aTu  tlie  national 
inte8rritr>  and  t«>  ent  ont  tlie  eancer  of  alavery  tliat  -was 
eating  array  oor  national  life,  do  not  st**w  any  lean,  front 
an  historical  standpoint,  as  the  decades  pass. — Hon.  Wm.  H. 
Taft,  at  Riverside   Park,  New  York. 


288 


REPORTS  OF  STATE  LABOR  BUREAUS. 


Tin  plate. 


Average  per- 
sons em  ployed. 


Num- 
ber. 


557 

♦i  -—-X 
z  o  ^ 

U  X  4> 

Z  X  ^ 


IKSKi 

;{,194 
3,})22 

1807 

mm 

5,0^6 

i«y.) 

7,68-2 

1900 

7,391 

1901 

8,188 

1902 

8,90'> 

1903 

8,261 

190! 

8,397 

1005 

8,280 

190f) 

8,G85 

+22,7 
+28.5 
+52.. 5 

—  3.7 
+10.8 
+  8.8 

—  7.2 
+  1.0 

—  1.4 
+  4,9 


Aggregate  wages 
paid. 


.-\mouut. 


$1,437,226 
2,227,217 
2,913,9)4 
4.051,395 
3,526.934 
4,5J3,561 
4,506,105 
5,688,188 
5,135.828 
5,269,152 
6,180.-265 


0+« 

«  *  « 


vo 


+51.9 
+32.2 
+37.7 
—13.0 
+30.2 

—  1.9 
+26.2 

—  9.7 
+  2.6 
+17.3 


Average  yearly 

earnings  per 

employee. 


$156.55 
568.17 
584.58 
527.76 
477.00 
581.01 
506.02 
688.56 
611.63 
636.37 
711.60 


g  a>  S! 

^  2  « 


Value  of  produot 


Amount. 


+24.4 
+  2.9 

—  9.7 

—  9.6 
+  17.6 

—  9.8 
+.33.1 
—11.2 
+  4.0 
+  11.8 


$4,637,811 
6,837,921 
'J,3U,235 
12, 152,. 532 
12,5'J0,897 
17,0)2,338 
16,116,7.55 
20,373,303 
18,501,358 
19,986,608 
23.722,553 


—  a 
a)« 

an  V 

to 


+  47.4 
+3«>.6 
+  30.1 
+  3.6 
+35.2 

-  5.3 
+26.4 

—  9.2 
+  7.9 
+18.8 


In  the  following-  table  are  shown  the  averag:e  yearly  earnings 
of  employees  in  identical  establishments  m  twenty-five  selected 
industries  for  the  years  1896  and   J 905,  conipai*ed  : 

Average    year! if    earninps    of   efhployees    in    identieal    establish- 
ments in  2o  selected  industries,  1896  and  1905. 

[Compiled  from  the  Thirty-third  Annual  Report  of  the  Bureau  of  Industrial 
Statistics  of  Pennsylvania.] 


Industry. 


Boolcbinding 

Brass,  copper  and  bronze  goods 

Building  and  structural  iron  work 

Carpets 

Car  springs,  axles  and  railway  supplies.. 

Cotton  gooi'.s 

Cotton  yarns 

Kdge  tools ^— . 

Foundries  and  machine  shops 

Hats  and  caps _ _ _ 

Hosiery . 

Iron  and  steel  forgings 

Locomotives  and  cars  built  and  repaired 

Paper  manufacture 

Pottery 

Shovels,  scoops,  spades,  etc 

Silk,  ribbons ' 

Slate  roofing,  etc.  (tonnage) 

Stoves,  ranges,  heaters,  etc 

Tool  steel,  etc 

(Tmbrellas  and  parasols 

Upholstery  goods 

Window  glass,  bottles,  and  table. goods. 

Woolen  and  worsted  fabrics : 

Wrenches,  picks,  etc 


Average 

Increase  .in 

earnings. 

1905  over  lc96. 

1896. 

1905. 

Actual. 

Per  cent. 

.$170.70 

$590.62 

$119.92 

25.5 

407.01 

517.01 

140.00 

31.6 

.508.18 

616.40 

108.22 

21.3 

316.63 

422.88 

70.25 

22.0 

413.76 

.505.71 

91.95 

22.2 

279.41 

372.82 

93.41 

31.5 

273.lt 

370.68 

97.51 

35.7 

435.70 

545.77 

110.70 

25.3 

450.22 

.556.18 

105.98 

23,8 

293.23 

394.80 

98.57 

33.3 

237.59 

311.98 

74.. 39 

31.3 

478.61 

642.76 

164.15 

28.6 

4i>5.43 

628.88 

143.45 

29.5 

381.90 

483.41 

101.51 

26.6 

497.0:) 

518.35 

49.35 

9.9 

3J3.23 

570.47 

171.21 

42.9 

253.22 

376,. 59 

120.37 

43.1 

303.61 

4.56.60 

152.99 

'31.8 

411.16 

627.32 

216.16 

,52.5 

551.04 

851.62 

297.58 

53. 5 

231.65 

320.54 

88.89 

38.4 

361.10 

477,76 

113.66 

31 .9 

379.14 

485.9.5 

103.81 

28.2 

277.04 

.396.45 

119.41 

42.3 

428.91 

563.55 

134.61 

31.4 

"OtT-OF-WORK        BKXEFITS"       TNDER       DEMOCRATIC       AND 
REPIBLICAN     ADMINSTRATION. 

Interesting"  evidence  in  corroboration  of  the  figui'es  published 
by  the  Federal  Bureau  of  Labor  is  furnished  by  a  statement  of 
the  out-of-work  benefits  paid  by  the  Cigarmaker's  International 
Union  during  the  period  1890  to  1907.  Nothing  afPords  a  clearer 
insight  into  the  general  condition  of  employment  than  does 
the  amount  expended  by  labor  organizations  in  benefits  to 
members  who  are  temporarily  out  of  work.  In  the  following 
table,  which  has  been  reproduced  from  the  Cigarmaker's  Official 
Journal   of   date   of   April   15,    1908,   is   shown   the   total   cost   of 


OUT-OF-WORK  BENEFITS. 


28ft 


out-of-work  benefits  paid  to  members  of  that  organization,  and 
the  total  membership.  By  dividing  this  cost  by  the  member- 
ship we  ascertain  the  average  cost  per  member.  The  figures 
are  as  follows : 

Out-of-work   benefltfi  paid    hy   the   Cigar  Makers'   International 
Union  from  1890  to  1901. 


Y«ar. 

total  cost  of  out- 
of-work  benefits. 

Total  momber- 
ship  of  out-of- 
w  o  r  k    benefit 
fund. 

Average  cost  par 
member  of  out- 
of    work    bene- 
fits. 

1890                                    -  - 

$22,760.10 
21,223.50 
17,160.75 
89,402.75 
174,517.2'. 
168,. 377. 25 
175,767.25 
117,471.40 
70,197.70 
38,037.00 
23,897.00 
27,083.76 
21,071.00 
15, J58  00 
29,872.50 
35,168.50 
23,011.00 
19,497.50 

24,624 
24,221 
26,678 
26,788 
27,828 
27,760 
27,318 
26,347 
26,460 
28,994 
33,955 
33,974 
37,023 
39,301 
41,636 
40,075 
39,250 
41,337 

0  92 

1891 

0  8i 

1892 

0  6S 

]893 

3.8i 

1894 

6.27 

1895 

5.9» 

1896 _ 

6. 48 

1897 

4  4§ 

1898 .- 

2.65 

1899 

1.31 

1900 

0.70 

1901 

0.80 

1902 

0.57 

1903 

0.40 

1904 

0.72 

190S 

0.88 

1906  .Z 

0.61 

1907 

0.47 

This  table  presents  several  significant  facts.  From  1890  to 
1892  the  cost  per  member  for  out-of-work  benefits  decreased 
from  $0.92  to  .$0.65.  In  March,  1893,  the  Democratic  administra- 
tion came  into  power.  "^Ihe  cost  per  member  increased  in  that 
year  to  $3.34,  then  to  $6.27,  then  a  slight  drop  to  $5.99  and  a 
rise  again  in  1896  to  $6.43  per  member.  In  inarch,  1897,  the 
Republican  administration  returned.  The  cost  per  member  dur- 
ing that  year  fell  to  $4.46,  and  as  business  confidence  was 
gradually  restored  and  employment  became-  more  general,  it 
continued  to  decline  until  in  1903  it  was  reduced  to  but  $0.40 
per  member.  In  1Q04  and  1905  there  was  a  slight  increase, 
which  was  followed  in  1906  by  a  decline  that  continued  through 
1907,  the  co.st  of  out-of-work  benefits  during  that  year  being 
$0.47  per  member.  Thuf<  ivhUe  from  1896  to  1907  the  total  mrem- 
bership  increased  from  27,318  to  .^i,J37,  or  51  per  rent,  the  totul 
cost  for  out-of-icork  benefits  decreased  from  $175,767.25  to 
$19,.',97.50.  or  89  per  cent. 


REPUBLICAN    LABOR    LEGISLATION, 
Federal    Legrislation. 

Since  its  very  inception  the  Republican  Party  has  been  legis- 
lating in  every  Congress  for  the  uplifting  of  labor  and  the  bet- 
tering of  conditions  for  all  working  classes.  Through  our  Tariff 
laws  the  working  people  of  the  United  States  have  been  protected 
against  the  cheaper  labor  of  the  outside  world,  and  wages  to-da,y 
are  from  two  to  ten  times  the  amount  received  elsewhere. 
Through  our  financial  legislation  the  wage-earner  has  always  re- 
ceived a  full  dollar,  and  his  savings  and  investments  have  been 
fully  protected.  Not  only  have  wages  constantly  increased  and 
hours  of  labor  been  reduced,  but  sanitary, conditions  have  been 
constantly  improved  and  inspection  and  liability  laws;  have  given 
to  our  workingmen  and  women  conditions  and  advantages  better, 
very  much  better,  than  in  any  other  counti-y. 

All  the  great  National  Labor  laws  on  our  statute  books  were 
put  there  by  the  Republican  Part3\  Among  the  principal  ones 
are  the  following:  < 

Slavery. — The  great  revolution  which  exalted  labor  and  freed 
the  country  from  the  curse  of  slavery  was  acomplished  by  the 
Republican  Party,  against  the  fiercest  opposition  possible  by  the 
o«mbined  foreesof  the  Democrats  and  their  allies.     Still  true  to 


240  REPUBLICAN  LABOR  LEGISLATION. 

its  original  ideas  of  freedom,  the  Republican  Party,  after  a  lapse 
of  forty  years  since  the  emancipation  proclamation  of  Lincoln, 
abolished  slavery  in  the  Philippine  Islands.  (Act  pased  by  a 
liepublican  Senate  and  Eepiiblican  House  and  signed  by  Presi- 
dent Roosevelt  July  1,  1902.) 

Involuntary  tiervitudc  of  Foreigners. — In  1874  the  Forty-third 
Congress,  which  was  Republican  in  both  Houses,  prohibited,  un- 
der heavy  pentTlties,  the  holding  to  involuntary  services  of  any 
person  forcibly  kidnapped  in  any  other  country. 

Peonage. — The  act  abolishing  this  kind  of  forced  labor  was 
passed  by  the  Thirty-ninth  Congress,  when  both  Houses  were 
Republican  by  a  large  majority,  March  2,  1867. 

The  Coolie  Trade. — The  legislation  pz-ohibiting  the  coolie  trade 
is  the  work  of  the  Republicans.  The  Act  of  1875  closed  our 
doors  to  the  paupers  and  criminals  of  Europe,  and  the  Exclusion 
Act  of  1882  stopped  the  immigration  of  the  Chinese.  Upon  the 
annexation  of  Hawaii  in  1898  the  immigration  of  Chinese  thereto 
was  prohibited  by  a  Republican  Congress,  as  was  the  migration 
of  those  already  in  Hawaii  from  the  islands  to  continental 
United  States.  In  President  Roosevelt's  Administration  the  Chi- 
nese-exclusion laws  have  bfeen  extended  to  the  entire  island  ter- 
ritory of  the  United  States.  (Act  passed  by  the  Fifty-seventh 
Congress  and  approved  April  29,  1902.) 

Immigration. — The  Republican  Party  has  favored  the  Ameri- 
can standard  of  living,  not  only  by  abolishing  compulsory  labor, 
but  also  by  excluding  the  products  of  the  cheapest  foreign  labor 
through  protective  tariffs  and  by  restricting  the  immigration  of 
unassimilable  elements  from  other  races. 

The  importation  of  foreign  laborers  under  contract  was  first 
prohibited  in  1885,  but,  owing  to  defective  provisions  for  enforc- 
ing the  law,  continued  almost  unchecked  until  the  amendments 
made  in  President  Harrison's  administration.  (Acts  of  the  Fifty- 
first  Congress,  which  was  Republican  in  both  branches,  and  of 
the  Fifty-second  Congress,  signed  March  3,  1891,  and  March  3, 
1893,  respectively.) 

The  Republican  Party  has  increased  the  restrictions  upon  the 
immigration  of  cheap  foreign  labor  in  the  new  law  of  1903.  (Act 
passed  by  the  Fifty-seventh  Congress,  both  Houses  being  con- 
trolled by  the  Republicans,  and  signed  by  President  Roosevelt 
March  3,  1903.) 

Convict  Labor. — The  law  abolishing  the  contract  system  of 
labor  for  United  States  convicts  passed  the  House  March  3, 
1886,  and  the  Senate  February  28,  1887.  All  the  votes  against  the 
bill  were  Democratic. 

The  law  providing  for  the  construction. of  new  United  States 
prisons  and  the  employment  of  convicts  therein  exclusively  in 
the  manufacture  of  such  supplies  for  the  Government  as  can  be 
made  without  the  use  of  machinery  was  passed  by  the  Fifty-first 
Congress,  which  was  Republican  in  both  branches,  and  signed  by 
President  Harrison.     (Chapter  529  of  the  Acts  of  1890-91.) 

Protection  of  Seamen. — This  was  accomplished  by  the  Forty- 
second  Congress,  when  both  Houses  were  Republican,  and  the 
Forty-third  Congress,  also  Republican. 

Inspection  of  Steam  Vessels. — Accomplished  by  the  Fortieth 
'Congress,  which  was  controlled  by  the  Republicans. 
t*      Inspection  of  Coal  Mines  in  the  Territories. — Provided  for  by 
"the  Fifty-first  Congress,  both  Houses  being  under  the  control  of 
the  Republicans ;  approved  by  President  Harrison. 

Safety  Appliances  on  Railroads. — The  original  act  providing 
for  automatic  couplers  and  power  brakes  on  locomotives  and  cars 
used  in  interstate  traffic  was  passed  by  the  Fifty-second  Congress, 
and  signed  by  President  Harrison  March  2,  1893.  Owing  to  decis- 
ions of  the  courts,  new  legislation  became  necessary,  and  the 
Fifty-seventh  Congress  (Republican)  passed  a  greatly  improved 
law,  which  was  signed  by  President  Roosevelt  March  3,  1903. 

Report  of  Accidents. — The  Fifty-sixth  Congress  (Republican) 
passed  a  law  requiring  common  carriers  to  make  monthly  reports 
of  accidents  to  the  Interstate  Commerce  Commisslen.  (Approved 
by  President  McKinley  March  3,  1901.) 

Eight-Hour  Law. — The  first  eight-hour  law  in  this  country 
was  enacted  by  the  Fortieth  Congress  and  approved  by  President 
Grant  in  1868.  It  applied  to  all  artisana  and  labor«r«  omplojAd 
bv  the  GorernmaTit. 


REPUBLIC Al^  LABOR  LEGLSLATION.  241 

In  the  Fiftieth  Congress  (1888)  the  eight-hour  day  was  estab- 
lished for  letter  carriers.  The  bill  passed  the  Senate,  which  was 
Eepublican,  without  division. 

In  President  Harrison's  administration  the  eight-hour  law 
was  extended  to  include  persons  employed  by  contractors  on  pub- 
lic works.     (Chap.  352  of  the  Acts  of  1892.) 

Department  of  Lal)or. — The  Act  creating  the  United  States  Bu- 
reau of  Labor  was  passed  by  the  Forty-eig'hth  Congress  (1884) 
and  signed  by  President  Arthur.  In  the  Fiftieth  Congress  (1888) 
the  Bureau  was  removed  from  the  Department  of  the  Interior 
and  made  an  independent  Department  of  Labor,  all  the  votes 
cast  against  the  bill  being  Democratic.  In  1903  a  Republican 
Congress  established  the  Department  of  Commerce  and  Labor 
and  made  its  head  a  Cabinet  officer. 

Boards  of  Arbitration . — Act  passed  at  the  Fifty-fiith  Congress 
(Eepublican)  and  signed  by  President  McKinley  June  1,  1898. 

Incorporation  of  Natumal  Trades  Unions. — Provided  for  by 
Act  of  Congress  in  1886. 

Recent  Legislation. — It  is  within  bounds  to  say  that  no  pre- 
vious sessions  of  Congress  have  displaj'ed  a  more  active  or  intel- 
ligent interest  in  the  needs  of  the  wage-earners  than  the  past 
three  sessions,  nor  has  there  Jieretofore  in  the  same  length  of 
time  been  as  much  important  and  i^rogressive  legislation  in  the 
interests  of  this  class  of  our  fellow-citizens. 

Congress  has  wisely  co-operated  with  and  supplemented  the 
work  of  the  Department  of  Commerce  and  Labor  by  enacting 
a  law  for  the  better  protection  of  seamen  and  to  prevent  their 
being  induced  to  ship  through  false  representations.  It  has  pro- 
vided for  an  investigation  into  the  conditions  of  working  women 
and  children ;  it  has  amended  and  strengthened  the  law  to  pre- 
vent the  importation  of  contract  labor,  and  provided  a  plan  for 
the  further  exclusion  of  that  class  of  Asiatic  immigration  which 
enters  into  competition  with  American  workmen.  It  has  enacted 
a  law  limiting  the  hours  of  labor  of  employees  engaged  in  rail- 
way train  service  and  of  railway  telegraphers. 

The  Congress  just  closed  re-enacted  the  law  passed  by  the 
Fifty-nintti  Congress  to  conform  to  the  opinion  of  the  Supreme 
Court,  making  common  carriers  liable  for  accidents  to  their  em- 
ployees engaged  in*  interstate  commerce.  It  has  enacted  a  law  for 
the  further  protection  of  the  life  of  railroad  employees  in  their 
hazardous  employment.  It  has  provided  compensation  for  labor- 
ers and  mechanics  who  ma}^  be  injured  in  the  service  of  the  gov- 
ernment, and  making  a  provision  for  their  families  in  the  event 
of  their  being  killed  in  the  course  of  their  employment.  It  has 
enacted  a  model  child-labor  law  for  the  District  of  Columbia.  It 
has  directed  a  thorough  investigation  into  the  working  condi- 
tions of  the  employees  of  the  telegraph  and  telephone  companies 
doing  interstate  business ;  and,  in  response  to  the  urgent  appeal 
from  both  capital  and  labor.  Congress,  before  its  adjournment, 
appropriated  $150,000  for  an  investigation  into  the  cause  of  mine 
accidents,  with  a  view  of  promoting  the  safety  of  workers  in  our 
mines. 

Safety  of  Employees  on  Railroads. — The  Ashpan  Act. — An 
act  to  promote  the  safety  of  employees  upon  railroads  by 
requiring  common  carriers  engaged  In  interstate  or  foreign 
commerce  by.  railroads  to  equip  their  locomotives  with  automatic 
self-dumping  and  self-cleaning  ash  pans  was  passed  by  Congress 
on  May  30,  1908,  the  author  of  the  measure  as  well  as  its  chief 
supporters  being  of  Jbhe  Republican  party. 

The  following  are  some  of  the  principal  acts  of  legislation  by 
the  Eepublican  Party : 

1.  The  Homestead  Law,  passed  by  a  Eepublican  Congress  and 
signed  by  Abraham  Lincoln. 

2.  The  acts  for  the  issuance  of  legal  tenders  and  national  bank 
notes,  which  gave  the  people  a  currency  of  equal  and  stable  value 
in  all  parts  of  the  country. 

3.  The  system  of  internal  revenue  taxation,  by  which  approxi- 
mately one-half  of  the  ordinary  expenses  of  the  Government  have 
been  visited  iipon  malt  and  spirituous  liquors,  tobacco  and  cigars. 

4.  The  thirteenth  amendment  to  the  Constitution,  vv^ich 
abolished  slavery. 


242  REPVIiLIVAX  LAIiOU  LEdhSLATION. 

) 

5.  The  fourteenth  anuMidiuent,  which  ereiited  (Mtizenship  of 
1  he  L  iiited  States  as  (list  in-jjuished  from  citizenship  of  the  several 
States,  and  provided  that  no  State  should  abridge  th^  privileges 
oi-  inununities  of  citizens  of  the  Tnited  States. 

6.  The  fifteenth  amendment,  which  established  equality  of 
sn  IT  rage. 

7.  The  Civil  Kights  Act,  which  extended  to  all  persons  the 
t'(|ual  protection  of  the  laws. 

8.  All  existing  laws  for  the  payment  of  pensions  to  veterans 
of  the  Civil  War  and  their  surviving  relatives. 

9.  The  liberal  legislation  respecting  mineral  lands,  which 
bnilt  up  the  mining  industry,  added  enormously  to  the  wealth  of 
the  country  in  the  precious  and  semi-precious  metals,  and  made 
it  possible  to  resume  specie  payments. 

10.  The  resumption  of  specie  payments. 

11.  The  reduction  of  postage,  the  money-order  system,  the  es- 
tablLshment  of  the  Railway  Mail  Service,  free  delivery,  Rural 
free  delivery,  and  other  improvements  that  make  the  Post-Ofiice 
Establishment  of  the  United  States  the  most  efHcient  agency  of 
that  character  that  can  be  found  on  the  globe. 

12.  The  Life-Saving  Service. 

13.  The  artificial  propagation  and  distributiou  of  fish. 

14.  The  distribution  of  seeds  and  other  measures  of  vast 
importance  in  the  promotion  of  agriculture. 

15.  The  endowment  of  public  schools,  agricultural  colleges 
etc.,  by  grants  of  land  from  tlie  public  domain. 

16.  The  Administrative  Customs  Act,  which  insures  justice 
and  equality  in  the  collection  of  duties. 

17.  The  International  Copyright  Law,  which  respects  the 
rights  of  authors  in  the  product  of  their  brains,  but  at  the  same 
time  protects  our  publishing  industry  by  requiring  that  books 
shall  be  printed  in  this  country  to  entitle  them  to  copyright. 

18.  The  establishment  of  the  Circuit  Court  of  Appeals,  to  re- 
lieve the  Supreme  Court  and  no  longer  require  litigants  to  suffer 
a  delay  of  three  or  four  years  in  securing  a  decision  on  appeal. 

19.  The  admission  of  the  States  of  Kansas,  Nebraska,  Nevada, 
Colorado,  North  and  South  DSItota,  Washington,  Montana,  Idaho, 
Wyoming  and  Oklahoma, 

20.  The  Anti-Trust  Act.  (This  was  drawn  by  Senators  Sher- 
man and  Edmunds,  and  introduced  by  the  former.  In  the  House 
its  passage  was  secured  by  William  McKinley  against  an  attempt 
to  have  it  sidetracked  in  behalf  of  a  bill  for  the  free  coinage  of 
silver,  which  received  the  vote  of  every  Democratic  member  with 
one  exception.  So  it  may  be  said  that  the  law  was  placed  upon 
the  statute  books  over  the  united  opposition  of  the  Democratic 
Party  as  represented  in  the  House.) 

21.  The  National  Bankruptcy  Acts  of  1867  and  1898,  which 
relieved  many  thousands  of  unfortunate  men  from  their  burdens 
of  debt  and  restored  them  to  commercial  or  industrial  activity. 

22.  The  establishment  of  the  Gold  Standard,  which  placed 
our  monetary  system  on  a  stable  basis  and  in  harmony  with  the 
great  nations  of  the  world. 

23.  Every  schedule  of  duties  on  imports  adopted  within  the 
past  fifty  years,  in  which  the  policy  of  protection  to  American 
labor  has  been  distinctly  recognized  and  efficiently  applied,  hae 
been  the  product  of  a  Republican  Congress. 

24.  Railway  rates  to  be  fixed  by  enlarged  Interstate  Com- 
merce Commission;  rebates  and  other  discriminations  penalized; 
sleeping  cars,  express  companies  and  pipe  lines  made  oommen 
carriers ;  railway  passes  prohibited. 

25.  Panama  Canal  to  have  85-foot  level,  with  locks ;  Panama 
Canal  bonds  to  enjoy  same  privileges  as  all  other  United  States 
bonds ;  Panama  Canal  supplies  to  be  domestic  products. 

26.  Pure  Food :  Label  must  tell  the  truth,  especially  ob 
popular  remedies. 

27.  Meat  Inspection,  "from  hoof  to  can,"  at  Qoremment  ex- 
pense. 

28.  Free  alcohol,  denatured,  for  use  in  the  arts. 

29.  Consular  service  reorganized  on  merit  basis. 

30.  Quarantine  against  yellow  fever  nationalized. 

31.  Financial  law  whereby  banks  in  periods  of  financial 
■tringenoy  may  issue  currency  to  the  amount  of  $500,000,009,  df 


REPUBLICAN  LABOR  LEGISLATION.  243 

positing-  as  security  therefor  bonds,  commercial  paper  or  other 
assets,  such  emergency  ciirrency  being-  so  taxed  as  to  insure  its 
retirement  as  soon  as  the  stringency  lias  passed. 

33.  National  monetary  commission  created  to  devise  a  sound 
monetary  system  for  the  Government. 

33.  Consular  service  reorganized,  abolishing  unnecessai-y  con- 
sulships and  consulgeneralships  and  establishing  those  most 
needed. 

34.  Widows'  pensions  increased  from  $8  to  $12  a  month  and 
certain  unnecessary  restrictions  abolished. 

35.  Importation  of  impure  tea,  tea  sittings,  etc.,  prohibited. 

36.  Model  child  labor  law  for  District  of  Columbia. 

37.  Employers'  liability  law. 

38.  (jovernment  compensation  law,  providing  compensation 
to  certain  federal  employees  for  injuries  received  in  line  of  duty. 

37.  Eestrictions  on  lands  of  the  Five  Civilized  Tribes  re- 
moved, adding  $150,000,000  to  taxable  property  of  Oklahoma. 

Ri^id     Elnforcement     by     the     Adininistration     of     the     E^lgrht- 
hour   La-vv. 

[Extract    from    letter    of    Attorney-General    MOODY    to    all    United    States 
District  Attorneys.    November,   1906.] 

"By  order  of  the  President  your  attention  is  called  to  the 
provisions  of  'An  Act  relating  to  the  limitation  of  the  hours 
of  daily  service  of  laborers  and  mechanics  employed  upon  the 
public  works  of  the  United  States  and  of  the  District  of 
Columbia,'  approved  August  1,  1892,  commonly  known  as  the 
eight-hour  law. 

"The  Government  is  determined  upon  a  strict  enforcement 
of  this  statute  and  you  are  directed  diligently  to  investigate 
all  complaints  which  may  come  to  you  from  any  source  of 
violations  of  this  law,  and  upon  your  own  initiative  to  make 
investigation  if  there  appears  to  you  to  be  any  reasonable 
grountl  for  suspecting  violation  of  this  law.  In  every  case  in 
which  you  will  secure  sufficient  evidence  you  will  submit  that 
evidence  to  the  Grand  Jury,  with  a  view  to  securing  an  indict- 
ment. 

*•♦♦***•* 

"I  desire  to  impress  upon  you  the  importance  of  using  every 
effort  to  execute  these  directions;  of  being  vigilant  and  active 
in  this  matter.  You  will  make  prompt  and  full  report  to  me 
of  all  cases,  and  your  action  thereon,  with  your  reasons  there- 
for. You  will  report  immediately  the  action  of  the  Grand 
Jury  and  the  result  of  all  trials,  with  a  specific  statement  of 
the  penalty  imposed." 

State   Legislation. 

A  political  party  must  be  judged  not  by  what  it  proposes  to 
do,  but  by  what  its  adhei*ents  actually  accomplish  when  in  office. 
The  laws  which  the  representatives  of  a  party  enact  as  legis- 
lators, rather  than  the  party  platforms,  are  the  true  index  to 
the  real  policy  of  that  jjarty.  The  Democratic  party  has  for 
man3^  years  posed  as  the  friend  of  the  workingman,  and  during 
the  present  campaign  special  emphasis  will  be  given  to  this  pre- 
tension. Let  us  see,  therefore,  what  the  two  parties  have  act- 
iially  done  in  the  way  of  legislation  for  the  protection  of  the 
wage-worker. 

According  to  the  provisions  of  the  Constitution,  labor  legis- 
lation is  almost  entirely  within  the  province  of  the  individual 
States,  the  powers  of  the  Federal  Government  being  restricted  in 
this  respect  to  employment  in  the  Government  service  or  Federal 
public  works  and  in  interstate  commerce,  to  seamen,  to  immi- 
gration, etc.  We  must,  therefore,  draw  our  conclusions  mainly 
from  the  labor  legislation  enacted  by  the  several  States.  For  the 
piirpose  of  the  present  study  States  having  Eepublican  legisla- 
tures at  the  present  time  are  regarded  as  Eepublican  States  and 
vice  versa. 

A  study  of  the  history  of  labor  legislation  in  the  United  States 
will  disclose  the  fact  that  nearly  all  such  legislation  originated 
in  Eepublican  States  and  was  afterwards  adopted  by  the  Demo- 


244 


REPUBLICAN  LABOR  LEGISLATION. 


cratic  States.  At  the  present  time  the  statute  books  of  the  dif- 
ferent States  show  a  decided  preponderance  of  protective  hibor 
legislation  in  the  Kepublican  as  compared  with  the  Democratic 
States.  This  is  l)rouglit  out  in  the  following-  sunnnary  table, 
which  shows  Mic  number  and  per  cent  of  Jlepublitian  and  Demo- 
cratic States  which  have  enacted  each  of  the  important  classes  of 
labor  laws  indicated : 


Republican 
iStales. 

Democratic 
States. 

legislation  In  force  January  1.  1908. 

Vumber. 

Per  cent 
of  all  Re- 
publican 
States. 

Nuviber. 

Per  cent 
of    all 
Demo- 
cratic 
States. 

Creating  labor  bureaus 

26 
23 
13 

18 

.,16 

23 
24 

26 
18 

12 
15 

23 
10 

17 

14 

28 

87 
77 
43 

60 

53 

77 
80 

87 
60 

40 
60 

77 
33 

57 

47 
93 

7 
6 
2 

4 

2 

4 
13 

9 
10 

3 

6 

19 
2 

5 

1 
12 

44 

Creating  factory  Inspect'OT  services 

Providing  for  free  employment  bureaus.. 

Providing     for    boards    of    conciliation 

and    arbitration 

37^ 
25 

Establishing    a    compulsory   8-hour    day 
for  labor  on  public  works 

12^ 

Pro'iibiting  employment  of  children  un- 
der 11  years  of  age  in  factories 

25 

Limiting  hours  of  labor  of  children 

Restricting    employment    of    children    of 

school  age  and  of  Illiterate  children 

Prohibiting  niglit  work  by  children ^ 

Prohibiting    employment    of   children    in 
operating   or    cleaning   dangerous   ma- 
chinery   _. 

81 

56 
62l^ 

19 

Limiting  hours  of  labor  of  women. 

Requiring  seats  for  females  in  shops  or 
mercantile  establishments 

37^ 
621^ 

Regulating  sweatshops 

12^ 
81 

Requiring    wages    to    be    paid    weekly, 
fortnightly  or  monthly.. 

Protecting  members  of  labor  organiza- 
tions     

6 

Protecting  the  union  label 

75 

An  examination  of  those  tables  presents  an  interesting  lesson 
in  practical  politics.  We  shall  take  up  in  rotation  each  of  the 
more  important  subjects  of  labor  legislation,  and  see  which 
States  have  done  the  most  for  £he  workingman. 

Labor  Bareans. 

There  are  few  agencies  which  have  done  more  toward  giving 
a  clear  insight  into  the  problems  of  labor  and  capital,  that  have 
brought  emi)loyer  and  employee  nearer  together,  or  that  have 
furnished  the  laboring  people  with." facts  for  arguments  in  favor 
of  protective  legislation,  than  bureaus  of  labor  and  labor  statis- 
tics. The  above  table  shows  that  at  present  there  are  33  State 
labor  bureaus  in  the  United  States.  Of  these  26  are  in  Republican 
and  7  are  in  Democratic  States.  Reducing  these  figures  to  a  pro- 
portionate basis,  we  find  that  26  out  of  30  Republican  States,  or 
87  per  cent,  have  labor  bureaus ;  7  out  of  16  Democratic  States, 
or  44  per  cent,  have  labor  bureaus. 


Factory     Inspection     Service. 

It  is  well  known  to  all  working  people  that  protective  labor 
laws  are  practically  a  dead  letter  in  any  State  unless  there  is 
a  factory  inspection  service  organized  for  the  purpose  of  search- 
ing out  and  bringing  to  justice  persons  who  violate  such  laws. 
It  is  easy  enough  to  enact  protective  legislation,  but  it  is  another 
thing  to  enforce  it.  If  a  State,  therefore,  enacts  such  laws  and 
fails  to  organize  a  service  for  their  enforcement,  it  is  deceiving 
those  whom  it  pretends  to  favor.  Let  us  again  observe  the 
tables.  We  find  that  23  out  of  30  Republican  States,  or  77  per 
cent,  have  laws  creating  factory  inspection  services.  We  also 
find  that  6  out  of  16  Democratic  States,  or  37^  per  cent,  have 
factory  inspection  services.  In  examining  the  other  sub- 
jects of  lahor  legislation  which  follow,  we  must  not  lose 
sight  of  the  fact  that  only  6  of  the  Democratic  States  have 
made  provision  for  factory  inspection  services  for  the  purpose  of 
carrying  out  the  provisions  of  the  lahor  laws  which  will  he  under 
consideration. 


REPUBLICAN  LABOR  LEGL^LATION.  245 

Free     E^inployment    BnreaiiH. 

The  movement  to  establish  free  public  employment  bureaus, 
where  working  people  in  search  of  work  and  employers  desiring- 
help  mig-ht  be  brought  together  without  expense  to  either,  was 
started  in  Ohio  by  the  passage  of  a  law  requiring  the  labor 
bureau  of  that  State  to  establish  agencies  in  the  leading  cities. 
Other  States  followed  Ohio's  example,  until  at  present  laws  pro- 
viding for  such  agencies  have  been  enacted  in  15  States.  Of 
these  13  are  Republican  and  2  are  Democratic. 

Boards    of   Arltitratlon    and    Conciliation. 

Twenty-two  States  have  enacted  laws  providing  for  either 
State  or  local  boards  of  conciliation  and  arbitration.  Of  these 
18  are  Republican  and  4  are  Democratic  States, 

Eigrlit-hour    LaTV. 

For  many  years  labor  organizations  have  been  endeavoring 
to  secure  legislation  prohibiting  labor  on  government  work.s 
or  public  contracts  for  more  than  eight  hours  per  day.  At  the 
present  time  18  of  the  46  -States  have  such  laws  on  their  statute 
books.  Of  these  16  are  Republican  and  2  are  Democratic.  In 
addition  to  these  4  Republican  States  and  1  Democratic  State 
have  laws  declaring-  eight  hours  to  be  a  legal  working  day  in  the 
absence  of  a  contract. 

Child    Labor. 

Ever  since  the  introduction  of  the  factory  system,  over  a 
century  ago,  the  greatest  sufferers  from  the  greed  of  inconsid- 
erate and  cruel  employers  have  been  the  helpless  children,  who 
often  at  a  tender  age  are  placed  in  factories.  It  is  a  principle 
recognized  in  all  civili/ed  countries  that  children  under  14  years 
of  age  should  not*be  employed  in  factories,  and  nearly  all  civi- 
lized countries  have  laws  placing  a  minimum  age  limit  of  14 
years  upon  such  child  labor.  In  our  country  27  States  prohibit 
the  employment  of  children  under  14  years  of  age  in  factories. 
Of  these,  23  are  Republican  and  4  are  Democratic  States. 

!Many  States  have  enacted  laws  placing  certain  restrictions 
upon  the  emploj^ment  of  children,  usually  16  j^ears  of  age,  and  in 
some  cases  even  u]>on  the  employment  of  all  minors.  Of  this 
class  are  laws  limiting  the  hours  of  labor  of  children  in  fac- 
tories or  stores,  Avhich  have  been  enacted  in  37  States.  Of  these 
24  'vre  Republican,  and  13  are  Democratic  States. 

Thirty-five  States  have  placed  restrictions  upon  the  employ- 
ment of  children  of  school  age  or  of  illiterate  children,  of  which 
26    are    Republican   and    9    are   Democratic. 

Twenty-eight  States  prohibit  night:  work  by  children.  Of 
these  18  are  Republican  and  10  are  Democratic  States. 

Fifteen  States  prohibit  the  employment  of  children  in  op- 
erating dangerous  machinery  or  cleaning  machinery  in  motion. 
Of  these  12  are  Republican  and  3  are  Democratic  States. 

Woman    Labor. 

Next  to  the  children,  the  greatest  victims  of  abuse  by  incon- 
siderate employers  when  iinrestrained  by  law  are  women.  In- 
vestigations have  shown  that  their  condition  is  sometimes  pitiful 
where  employers  are  given  free  scope  in  their  employment. 
Their  protection,  in  the  interests  of  humanity  and  morals,  has 
also  been  the  subject  of  legislation  in  nearly  all  civilized  coun- 
tries. In  the  United  States  21  States  have  enacted  laws  which 
limit  the  hours  of  labor  of  women.  Of  these  15^  are  Republican 
and  6  are  Democratic  States. 

Tt  is  interesting  to  notice  that  of  the  15  Republican  States  lim- 
itlug  the  hours  of  laltor  of  women,- 12  provide  for  factory  in- 
spection, while  of  the  6  Democratic  States  mentioned,  only  3 
make  such  provision. 

Seats    for    Females    irf  Shops. 

Legislation  on  this  subject  needs  no  comment.  Any  man  who 
has  a  sister  or  daughter  employed  in  a  shop  or  store,  and  every 


I4«  RBPUBLIOAy  LABOR  LEGI8LAT10V. 

physician,  knows  what  a  hardship  it  is  to  a  woman  to  be  coBi- 
pelled  to  stand  all  day  at  a  bench  or  behind  a  counter.  Fortu- 
nately, in  33  States  legislation  has  been  enacted  requiring  em- 
ployers to  provide  seats  for  females.  Of  these  33  States,  23  are 
are  Repubiican  and  10  are  Democratic. 

Siveatsliop  Learlttlatlon. 

There  is  no  greater  menace  to  the  health  of  the  working 
people  and  nothing  which  tends  more  to  lower  and  degrade  hu- 
man beings,  than  to  crowd  them  together  in  small,  filthy  work- 
shops, where  they  are  often  compelled  to  work,  eat  and  sleep 
without  regard  to  health  or  morals,  and  where  the  hours  of  la- 
bor are  often  so  long  that  the  victims,  who  are  usually  foreigners 
unacquainted  with  cur  language,  are  shut  out  from  all  oppor- 
tunities for  education  or  betterment  of  any  kind.  The  scenes 
observed  in  these  shops  by  official  investigators  have  been  re- 
volting beyond  description.  Long  ago  efforts  have  been  made 
to  regulate  these  sweatshops,  and  13  States  have  enacted  laws 
looking  to  this  end.  Of  these  12  States  10  are  Republican  and  2 
are  Democratic. 

"Wagre   Payments. 

In  order  to  insure  the  prompt  payment  of  workingmen's 
wages  in  cash  when  due,  22  States  have  enacted  laws  requiring 
employers  to  p?y  wages  weekly  or  fortnightly,  and  in  some  in- 
stances prohibiting  a  longer  interval  than  one  month  between 
pay-days.     Of  these  17  are  Republican  and  5  are  Democratic. 

Protection    of   Members    of    Labor   Organizations. 

Fifteen  States  have  enacted  laws,  that  are  now  in  force,  pro- 
hibiting employers  from  discharging  persons  on  account  of  mem- 
bership in  labor  organizations,  or  from  compelling  persons  to 
agree  not  to  become  members  of'  labor  organizations  as  a  con- 
dition of  securing  employment  or  continuing  in  their  employ. 
Of  these   all  but  one   are  Republican   States. 

Protection    of    tlie    Union    Label. 

Forty  States  have  passed  laws  allowing  trade  unions  to  adopt 
labels  or  trade-marks  to  be  used  to  designate  products  of  the 
labor  of  their  members,  and  prohibiting  the  counterfeiting  or 
the  use  of  such  labels  or  trade-marks  by  unauthorized  persons. 
Oi  these  States  28  are  Republican  and  12  are  Democratic. 


This  Is  an  era  of  ^reat  combinations  both  of  labor  and  of 
capital.  In  many  ^rays  these  combinations  have  worked  for 
Sood,  but  they  must  -work  under  the  la^v,  and  the  la^vs  con- 
cerningr  them  must  be  just  and  wise  or  they  will  inevitably 
do  evil;  and  this  applies  as  much  to  the  richest  corporation 
as  to  the  most  powerful  labor  union.— Presitlent  Roosevelt  at 
Charleston,   S.   C,  April   9,   lOOa. 

That  whenever  the  need  arises  there  should  be  a  read- 
justment of  the  tariff  schetlnles  is  undoubted;  but  such 
chanires  can  with  safety  be  made  only  by  those  whose  devo- 
tion to  the  principle  of  a  protective  tariff  is  beyond  uuestion, 
for  otherwise  the  chargres  would  amount  not  to  readjustment 
but  to  repeal.  The  readjustment  when  made  must  iuaintain 
and  not  destroy  the  protective  principle.— President  Roose- 
velt's   speech    acceptin^jr    1004    nomination. 

Efflclent  resntation  Is  the  very  antidote  and  preventive 
of  socialism  and  g^overnment  ownership.  '1  he  railroads, 
until  noTV,  have  been  permitted  to  ^vield  without  any  real 
control  the  enormously  important  franchise  of  furnlshiujur 
transportation  to  the  entire  country.  In  certain  respects 
they  have  done  a  marvelous  work  and  have  affor<led  trnns- 
portation  at  a  cheaper  rate  per  ton,  per  mile,  and  per  passen- 
ger, than  in  any  country  in  the  world.  They  have,  how- 
ever, many  of  them,  shamefully  violated  the  trust  obli^ution 
they  have  been  under  to  the  iiublic  of  furnisbinja;-  equal  facil- 
ities at  the  same  price  to  all  shippers.  They  have  been 
welshed  in  the  balance  and  found  wantiujo^-.  The  remedy 
for  the  evils  must  be  radical  to  be  effective.  If  it  is  not  so. 
then  we  may  certainly  expect  that  the  movement  toward 
jUTovernment  ownership  will  become  a  formidable  one  that 
cannot  be  stayed.— Hon.   Wm.   H.  Taft,   at   Columbus,  Ohio. 


REPUBLICAN  LABOR  LEaiSLATION. 


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HON.    WILLIAM  H.  TAFT'S  RELATIONS 
TO  UNION  LABOR. 


No  class  of  citizens  is  more  deeply  interested  in  the  records 
of  presidential  candidates  than  union  workmen.  They  want  the 
simple  facts  with  regard  to  each  man,  and  it  is  especially  in- 
cumbent upon  them  not  to  form  opinions  on  insufficient  evidence, 
and  to  consider  whether  a  candidate's  record  is  one  of  achieve- 
ment or  only  of  promise.  Actions  may  not  be  more  eloquent  than 
words,  but  they  are  more  convincing-.  Trade  unionists,  like  other 
people,  will  never  know  their  friends  until  they  put  them  upon 
trial ;  and  when  a  man  is  tried  he  should  be  judged  by  his  whole 
course  of  action,  and  not  by  one  isolated  event  over  which  there 
may  be  a  difference  of  opinion  even  among  trade  unionists.  If 
the  candidate  has  had  opportunity  to  do  things,  has  he  done 
them?  And  in  the  doing,  has  he  been  feai'less  and  fair  towards 
all  classes  of  citizens?  For  trade  unionists  want  neither  charity 
nor  favor ;  they  want  opportunity  and  justice. 

Next  to  the  churches  and  the  schools,  trade  unionism  has 
done  much  to  raise  the  standard  of  American  citizenship.  It  has 
said :  "Suffer  little  children  to  come  into  the  school  house  and 
the  church  and  not  into  the  factory  and  mine,"  and  it  has  given 
to  their  progenitors  higher  wages,  shorter  hoiirs,  more  sanitary 
conditions  of  living  and  greater  security  to  life  and  lilnb — all  of 
which  have  been  shared  by  union  and  non-union  workers ;  that  is 
to  say,  the  union  workers  have  fought  the  battles,  carried  the 
burdens  and  made  the  sacrifices,  and  society  as  a  whole  has  ben- 
efitted. It  has  said :  "The  laborer  is  worthy  of  his  hire,  even 
though  the  laborer  be  a  woman."  It  has  at  times  been  led  by  bad 
men,  but  the  organization  that  is  composed  of  saints  has  not  yet 
taken  out  its  charter.  It  has  made  mistakes,  but  the  man  or  the 
institution  that  does  not  make  mistakes  does  not  make  anything. 
This  is  no  argument,  hoAvever,  in  favor  of  the  making  of  heed- 
less blunders,  and  a  blunder  would  be  made  if  one  who  has  suc- 
cessfully met  many  public  trusts  and  discharged  duties  of  a  high 
national  and  international  significance,  and  who  has  ever  been 
prompted  by  motives  of  the  highest  regard  for  the  welfare  of 
the  producing  people  of  this  nation,  should  be  credited  by  organ- 
ized labor  as  being  now,  or  ever  having  been,  inimical  to  their 
interests.  Secretary  Taft's  whole  public  career,  and  it  is  an  ex- 
tensive one,  contains  no  incident  in  which  he  has  ever,  by  word 
or  act.  arrayed  himself  against  the  principles  of  trade  union- 
ism. On  the  contrary,  he  has  been  its  consistent  friend  and  ad- 
vocate. His  record  shows  that  not  only  Avere  his  sympathies  with 
the  organization,  but  that  his  actions  were  those  of  a  friend 
many  years  before  either  he  or  th'^  American  people  had  thought 
of  him  as  a  Presidential  possibility. 

Miiiqnoted    and    Unjustly    Judged. 

Probably  no  judge  has  ever  been  more  misquoted  and  \in justly 
judged  by  trades  unionists  than  Judge  Taft.  His  many  decisions 
in  favor  of  laV)or  organizations  have  been  minimij^ed  to  such  an 
extent  that  one  is  prompted  to  inquire  if  those  who  have  ex- 
ploited his  record  before  labor  orgaui/ations  were  not  more  in- 
terested in  the  welfare  of  some  political  party  than  in  the  inter- 
ests of  their  labor  organizations.  Trade  unionists  should  stand 
together,  without  regard  to  party,  in  contending  for  everything 
that  will  legitimately  advance  their  principles,  and  should  credit 
an  honest  judge  with  doing  his  duty,  even  though  his  decisions  be 
adverse  to  them,  so  long  as  they  are  in  accordance  with  the  law 
of  the  land.  His  decisions,  of  course,  may  not  voice  the  opinion 
of  the  judge;  he  does  t>ot  make  tlie  Inio.  On  the  other  hand, 
there  is  no  decision  by  Judge  Taft  that  can  be  cited  that  indi- 
cates personal  antipathy  or  a  personal  unfriendliness  on  his  part 
to  labor  organizations. 

248 


JUDGE  TAFrS  LABOR  DECISIONS.  249 

Some    of    the    Public    Actions    of    William    H.    Taft    Especially 
Helpfnl  to  Organized  Labor; 

Tlie  words  of  Jndge  Taft  in  tlie  Arthur  and  Phelan  cases, 
in  1893-4,  settini^-  fortli  the  rights  of  labor  or«ania;ation» 
under  the  la>v,  >vere  invoked  an»l  applied  in  favor  of  labor 
unions  in  the  ease  of  the  strike  on  the  Waliash  Railroad  in 
1903,   and  an    injunction    against   the    union    <lissolved. 

In  1894,  in  adjudging-  Phelan  guilty  of  contempt  for  dis- 
obeying the  injunction  secured  to  prevent  interference  with 
the  operation  of  the  Cincinnati-Southern  Railvs-ay  and  to 
keep  open  interstate  commerce.  Judge  Taft,  in  tletermining 
the  limit<«  of  labor  organizations,  made  a  notable  statement 
of  the  extent  of  the  rights  of  labor  T\4iich  has  since  been 
frequently  and  snccessfully  quoted  by  those  contending  in 
the   interests    of   union    labor. 

In  1899  Judge  Taft  became  the  champion  of  the  cause  of 
union  labor  in  the  Narramore  case,  and  as  a  jiid_ge  of  the 
U.  S.  Circuit  Court  of  Appeals,  reversed  the  decision  of  the 
court  belo-w  and  Wrote  an  opinion  that  has  linally  become, 
in  spirit  an<l  in  letter,  the  established  law  not  only  of 
Ohio,  but  of  the  nation.  He  took  an  impregnable  position 
against  precedents  and  numerous  decisions  which  had  de- 
clared, in  effect,  that,  where  an  employer  ^vas  violating  the 
law  w*th  regard  to  the  use  of  safety  aopllances,  an  Injured 
-ivorkman  couid  not  recover  damages  because  he  vi^as  sup- 
posed to  kno'tv  of  the  violation,  an<l  to  assume  all  risks  con- 
sequent   thereto. 

As  Governor-General  of  the  Philippines,  he  encouraged 
the  organization  of  Avorkmen  into  unions  that  should  be 
organized  on  American  lines,  and  pardoned  a  labor  leader 
who  had  been  convicted  under  an  old  Spanish  law  for  ''con- 
spiring  to    raise   the   ^vages    of   labor." 

As  Governor-General  Mr.  Taft  refusecl  to  accede  to  the 
dema»Mls  of  corporations  and  other  employers  to  permit  the 
introduction  of  chea:>  Chinese  labor  into  the  islands,  and 
unequivocally  declared  himself  against  brfnging  the  v»ork- 
men  of  our  new  de->endencies  ov  those  in  our  o^vn  land,  into 
competUion  with  the  cheaper  labor  of  the  c4vilizatlons  lower 
than    our   ottu. 

Mr.  Taft's  Decisions   Relative  to  Labor. 

Frederick  N.  Jiidson,  the  attorney  for  the  Railroad  Brother- 
hood ill  the  Wabash  case,  says : 

"There  i-  no  foundation,  therefore,  for  the  suggestion  that  the  de- 
cisions of  Judge  Taft  were  in  any  pense  unfriendly  to  labor."' 

One  should  read  in  the  Review  of  Reviews  for  Aiig-nst,  1907, 
what  Mr.  Jndson  says  of  the  whole  series  of  Jiidg-e  Taft's  labor 
decisions.  The  first  of  these  decisions  was  delivered  by  Judge 
Taft  in  1890  in  the  case  of  Moores  vs.  Bricklayers'  Union  et  al. 
This  case  involved  the  application  of  the  law  to  what  is  known 
as  a  secondary  boycott:  that  is,  a  hoifcott  not  (i(/(iiiifit  an  em- 
pJoyer,  hut  ug'aiiusi  a  tliird  party  dealuig  iclih  an  employer,  who 
is  a  stranger  to  the  controversy  between  the  employer  and  the 
employee. 

Moores  had  sold  lime  to  the  employer,  Parker  Brothers,  who 
had  been  boycotted  by  the  union.  Parker  Brothers  had  been 
boycotted  Ijecause  of  their  refusal  to  pay  a  fine  imposed  upon  one 
of  their  enii)]oyees  and  to  reinstate  a  discharged  apprentice. 
Moores,  the  plaintiffs,  had  been  awarded  damages  by  the  jury 
on  account  of  this  secondary  boycott,  and  it  was  this  judgment 
of  damages  that  was  affirmed  on  appeal  in  an  opinion  by  Judge 
Taft.  This  decision  has  been  accepted  as  the  correct  exposition 
of  the  law ;  and  the  secondary  boycott,  that  is,  a  boycott  against 
a  stranger  to  the  ti-ade  dispute,  has  been  practically  abandoned 
by  intelligent  labor  unionists  as  an  unreasonable  weapon.  In 
other  words,  it  has  been  conceded  by  the  .ablest  labor  leaders 
that  it  is  not  good  policy  to  punish  one's  friends— employers  who 
are  running  union  shops— for  the  purpose  of  defeating  one's  ene- 
mies. 

The  labor  decisions  of  Judge  Taft  while  on  the  Federal  bench 
related  directly  to  the  Federal  character  of  such  controversies, 
involving  the  power  of  the  Federal  Government  to  protect  inter- 
state commerce.  There  were  only  two  STich  cases  decided  by  him. 
The  first  of  these  was  decided  Ayiril  3.  1893.  and  was  in  the  mat- 
ter of  the  sti'ike  of  the  engineers  of  the  Toledo  and  Ann  Arbor 
Railroad.  The  engineers  on  strike  refused  to  handle  ears  from 
complainants'  road  as  long  as  the  strike  of  the  engineers  on  that 
road  was  unsettled.  It  is  obvious  that  this  action  involved  a  pa- 
ralysis   of   the    business    of    interstate    commerce,      The    Toledo 


250  JUDGE  TAFTS  LABOR  DECISIONS. 

road  thereupon  applied  for  an  injiinetiou  against  the  eonnecting 
rdads,  alleging  a  eombination  violative  of  the  interstate  com- 
merce act.  The  engineers  of  the  defendant  company  had  no 
grievances  of  their  own ;  and  their  refusal  to  handle  the  freight 
of  complainant's  company  was  in  no  sense  a  strike  for  the  bet- 
terment of  their  own  conditions  of  service.  Judge  Taft's  de- 
cision sustaining  the  injunction  was  accepted  by  the  llailroad 
Brotherhood  as  a  fair  statement  of  the  law  under  the  peculiar 
conditions  of  the  railroad  service. 

In  the  following  year,  1894,  came  the  great  railroad  strike  in- 
spired by  the  American  Railroad  Union,  growing  out  of  the 
strike  of  the  Pullman  employees  at  Pullman,  Illinois.  The  offi- 
cials of  the  union  demanded  all  railroads  to  boycott  Pullman 
cars  and  to  declare  a  strike  of  employees  on  any  railroad  on  their 
refusal  to  declare  such  a  boycott.  The  Cincinnati  Southern,  an  in- 
terstate railway,  was  in  the  hands  of  a  receiver,  and  it  applied  to 
the  court  for  protection  against  one  Phelan  (a  Socialist),  an  offi- 
cial of  the  American  Railway  Union,  who  was  engaged  in  inciting 
a  strike  among  the  employees  of  the  road.  There  was  no  com- 
plaint by  the  employees  of  this  road.  The  demand  was  that  all 
traffic  should  be  suspended  and  business  paralyzed,  union  shops 
closed,  and  union  industries  destrdjed,  if  necessary,  until  all  the 
roads  should  consent  not  to  carry  Pullman  cars.  The  purpose 
was  to  starve  the  public  into  compelling  the  Pullman  Company 
to  do  something  which  the  public  had  no  right  to  compel  it  to 
do,  and  in  the  doing  of  this  to  inflict  irreparable  injury  upon 
many  industrfes  emplojing  union  workmen  and  working  union 
hours.  If  the  unions  had  won  in  this  strife,  would  not  the  price 
have  been  too  great  for  the  object  attained?  Phelan  had  used  lan- 
guage defying  the  order  of  the  court.  After  a  hearing  he  was 
adjudged  g-uilty  of  contempt  in  an  opinion  by  Judge  Taft,  who  at 
the  same  time  emphasized  the  fact  that  employees  had  the  right 
to  quit  their  employment,  but  that  they  had  no  right  to  combine 
to  injure  their  employ er  in  order  to  compel  hint  to  withdraw 
from  a  mutually  profitable  relation  with  a  third  party  for  the  pur- 
pose of  injuring  the  third  party,  when  the  rehition  thus  so.ight 
to  be  broken  had  no  effect  upon  the  character  or  reward  of  their 
services.  '  But  as  the  purpose  of  the  combination  was  to  tie  up 
interstate  railroads,  not  as  the  incidental  result  of  a  lawful 
strike  for  the  betterment  of  the  employees'  own  condition,  but  as 
a  means  of  injuring  a  third  party,  it  was  an  unlawful  combina- 
tion violative  of  the  anti-trust  act  of  1890.  Thus,  if  Phelan  had 
urged  a  strike  for  higher  wages,  or  to  pi'eveut  the  lower! n<»-  of 
wages,  he  would  not  have  been  liable  for  contempt,  but  he  had  no 
right  to  incite  men  to  quit  when  they  had  no  grievance  of  their 
own  to  redress,  for  it  was  then  essentially  a  boycott  and  not  a 
strike. 

The  words  of  Judge  Taft  in  the  Phelan  case,  setting  forth  the 
rights  of  labor  organizations  under  the  law,  were  invoked  and 
applied  in  favor  of  the  labor  unions  in  a  notable  case,  that  of  a 
strike  on  the  Wabash  Railroad  by  the  Brotherhoods  of  Railroad 
Trainmen  and  Firemen  in  1903.  The  two  brotherhoods,  after 
failing  to  secure  the  advance  wages  and  betterment  of  conditions 
demanded,  had  called  a  strike,  and  thereupon  an  injunction  was 
filed  by  the  railroad  company  against  the  officers  of  these  broth- 
erhoods. The  rights  of  organization  and  of  representation,  as  set 
forth  by  Judge  Taft,  were  made  the  basis  of  the  argument  by  the 
attorney  representing  the  brotherhoods,  and  the  injunction  was 
dissolved.  It  was  said  in  the  opinion  rendered  by  Judge  Adams 
that  on  the  subject  of  the  organization  of  labor  and  the  rights 
of  labor  unions  no  one  had  spoken  more  clearly  and  acceptably 
than  Judge  Taft. 

The    "Assumed    Risk"    Decision. 

One  of  the  most  notable  services  that  Judge  Taft  rendered  to 
organized  labor  while  presiding  over  a  court  was  with  relation  to 
"assumed  risk"  and  "contributory  negligence"  on  the  part  of  a 
workman  attempting  to  recover  damages  from  an  employer  for 
injuries  received  while  in  the  service  of  the  latter.  In  1895  the 
Supreme  Court  of  Ohio,  consisting  of  six  judges,  decided  that 
Morgan,  a  coal  miner,  could  not  recover  damages  for  injuries 


jUDaE  TAFra  labor  DBOiaioys.  2ai 

received  in  the  explosion  of  fire  damp,  notwithstanding  the  fact 
that  the  State  required  the  mine  owners  to  keep  their  mines  free 
of  fire  damp  ;  that  Morgan  knew  the  company  ignored  the  law,  and 
therefore  in  accepting  service  with  them  he  could  not  recover 
damages.  A  similar  decision  had  been  made  in  several  other 
States.  Judge  Speer,  who  wrote  the  opinion  in  th«  Morgan  case, 
said: 

"One  who  voluntarily  assumes  a  risk  thereby  walvw  the  provision-  of 
the  statute  made  for  his  protection." 

Not  only  did  this  decision  place  a  premium  upon  lawbreaking, 
but  it  rendered  nugatory  every  law,  made  for  the  protection  of 
the  laboring  classes,  that  was  not  respected  by  the  employers. 
Only  a  law-observing  employer  was  liable  to  damag^es.  The  labor 
organizations  introduced  a  bill  in  the  General  Assembly  of  Ohio 
to  abolish  this  infamous  doctrine  of  assimaed  risk,  but  through 
the  power  of  the  railroads  and  other  corporations  and  large  em- 
ployers it  was  referred  to  a  hostile  committee  and  there  buried. 

And  now  we  come  to  the  Narramore  case,  in  which  Judge  Taft 
became  the  champion  of  the  injured  workman,  and  wrote  a  de- 
cision that,  notwithstanding  reversals  in  the  higher  courts  and 
the  bitter  opposition  of  those  who  were  opposed  to  abrogating 
the  old  doctrines,  finally  became  in  spirit  and  in  letter  the  es- 
tablished law  not  only  of  Ohio,  but  of  the  nation. 

Narramore  was  a  brakeman.  His  foot  became  tightly  wedged 
in  an  imblocked  frog,  which  was  left  open  contrary  to  the  law  of 
the  State,  and  he  was  run  down  by  a  train  and  left  a  cripple, 
with  a  wife  and  children  to  support.  The  company  was  indiffer- 
ent to  the  sufferings  of  the  man  and  his  family,  and  a  suit  was 
filed.  The  decision  was  against  him,  the  railroad  basing  its  de- 
fense on  the  decision  in  the  Morgan  case.  The  court  in  sub- 
stance said  that  Narramore  knew  that  the  company  violated  the 
law  with  regard  to  blocking  of  frogs ;  that  this  violation  was  so 
flagrant  and  open  that  Narramore  was  bound  to  know  of  it ;  and 
that  even  though  he  was  free  from  fault  himself,  still  he  had  no 
case,  as  he  had  assumed  the  risk  of  working  under  the  conditions 
as  he  saw  them.  Narramore's  case  was  then  carried  to  the 
United  States  Circuit  Court  of  Appeals,  presided  over  by  Judge 
William  H.  Taft.  Here  at  last  was  a  judge  who  was  broad 
enough  to  look  beyond  the  moldy  precedents  of  the  dark  ages. 
He  overthrew  the  barbarous  doctrine  of  "assumed  risk,"  and 
gave  to  the  workman  in  every  dangerous  vocation  the  rights  that 
had  so  long  been  withheld  from  him.  This  decision  of  Judge  Taft 
was  the  advance  agent  of  blocked  frogs,  covered  cogwheels,  and 
guarded  machinery.  It  eventually  led  to  the  resurrection  of  all 
the  laws  of  Ohio  that  had  been  enacted  for  the  protection  of 
working  men  and  women  and  which  had  been  nullified  by  the 
action  of  the  Supreme  Court  in  the  Morgan  case.  He  said  in 
part : 

"The  intention  of  the  legislature  of  Ohio  was  to  protect  the  employees 
of  railways  from  injury  from  a  very  frequent  source  of  danger  by  com- 
pelling the  railway  company  to  adopt  a  well-known  safety  device.  And 
although  an  employeee  impliedly  waives  a  compliance  with  the  statute  and 
agrees  to  assume  the  risk  from  unblocked  frogs  and  switches  by  continuing 
in  the  service  without  complaint,  this  court  will  not  recognize  or  enforce 
such  agreement.  The  imposition  of  a  penalty  for  the  violation  of  a  statute 
does  not  exclude  other  means  of  enforcement,  and  to  permit  the  company  ta 
avail  itself  of  such  an  assumption  of  risk  by  its  employees  is,  In  effect,  to 
enable  it  to  nullify  a  penal  statute,  and  is  against  pi^ilic  policy." 

Judge  Taft  was  overruled,  but  the  fight  based  on  his  opinions 
was  continued  until  satisfactory  statutes  were  secured. 

The    Federal    Courts    and    Organized    Lalior. 

As  early  as  August  28,  1895,  in  an  address  delivered  before 
the  American  Bar  Association  at  Detroit,  Michigan,  he  said : 

"  *  -»  Though  the  law  of  supply  and  demand  will  doubt- 
less, in  the  end,  be  the  influence  of  fixing  this  division  (between 
capital  and  labor),  yet  during  the  gradual  adjustment  to  the 
changing  markets  and  the  varying  financial  conditions,  capital 
will  aurely  have  the  advantage,  unless  labor  takes  united  action. 
During  the  betterment  of  business  conditions,  organized  labor,  if 
acting  with  reasonable  discretion,  can  secure  much  greater  con- 
cessions in  the  advance  of  wages  than  if  it  were  left  to  the  slower 
operation  of  natural  laws,  and,  in  the  same  way,  as  hard  times 


252  JUDdhJ  TAFTti  LAIioR  />A;r7.V/(>A'.S'. 

come  on,  the  too  eager  employer  may  be  restrained  from  undue 
haste  in  rediicino-  wages.  The  organization  of  cay)ital  into  corpo- 
rations, with  the  position  of  advantage  wliich  this  gave  in  a 
dispnte  with  single  laborers  over  wages,  made  it  absolutely 
necessary  for  labor  to  unite  to  maintain  itself.  For  instance, 
how  could  working  men,  dependent  on  each  day's  wages  for 
living,  dare  to  take  a  stand  which  might  leave  them  without 
employment  if  they  had  not  by  small  assessments  accumulated 
a  common  fund  for  their  support  during  such  emergency.  • 

"I'he  efficacy  of  the  processes  of  a  court  of  equity  to  pret^ent 
much  of  the  threatened  injury  from  the  public  and  private  nui- 
sances which  it  is  often  the  purpose  of  the  leaders  of  such  sti'ike 
to  cause,  has  led  to  the  charge,  which  is  j;erfectly  true,  thut  judicial 
action  has  been  nuich  more  efficieiir  to  restrain  labor  excesses 
than  corporate  evils  and  greed.  If  it  were  possible  by  the  <iiiici< 
blow  of  an  injunction  to  strike  down  the  conspiracy  against 
public  and  private  rights  involved  in  the  corruption  of  a  legisla- 
ture or  a  council,  Federal  and  other  courts  would  not  be  less 
prompt  to  >ise  the  remedy  than  they  are  to  restrain  nnlawfal 
injuries  by  labor  unions.  But  I  hnr,c  had  occasion  to  point  out 
that  the  nature  of  corporate  icron<}H  is  almost  wholly  beyond  the 
reach  of  courts,  especially  those  of  the  United  states.  The  cor- 
porate miners  and  sappers  of  public  virtue  do  not  work  in  the 
open,  but  under  cover;  their  purposes  are  generalli/  accompii-siu'd 
before  they  are  known  to  ewist,  and  the  traces  of  their  ecil  p-iths 
are  destroyed  and  placed  beyond  the  possibility  of  Icf/al  proof. 
On  the  other  hand,  tlie  chief  wrongs  committed  by  labor  Unions 
are  the  open,  defiant  trespass  upon  property  rights  and  rioia- 
tions  of  public  order,  wliich  the  processes  of  the  courts  arc  hh'AI 
adapted  both  to  punish  and  prevent. 

The  ojx^ration  of  the  interstate  commerce  law  is  an  illus- 
tration of  the  greater  difficulty  courts  have  in  suppressing  cor- 
porate violations  of  law  than  those  of  trade  unions.  The  dis- 
crimination between  shippers,  by  rebates  and  otherwise,  which 
it  is  the  main  purpose  of  the  law  to  prevent,  is  almost  as  diih- 
cult  of  detection  and  proof  as  bribery,  for  the  reason  that  b:)th 
participants  are  anxious  to  avoid  its  disclosures;  but  when  the 
labor  unions,  as  they  sometimes  do,  seek  to  interfere  witli 
interstate  commerce  and  to  obstruct  its  flow,  they  are  prone 
to  carry  oi:t  their  purposes  w^ith  such  a  blare  of  trumpets  and 
such  open  defiance  of  law  that  the  proof  of  their  gmilt  is  out 
of  their  own  mouths.  The  rhetorical  indictments  against  the 
Federal  courts,  that  from  that  which  was  intended  as  a  shield 
against  coi-porate  wrong,  they  ha\'e  forged  a  weay)on  to  attack 
the  wage-earner,  is  in  this  way  given  a  specious  force  which  a 
candid  observer  will  be  blind  to  ignore. 

As  a  matter  of  fact  there  is  nothing  in  any  Federal  de- 
cision directed  against  the  organization  of  labor  to  maintain 
wages  and  to  secure  terms  of  employment  otherwise  favorable. 
The  courts  so  far  as  they  have  expressed  themselves  on  the  sub- 
ject, recognize  the  right  of  men  for  a  lawfiil  purpose  to  com- 
bine to  leave  their  employment  at  the  same  time,  and  to  use 
the  inconvenience  this  may  cause  to  their  employer  as  a  legiti- 
mate weapon  in  the  frequently  recurring  controversy  as  to  the 
amount  of  wages.  It  is  only  when  the  combination  is  for  an 
unlawful  purpose  and  an  unlawful  injury  is  thereby  sought  to 
be  inflicted,  that  the  combination  has  received  the  condemnation 
of  the  Federal  as  well  as  of  State  courts. 

Mr.   Taft's    Labor  Record    In   tlie   Pliillpi>ine». 

And  now  let  every  trade  unionist  follow  Mr.  Taft  into  the 
Philip])ines,  and  from  the  report  of  one  of  labor's  most  trusted 
representatives  learn  the  truth ;  learn  whether  Governor-Gen- 
eral Taft  fitly  represented  the  best  that  there  is  in  our  American 
civilization.  If  so,  he  relied  not  only  \ipon  the  churches  and 
the  introduction  of  public  schools  to  uplift  a  dependent  people, 
but  he  encouraged  the  organization  of  unions  on  American  lines 
to  aid  in  the  great  work.  No  class  of  men  will  resent  being 
imposed  on  more  quickly  than  union  workers,  and  those  who 
have  held  up  Mr.  Taft  as  opposed  to  organized  labor  must  now 
take  the   condemnation  that   honest  men   r>lace   upon    falsifiers. 


JUDGE  TAFrS  LABOR  DECISIONS.  253 

He  wants  no  favors ;  he  wants  what  every  self-respecting-  trade 
unionist  wants — justice,  and  he  will  get  it  from  organized  labor 
when  the  truth  is  illuminated  and  they  understand  him  and 
knoAv  his  record. 

Mr.  Edward  Rosenberg,  of  San  Francisco,  was  appointed  by 
the  American  Federation  of  Labor  a  special  commissioner  to 
investigate  labor  conditions  in  the  Far  East.  His  reports  were 
printed  in  the  October  and  December  (1903)  numbers  of  the 
American  Federationist,  the  official  organ  of  the  American  Fed- 
eration of  Labor.  The  contrast  between  the  deplorable  conditions 
of  the  wage-earner  in  the  Hawaiian  Islands  and  the  satisfactory 
f^tate  of  affairs  introduced  bj^  the  administration  of  Governor- 
General  Taft  in  the  Philippines  is  well  bronght  out  by  Mr.  Rosen- 
Vierg's  exhaustive  study.  In  the  December  (1903)  American 
Federationist,  he  says : 

"I  w'ould  say  that  *  *  the  plea  of  the  Europeans  and  Americans  for 
Chinese  labor  is  prompted  by  the  desire  to  quickly  enrich  themselves  with 
the  aid  of  cheap  Mongolian  labor.      *      * 

"If,  on  the  other  hand,  the  j,rcsent  policy  of  the  Governtnent  is  con- 
tinued; if  Chinese  are  excluded  ;  if  opportimiiy  is  c/iven  to  labor  to  better 
its  condition  by  the  aid  of  tra'le  t'"'ons:  if  "children  are  ed'.'ca*^<"d  along 
American  lines,  and  if  the  greed  of  European  and  American  adventurers  is 
not  allowed  to  rule  the  Philippine  Islands  as  it  now  rules  the  Hawaiian 
Islands,  the  American  people  in  another  generation  will  be  able  to  point 
with  justifiable  pride  to  the  success  of  democratic  institutions  among  an 
Asiatic  people,  and  forget  in  these  achievements  the  injustice  by  the  con- 
quest of  arms  of  the  Philippine  Islands." 

With  regard  to  conditions  in  the  Philippines  as  inaugurated 
and  maintained  by  Governor  Taft,  Mr.  Rosenberg  further  says 
(American  Federationist,  October,  1903)  : 

"The  civil  government  is  slowly  but  steadily  proving  to  the  Filipinos 
that  American  rule  is  really  trying  to  make  the  Filipinos  as  fit  for  self-gov- 
ernment as  the  American  people  are  ;  that  the  purpose  of  American  rule  is 
not  the  exploitation  of  the  natives,  but  their  elevation.  Should  Chinese  be 
allowed  in  here  and  the  inevitable  lowering  of  the  already  low  wages  take 
place,  the  xoork  of  the  Commission  v;ouhl  be  undone,  and  where  now  hope 
of  a  better  day  is  springing  up  in  the  hearts  of  the  natives,  sullen  despair 
and  dangerous  resentment  would  take  its  place. 

"My  investigations  as  to  the  present  system  of  exclusion,  carried  on 
under  the  laNv  of  April  20,  1902,  shows  that  so  far  as  it  is  known  it 
effectively  excludes  the  Chinese.      *      * 

"The  trade  unions  constitute  a  great  tnovlng  force  for  the  betterment 
of  the  conditions  in  these  islands.  H  ith  their  aid  ivU'jes  have  bee.i  raised 
and  many  abuses  abolished,  and  though  the  present  "system  is  crude  and 
faulty,  steps  are  now  being  taken  to  place  it  'on  the  well-tried  trade  union 
lines  as  adopted  in  the  United  States  and  afliliate  the  movement  here  with 
the  American  Federation  of  Labor.  *  *  In  June,  1899,  the  Filipino 
workers  of  Manila  made  the  first  attempt  to  organize  trade  unions.  In  a 
short  time  unions  of  barbers,  cigar  makers,  tobacco  workers,  clerks,  car- 
penters, w'ood  workers,  printers,  lithographers,  and  other^  were  formed.  No 
attempt  at  federation  was  made  until  the  return  from  Spain  of  Isabelo  de 
los  Reyes  in  June,  1901.  Cleyes  had  been  banished  from  Spain  by  the 
Spanish  Government  for  urging  reforms  in  the  islands.  He  quickly  suc- 
ceeded in  federating  the  respective  uhion^,  and  was  cliocen  President.  He 
held  this  position  for  a  little  over  a  year.  Many  unions  were  organized 
during  that  period,  the  number  of  unions  in  June,  1902,  being  150,  with  a 
membership  estimated  at  20,000.      *      *"' 

"The  local  American  press  and  employers  of  labor  generally  denounced 
Reyes,  resulting  in  his  being  charged,  under  an  old  Spanish  law,  "with  con- 
spiring to  raise  wages  of  laborers.'  In  September,  1902,  he  was  found 
guilty  and  sentenced  to  four  months  in  jail.  He  served  two  months  and 
was  then  pardoned  by  Governor  Taft." 

Governor  Taft  pardoned  the  man  not  because  he  was  not  prop- 
erly convicted  under  the  law,  but  because,  as  he  said : 

"The  statute  is  not  in  accordance  with  modern  American  views.  The 
right  of  laborers  to  unite  for  the  purpose  of  enhancing  labor  by  withdrawing 
from  the  employment  of  those  who  make  the  demand  for  labor  is  generally 
conceded  under  American  jurisprudence.  In  the  new  criminal  code  *  *  the 
American  rules  of  jurisprudence  are  recognized,  and  no  combination  merely 
to  enhance  labor  can  be  wrongful  because  of  the  excessive  price  requested 
or  of  the  number  engaged  in  the  combination.  For  this  reason,  and  because 
I  do  not  think  the  statiite  as  construed  to  be  in  accordance  with  American 
principles,  I  shall  pardon  Isabelo  d6  los  Reyes  and  remit  what  remains  of  his 
sentence." 

Mr.  Rosenberg  speaks  of  a  personal  meeting  with  Governor 
Taft.  What  he  says  is  now  of  particular  significance,  in  view 
of  the  charge  that  some  have  made  that  Secretary  Taft  only 
became  favorable  to  organi.^ed  labor  after  he  became  a  candidate 
for  the  Presidency.  The  quotation  from  Mr.  Rosenberg's  report 
follows  : 

"On  June  21  Governor  Taft  returned  from  Baguio,  the  summer 
capital  of  the  civil  government,  and  on  the  23rd  I  had  an  inter- 
yiew  with  him,  desiring  to  know  the  attitude  of  the  'Governor 


254  JUDGE  TAFrS  LABOR  DECISIONS. 

towjird  the  organ i/atlon  of  the  workers.  He  said  he  favored  the 
oricuiiizMtion  of  tlie  workers  in  trade  unions,  and  had  so  stated, 
l)ut  that  the  Union  Obrera  Deniocratica  de  Filipinas  of  late 
had  only  harmed  the  cause  of  the  workers,  and  the  courts  had 
to  interfex-e.  He  wished  success  to  the  present  movement  to 
orjiani/e  the  workers  on  proper  trade  union  lines.  He  referred 
me  also  to  certain  })ortions  of  his  report  for  the  year  ending' 
()ct<)l)er  1,  1903.  1  quote  the  following'  from  Governor  Taft's 
report : 

"During  the  year  1902  there  has  been  a  movement  for  the  organization 
o/  labor  in  the  city  of  Manila,  which  doubtless  will  spread  to  other  pans 
of  the  islands.  It  has  been  regarded,  becau.se  of  abuses  which  crept  in,  as 
an  unmixed  evil.  I  can  not  think  it  to  be  so.  If  properly  directed,  it  may 
greatly  as:  ist  what  Is  absolutely  necessary  here,  to  wit,  the  organization  of 
labor  and  the  giving  to  the  laboring  class  a  sense  of  tha.dignity  of  labor  and 
of  their  independence.  The  labor  organizations  in  the  city  of  Manila  are 
\  cry  much  opposed  to  the  introduction  of  Chinese  labor,  and  their  declara- 
tion upon  this  point  will  find  ready  acquiescence  in  the  minds  of  all  Fili- 
pinos with  but  few  exceptions.  The  truth  is  that,  from  a  political  stand- 
i.oint,  the  nnUmiteil  introduction  of  the  Chinese  into  these  islands  would  he 
a  great  mistake.  I  believe  the  objection  on  the  part  of  the  Filipinos  to 
such  a  iourse  to  be  entirely  loyical  and  justified.  The  development  of 
these  islands  by  Chinamen  would"  be  at  the  expense  of  the  Ifilipino  people, 
and  they  may  very  well  resent  such  a  suggestion." 


BlackllNted    Laborer    Slionld    be    Allowed    Injunction.— Injury 
of    Railway   Employee*. 

At  the  close  of  Mr.  Taft's  speech  before  Cooper  Institute 
irt  New  York  City  on  January  10,  1908,  among  other  questions 
he  was  asked  the  following : 

^'Why  should  not  a  blacklisted  laborer  be  allowed  an  injunc- 
tion as  well  as  a  boj'cotted  capitalist?" 

.Mr.  Taft  promptly  answered : 

"He  ought  to  be,  and  if  I  was  on  the  bench  I  would  give  him 
one  mighty  quick." 

In  Mr.  Taft's  speech  at  Columbus,  Ohio,  on  August  19,  1907, 
he  said,  with  regard  to  the  injury  of  railway  employees  : 

"The  frightful  loss  of  life  and  limb  an)ong  the  railway  em- 
jjloyees  of  this  country,  reaching  more  than  4,000  killed  and 
65,000  injured  in  one  year,  has  properly  attracted  the  attention 
of  Congress  and  the  legislatures.  It  makes  apparent  that  ser- 
vice in  connection  with  trains  of  a  railway  is  an  extra  hazardous 
business  and  may  well  call  for  Government  supervision  and  ex- 
ceptional rules  to  secure  the  safety  of  the  passengers  and  reduce 
the  danger  to  employees." 

With  regard  to  a  statutory  rule  for  liability  of  inter,state 
railways  to  employees,  he  said  :  • 

"Finally,  it  has  regulated  the  rules  for  liability  of  an  inter- 1 
state  railway  company  to  an  employee  injured  in  its  service,  j 
This  is  a  mo.st  important  measure,  for  an  unfortunate  lack  of 
uniformity  has  existed  heretofore  in  respect  to  the  rules  of  lia- 
bility in  such  cases,  dependent  on  the  court  in  which  the  case 
has  been  tried.  The  new  statute  makes  everything  unifoi-m  as 
to  interstate  railroads.  It  has  introduced  into  the  Federal  law 
what  is  called  the  comparative  neglig^ice  theory  by  which,  if 
an  employee  is  injured,  proof  of  negligence  on  his  part  does  not 
forfeit  his  claim  for  damages  entirely  unless  the  accident  was 
due  solely  to  his  negligence.  If  there  was  negligence  by  the 
company,  the  jury  is  authorized  to  apportion  the  negligence 
and  award  compen.sation  for  the  proper  part  of  the  damage  t( 
the  employee  and  the  question  of  negligence  is  always  for  the 
i"ry. 

"The  most  important  provision  of  this  law.  however,  is  that 
abolishing  what  is  known  as  the  fellow-servant  rule,  by  which 
an  employee  injured  cannot  recover  from  his  employer  for  in- 
jury su.stained  through  negligence  of  a  co-employee.  This'  rule 
was  incorporated  into  the  law  by  Chief  Justice  Shaw,  of  Massa- 
chusetts.* on  the  ground  of  public  policy.  It  was  acquiesced  in 
by  the  courts  of  England  and  of  this  country.  Whatever  man 
have  heen  the  wisdom  of  the  rule  orifihialhi,  a  chaiif/e  of  eon- 
ilitious  justifies  its  ahroffatioii. 


JUDGE  TAFT'S  LABOR  DECJSIOXS.  255 

MR.  TAFT'S  ANSWERS,  JANUARY  6,  IfWm,  TO  ftllKSTIOXS  I'RO- 
POINDKD  BY  THE  PRESIDENT  OE  THE  OHIO  FEDERA- 
TION OF  LABOR. 

Approves    DeAiiint;-    Parties'    RiK'htN. 

"1  see  no  objection  to  the  enactment  of  a  .statute  which  shall 
define  the  rights  of  laborers  in  their  controversies  with  their 
former  employers.  As  this  statute  would  fix  the  lawful  limits 
of  their  action,  it  would  necessarily  furnish  a  definite  rule  for 
determiiung'  the  cases  in  which  injunctions  mig-ht  issue,  as  well 
as  their  character  and  scope.  It  should  be  said  that  this  statute, 
however,  if  enacted  by  Congress,  could  relate  only  to  the  Dis- 
trict of  Columbia  or  some  place  within  the  exclusive  juris- 
diction of  the  Federal  government,  or  to  those  employers  and  em- 
ployees whose  relations  are  within  congressional  definition  and 
control. 

"Generally,  the  law  governing  the  relation  between  employer 
and  employee  is  a  State  law  and  is  only  enforced  in  the  Federal 
courts  when  the  jurisdiction  arises  by  reastjn  of  the  diverse 
citizenship  of  the  parties.  Speaking  generally,  however,  both 
as  to  Federal  and  State  legislation,  1  see  no  objection  to  a 
statute  which  shall,  so  far  as  possible,  define  the  rights  of 
both  parties  in  such  controversies  more  accurately.  Indeed, 
the  more  exactly  the  lawful  limitations  on  the  actions  of  both 
parties  are  understood,  the  better  for  them,  and  for  the  public. 

Heariii;^    Before    an    lujunctiun. 

"Second.  You  ask  me  what  I  think  of  a  provision  that  no 
restraining  order  or  injunction  shall  issue,  except  after  notice 
to  the  defendant  and  a  hearing  had.  This  was  the  rule  under 
the  Federal  statute  for  many  years,  but  it  was  subsequently 
abolished.  In  the  class  of  cases  to  which  you  refer  1  do  not  see 
any  objection  to  the  re-enactment  of  that  Federal  statute.  Indeed, 
I  have  taken  occasion  to  say  in  puhlic  speeches^  that  the  potver 
to  issue  injunctions  ex  parte  has  given  rise  to  certain  abuses 
and^  injustice  to  the  laborers  enyayed  in  a  peaceable  strike.  Men 
lea•^'e  employment  on  a  strike  ;  counsel  for  the  employer  applies 
to  a  judg-e  and  presents  an  affidavit  averring  fear  of  threatened 
violence  and  making  such  a  case  on  the  ex  parte  statement  that 
the  judge  feels  called  upon  to  issue  a  temporary  restraining 
order.  The  temporary  restraining  order  is  served  on  all  the 
strikers ;  they  are  not  lawyers ;  their  fears  are  aroused  by  the 
process  with  which  they  are  not  acquainted ;  and,  although  their 
purpose  may  have  been  entirely  lawful,  their  common  deter- 
mination to  carry  throi^.gh  the  strike  is  weakened  by  an  order 
which  they  never  have  had  an  op])ortunity  to  question,  and  which 
is  caftulated  to  discourage  their  proceeding  in  their  original 
purpose.  To  avoid  this  injustice,  I  believe,  as  I  have  already 
said,  that  the  Federal  statute  might  well  be  made  what  it  was 
originally,  requiring  notice,  and  a  hearing,  before  an  injunction 
issues. 

"Third.  In  answer  to  your  third  question,  it  would  seem  that 
it  is  unnecessary  to  impost  any  limitation  as  to  the  time  for  a 
final  hearing,  if,  before  an  injunction  can  issue  at  all,  notice 
and  hearing  must  be  given.  The  third  question  is  relevant  and 
proper,  only  should  the  power  of  issuing  ex  parte  injunctions 
be  retained  in  the  court.  In  such  case,  I. should  think  it  emi- 
nently proper  that  the  statute  should  require  the  court  issuing 
an  ex  parte  injunction  to' give  the  person  against  whom  the  in- 
j  uction  was  issued  an  opportunity  to  have  a  hearing  thereon 
\\  ithin  a  very  short  space  of  time,  not  to  exceed.  I  should  say, 
three  or  four  days. 

^lij^lit   Designate   Aiiotlier  Judgre. 

''Fourth.  Your  fourth  query  is,  in  effect,  what  I  would  think 
of  a  ])rovision  in  such-  cases  by  which  the  contemnor — that  is, 
the  person  charged  with  the  violation  of  an  order  of  injunction — 
might  objeet  to  the  judge  who  issued  the  injunction  as  the  one 
to  try  the  issue  whether  the  injunction  had  been  violated,  and 
to   fix   punishment    in   case   of    conviction,   and   thereby    require 


1250  JUDGE  TAFTS  LABOR  DECISIONS. 

another  judge  to  try  the  issue  and  impose  sentence,  if  neces- 
sary. In  Federal  courts  in  such  a  case  it  would  be  proper  to 
l)r()vidc  tliat  the  senior  circuit  jiidge  of  the  circuit  should,  upon 
the  application  of  the  defendant  or  coiiteinnor,  designate  anotlier 
district  or  circuit  jndge  to  sit  and  hear  the  issue  presented.  I 
do  not  think  such  a  restriction  would  be  unreasonable.  In  most 
eases  it  would  be  unnecessary.  But  1  admit  that  there  is  a  popu- 
lar feeling  that  in  contempt  proceedings,  and  the  Very  name  of 
the  proceedings  suggest  it,  that  tlie  judge  issuing  the  injunction 
has  a  personal  sensitiveness  in  respect  to  its  violation  and  there- 
fore that  he  does  not  bring  to  the  trial  of  the  issue  presented 
l)y  the  charge  of  contempt  of  his  order  the  calm,  judicial  mind 
which  insures  justice. 

Opposes  Jury   Intervention. 

.  "I  thinlc  that  this  popular  feeling  is,  in  most  cases,  iinfonnded, 
"but  I  believe  that  it  is  better,  where  it  tan  be  done  without 
injuring  the  authprity  of  the  court  and  the  efficiency  of  its 
process,  to  grant  such  a  privilege  to  the  contemnor  and  thus 
avoid  an  appearance  of  injustice,  even  at  some  inconvenience 
ill  the  matter  of  securing  another  judge.  There  is  some  analogy, 
though  it  is  not  complete,  between  the  exclusion  of  a  judge  from 
sitting  in  the  cor.rt  of  appeals  to  review  a  decision  of  his  own, 
which  now  obtains  in  the  practice  of  the  Federal  Court  of  Ap- 
peals, by  statute,  and  the  present  suggested  case.  It  is  of  the 
highest  importance  that  the  authority  of  the  court  to  enforce 
its  own  orders  effectively  should  not  be  weakened  and  therefore 
I  am  opposed  to  the  intervention  of  a  jury  between  the  court's 
decree  and  its  enforcement  by  contempt  proceedings.  It  would 
mean  long  delay  and  greatly  weaken  the  authority  of  the  court. 

"I  do  not  +hink  that  the  permission  to  change  the  judge,  how- 
ever, would  constitute  either  serious  delay  or  injure  the  efficacy 
of  the  order,  while  it  may  secure  greater  public  confidence  in 
the  justice  of  the  court's  action.  The  appearance  of  justice 
is  almost  as  important  as  the  existence  of  it  in  the  adminis- 
tration of  courts." 

Conclndlns    Remark.  ' 

The  foregoing  facts,  coupled  with  what  is  more  generally 
known  with  regard  to  his  great  achievements  as  a  jurist  and  a 
public  official,  shoidd  appeal  to  every  man  of  right  I'easoning 
in  such  manner  as  to  convince  him  that,  as  President  of  the 
United^  States,  Mr.  Taft's  great  intellect  and  power  would  be 
found  valiantly  contending  for  the  rights  of  the  laboring,  pro- 
ducing people. 

Mr.    Taft's    O-wn    VieTvs,    Expressed    in    His    O^vn    "Wo#ds. 

Mr,  Taft  discussed  this  subject  fully  and  frankly  in  his 
speech  of  acceptance  of  the  nomination  for  the  Presidency, 
delivered  to  the  Notification  Committee,  at  Cincinnati,  July  28, 
1908.  The  speech  is  printed  in  full  in  this  volume,  and  the 
stiHlent  of  this  subject  is  especial!;^  referred  to  that  portion 
thereof  which  states  his  views  in  his  own  words  and  in  such 
detail  as  this  important  subject  deserves. 


THE  LABOR  DECISIONS  OF  JUDGE  TAFT. 

By  Frederick  N.  Judson,  Attorney  for  the  Railroad  BrotherJiood, 
Reprinted  from  the  August,  1907,  Review  of  Revieics. 

The  present  Secretary  of  War,  Hon.  William  Howard  Taft, 
has  had  the  exceptional  experience  of  beginning  his  dis- 
tinguished public  career  with  judicial  service  on  the  State,  and 
thereafter  serving  on  the  Federal  bench.  He  was  justice  of 
the  Superior  Court  of  Cincinnati  from  1887  to  1890.  and  among 
his  immediate  predecessors  in  that  court  were  Hon.  Judson  Har- 
mon, ex- Attorney-General  of  the  United  States;  Hon.  John  r>. 
Foraker.  ex-Governor  and  now  United  States  Senator.  After 
some    two    years'    service    as    Solicitor-General    under    President 


\ 

JUDGE  TAFT8  LABOR  DECISIONS.  %&1 

Harrison,  Mr.  Taft  was  appointed  judge  of  the  Cii'cuit  Court 
of  the  United  States,  holding-  that  position  until  1900,  when  he 
resigned  to  accept  the  appointment  of  Governor  of  the  Philip- 
pines. 

It  has  been  intimated  from  time  to  time,  though  not  very 
definitely,  that  certain  decisions  of  Judge  Taft  while  on  the 
bench  were  unfriendly  to  organized  labor.  Such  suggestion, 
analyzed  in  view  of  the  ^position  of  the  judiciary  in  our  po- 
litical and  judicial  system,  is  really  an  imputation  upon  the 
intelligence  of  the  electorate.  A  judge  does  not  make  the  law, 
nor  does  he  decide  cases  according  to  his  private  judgment  of 
what  the  law  ought  to  be  ;  but  he  declares  and  applies  the  rules 
of  law  to  the  facts  presented  as  he  finds  them  in  the  statutes 
or  adjudged  precedents,  the  recorded  depositories  of  the  law. 

It  is  true  that  our  unwritten  and  non-statutory  law  has 
jeen  termed  judge-made  law.  But  it  is  only  in  a  very  limited 
sense,  if  at  all,  that  this  expression  is  applicable  to  the  case 
of  an  individual  judge.  His  personality  may  be  impressed  upon 
the  development  of  the  law,  as  that  of  Judge  Taft  was  doubtless 
impressed,  by  the  clearness  of  his  grasp  of  the  fundamental 
principles  of  the  law  in  their  application  to  new  conditions ; 
but  his  opinions  must  be  in  harmony  with  the  current  trend 
of  judicial  authority,  and,  in  the  last  analysis,  with  the  ad- 
vance of  an  enlightened  public  opinion.  We  have  had  frequent 
instances  in  this  country  where  a  judge,  after  leaving  the  bench, 
have  become  candidates  for  public  office,  but  very  rarely  have 
the  judicial  decisions  of  a  judge  ever  been  discussed  with  refer- 
ence to  his  availibilitj^  for  a  public  office.  The  reason  is  ob- 
vious. The  high  intelligence  of  our  American  electorate  recog- 
nizes tha,t  the  judges  do  not  speak  their  individual  judgments, 
but,  in  the  words  of  Blackstone,  "are  the  living  oracles  of  the 
law."  who  declare  and  applj^  the.  laws  of  the  land. 

It  is  to  be  assumed,  therefore,  that  Judge  Taft  decided 
cases  involving  the  rights  and  duties  of  labor  and  capital,  as 
he  decided  other  cases  which  came  before  him,  according  to 
the  law  and  facts  as  presented  for  determination.  It  has 
not  been  intimated  that  he  did  not  declare  the  law  correctly, 
or  that  his  decisions  were  bad  law  in  any  legal  sense.  What, 
therefore,  is  really  meant  by  the  suggestion  is  that  the  law  as 
declared  in  certain  decisions  of  Judge  Taft  was  unsatisfactory 
to  certain  class  interests.  While  this  impersonal  x^osition  'of 
a  judge  is  clearly  recognized,  there  is  so  much  public  interest 
in  questions  relating  to  the  .legal  rights  and  duties  of  com- 
binations, both  in  capital  and  laoor,  that  the  decisions  of  Judge 
Taft  in  this  class  of  cases  should  be  clearly  understood,  and 
therefore  will  be  briefly  reviewed  from  a  legal  and  not  from 
a  partisan  point  of  view. 

Moores  vs.  Bricklayers'  Union  et  al. 

The  first  of  these  opinions  was  delivered  by  Judge  Taft  while 
on  the  Superior  Court  bench  of  Cincinnati  in  1890,  in  the  case 
of  Moores  v-S'.  Bricklayers'  Union  et  al.  (23  Weekly  Law  Bul- 
letin. 48).  This  case  is  interesting  as  involving  the  application 
of  the  law  to  what  is  known  as  a  secondary  boycott,  that  is, 
boycott  not  against  an  employer,  but  against  a  third  party 
dealing  with  an  employer,  who  is  a  stranger  to  the  controversy 
between  the  emjiloyer  and  employee. 

Ihis  was  not  an  injunction  suit,  nor  did  it  involve  any  issue 
between  the  employees  and  their  employer,  either  directly  or 
through  any  refusal  to  handle  in  other  places  the  so-called 
"struck  work"  from  the  shop  of  the  employer.  It  was  a 
secondary  boycott  pure  and  simple,  in  the  form  of  a  suit  for 
damages  incurred  by  the  plaintiff  through  a  boycott  by  the 
Bricklayers'  Union,  declared  on  account  of  the  plaintiff's  selling 
lime  to  the  employer,  Parker  Bros.,  who  had  been  boycotted 
by  the  union.  This  primary  boycott  had  been  declared  against 
Parker  Bros,  by  the  Bricklayers'  Union  because  of  their  (Parker 
Ilros.')  refusal  to  pay  a  fine  imposed  upon  one  of  their  eiu- 
ployees.  a  member  of  the  union,  and  to  reinstate  a  discharged 
a})prentice. 

Parker  Bros,  had  brought  suit  and  had  recovered  damages 
I 


258  JUDGE  TAFrS  LABOR  DECISIONS. 

before  a  jury  in  another  court  against  the  same  defendants 
on  account  of  "this  same  boycott  (21  Weekly  Low  BuUct'ui, 
22S.)  Moore  Bros.,  the  plaintiflPs,  had  been  awarded  $2,250 
damages  by  the  jury  on  account  of  this  secondary  boycott, 
and  it  was  this  judgment  which  was  attlrmed  on  appeal  in 
an  opinion  by  Judge  Taft.  The  case  has  become  a  leading 
one  on  the  law  of  boycotting.  The  right  of  legitimate  com- 
petition in  business  with  the  incidental  injuries  resulting  there- 
from, as  illustrated  in  the  then  recently  decided  Mogul  Steam- 
ship case  in  England,  was  distinguished  by  Judge  Taft  from 
the  case  then  at  bar,  where  the  immediate  motive  of  injuring 
plaintiff  was  to  inflict  punishment  for  refusing  to  join  in 
the  boycott  of  a  third  party.  Such  ^  a  motive  made  the  act 
malicious  and  legally  unactionable  in  the  case  of  an  individual 
and  a  fortiori  in  the  case  of  a  combination.  It  was  said,  after 
reviewing  the  English  cases :  "We  do  not  conceive  that  in  this 
State  or  country  a  combination  by  vvorkingmen  to  raise  their 
wages  or  obtain  any  material  advantage  is  contrary  to  the 
law,  provided  they  do  not  use  such  indirect  means  as  obscure 
their  original  intent,  and  make  their  combination  one  merely 
malicious,  to  oppress  and  injure  individuals." 

It  was  further  said  that  a  labor  union  could  provide  for 
and  impose  a  penalty  against  any  of  their  members  who  re- 
fused to  comply  with  such  regulations  as  the  association  made. 
They  could  unite  in  withdrawing  from  the  employ  of  any 
person  whose  terms  of  employment  might  not  be  satisfactory 
to  them,  or  whose  action  in  regard  to  apprentices  were  not 
to  their  liking,  but  they  could  not  coerce  their  employer  by 
boycotting  him  and  those  who  dealt  with  him ;  that  even  if 
acts  of  this  character  and  with  the  intent  are  not  actionable 
when  done  by  individuals,  the^^  become  so  when  they  are  the 
result  of  combination,  because  it  is  clear  that  the  terrorizing 
of  the  community  by  threats  of  exclusive  dealing  in  order  to 
deprive  one  obnoxious  member  of  means  of  sustenance  would 
become  both  dangerous  and  offensive.  This  decision,  subse- 
quently affirmed  by  the  Supreme  Court  of  Ohio  without  opinion, 
has  been  accepted  as  the  correct  exposition  of  the  law,  and 
the  secondary  boycott,  so-called,  that  is,  a  boycott  against  a 
stranger  to  the  trade  dispute,  has  been  practically  discon- 
tinued and  abandoned  by  intelligent  labor  unionists  as  an  un- 
wi.se   and   unreasonable  weapon   in   such  controversies. 

Toledo   and   Ann  Arbor  Engrineers'    Strike   of    1893. 

The  so-called  labor  decisions  of  Judge  Taft  while  on  the 
Federal  bench  related  directly  and  primarily  to  the  Federal 
character  of  such  controversies,  in  that  they  involved  the  su- 
premacy qf  the  Federal  power  in  the  protection  of  interstate 
Commerce.  Though  there  were  only  two  such  cases  decided 
by  him,  the  decisions  attracted  general  attention  on  account 
of  the  widespread  industrial  disturbances  in    1893-4. 

The  first  of  these  cases  was  decided  April  3,  1893,  in  the 
matter  of  the  strike  of  the  engineers  of  the  Toledo  and  Ann 
Arbor  Railroad  (54  Fed.  Rep.,  730).  The  engineers  on  strike 
were  members  of  the  Brotherhood  of  Locomotive  Engineers,  of 
which  P.  M.  Arthur  was  the  chief.  Under  the  then  rule  of 
the  brotherhood,  known  as  rule  twelve,  the  engineers  in  the 
employ  of  the  connecting  railroad  companies,  members  of  the 
brotherhood,  refused  to  handle  and  deliver  any  cars  of  freight 
from  complainant's  road  as  long  as  the  strike  of  the  engineers 
of  that  road,  who  were  members  of  the  brotherhood,  was  un- 
settled. It  was  obvious  that  this  involved  practically  a  paralysis 
of  the  business  of  interstate  commerce  between  the  com- 
plainant and  the  defendant  railroads.  The  Toledo  road  thereupon 
applied  for  an  injunction  against  the  connecting  roads,  al- 
leging the  existence  of  a  combination  violativ^e  of  the  Inter- 
state Commerce  Act,  preventing  the  performance  of  their  duties 
in  regard  to  interstate  commerce  in  the  exchange  of  traffic,  and 
asked  the  court  to  enjoin  this  unlawful  interference.  A  motion 
was  filed  by  the  complainant  for  a  temporary  injunction  against 
Mr.  Arthur  to  restrain  him  from  enforcing  rule  twelve,  where- 
under  the  employees  of  the  defendant  companies  were  re- 
fusing to  handle  the  cars  of  the  complainant  company. 


JUDGE  TAFTf^  LABOR  DECISIONS.  259 

The  opinion  of  the  Court  by  Judge  Taft  was  notable  in  its 
clear  expression  of  the  power  of  a  court  in  the  issuance  of 
a  mandatory  preliminary  injunction  where  necessary  to  pre- 
vent irreparable  injury.  "The  normal  condition,"  it  was  said, 
— "the  status  (jtio, — between  connecting-  common  carriers,  under 
the  Interstate  Commerce  law  is  a  continuous  passage  of  freight 
backward  and  forward  between  them,  which  each  carrier  has 
a  right  to  enjoy  without  interruption,  exactly  as  riparian  owners 
have  a  right  to  the  continuous  flow  of  the  stream  without  ob- 
struction." U.suall}^  the  status  quo  in  the  injunction  can  be 
preserved  until  final  hearing  by  an  injunction  prohibitory  in 
lorin.  but  where  the  status  quo  is  not  a  condition  of  rest,  but 
of  action,  the  condition  of  rest,  that  is,  the  stopjmge  of  traffic, 
will  inflict  irreparable  injury  not  only  upon  the  complainant 
but  the  public.  In  such  cases  it  is  only  a  mandatory  injunc- 
tion compelling  the  ti'aftic  to  flow  as  it  is  wont  to  flow,  which 
will  protect  the  complainant  from  injury.  The  form  of  the 
remedy  must  be  adapted  to  the  emergency,  and  where  the  con- 
tinuity of  interstate  traffic  is  threatened  an  injunction  mandatory 
in  term  is  often  the  only  efl'ective  remedy. 

Still  more  important  was  the  opinion  in  its  clear  analysis 
of  the  position  of  employees  of  railroads  engaged  in  inter- 
state traffic,  and  their  rights  and  duties  as  such  employees  under 
the  interstate  Commerce  act.  The  relation  of  such  employees 
to  their  railroad  companies  is  one  of  free  contract,  and  is  not 
anaiogous  to  that  of  seamen  in  the  maritime  service,  who,  to 
a  certain  extent,  surrender  their  liberty  in  their  employment 
and  are  punishable  for  desertion.  The  employment,  therefore, 
in  the  case  of  railroad  employees,  was  terminable  by  either 
party.  The  court  could  not  compel  the  enforcement  of  per- 
sonal services  as  against  either  the  employer  or  the  employed 
against  the  will  of  either.  The  court  said  especially  was  this 
true  in  the  case  of  railroad  engineers,  where  nothing  but  the 
most  painstaking  and  devoted  attention  on  the  part  of  the  em- 
ployed will  secure  a  f)roper  discharge  of  his  responsible  duties ; 
and  it  would  even  seem  to  be  against  public  policy  to  expose 
the  lives  of  the  traveling  public  and  the  property  of  the  ship- 
ping public  to  the  danger  which  might  arise  from  the  en- 
forced and  unwilling  performance  of  so  delicate  a  service'. 
While  a  court  of  equity  could  not  speciflcally  compel  the  per- 
formance of  a  contract  for  pei'sonal  service,  it  did  not  follow 
that  there  were  no  limitations  upon  the  right  of  employees 
to  aljandon  their  employment, — that  is,  as  to  the  time  antf 
place  of  the  exercise  of  such  right  (see  remarks  of  Supreme 
Court  in  Lemon  case,  166,  U.  S.),  so  as  to  avoid  imperiling 
life  or  property. 

Though  the  relation  of  railroad  employer  and  employed 
was  one  of  free  contract,  the  conrt  also  held  that  while  the 
relation  continues  they  were  bound  to  obey  the  statute  com- 
pelling the  interchange  of  interstate  traffic,  and  also  bound  by 
th^^  orders  of  the  court  enjoining  their  employer  corporation 
from  refusing  such  interchange.  A  combination  of  the  em- 
ployees to  refuse,  while  still  holding  their  positions,  to  per- 
form any  of  the  duties  enjoined  by  law  or  by  the  court  upon 
their  employer,  would  be  a  conspiracy  against  the  United 
States  and  punishable  as  such. 

The  court  therefore  held  that  the  mandatory  injunction, 
was  properly  issued  against  Arthur,  compelling  him  to  rescind 
the  order  to  the  engineers  in  the  employ  of  the  defendant 
directing   them  not   to   handle   complainant's   freight. 

The  engineers  of  the  defendant  companies  had  no  grievances 
against  their  own  employing  companies ;  and  their  refusal  to 
handle  freight  of  complainant  companj^  was  in  no  sense  a 
strike  for  the  betterment  of  their  own  conditions  of  service, 
and  was  therefore  not  a  strike  but  a  boycott,  and  this  would 
necessarily  paralyze  the  movement  of  interstate  traffic. 

The  eifect  of.  this  decision  was  far-reaching.  It  was  the  ftrst 
judicial  declaration  of  the  duties  of  railroail  employees  in  in- 
terstate commerce.  It  was^  followed  in  other  circuits  and  was 
not  only  approved  by  the  general  public,  but  was  accepted  by 
the  railroad  brotherhoods  as  a  fair  statement  of  the  laAv  under 
the    peculiar    conditions    of    the    railroad    service.      The    result 


260  jrnOE  TAFrS  LABOR  DECISIONS. 

was  the  abro^-ation  of  rule  twelve  by  the  brotherhood  of  the 
eng-ineers.  and  since  that  time,  as  was  sij^nally  shown  in  the 
extensive  railroad  strike  of  the  following'  year,  the  raiii'oad 
brotherhoods,  not  only  the  engineers,  but  the  conductors,  lirenien, 
and  trainman,  have  i)een  conspicuous  for  their  conservatism  in 
the  adjustment  of  dilVerences  w?Mi  the  management  of  their 
respective  companies 

The   Plielnn   Contempt    Cane. 

In  the  following-  year,  1894,  came  the  great  railroad  strike 
inspired  by  the  American  Railway  Union,  growing  out  of  the 
strike  of  the  Pullman  employees  at  Pullman,  III.  The  officials 
of  the  union  demanded  all  the  railroads  to  boycott  the  Pullman 
cars,  and  declared  a  strike  of  the  employees  on  any  railroad 
on  their  refusal  to  declare  such  a  boycott.  The  Cincinnati 
Southern,  an  interstate  railway,  was  in  the  hands  of  a  receiver, 
who  had  been  theretofore  appointed  by  the  United  States  Court 
of  Ohio,  and  the  receiver  applied  to  the  court  for  protection 
against  one  Phelan,  an  official  of  the  American  Union,  who  was 
engaged  in  inciting  a  strike  among  the  employees  of  the  rail- 
road. There  was  no  complaint  by  the  employees  of  this  road, 
as  there  had  been  none  by  the  employees  in  the  Arthur  case, 
for  the  betterment  of  their  condition  of  service.  The  demand 
was  that  all  traffic  should  be  suspended  and  business  paralyzed 
until  all  the  roads  should  consent  not  to  carry  Pullman  cars. 
In  the  words  of  the  court,  the  purpose  was  to  starve  the  rail- 
road companies  and  the  public  into  compelling  the  Pullman 
company  to  do  something  which  they  had  no  lawful  right  to 
compel  it  to  do. 

It  seems  that  a  restraining  order  had  been  issued  by  the 
court  prohibiting  interference  with  the  manage*  ent  of  the 
receiver  in  the  operation  of  the  road,  and  Phelan  had  used 
language  defying  his  order.  He  was  thereupon  attached  for 
contempt,  arid  after  a  hearing  was  adjudged  guilty  of  con- 
tempt in  an  opinion  by  Judge  Taft  (62  Fed.  Rep.,  803).  The 
opinion  emphasized  the  same  distinction  which  had  been  pointed 
out  in  the  Arthur  case  in  the  preceding  year.  The  employees 
had  the  right  to  quit  their  employment,  but  they  had  no  rigl;t 
to  combine  to  injure  their  employer,  in  order  to  compel  him 
to  withdraw  from  a  mutually  profitable  i-elation  with  a  third 
party  for  the  purpose  of  injuring  the  third  party,  when  the 
relation  thus  sought  to  be  broken  had  no  elt'ect  whatever  upuJi 
the  character  or  reward  of  their  services.  As  the  purpose  of  the 
combination  was  to  tie  up  interstate  railroads,  not  as  an  inci- 
dental result  of  a  lawful  strike  for  the  betterment  of  the 
employees'  own  conditions,  but  as  a  means  of  injuring  a  third 
party,  it  was  an  unlawful  combination,  violative  of  the  anti- 
trust act  of  1890.  It  was  also  a  direct  interference  with  intei*- 
state  commerce. 

Thus,  if  Phelan  had  come  to  Cincinnati  and  had  urged  a 
strike  for  higher  wages,  or  to  prevent  lowering  of  wages,  he 
would  not  have  been  liable  for  contempt,  but  he  had  no  right 
to  incite  the  men  to  quit,  when  they  had  no  grievances  of 
their  own  to  redress,  as  it  was  then  essentially  a  boycott  and 
not   a    strike. 

It  was  in  this  Phelan  case  that  Judge  Taft,  in  determining 
the  limits  of  the  rights  of  labor  organizations,  made  this  lucid 
and  notable  statement  of  the  extent  of  their  rights,  which  has 
been   frequently   quoted : 

The  employees  of  the  receiver  had  the  right  to  organize  into  or 
join  a  labor  union  which  would  take  action  as  to  the  terms  of  their 
employment.  It  is  a  benefit  to  them  and  to  the  public  that  laborers 
should  unite  for  their  common  interest  and  for  lawful  purposes.  They 
have  labor  to  sell.  If  they  stand  together  they  are  often  able,  all  of 
them,  to  obtain  better  prices  for  their  labor  than  dealing  singly  with 
rich  employers,  because  the  necessities  of  the  single  employee  may  compel 
him  to  accept  any  price  that  is  offered.  The  accumulation  of  a  fund 
for  those  who  feel  that  the  wages  offered  are  below  the  legitimate  market 
value  of  such  labor  is  desirable.  They  have  the  right  to  appoint  officers, 
who  shall  advise  them  as  to  the  course  to  be  taken  in  relations  with 
their  employers.  They  may  unite  with  other  unions.  The  officers  they 
appoint,  or  any  other  person  they  choose  to  listen  to,  may  advise  them 
as  to  the  proper  course  to  be  taken,  both  in  regard  to  their  common  em- 
ployment ;  or  if  they  choose  to  appoint  any  one,  he  may  order  them  on 
pain  of  expulsion  from  the  union  peaceably  to  leave  the  employ  of  their 
employer  because  any  of  the  terms  of  the  employment  are  unsatisfactorj. 


JUDGE  TAFT8  LABOR  DECISIONS.  261 

This  declaration  of  the  right  of  organization  and  repre- 
sentation of.,  labor  unions  has  often  been  cited  and  quoted  in 
support  of  the  unions,  and  was  applied,  as  will  be  seen,  most 
effectively   in   their   behalf    in   the   Wabash   strike   of    1903. 

The  jurisdiction  of  the  United  States  courts  in  the  pro- 
tection of  interstate  commerce,  and  the  supremacy  of  the  Fed- 
eral power  in  such  questions,  were  therefore  fully  sustained 
by  the  Supreme  Court  of  the  United  States  (see  in  re  Debs 
case,  158  U.  S.,  564;  also  in  re  Lemon,   166  U.  S.  548). 

The  reason  of  the  prompt  acceptance  of  this  application 
of  the  iaw  by  Judge  Taft  was  the  universal  recognition  that 
a  boycott  by  railroad  employees  in  interstate  commerce,  as 
distinguished  from  a  strike,  was  impracticable  and  inadmis- 
sible, in  view  of  the  paramoimt  public  interest  concerned.  It 
is  true  that  in  ordinary  tracte  disputes  the  public  convenience 
and  even  public  necessities  are  not  always  given  the  weight 
they  should  have.  But  wherever  interstate  or  foreign  commerce 
are  involved  the  public  interest  is  made  paramount  by  the  laws 
of  the  United  States.  All  classes  of  the  community,  working- 
men  as  well  as  capitalists,  are  interested  in  the  proper  trans- 
mission of  the  nTails  and  in  vae  uninterrupted  passage  of  person 
and  freight.  This  principle  of  the  protection  of  commerce 
gainst  interruption  has  become  firmly  intrenched  in  our  juris- 
prudence. Under  the  law  declared  in  these  cases,  our  com- 
merce is  subject  to  be  interrupted  only  by  the  incidental  injury 
resulting  from  cessation  of  service,  and  not  by  boycotts  or 
sympathetic  strikes  not  related  to  the  bettering  of  the  con- 
ditions of  the  employees'  service.  That  this  principle  is  firmly 
established  is  primarily  owing  to  the  clear  and  courageous  enun- 
ciation of  the  law  by  Judge  Taft. 

The   Addyston   Pipe   &   Steel    Company    Case. 

The  same  principle  of  the  freedom  of  interstate  commerce 
from  illegal  restraint  declared  in  the  Arthur  and  Phelan  cases 
was  also  held  by  Judge  Taft  to  apply  to^  a  business  com- 
bination, or  a  "trust,"  in  the  Addyston  Pipe  &  Steel  Company 
case  (85  Fed.  Rep.,  271).  In  this  case  there  was  an  allotment 
of  territory,  comprising  a  large  part  of  the  United  States, 
among  a  number  of  companies  engaged  in  the  manufacture  of 
iron  pipes,  and  in  that  territory  competition  was  eliminated 
through  this  allotment  of  territory,  and  through  a  system  of 
pretended  bidding,  giving  an  appearance  of  competition,  at  pub- 
lic lettings,  when  in  fact  there  was  no  competition.  The  de- 
cision of  the  Court  of  Appeals,  rendered  by  Judge  Taft,  was 
afterward  affirmed  by  the  Supreme  Court  of  the  United  States. 
His  opinion  is  a  notable  contribution  to  the  law,  in  its  masterly 
analysis  of  the  essential  distinction  between  the  legitimate  con- 
tracts in  restraint,  of  trade,  which  are  merely  ancillary,  or 
incidental,  to  some  lawful  contract,  and  necessary  to  protect 
the  enjoyment  of  the  legitimate  fruits  of  that  contract,  and  the 
agreements  where  the  sole  object  is  a  direct  restraint  of  com- 
petition, and  to  enhance  and  maintain  prices.  These  latter 
agreements  are  unenforceable  at  common  law,  and  are  violative 
of  the  anti-trust  act  when  made  with  reference  to  interstate 
commerce. 

The  distinction  here  so  clearly  pointed  out  has  been  the  basis 
of  the  construction  of  the  anti-trust  act  by  the  United  States 
Supreme  Court  in  all  its  subsequent  decisions. 

Jndgre    Taft's    Opinion    Supports   the    Union    In    Wabasb    Strike 

Case. 

The  words  of  Judge  Taft  in  the  Phelan  case  quoted  above, 
setting  forth  the  rights  of  labor  organizations  under  the  law, 
were  directly  invoked  and  applied  on  behalf  of  the  labor  unions 
in  a  notable  case,  that  of  the  threatened  strike  on  the  Wabash 
Railroad  by  the  Brotherhoods  of  Railroad  Ti*ainmen  and  Fire- 
men in  1903  (121  Fed.  Rep.,  563).  In  this  case,  the  represent- 
atives of  these  two  brotherhoods,  after  failing  to  secure  the 
■advance  of  wages  and  betterment  of  conditions  demanded  by 
the  brotherhoods,  had  been  forced  to  call  a  strike  as  their  last 


262  .libiit:  TAFTS  LABOR  DECISIONS. 

resort,  antl  thjrei.poii  an  injuiu'tlon  was  filed  by  the  railroad 
rompany,  in  the  I'nited  States  Circuit  Court  in  St.  Louis,  ag'aius^ 
the  otfieers  of  these  brotherhoods,  enjoining'  thein  from  ealling 
a  strike  on  the  Wabash,  as  an  interstate  railroad,  on  the  ground, 
among  others,  that  the  ofhfials  of  the  brotherhoods  were  not 
employees  of  the  railroad,  and  that  their  action  in  ccnnbining- 
in  calling  a  strike  would  l)e  a  direct  interference  with  inter- 
state commerce,  and  was  therefore  an    unlawful  conspiracy. 

The  rights  of  organization  and  the  rights  of  representation, 
as  set  forth  by  Judge  Taft,  were  thus  directly  involved.  The 
writer  represented  those  brotherhoods  in  the  hearing  on  the 
motion  to  dissolve  the  injunction  granted  in  this  case,  and  used 
the  above  quoted  statement  of  Judge  Taft  as  the  most  lucid 
and  effective  defense  of  the  action  of  the  brotherhoods  and  their 
officials.  The  Court  (Judge  Adams)  found  from  the  evidence 
that  there  was  an  existing  dispute  ai>owt  the  conditions  of  ser- 
vice on  the  railroad,  and  that  the  officials  of  the  brotherhood 
had  been  directed  by  the  members  of  the  brotherhoods  to 
call  a  strike;  that  they  had  a  right  to  be  represented  in  siich 
matters  by  their  own  officials,  and  that  the  two  unions  had 
a  right  to  act  in  unison  in  their  effort  to  secure  the  betterment 
of  the  conditions  of  their  members,  that  an  agreement  to  strike 
under  those  circumstances  was  not  an  unlawful  conspiracy,  and 
the  injunction  was  therefore  dissolved.  It  was  said  in  the 
opinion  that  on  the  subject  of  the  organization  of  labor,  and 
the  right  of  labor  unions,  no  one  had  spoken  more  clearly  and 
acceptably  that  Judge  Taft,  in  this  language  above  quoted. 
(After  the  dissolution  of  the  injunction,  the  differences  be- 
tween the  railroad  and  its  employees  was  amicably  adjusted, 
and  the  threatened   strike  was   averted.) 

Thus,  while  the  law  was  declared  by  Judge  Taft  as  to  i^he 
limitations  upon  the  lawful  actions  of  labor  unions,  the  es- 
sential principles  involved  in  the  right  of  organization  were 
also  announced  by  him  in  the  same  opinion.  This  right  of  or- 
ganization of  workingmen  in  the  unions  would  be  futile  with- 
out the  right  of  representation  by  their  own  officials  in  the 
effort  to  secure  the  betterment  of  their  conditions.  The  rem- 
edies adopted  by  workingmen,  sometimes  Uiistaken  remedies 
for  the  enforcement  of  their  rights,  such  as  the  closed  shop 
and  the  boycott,  are  only  weapons  for  the  enforcement  of  the 
fundamental  right  of  collective  bargaining  for  the  common  bene- 
fit. There  is  no  foundation,  therefore,  for  the  suggestion 
that  the  decisions  of  Judge  Taft  were  in  any  sense  unfriendly 
to  labor,  and  it  is  clear  that  through  his  lucid  declarations 
of  the  rights  of  labor  the  railroad  brotherhood  secured  the 
judicial  vindication  of  their  rights  of  combiuation  and  of  rep- 
resentation in  their  demands  for  the  betterment  of  their  con- 
ditions. 

While  these  important  decisions  were  rendered  by  Judge 
Taft.  declaring  the  freedom  of  interstate  commerce  from  il- 
legal combination  both  of  labor  and  capital,  the  limitations 
upon  the  rights  of  organized  labor,  as  well  as  the  essential 
principles  involved  in  the  right  of  organization  for  the  better- 
ment of  their  conditions,  it  would  be  an  imputation  upon  the 
brilliant  judicial  record  of  Judge  Taft  to  siiggest  that  in  any 
of  these  opinions  he  declared  the  law  as  a  friend  of  any  class, 
or  that  he  made  any  j  ulioial  utterance  in  any  of  the  cases 
otherwise  than  a  living  oracle  of  the  1aw%  bound  to  declare, 
in  every  case  brought  befoi-e  him.  not  his  own  private  judg- 
ment, but  the  judgment  of  the  law. 

'William    H.    Taft    as    a    .Tn<l«e    Upon    the    Bencli. 

[By  Richard  V.  Oulahan.  -From  the  August,  1907,  Review  of  Reviews.] 

Mr.  Taft  is  the  very  personification  of  energy.  He  is  a  human 
steam  engine.  He  is  always  busy.  Work,  and  hard  work,  is 
his  pleasure.  A  handsome  man.  he  would  attract  attention 
from  that  circumstance  alone.  He  Ivreathes  good  will  and  sug- 
gests mental,  moral,  and  physical  wholesomeness.  Yet,  with 
all  his  pleasant  informality  and  his  frequent  laughter,  he  has 
a  dignity  of  manner  and  carriage  that  commands   respect  and 


WILLIAM  n.  TAFT  AS  JUDGE.  263 

attention.  You  feel  that  he  is  a  man  of  brain  power,  one  of 
the  few  men  who  seem  to  grow  greater  the  more  intimately 
you   know  them. 

Captain  Seth  Bullock,  plainsman  and  friend  of  President 
Eoosevelt,  paid,  in  homely  phi'ase,  one  of  the  highest  tributes  that 
could  be  paid  to  any  hmnan  being,  when  he  was  asked  his 
opinion  of  Mr.  Taft.  Captain  Seth  has  the  plainsman's  reti- 
cence of  speech.  He  could  not  gush  if  he  tried.  "What  is  it 
about  Taft  that  you  like?"  he  was  asked.  He  hemmed  and  hawed 
before  he  answered,  "He's  simply  all  right.  He's  a  man  you 
don't   have  to   be    introduced   to    twice." 

It  is  this  ability  to  make  people  feel  at  their  ease  that 
is  one  of  Mr.  Taft's  greatest  charms.  He  seems  to  take  an 
interest  in  everybody  he  meets.  There  is  nothing  of  the  poli- 
tician in  his  method  of  treating  people.  His  manner  is  too 
natural  to  be  studied.  The  farmer's  boy  who  comes  to  Wash- 
ington to  find  out  about  the  chances  of  getting  an  appoint- 
ment to  the  Military  Academy  is  on  friendly  terms  with  the 
Secretary  of  War  after  they  have  talked  five  minutej?.  The 
statesman,  the  military  hero,  the  newspaper  correspondent,  the 
department  clerk,  are  all  treated  alike  when  they  call  on  Mr. 
Taft.  He  plays  no  favorites  among  those  whom  he  believes  to 
be  fair  and  square. 

Tlie  New  E]n^laud   Coiiseienee. 

Mr.  Ta£t  has  the  New  England  conscience,  and  this  helped 
him  in  his  judicial  career.  If  he  thinks  a  thing  is  wrong  he 
does  not  hesitate  to  say  so.  This  phase  of  his  character  takes 
a  peculiar  form.  He  will  go  out  of  his  way  to  avoid  h.irting 
the  feelings  of  any  of  his  fellow-men ;  he  does  not  like  to  in- 
flict pain ;  but  frequently,  when  it  was  to  his  personal  and 
political  advantage  to  be  silent,  he  has  spoken  out,  because 
silence  would  mean  a  misunderstanding  of  his  attitude.  He 
wanted  everybody  to  know  how  he  stood.  When  he  went  to 
Ohio  in  1905  to  serve  as  temporary  chairman  of  the  Kepublican 
convention  he  mad<i  a  speech  which  was  in  substance  an  appeal 
to  his  party  brethren  to  smash  on  election  day  the  Rei)ub- 
lican  machine  in  Cincinnati.  Taft  was  talked  of  at  that  time 
as  a  Presidential  possibility.  He  knew  that  his  course  would 
iiijure  him  in  the  pai'ty  organization;  that  he  would  make 
enemies  of  many  whose  friendship  would  be  valuable  if  he  were 
a  candidate  for  an  elective  office.  But  to  him  words  of  praise 
for  the  Eepublican  machine  ticket  in  Cincinnati  or  silence  on 
the  subject  meant  hypocrisy,  and  his  New  England  conscience 
told  him  to  go  to  the  other  extreme.  It  is  this  peculiarity 
in  Taft's  temperament  which  amazes  those  friends  of  his  who 
think  he   should  trim   his  sails   in   the   winds   of  popularity. 

He  exhibited  the  trait  while  he  was  on  the  Federal  judicial 
bench.  The  pros])ect  of  the  political  future  cut  no  figure  with 
the  young  jurist.  He  had  no  apologies  to  make  for  his  cyurse 
at  that  time  and  would  not  brook  any  questioning  of  its  fair- 
ness. Today,  as  a  candidate  for  the  Presidential  nomination, 
with  the  labor  element  as  a  powerful  factor  in  the  determination 
of  the  result,  he  will  not  hesitate  to  tell  exactly  what  he  did 
as  a  judge  when  labor  injunction  cases  were  brought  before 
him.  If  anybody  anxious  to  injure  Mr.  Taft's  prospects  for 
the  Presidency  wishes  to  get  the  record  of  his  course  in  the 
labor  cases  he  need  not  pursue  secret  methods  to  obtain  the 
information.  Let  him  apply  to  the  office  of  the  Secretary  of 
War,  Room  226,  second  floor.  War  Department  Building,  Wash- 
ington, D.  C,  and  a  genial  gentleman  of  large  frame  will  fur- 
nish it  cheerfully.  Taft  is  not  ashamed  of  anything  he  has  done 
or  afraid  of  the  consequences   of  it. 

Taft  was  thirty  when  he  became  a  judge  of  the  Superior 
Coi.rt  in  Cincinnati  and  only  thirty-five  when  he  was  appointed 
a  judge  of  the  United  States  Circuit  Court.  His  ambition  had 
tended  to  the  Federal  bench,  and  this  office  appeared  to  pave 
the  way  for  the  realization  of  his  wish  to  be  a  member  of 
the  highest  tribunal.  Te  world  knows  how.  when  offered  an 
appointment  as  an  Associate  Justice  of  the  United  States  Su- 
preme Court,  which  meant  the  fulfillment  of  his  heart's  desire, 


164  WILLIAM  n.  TAFT  AS  JUDGK. 

he  placed  duty  ahead  of  everything  else  and  declined  t\\v 
tender.  He  was  then  in  the  i'hilippines  and  he  piejerred  t.(. 
stay  there  at  the  sacrifiee  of  personal  conii(»rt  and  individual 
taste,  because  his  dejnirtiire  from  Manila  \V(jiild  cause  lac;k  ol 
confidence  aiiiouj^"  the  native  people  and  inter iere  witli  the  work 
he  had  set  out  to  do.  'Jhe  real  Taft  stood  out  in  these  words 
telegraphed  to  ]*resident  JJoosevelt:  "Look  forward  to  time  when 
1  can  accept  such  an  offer,  but  even  if  it  is  certain  that  it  can 
never  be  re[)eated,  1  must  now  decline."  And  wiuwi  ti\^  Presi 
dent  insisted,  that  he.  as  President,  "siw  the  whole  field"  and 
inteiuUd  to  make  the  appointment,  Taft  came  back  with  reasons 
which  convinced  Mr.  Roosevelt  that  the  big  man  who  wanted 
to  be  a  Si;pre:ne  Court  Juri.st  but  refu.sed  for  the  sake  of  con- 
science was  entitled  to  have  his  own  way. 

,Dignified  on  the  bench,  his  sedate  manner  was  tempered 
by  a  Suggestion  of  kindliness  and  charity  that  he  coidJ  not 
conceal.  One  of  tho.se  associated  intimatcdy  with  him  in  the 
days  when  he  wore  the  judicial  ermine  has  said:  "He  was 
J;  dge  'j^'aft  in  the  coi.rt-house,  but  Hill  Taft  away  from  there." 
His  intei-est  in  young  men,  particularly  in  young  lawyers,  was 
shown  frequently.  The  law  school  of  which  he  was  dean  was 
a  source  of  great  pride  to  him.  One  day,  while  hearing  a  case 
in  the  Federal  court-room,  he  saw^  five  law  students  whom  he 
knew,  sitting  in  rear  seats.  "Bring  five  chairs  up  here,"  he 
said  to  an  attendant,  and  then  told  his  secret^try  to  invite  the 
five  .students  to  sit  beside  him.  a  mark  of  distinction  and  honor.. 
The  yoi;ngsters  thought  the  .secret.iry  was  joking,  but  he  pointed 
to  the  chairs  and  convinced  them.  So  the  five,  embarrassed 
but  elated,  took  seats  beside  the  Judge.  "1  thought  that  you'd 
be  able  to  hear  better  up  here,"  was  Taft's  explanation. 

Another  act  of  kindness  was  shown  to  a  young  attorney 
Trom  Kentiicky  who  had  brought  suit  for  damages  again.st  a 
railroad  company  in  behalf  of  a  woman  who  had  been  injured 
by  a  train.  The  attorney's  petition  was  poorly  ])re])ared,  so 
poorly  that  it  would  not  have  stood  the  test  of  a  hearing.  "1 
give  you  leave  to  amend  that  petition."  said  Judge  Taft,  and 
he  ])ointed  out  wherein  the  paper  was  defei'tive.  The  attorney 
did  not  appear  to  understand  what  was  required  of  him.  Judge 
Taft  detected  the  trouble.  "Let  me  see  that  petition."  he  said. 
He  struck  out  some  sentences  in  the  document  and  made  in- 
terlineations with  a  pencil.  Then  h^  handed  it  1 1  the  attorney 
for  the  railroad,  a  man  of  prominence  in  legal  circles.  "I 
guess  that's  all  rioht."  he  remarked,  and  the  railroad's  rep- 
resentative, w^o  was  prepared  to  make  technical  objection, 
reluctantly  accepted  Judge  Taft's  disposition.  The  young  fellow- 
won  the  case. 


iveady   to  Aekrto^vleds*  Error. 

As  a  Judge,  Taft  earned  the  reputation  of  being  fearless  and 
just,  and  it  was  this  reputation  which  accounts  in  part  for 
his  popularity  in  Ohio.  He  was  never  afraid  to  .strike  at  evil 
and  always  ready  to  accept  full  responsibility  for  his  judicial 
decisions,  and  orders.  Yet  he  was  as  ready  to  acknowledge  any 
error  on  his  part,  and  a  remarkable  instance  is  recorded  where 
he  actually  apok)gized  to  a  litigant  for  imcomplimeutary  allu- 
sions made  from  ^the  bench.  The  town  of  Hartwell,  in  Hamil- 
ton County.  Ohio,  became  invcdved  in  a  dispute  with  a  rail- 
road company.  There  were  writs  of  injunction  and  mandam- 
us and  other  proceedings  sought  by  the  town  authorities  or 
the  company.  The  Mayor  of  H  irtwell  turned  the  hose  on  work- 
men who  tried  to  lay  rails  at  night.  When  one  aspect  of  the 
case  was  broi^ght  before  Judge  Taft  he  took  occasion  to  criti- 
cise the  Mayor  severely.  The  Mayor,  willing  to  be  made  a 
victim  of  th'^'  court's  power  to  ounish  for  contempt,  wrote  a 
letter  to  Judge  Taft  complaining  bitterly  that  the  court's  refer- 
-nce  to  hims  If  was  obiter  dictum  and  was  entirely  outside  the 
court's  powers.  The  Mayor  confidently  expected  to  be  haled 
•before  the  b^.v  To  his  surprise,  however,  he  received  a  letter 
from  Judge  Tat't  admitting  that  he  had  gone  farther  than  he 
should  in  his  com^nents  on  the  Mayor's  attitude  and  asking  the 
'siayor  to  accept  his  apolog}'  for  what  he  had  said. 


WILLIAM  H.^TAFT  AS  JUDGE.  263 

That  was  Taft  all  through.  Conscientiously  believing  orig- 
inally that  it  was  his  duty  to  rebuke  the  Mayor,  he  saw  th(; 
matter  in  a  new  light  when  an  argument  to  show  that  he  was 
wrong  was  presented  and  he  made  haste  to  correct  the  error, 
and,  to  emphasize  the  change  of  view,  added  an  apology. 

The  Stern   and  Fearless   Magistrate. 

Another  instance  shows  Taft  as  the  embodiment  of  stern 
justice,  knowing  his  duty  and  permitting  no  interference  with 
its  fulfillment.  An  elderly  man  had  been  convicted  of  pension 
frauds  in  Judge  Taft's  court.  Under  the  law  it  was  optional 
with  the  Court  to  impose  a  sentence  of  imprisonment  in  a 
penitentiary  or  a  jail.  A  son  of  the  convicted  laaii  knew  Judge 
Taft  and  had  been  on  friendly  terms  with  him.  Presuming 
on  their  friendship,  the  son  saw  Judge  Taft  privately  and  pro- 
ceeded to  give  reasons  why  the  father  should  be  sent  to  jail 
instead  of  the  penitentiary.  Judge  Taft  was  angry,  in  lan- 
guage that  left  no  dovibt  as  to  his  state  of  mind,  he  told  tlie 
son  that  any  repetition  of  the  attempt  to  influence  him  in  a  ju- 
dicial matter  would  result  in  a  term  in  jail  for  contempt. 
Crestfallen  and  humiliated,  the  son  went  away,  believing  that 
his  father  was  certain  to  get  a  penitentiary  sentence. 
Judge  Taft  sent  the  convicted  man  to  jail.  Those  who  knoA\ 
his  peculiar  judicial  fitness  do  not  need  to  be  told  that  Taft 
was  not  influenced  in  any  way  whatever  by  the  son's  plea. 
He  considered  the  matter  on  its  merits  and  declined  to  allow 
his  mind  to  be  prejudiced  against  the  father  for  the  son's  in- 
discretion  or   in   the    father's   favor   by   the    son'   distress. 

Justice  Tempered  Tvitli  Mercy. 

It  was  not  often  that  Judge  Taft  showed  anger,  but  when 
he  did  there  was  nothing  half-heartfd  about  it.  A  man  who 
had  heard  some  idle  talk  about  Taft  came  to  tell  the  Judge 
of  it.  People  were  saying,  he  assei'ted,  that  Taft  woiild  not 
do  full  justice  to  one  side  in  a  pending  case.  "You  get  out  of 
here  or  I'll  throw  you  out."  he  shouted.  As  a  matter  of  fact, 
the  case  was  not  before  Taft's  court.  He  hated  a  meddler 
He  would  not  tolerate  a  tattler. 

When  Judge  Taft  holds  the  scales  of  justice  he  holds  thein 
squarely.  With  it  all,  however,  he  is  actuated  by  a  spirit  of 
consideration  for  the  unfortunate  and  ready  to  show  mercy 
whenever  his  sense  of  right  tells  him  it  is  proper  to  do  so. 
Toward  the  end  of  his  career  as  a  Federal  Jirdge  a  young 
man  was  convicted  in  his  court  of  violating  the  jjostal  laws. 
Judge  Taft  was  convinced  that  the  ofi'ense  was  due  more  to 
ignorance  than  to  criminal  intent  and  he  suspended  sentence. 
"Come  back  to  me  in  'six  months,"  he  said  to  the  defendant. 
The  Philippine  War  was  on  when  the  six  months  expired.  The 
young  fellow  who  had  been  convicted  appeared  before  Judge 
Taft  with  the  laconic  introduction,  "I've  come."  "I  see  you 
have,"  said  his  Honor,  "but  what  can  1  do  for  3^ou?"  Judge 
Taft  had  nearly  forgotten  the  circumstance,  but  it  was  recalled 
to  his  recollection  by  attaches  of  the  court.  Then  he  put 
the  young  man  through  an  examination  as  to  what  he  had 
been  doing  in  the  probationary  period  and  received  satisfac- 
tory answers.  "And  whSt  are  you  doing  now?"  he  asked. 
"1  am  trying  to  get  into  the  army,"  was  the  answer.  "Will 
they  take  you?"  "I  think  so,  but  I  told  them  I  couldn't  enlist 
until  I'd  seen  you."  "Well."  said  Judge  Taft,  "you  show 
yourself  to  me  here  with  Uncle  Sam's  uniform  on  and  you 
needn't  come  after  that."  The  boy  enlisted  and  his  sentence 
was  remitted. 

A   Labor   Leader's    Confidence    in   tlie   Jndgre   Who    had    Jailed 

Him. 

It  was  Taft  who  rendered  the  first  opinion  upholding  the 
validity  of  the  Sherman  Anti-Trust  law,  and  it  was  Taft  who 
sent  a  labor  leader  to  jail  for  contempt  in  interfering  with 
the  operation  of  a  railroad  then  in  the  hands  of  the  court 
over  which  Taft  presided.     The  man  whom  he  jailed  was  Frank 


26G  MH.  TAFT  IX  T41E  ORIENT. 

Phelan,  a  liertenjiiit  of  l^iiiffetie  Debs  in  the  American  llailway 
Union.  Then^  were  nuirniiirs  in  Cincinnati  that  Judge  T.aft 
would  not  leave  the  bench  alive  if  he  sent  rheian  to  jail. 
Members  of  the  order  to  which  i'heian  beh)nf>ed  crowded  the 
court-room  with  identifying-  badges  conspicuously  displayed. 
Judge  'lal't  read  his  opinion  m  liie  case  and  ordered  tjuit  riielau 
be  confined  in  jail  for  six  months.  Then  he  stepped  from  the 
rostrum  and  went  to  his  private  room.  There  was  not  the 
.slightest  sign  of  trepidation  in  his  manner  or  a  hesitating  note 
in  his  voice  as  he  delivered  his  judgment.  \ 

Months  after,  I'helan,  released  from  jail,  went  to  Ludlow,  ,k 
suburb  of  Cincinnati,  where  most  of  the  railroad  men  who  had 
gone  on  strike  at  his  command  resisted.  The  agitator  who  had 
counseled  violence  of  a  radical  kind  was  touched  by  the  sulfering 
among  the  families  of  the  strikers,  many  of  them  still  out  of 
employment.  I'helan  wanted  to  help  them,  and  curiously  enough 
the  man  to  whom  he  applied  for  advice  and  assistan-^e  was 
JiHlge  Taft.  He  called  at  the  Judge's  office  in  company  with 
another  man  and  w^as  received  without  any  delay.  "Hello  I 
I'hcian,"  said  Judge  Taft,  "what  can  1  do  for  you?"  A  gentle- 
man who  was  present  on  that. occasion  vouches  for  the  state- 
ment that  Phelan  explained  his  business  in  words  somewhat  to 
this  effect :  "Judge,  1  came  to  tell  you  that  I  neyer  realized 
what  great  .suffering  I  would  create  until  1  went  to  i^udlow 
this  morning.  Tin  willing  to  , serve  another  six  months  or  "a 
year  if  you'll  help  me  to  get  work  for  these  men. 
All  those  who  went  out  on  strike  and  who  testified  that 
they  went  out  through  sympathy  only,  told  an  untruth^  and 
so  did  I,  for  I  was  sent  here  by  Debs  to  take  these  men  out 
as  I  saw  fit." 

Rut  sti'ongly  as  his  sympathy  was  aroused  by  what  Phelan 
said.  Judge  Taft  held  that  it  would  be  improper  for  him  to 
make  any  suggestion  to  the  railroad  company  to  give  emj5loy- 
ment  to  its  former  employees.  "I  can't  tell  the  railroad  people 
how  to  run  their  business,"  he  said.  This  incident  is  told  merely 
to  show  the  wonderful  human  sympathy  which  Taft  possesses 
and  which  he  makes  people  understand.  Phelan,  in  spite  of 
the  scoring  and  the  punishment  he  had  received  from  Taft, 
felt  that  he  would  find  the  stern  judge  a  kind  friend,  and  his 
reception  proved  that  be  was  not  mistaken.  Taft  never  bears 
malice.  He  is  as  willing  to  forget  as  he  is  to  forgive  when 
satisfied  that  a  fault  which  he  condemned  had  been  honestly 
atoned    for. 

Long  years  of  work  on  the  bench  did  not  produce  in  him 
the  idea  that  he  is  not  as  other  men.  There  is  no  false  dignity 
about  him.  Off  the  bench  he  is  as  jovial  as  could  be.  While 
on  the  bench  he  maintained  a  dignity  that  was  impressive,  but 
not  repellant.  Whatever  he  does,  he  does  as  part  of  the  day's 
work,  not  hampered  by  any  ideas  of  his  greatness.  ^  He  is  too 
busy  to  think  about  his  own  personality. 


THE  STATli,SMA%SHIP  OF   WILLIAM  H.  TAFT  IN  THK  OIliKNT. 

For  the  last  ten  years  the  policy  of  the  United  States  in  re- 
gard to  its  position  and  future  as  a  Pacific  power  has  been 
marked  by  a  degree  of  vigor  and  directness  comparable  only 
with  its  attitude  toward  all  questions  involving  the  application 
or  interpretation  of  the  Monroe  Doctrine.  And  rightly  so;  be- 
cau.se  among  the  great  powers  whose  territories  border  on  the 
Pacific  Ocean,  the  United  States  is  most  intimately  concerned  in 
the  future  of  that  vast  area  around  which  are  grouped  nine  hun- 
dred millions  of  people,  or  more  than  half  the  population  of  the 
globe. 

IiiiI>ortanee     of     the     Orient     aiitl     Oriental     Markets. 

Speaking  in  the  United  States  Senate  in  1852.  William  H.  Sew- 
ard said:  "Henceforth,  European  commerce,  European  politics, 
p]uropean  thought,  and  European  activity,  although  actually 
gaining  force,  and  European  connections,  although  actually  be- 


MR.  TAFT  IN  THE  ORIENT.  267 

coming  more  intimate,  will,  nevertheless,  relatively  sink  in  im- 
portance ;  while  the  Pacific  Ocean,  its  shores,  its  islands,  and 
the  vast  i-eg-ion  bej^ond  will  become  the  chief  theater  of  events  in 
the  world's  gi*eat  hereafter."  The  purchase  of  Alaska,  which 
was  the  work  of  Seward,  was  dictated  by  a  desire  to  grasp  the 
opportunity  to  become  the  foremost  of  Pacific  powers ;  the  ac- 
quisition of  Hawaii  was  a  testimony  to  the  necessity  of  exclud- 
ing foreign  control  from  a  commanding  position  in  mid-Pacific ; 
the  taking  of  the  Philippines  was  justified  on  the  ground  that  we 
needed  an  emporium  of  trade  and  a  place  of  arms  to  be  ready 
against  the  time  when  other  powers  might  be  moved  to  dispute 
the  right  of  the  United  States  to  enjoy  equality  of  commercial 
opportunity  in  the  great  markets  of  Eastern  Asia. 

We  have  made  the  construction  of  a  canal  across  the  Isthmus 
of  Panama  a  national  enterprise,  primarily  because  it  was  needed 
to  enable  all  sections  of  our  country,  and  the  Southern  States, 
most  of  all,  to  have  the  full  benefit  of  the  present  and  future 
profit  of  the  commerce  of  the  Pacific.  That  our  Government  re- 
gards this  enterprise  sfs  one  of  supreme  importance  to  the  na- 
tional welfare  has  been  sufficiently  demonstrated  by  the  uncom- 
promising vigor  and  resolution  with  which  it  has  treated  the  ob- 
stacles interposed  to  its  execution.  If  the  extension  of  the  influ- 
ence of  the  United  States  has  been  anywhere  pursued  in  obedi- 
ence to  the  call  of  "manifest  destiny,"  it  has  been  on  and  around 
the  Pacific  Ocean.  If  there  be  one  point  more  than  another 
where  a  check  to  our  influence  would  dwarf  the  role  which  this 
Ilepublic  is  fitted  to  play  on  the  stage  of  history  it  would  be 
here. 

Tlie   Open    Door   Insisted   Upon.  > 

President  Eoosevelt  recognized  that  fact  when  he  declared 
that  sovereignty  has  its  duties  as  well  as  its  rights,  and  that  no 
local  Central  American  Government  would  be  permitted  in  a 
spirit  of  Eastern  isolation  to  close  the  gates  of  intercourse  on 
the  great  highways  of  the  world.  Among  these  gates,  the  Pan- 
ama Canal  is  destined  to  occupy  the  most  prominent  place.  In 
the  words  of  President  Roosevelt :  "It  is  to  alter  the  geography 
of  a  continent  and  the  trade  routes  of  the  world."  But  if  no 
South  American  State  can  be  permitted  to  encumber  the  trade 
I^assing  by  wa3'  of  Panama,  with  such  unjust  relations  as  would 
prevent  its  general  use,  neither  should  it  be  possible  to  have  the 
great  neutral  markets  to  which  this  trade  is  destined  monopo- 
lized  without  even  the  pretense  of  rightfully  acquiring  sover- 
eignty by  any  power  which  can  bring  enough  military  force  to 
overawe  the  power  already  in  possession. 

It  was  this  consideration  which  prompted  the  memorable  dec- 
laration of  Secretary  Hay,  eight  years  ago,  in  regard  to  the  open 
door  in  China :  "The  policy  of  the  Government  of  the  United 
Stales^:  is  to  seek  a  solution  which  may  bring  about  permanent 
safety  and  peaoe  to  China,  preserve  Chinese  territorial  and  ad- 
ministrative entity,  protect  all  rights  guaranteed  to  friendly  pow- 
ers by  treaty  and  international  law,  and  safeguard  for  the  world 
the  principle  of  equal  and  impartial  trade  with  all  parts  of  the 
Chinese  Empire.  In  other  words,  the  United  States  Government 
is  opposed  to  the  partition  of  China,  and  asserts  that  it  has  the 
right  to  a  voice  in  the  settlement  of  China's  future." 

The  acquisition  of  the  Philippines  doubtless  tended  to  give 
the  American  people  a  new  perception  of  the  magnitude  of  their 
interests  in  Eastern  Asia,  and  the  Boxer  rising  of  1900,  with  all 
its  attendant  obligations,  brought  the  problem  of  the  Far  East 
home  to  our  people  in  a  way  that  perhaps  no  other  combination 
of  circumstances  could  have  done.  But,  apart  from  all  this,  an 
educational  influence  had  been  at  work  which  impressed  on  the 
public  mind  the  necessity  of  this  country  playing  as  large  a  part 
in  the  unsettled  questions  of  Asia  as  its  commercial  and  indus- 
trial future  demanded  that  it  should.  Had  the  colonial  Empire 
of  Spain  not  fallen  to  pieces  before  the  assault  of  th^  naval  and 
military  power  of  the  United  States,  had  there  been  no  acute 
crisis  in  Chinese  affairs  demanding  our  intervention  in  common 
with  the  other  treaty  powers,  there  would  still  have  come  to  our 
people  a  perception  of  the  fact  that  they  could  not  afford  to  sit 
idly  by  while  the  markets  of  Asia  were  being  gradually  closed 


268  MR.  TAFT  JN  THE  ORIENT. 

ugaiust  them  by  powers  whose  interests  there  were  less  in  mag- 
nitude than  their  own,  unci  whose  right  to  extend  a  foreign  colo- 
nial system  in  detianee  of  the  treaty  rights  of  other  nations 
rested  on  no  solid  basis  of  necessity   or  equity. 

Oriental     Trn«lo     U|>|»ortiiiiitii'N     I'^Mpeeiiiliy     liii|M>r<tiiit     to     the 
Luileil    StuteH. 

The  rapid  increase  of  the  exports  of  American  manufactures 
of  late  years  has  furnished  convincing  evidence  not  only  of  the 
expansion  of  the  productive  capacity  of  the  country,  but  of  the 
necessity  of  maintaining  for  the  benefit  of  future  generations 
all  the  outlets  for  the  results  of  American  skill  and  labor  which 
they  now  command.  He  must  l)e  a  very  shallow  student  of  re- 
cent history  who  fails  to  see  that  the  conquest  of  markets  by 
military  force  is  a  phase  of  international  rivalry  which  must 
be  reckoned  with  no  less  than  their  acquisition  by  the  improve- 
ment of  processes  of  manufacture  and  the  widening  of  the  field 
of  conniiercial  enterprise.  It  will  avail  us  little  to  be  able  to 
produce  more  skillfully  or  economically  than  our  rivals  if  they 
have  been  ahead  of  iis  in  the  creation  of  a  sphere  of  territorial 
influence  over  which  they  can  throw  the  protection  of  an  ad- 
verse tariff  reinforced  by  coflstant  official  pressure  in  favor  of 
their  "own  manufactures. 

Tt  is  such  considerations  which  have  inevitabl^'^  brought  the 
United  States  to  the  position  which  it  now  occupies  in  regard 
to  affairs  in  China.  Had  the  thinly  veiled  designs  of  the  gi-eat 
military  powers  of  Europe  against  that  ancient  P^mpire  been 
left  to  work  themselves  out,  oue  certain  result  would  have  been 
to  nullify  the  advantages  we  possess  on  the  Pacific,  and  render 
meaningless  ev^ei'y  eff'ort  we  have  made  to  confirm  our  influence 
as  the  greatest  of  Pacific  powers.  The  natural  outcome  of  these 
designs  could  have  been  nothing  less  than  the  partition  of  the 
most  populous  of  empii'es  and  the  richest  of  all  the  uuexploited 
regions  of  the  earth  among  the  great  powers  of  Europe,  to  the 
destruction  of  all  the  rights  of  trade  which  we  have  acquired  by 
treaty  with  that  empire,  and  to  the  exclusion  for  all  time  of  our 
influence  and  enterprise  from  the  gigantic  and  immensely  profit- 
able undertaking  of  eciufpping  China  with  the  appliances  and 
supplying  it  with  the  products  of  modern  civilization.  Tt  is  not 
the  disposal  of  the  cruder  products  of  the  field  and  the  mine  that 
need  give  us  any  concern.  Other  nations  must  buy  these  to  the 
extent  that  they  fail  to  extract  them  from  their  own  soil,  and 
were  we  content  to  be  exporters  meiely  of  cotton,  gi-ain,  oil,  cop- 
per, and  pig  iron,  we  need  give  little  thought  to  the  way  in  which 
the  policy^ of  other  nations  may  affect  our  possible  markets.  But 
this  country  is  destined  to  be  the  greatest  producer  and  exporter 
in  the  world,  no  less  of  manufactured  articles  than  of  the  great 
primai'v  products  which  are  the  foundation  of  its  wealth  and 
greatness. 

Were  the  Middle  Kingdom,  with  all  its  possibilities  and  oppor- 
tunities, part  of  the  continent  of  Africa,  we.  miglit  have  an 
equally  sti'ong  commercial  interest  in  its  future,  but  we  should 
hardly  be  justified  in  offering  to  its  partition  a  more  vigorous 
resistance  than  we  made  to  the  passage  of  Madagascar  under 
French  sovereignty  and  the  con.«^equent  disappearance  of  a  highly 
promising  market.  But  in  the  case  of  China  the  commercial  in- 
terest is  reenforced  by  political  considerations  of  acknowledged 
jjotency,  by  reasons  of  policy  which  are  founded  on  a  due  regard 
for  the  free  and  full  develo]mient  of  our  national  greatness.  In 
short,  thfe^  place  which  the  United  States  occupies  in  the  world 
and  the  place  which  it  should  occupy  in  future  ages  is  equally 
challenged  by  every  step  made  toward  the  dismemberment  of 
China.  It  would  be  for  us  a  disaster  of  the  first  magnitude  to 
have  on  the  other  side  of  the  Pacific  Ocean  another  Europe  fac- 
ing us,  with  hundreds  of  thousands  of  Chinese  mercenaries  bear- 
ing modern  arms  and  trained  oy  European  soldiers  as  a  standing 
army  for  each  of  the  spheres  of  European  sovereignty.  Such  a 
state  of  things  would  be  a  menace  to  the  peace  of  the  world  and 
to  the  interests  of  the  United  States  more  serious  than  any  other 
combination  of  events  which  history  can  possibly  have  in  store. 


MR.  TAPT  tV  THt:  ORIENT.  269 

Mr.  Tnft   as   Our   Interiiatloiiiil    Reconciler. 

With  the  force  of  these  considerations,  no  American  public 
man  has  been  so  strongly  impressed  as  William  H.  Taft,  and 
none  has  had  so  many  opportunities  for  their  thoi'oug-h  investi- 
gation. He  has  learned  by  observation  on  the  spot  what  are  the 
enormous  possibilities  for  commerce  offered  by  a  new  and  pro- 
gressive China ;  he  has  been  able  to  measure  at  close  range  the 
expanding  capacity  of  the  Jajjanese  market  for  American  prod- 
ucts. Personal  intercourse  with  the  men  who  direct  the  policy 
of  both  countries  has  given  Mr.  Taft  an  insight  into  the  influ- 
ences which  are  shaping  the  destiny  of  the  peoples  of  the  Far 
East,  such  as  but  few  of  his  contemporaries  possess.  As  a  result 
of  one  of  the  frequent  calls  made  upon  him  to  fill  the  role  of  in- 
ternational reconciler,  he  has  appeared  as  a  kind  of  semi-official 
envoy  both  in  Japan  and  China  at  a  time  when  an  authoritative 
statement  of  the  relations  between  this  country  and  both  of 
them  was  invested  with  unusual  importance. 

The  addresses  which  Mr.  Taft  found  occasion  to  make  in 
Japan  were  as  notable  for  their  unqualified  repudiation  of  the 
idea  that  there  existed  any  serious  cause  of  difference  between 
the  two  nations  as  they  were  for  a  frank  and  dignified  assertion 
of  the  principles  of  international  conduct,  respj^ct  for  which  the 
United  States  holds  to  be  demanded  alike  by  the  best  interests 
of  all  competitors  for  the  trade  of  the  Far  East,  and  by  the 
welfare  of  the  people  with  whom  that  trade  must  be  conducted. 
The  Chinese  magnates  who  cooperated  to  make  Mr.  Taft's  second 
visit  to  Shanghai  a  memorable  event  greeted  him  in  terms  seldom 
applied  to  a  foreigner,  and  the  Chinese  merchants  of  Shanghai 
combined  to  make  the  visit  replete  with  special  marks  of  honor 
for  a  guest  who  represented  to  them  the  justice,  the  disinterest- 
edness, and  the  magnanimity  of  the  American  people. 


"THE    BEST    EQ,nPPED    CANDIDATE    WITHIN    THE    MEMORt^ 
OF    THIS    GENERATION." 

[From    the    Philadelphia    Public    Ledger,    Ind.    Dem.] 

Of  all  the  Presidential  candidates  within  the  memoi*y  of  this 
generation,  Taft  is  imquestionably  the  best  equipped,  in  training 
and  experience  and  in  wide  and  close  contact  with  large  affairs. 
In  one  important  respect  his  equipment  is  unlike  that  of  any  of 
the  Presidents,  no  one  of  whom  had  ever  served  on  the  bench. 
With  the  excejition  of  those  nominated  on  their  military  records, 
and  two  or  three  who  have  been  governors  of  their  States,  the 
Presidents  have  been  men  whose  political  training  was  in  the 
legislative  branch.  Taft  was  never  in  Congress,  or  even  in  his 
State  legislature.  He  is  wholly  without  personal  experience  in 
w^hat  is  called  practical  politics.  He  was  educated  for  the  bar ; 
early  became  a  judge ;  the  whole  trend  of  his  thought  and  of  his 
ambition  has  been  in  the  line  of  the  judiciary,  and  his  ingrained 
judicial  temperament  it  was  that  made  him  so  conspicuously 
useful  and  successful  in  the  many  difficult  administrative  prob- 
lems he  was  later  called  upon  to  solve. 

It  was  a  distinct  sacrifice  he  made  when  President  McKinley 
took  him  from  a  life  position  that  he  enjoyed,  and  that  was  in 
line  of  his  dearest  hopes,  to  lay  upon  him  the  burden  of  estab- 
lishing peace  and  order  in  the  Philippines.  The  judgment,  tact, 
and  skill  with  which  he  carried  on  that  great  task ;  the  candid 
diplomacy  with  w;hich  he  smoothed  away  perplexing  obstacles ; 
the  unselfish  devotion  with  which  he  has  upheld  the  interests  of 
those  far-away  people  in  the  face  of  indifference  at  home,  were 
an  honor  to  the  nation.  The  same  qualities  of  a  wise  adjvidicator 
have  been  repeatedly  at  the  service  of  the  country.  In  Cuba,  in 
Panama,  in  Japan,  it  has  been  necessary  only  to  "send  for  Taft." 
Misunderstandings  are  cleared  up  and  difficulties  vanish  before 
this  gracious  personality,  this  calm,  clear,  disentangling  mind. 
His  intellectual  integrity  and  disinterestedness  have  been  as  \in- 
mistakable  as  his  quiet  strength,  his  unswerving  sense  of  jiistice, 
his  aljsolute  honesty.  It  is  not  a  mind  that  moves  by  impulse  or 
in  startling  flashes ;  it  is  a  mind  well  poised  and  of  singular 
hicidity.  that  reaches  its  results  by  logical  principles,  which  do 
not  antagonize,  but  convince. 


270  COMPARL^OX  OF  CANDIDATES. 

THK  TWO   CANDIDATES   COMPARED  AND   CONTRASTED. 

Deiuuvrutic  AnnlyiilM  of  the  Reeuril  and  UiinliflontiuiiM  of  tlie 
Lead i UK'    CaiidiilateM    for    the    FreMideiiey. 

[Prom  the  Pliiladelphiu  ledger,  lud.  Dem..  July  13.  1908.] 

The  fharuc'tcM-  of  the  two  t'onventioiis  tclis  .soiiicthing-  of  the 
difference  in  the  underlying-  spirit  of  the  two  pUitfonns,  but  the 
contrast  between  the  two  types  of  men  standing  as  candidates 
for  i*resident  is  vastly  more  Significant.  It  is  u  contrast  so  great 
that  all  other  considerations  are  obscured  by  it. 

In  general  training-  and  in  administrative  experience  Mr. 
Taft  is  better  equipxjed  for  the  Presidency  than  any  candidate 
within  half  a  century.  All  hiS  mature  life  has  been  spent  in  the 
public  service,  but  never  by  his  own  seeking-.  He  has  been 
intrusted  successively  with  many  most  difficult  tasks — as  Judg-e, 
Commissioner,  (Jovernor,  Secret.iry — requiring  wide  knowledge, 
clear  judgment,  discretion,  firmness,  tact,  and  every  one  of  them 
he  has  fulfilled  with  a  success  that  commanded  admiration  and 
inspired  confidence.  He  has  shown  himself  a  man  of  essentially 
Judicial  temperament,  not  merely  learned  in  the  law,  but 
grounded  in  the  broad  principles  of  justice  and  equity — an  emi- 
nently systematic  mind,  that  considers,  weighs,  arranges  and 
adjusts  and  moves  by  logical  process  to  clear  conclusions.  While 
he  has  never  faltered  before  a  public  duty,  he  has  never  as.serted 
himself,  but  has  sunk  his  own  ambitions  in  the  public  service  for 
which  he  has  been  soiight.  A  calm,  careful,  kindly,  quietly  force- 
ful man,  he  makes  no  fuss,  but  accomplishes  results.  Tf  Taft  is 
Roosevelt's  candidate,  so  much  the  more  credit  to  Roosevelt  for 
choosing  a  man  in  so  many  ways  different  from  himself. 

In  contrast  with  Mr.  Taft's  record  of  successful  achievement, 
Mr.  Bryan  has  practically  no  record  whatever,  except  that  of  a 
public  speaker,  a  politician  and  a  candidate.  His  actual  public 
service  was  confined  to  two  terms  in  the  House  of  Representa- 
tives, where  he  acquired  some  familiarity  with  the  politics  of  the 
caucus,  but  manifested  no  inclination  to  serious  study.  He  was 
an  unsuccessful  candidate  for  the  Senate,  and  then  took  to 
political  journalism  ;  Avas  sent  as  a  delegate  to  the  Democratic 
convention  of  1896.  made  a  silver  speech  that  turned  the  heads 
of  the  crowd,  was  nominated  for  President — and  defeated.  This 
is  the  sum  of  Mr.  Bryan's  experience  in  public  life,  apart  from 
his  travels  as  a  lyceum  lecturer  and  newspaper  writer  and  his 
incessant  activity  in  cultivating  his  political  interests.  He  'has 
never  held  a  post  of  public  responsibility,  even  in  the  legisla- 
tive branch  ;  in  administrative  duties  he  is  wholly  untried,  except, 
as  concerns  the  successful  organization  of  his  own  candidacy. 
He  has  made  this  a  profitable  profession,  and  has  developed 
great  skill  in  the  art  which  Governor  Pennypacker  applauded 
in  Quay — "the  management  of  men  in  masses."  But  that  is  a 
qualification  for  a  "boss."  not  for  a  President. 

Taft's  peculiar  experience  has  come  to  him  because  he  was 
recognized  as  fitted  for  it.  Bryan  has  had  no  such  opportunities. 
This  is  not  only  because  he  has  been  always  in  opposition,  but 
because  his  habit  of  mind  does  not  suggest  his'  responsible  em- 
ployment. His  intellectual  character  is  the  reverse  of  Taft's. 
He  is  active,  ambitious,  assertive.  He  has  the  mental  alertness 
of  the  Western  journalist,  eairer  to  exploit  each  new  idea,  with- 
out stopping  to  go  to  the  bottom  of  it.  and  as  ready  to  drop  it 
and  turn  to  something  else.  He  has  shown  no  power  of  analysis, 
no  grasp  of  fundamental  principles,  no  capacity  for  serious 
study,  no  sense  of  logical  proportion.  In  all  his  treatment  ol 
large  public  questions  he  is  superficial,  rhetorical,  uncertain  and 
untrustworthy.  The  only  broad  grasp  that- he  has  displayed  is 
upon  the  machinery  of  practical  politics,  and  even  here,  with 
his  individual  mastery,  he  is  dangerously  arbitrary  and  erratic. 
Twelve  years  of  persistent  self-seeking  have  not  brought  dis- 
cipline to  a  mind   that  is  fundament-illy   ill-traiiied. 

If  we  assume,  as  we  may,  that_the  nation  will,  in  the  long 
run,  determine  its  own  policies,  and  expect  the  President  to 
execute  them,  which  of  these  two  contrasted  types  is  the  better 
fitted  for  such  duty?  This  is  now  and  will  become  increttsingly 
the  issue  of  the  campaign.  It  is  not  really  a  question  of  Repub- 
lican or  Democrat.  It  is  a  question  of  Taft  or  Bryan,  with  all 
that  each   renresents. 


COMPARISON  OF  CANDIDATES.  271 

[From  the  New  York  Journal  of  Commerce,  Dem.,  July  10,  1908.] 

Bryan  was  the  predestined  candidate,  foreordained  by  his 
own  authority. 

To  his  pevwonality,  which  was  sufficient  to  carry  the  nomina- 
tion, he  had  to  add  a  "platform"  wlierewith  to  carry  the  elecj-) 
tion.  Being  a  personal  attachment,  it  shovdd  rather  be  called 
a  net  for  catching  votes.  Though  many  hands  were  permitted 
to  twist  and  tangle  the  strands  at  Denver,  the  meshes  were  de- 
vised at  Lincoln,  Nebraska,  and  the  "platform"  as  well  as  the 
candidate  is  Bryan-made.  Having  captured  the  party  he  had  bhe 
right  to  prescribe  the  articles  of  its  ci-eed.  Instead  of  being  a 
clear  and  condensed  statement  of  principles,  it  is  the  longest  of 
recorded  dcicuments  of  its  kind,  with  a  lure  for  every  form  of 
discontent  and  a  promise  for  every  eager  demand.  It  is  meant 
to  catch  and  to  hold  all  for  whom  a  bait  comld  be  provided, 
except  those  who  think  and  reason,  form  convictions  for  them- 
selves and  act  upon  principles  that  they  understand.  It  is  a 
tissue  of  appeals  and  not  a  body  of  principles.  It  is  not  an 
outline  for  practical  legislation  or  a  judicious  administration, 
but  a  lure  for  votes  and  will  be  worthless  when  the  election  is 
over.     It  is  not  intended  to  last  beyond  that. 

Will  the  people  of  the  United  States  be  deluded  by  the 
monstrous  claims  and  the  fruitless  promises  of  William  J.  Bryan 
at  this  late  day?  His  appearance  is  not  meteoric  as  when  he 
shone  forth  with  his  crown  of  thorns  and  cross  of  gold  at 
Chicago  twelve  years  ago.  He  is  a  familiar  figure  and  his 
present  exhibition  has  been  worked  up  with  theatrical  artifice. 
It  is  pyrotechnic  and  not  meteoric,  and  all  the  sticks  and  strings 
and  wheels  are  visible  to  the  eye.  The  tumult  and  the  shout- 
ing cannot  be  kept  up  for  months  and  the  people  are  liable  to 
grow  sober  and  go  to  thinking.  Evei-y  constructive  and  conserva- 
tive influence  will  set  to  work  to  save  the  Government  from 
falling  into  the  keeping  of  a  spangled  political  acrobat  and 
mountebank.  His  elevation  to  the  head  of  a  nation  that  has  had 
a  line  of  presidents,  worthy  at  least  of  respect,  for  a  hundred 
and  twenty  years,  would  be  too  absurd  for  a  people  with  a  sense 
of  dignity  and  decorum  as  well  as  of  humor.  He  should  go  to 
a  defeat  this  time  that  will  make  any  subsequent  pretension 
grotesque  even  for  him. 

[From  the  New  York  Evening  Post,   Dem.] 

Every  one  knows  where  Mr.  Taft  will  always  stand ;  no  one 
can  tell  from  year  to  year  where  the  unstable  Bryan  will  land. 


Tliis  eoiiiitr>-  lias  and  this  country  needs  better  paid, 
better  ertuoated.  better  fed.  and  better  clothed  Tvorkinsrmen, 
of  a  liiRlier  type  than  are  to  be  found  in  any  foreign  country. 
It  has  and  it  needs  a  lii«lier,  more  vigorous,  and  more  pros- 
perous tyi.-e  of  tillers  of  tlie  soil  than  is  possessed  by  any 
other  country.— President  Roosevelt  at  Minneapolis,  April  4, 
1903. 

I  believe  it  to  be  highly  beneficial  and  entirely  Ifiwfal 
for  laliorers  to  unite  in  their  common  interests.  They  have 
labor  to  sell,  and  if  they  stand  together  they  are  often 
able,  all  of  them,  to  command  better  prices  for  their  labor 
or  more  advantageous  terms  of  employment  than  when  deal- 
ing singly,  for  the  necessities  of  the  single  employee  may 
compel  him  to  accept  any  terms  ofl'ered  Uim.  The  accumu- 
lation of  funds  for  the  support  of  those  who  propose  to 
enter  into  the  controversy  with  the  employer  by  striking; 
is  one  of  the  legitimate  ol»Jects  of  such  organization.  Its 
members  have  the  right  to  appoint  officers  who  shall 
advise  them  as  to  the  course  to  be  taken  by  them  in  their 
relations  to  their  employer,  and  if  the  members  choose  to 
repose  such  authority  in  any  one  the  officers  may  order 
members,  on  pain  of  expulsion,  <o*join  a  strike.  Having  left 
their  employment  they  have  tbe  right,  by  persuasion  and 
other  peaceable  means,  to  induce  those  who  would  take 
their  places  to  join  the  strike  and  their  union.  They  may 
not  do  this  l»y  violence,  by  threats  of  violence,  or  by  any 
other  conduct  eauivalent  to  duress.  It  is  only  wbe?»  the 
object  is.  not  betterment  of  the  terms  of  their  employment 
or  some  other  lawful  purpose,  but  is  for  an  unla'tvfui  pur- 
pose or  where  the  ineans  they  use  are  unlawful  that  they 
can  be  properly  restrained  by  law.— Hon.  TVm.  H.  Taft, 
in  correspondence  with  President  Llewelyn  liCTVis,  of  the 
Ohio    Federation   of   Labor. 


CAMPAIGN  CONTRIBUTIONS  AND  PUB- 
LICITY, WITH  REFERENCE  TO  RE- 
CEIPTS AND  EXPENDITURES. 

Miich  has  been  said  during  the  past  few  weeks  upon  the 
question  of  campaign  contributions  and  publicity  with  reference 
thereto.  A  careful  analysis,  however,  of  the  utterances  and 
pledges  of  the  two  candidates,  the  two  National  jpomtnittees, 
and  the  law  makers  of  the  two  parties  upon  this  snibject  shows 
that  the  Democl*atie  promises  have  been  in  all  cases  vague  and 
specious  and  in  such  tei*ms  as  to  really  supply  little  of  the  pub- 
licity which  they  purport  to  supply;  while  the  Kepublicans  have 
already  actually  prohibited,  through  Republican  legislation  in 
Congress,  corporation  contributions  to  campaign  fumis  and  pro- 
vided for  absolute  publicity  far  in  excess  of  that  vaguely  prom- 
ised by  the  Democratic  candidate  and  committee. 

The  Bryan-Taft  Correspondence  on  Publicity. 

The  public  campaign  for  publicity  was  begun  by  Mr.  Bryan, 
when  on  May  27,  1908,  he  sent  to  Mr.  Taft  the  following  tele- 
gram : 

"I  beg  to  suggest  that,  as  leading  candidates  in  our  respective  par- 
ties, we  join  in  asking  Congress  T:o  pass  a  bill  requiring  publication  of 
campaign  contributions  prior  to  election.  If  you  think  best  we  can  ask 
other  candidates  to  unite  with  us  in  the  request. 

To  this  Mr.  Taft  replied  on  May  26th: 

Your  telegram  received.  On  April  30th  last,  I  sent  the  following 
letter  to  Senator  Burrows,  the  Chairman  of  the  Committee  on  Privileges 
and    Elections    of    the    Senate : 

"My  dear  Mr.  Burrows :  I  sincerely  believe  that  it  would  greatly 
tend  to  the  absence  of  corruption  in  politics  if  the  expenditures  for  nomi- 
nation and  election  of  all  candidates  and  all  contributions  received  and 
expenditures  made  by  political  committees  could  be  made  public,  bith 
in  respect  to  State  and  National  politics.  For  that  reason  I  am  strongly 
in  favor  of  the  passage  of  the  bill  which  is  now  pending  in  the  Senate 
and  House,  bringing  about  this  result  so  far  as  national  politic??  is  con- 
cerned. I  mark  this  letter  personal  because  I  am  anxious  t;>  avoid  as- 
suming an  attitude  in  the  campaign  which  it  is  quite  possible  I  shall 
never  have  the  right  to  assume,  but  so  far  as  my  personal  influence  is 
concerned  I   am   anxious  to   give   it   for  the  passage  of  the  bill. 

Very  sincerely  yours,  WILLIAM  H.  TAFT. 

Since  writing  the  above,  in  answer  to  inquiry,  I  have  said  publicly 
that  I   hoped  such  a  bill  would  pass. 

Corporation    Contribntlons. 

The  next  step  in  the  Democratic  campaign  wdth  reference  to 
election  funds  was  the  insertion  in  their  platform  adojited  at 
Denver  in  July,  1908,  of  the  following  plank; 

We  pledge  the  Democratic  party  to  the  enactment  of  a  law  pro- 
hibiting any  corporation  from  contributing  to  the  campaign  fund  and  any 
individual  from  contributing  an  amount  above  a  reasonable  amount  and 
providing  for  thie  publication  before  election  of  all  contributions  above 
a  req.8onable  minimum. 

In  taking  this  second  step  with  reference  to  campaign  funds 
and  pledging  the  Democratic  party  to  the  enactment  of  a  law 
prohibiting  any  corporation  from  contributing  to  the  campaign 
fund,  Mr.  Bryan  and  his  associates  seem  quite  as  late  as  Mr. 
Bryan  was  personally  in  his  proposal  to  Mr.  Taft,  since  it  is 
a  fact  that  the  Republican  party  in  Congress  had,  more  than 
a  year  he  fore  the  meeting  of  the  Democratic  convention,  passed 
in  both  houses  and  enacted  into  law  the  very  proposition  which 
the  Democracy  pledged  themselves  to  accomplish,  viz. :  "prohib- 
iting any  corporation  from  contributing  to  a  campaign  fund." 
The  law  enacted  by  a  Republican  House  and  a  Republican  Senate 
in  January,  1907,  and  signed  by  a  Republican  President  on  Jan- 
uary 26,  1907,  did  the  very  thing  demanded  by  the  IJemocratic 
convention  of  19(i8,  and  did  it  eighteen  months  prior  to  the 
meeting  of  that  convention.  The  Act  passed  in  Januai-y,  1907, 
by  a  Republican  House  and  a  Republican  Senate  and  signed  by 
a  Republican  President  January  26,  1907,  is  as  follows: 

272 


PUBLICITY  OP  CAMPAIGN  COKTRlBtlTIONf^.  273 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  af  the 
United  States  of  America  in  Congress  assembled,  That  it  shall  he  unlawful 
for  any  national  bank  or  any  corporation  organized  by  authority  of  any  laws 
of  Congress  to  malce  a  money  contribution  in  connection  with  any  election 
to  any  political  office.  It  shall  also  be  unlawful  for  any  corporation  what- 
ever to  make  a  money  contribution  in  connection  with  any  election  at  which 
Presidential  and  Vice-Presidential  electors  or  a  Representative  in  Congress 
is  to  be  voted  for  or  any  election  by  any  State  Legislature  of  a  United 
States  Senator.  Every  corporation  which  shall  make  any  contribution 
in  violation  of  the  foregoing  provisions  shall  be  subject  to  a  line  not  ex- 
ceeding five  thousand  dollars,  and  every  officer  or  director  of  any  cor-. 
poration  who  shall  consent  to  any  contribution  by  the  corporation  in 
violation  of  the  foregoing  provisions  shall  upon  conviction  be  punished 
by  a  fine  of  not  exceeding  one  thousand  and  not  less  than  two  hundred  and 
fifty  dollars,  or  by  imprisonment  for  a  term  of  not  more  than  one  year, 
of  both  such  fine  and  imprisonment  in   the  discretion  of  the  court.  - 

Thus  in  the  second  step  in  the  Democratic  campaign  with 
reference  to  political  funds,  they  find  themselves  following  along 
lines  in  which  the  llepublicans  had  already  taken  action. 

Publicity    Before    Election. 

Not  only  had  the  ReiJublicans,  long  before  this  recommen- 
dation of  the  Democratic  National  convention  enacted  a  law 
prohibiting  corporation  contributions  to  campaign  funds,  but  the 
Kepublican  party  in  the  House  had,  by  unanimous  vote  of  its 
members,  passed  an  Act  requiring  complete  publicity  of  all  cam- 
paign contributions,  this  publicity  to  be  made  through  state- 
ments filed  with  the  Clerk  of  the  House  of  Representatives 
NOT  LESS  THAN  TEN  DAYS  BEFOKE  THE  ELECTION  FOK 
WHICH  THESE  FUNDS  WERE  CONTRIBUTED.  Eoery  vote 
cast  for  this  J)ill  was  cast  hy  a  Pepublican,  and  every  vote  cast 
against  it  was  cast  hy  a  Democrat.  ■  ^ 

While  the  Democratic  vote  was  ostensibly  cast  against  the 
bill  because  of  the  fact  that  it  required  a  report  from  the  Census 
with  reference  to  the  number  of  votes  cast  in  Southern  States 
and  a  comparison  thereof  with  the  number  of  white  and  colored 
citizens  of  voting  age,  the  fact  remains  that  the  Democratic 
party  in  Congress,  irrespective  of  sectional  lines,  preferred 
to  sacrifice  complete  i:)ublicity  in  campaign  contributions  and 
expenditures  rather  than  couple  with  it  i^ublicity  regarding  the 
suppression,  by  their  own  party  leaders,  of  the  elective  franchise 
as  guaranteed  by  the  Constitution  of  the  United  States. 

Democratic  Pledge  of  Publicity  Relates  to  Only   a  Part   of  Its 

Fund. 

Another  important  contrast  between  the  methods  proposed 
by  the  Democratic  candidates  and  committee  and  those 
proposed  by  the  Republican  candidates  and  committee  is  in 
the  EXTENT  to  which  publicity  is  to  be  carried  in  reference 
to  the  amount  of  contributions  received.  The  Democratic  com- 
mittee, on  the  recommendation  of  Mr.  Bryan  and  Mr.  Kern, 
passed  a  resolution  at  its  meeting  at  Fairview,  Mr.  Bryan's 
residence,  to  the  effect  that  "it  will  accept  no  indiHdual  con- 
tribution above  $10,000,  and  that  it  will  make  public  before 
election  all  individual  contributions  above  $100.''  This  promise, 
therefore,  is  merely  that  the  committee  will  make  public  before 
election  a  statement  of  all  contributions  ABOVE  ONE  HUN- 
DRED DOLLARS  in  amount,  but  it  makes  no  promise  that  any 
statement  will  be  made  of  the  total  sum'  received,  the  sums 
which  it  proposes  to  publish  being  simply  "ALL  INDIVIDUAL 
CONTRIBUTIONS  ABOVE  ONE  HUNDRED  DOLLARS."  Thus 
all  contributions  reaching  the  committee  in  checks  or  sums  less 
than  $100  would  not  be  subject  to  publication  or  announcement 
of  any  kind.  Under  this  proviso  of  the  Democratic  publicity 
plan,  those  desiring  to  avoid  publicity  in  contributions  in  excess 
of  $100  could  readily  do  so  by  dividing  the  proposed  gift  into 
as  many  separate  contributions  of  $100  or  less  as  might  be  re- 
quired to  make  the  total  of  the  larger  sum. 

As  illustrating  the  misleading  and  vague  nature  of  these 
Democratic  promises,  it  is  not  improper  to  call  attention  to 
the  fact  that  Mr.  Bryan,  in  the  same  issue  of  the  Commoner 
in  which  he  announces  with  a  flourish  of  trumpets  this  action 
as  having  been  taken  upon  the  recommendation  of  himself  arid 
Mr.  Kern,  makes  an  ai^peal  to  the  farmers  of  the  United  States, 


874  PUBLICITY  OF  CAMPAIGN  CONTRIBUTIONS. 

an  appeal  signed  by  himself  and  Mr.  Kern  as  the  candidates 
of  the  Democratic  party,  for  contributions  of  $J00  or  less, 
saying:  "There  are  luindreds  of  thousands  of  fanners  who  are 
abundantly  able  to  contribute  to  the  campaign  fund;  thei-e  are 
thousands  who  could  ^ive  $100  apiece  without  feeling  it;  there 
are  tens  of  thousands  who  could  give  $50  apiece  without  feeling 
it,  and  still  more  who  coidd  give  $25  or  $10  "or  $5."  lie  asks 
the  farmers  to  make  contributions  through  his  own  paper,  the 
Commoner,  to  a  farmers'  fund  to  be  turned  over  to  the  13emo- 
cratic  National  Coirtmittee.  The  last  Census  of  the  United  States 
shows  that  the  total  number  of  farms  in  the  United  States  (and 
therefore  the  total  number  of  farmers)  was,  in  1900  5,739,657  ; 
and  presumably  there  must  be  at  the  present  time  over  6  million 
farmers.  Supposing  one-third  of  these  to  be  Democrats,  this 
would  give  two  million  individuals  appealed  to  by  Mr.  Bryan 
and  Mr.  Kern  to  give  sums  of  $100  downward.  Should  one-half 
of  this  number  respond  to  the  appeal  the  number  of  contri- 
butions from  the  farmers  alone  would  thus  be  1  million.  Sup- 
posing that  their  contributions  were  the  lowest  named  by  Mr. 
Bryan  and  Mr.  Kern — $5  each — this  would  give  from  the  farmers 
alone  a  campaign  fund  of  $5,000,000,  NOT  ONE  PENNY  OF 
WHICH  IS  PROPOSED  TO  BE  IN  ANY  WAY  JIEPOKTED  BY 
THE  DEMOCRATIC  NATIONAL  COMMITTEE  in  its  vaunted 
publicity  of  campaign  contributions,  and  this,  of  course,  would 
also  leave  all  contributions  from  all  other  classes  when  be- 
low $100  in  amount,  likewise  a  matter  of  absolute  secrecy  with 
the    Democratic    National    Committee. 

Contrast  this  incompleteness  of  campaign  publicity  with 
the  plan  proposed  by  the  bill  which  (printed  in  full  on  another 
page  of  this  volume)  passed  the  Republican  House  of  Repre- 
sentatives May  12,  1898,  being  supported  by  every  Republican 
present  and  voted  against  by  every  Democrat  whose  vote 
was  recorded.  That  bill  provided  that  the  treasurers  of 
political  committees  should,  not  less  than  10  days  before  the 
election,  file  with  the  Clerk  of  the  House  of  Representatives  a 
statement  showing  the  name  and  address  of  each  person,  firm, 
association,  or  committee  which  had  coutribiited  $100  or  more; 
also,  THE  TOTAL  SUM  OF  ALL  CONTRIBUTIONS  IN  AMOUNTS 
LESS  THAN  ONE  HUNDRED  DOLLARS,  and,  third,  THE  TOTAL 
SUM  OF  ALL  CONTRIBUTIONS. 

The  promise  of  the  Democratic  National  Committee  is  merely 
to  make  public  a  statement  of  the  amount  received  in  contri- 
butions of  MORE  THAN  $100  EACH.  The  plan  proposed  by  the 
Republicans  and  unanimously  supported  by  them,  was  to  make 
public  before  election  the  total  sum  of  ALL  CONTRIBUTIONS, 
whether  contributed  in  sums  below  or  above  the  $100  line. 

Publicity    aa   to    Expenditures    Proposed    by    Republicans    but 
not  Mentioned  by  Democrats. 

Still  another  and  even  more  striking  contrast  in  the  pub- 
licity plans  proposed  by  the  Democrats  and  those  by  the  Re- 
publicans is  found  in  the  fact  that  the  Democrats  promise 
publicity  merely  with  reference  to  contrihutions,  and  then  only 
as  to  those  exceeding  $100  each,  but  promise  no  publicity  with 
reference  to  the  objects  for  which  any  coutributious  are  EX- 
PENDED; while  the  Republican  plan  proposes  publicity  as  to 
ALL  MONEYS  received  and  all  moneys  EXPENDED.  The  reso- 
lution of  the  Democratic  committee  is  absolutely  silent  as  to 
any  publicity  regarding  expenditures.  The  Act  passed  by  Re- 
publican votes  in  the  House  of  Representatives  provides  that 
the  treasurers  of  political  committees  shall  report  to  the  Clerk 
of  the  House  prior  to  the  election  "an  itemized  statement," 
showing  "the  name  and  address  of  each  person,  firm,  association 
or  committee  to  whom  such  political  committee,  or  any  officer, 
member,  or  agent  thereof  has  disbursed,  contributed,  loaned, 
advanced,  or  promised  any  sum  of  money  or  its  equivalent  of 
the  amount  of  value  of  $10  or  more  and  the  purposes  thereof, 
and  the  TOTAL  SUM  SO  DISBURSED  *  *  *  where  the  amount 
or  value  of  such  disbursement  *  *  *  is  less  than  $10."  The 
lew  of  New  York  State,  under  which  the  Treasurer  of  the  Re- 
publican   National    Committee    promises    to    conduct    his    work 


PUBLICITY  OF  CAMPAIGN  CONTRIBVTIOXS.  275 

of  receipts  and  expenditures  also  requires  complete  statements 
of  "a//  receipts,  expenditures,  (Jishursements  and  liabilities  of 
the  committee  and  of  every  officer,  member  or  other  person  in 
its  behalf." 

To  sum  up :  The  publicity  demand  of  the  Democrats  for 
exclusion  of  corporation  contributions  to  campaig-n  funds  comes 
18  months  after  a  Republican  Cong-ress  had  enacted  and  a  Re- 
publican President  signed  a  law  prohibiting-  such  contributions  ; 
Mr.  Bryan's  belated  proposal  for  an  appeal  to  Congress  in 
behalf  of  publicity  came  weeks  after  Mr.  Taft  had  made  such 
an  appeal  to  Congress,  and  the  kind  of  publicity  promised  by 
the  Democratic  National  Committee  includes  only  a  small  propor- 
tion of  the  sums  which  it  will  receive,  AND  NO  PUBLICITY 
AS  TO  EXPENDITURES;  while  the  Republican  promise  of 
publicity  includes  the  total  of  all  sums  contributed  and  COM- 
PLETE PUBLICITY  AS  TO  EXPENDITURES. 

The     Publicity     Pledges     of     tlie     Democratic     Platform     and 
Committee. 

The  publicity  promise  of  the  Democratic  platform  of  1908 
reads  as  follows : 

"We  pledge  the  Democratic  party  to  tbe  enactment  of  a  law 
prohibiting  any  corporation  from  contributing  to  a  campaign  fund  and  any 
individual  from  contributing  an  amount  above  a  reasonable  maximum,  and 
providing   for  the   publication   before   elections   of   all   such   contributions." 

The  publicity  promise  of  the  Democratic  National  Committee 
of  1908,  adopted  at  the  suggestion  of  Mr.  Bryan  (as  stated  in 
the  "Commoner"  of  July  24,  page  4)  is  as  follows: 

Resolved:  That  the  Democratic  National  Committee,  in  pursuance 
to  the  pledge  given  in  the  National  platform  recently  adopted  at  Denver, 
announces  that  it  will  accept  no  contributions  whatever  from  corporations  ; 
that  it  will  accept  no  individual  contributions  above  $10,000,  and  that  it 
will  make  publication  before  election  of  all  individual  contributions  above 
$100.  Contributions  received  before  October  15th  being  published  on  or 
before  that  date  and  contributions  received  after  that  date  being  published 
on  the  date  upon  which  they  are  received,  and  that  no  contributions  above 
$100  shall  be  accepted  within  three  days  of  the  election." 

Some    Occasions    Wlien    Mr.    Bryan    did    not    Desire    Publicity. 

Mr.  Brj^an's  anxiety  for  publicity  with  reference  to  campaign 
funds  seems  to  be  a  matter  of  comparatively  recent  develop- 
ment, since  charges  have  been  publicly  made  by  the  New  Y^ork 
World  and  other  leading  newspapers  that  Mr.  T.  F.  Ryan,  in 
the  campaign  of  1904,  contributed  a  large  sum  to  the  Demo- 
cratic campaign  fund,  of  which  $20,000  was  sent  to  the  Demo- 
cratic State  Committee  of  Nebraska,  which  was  attempting 
to  elect  a  Democratic  legislature  for  the  purpose  of  sending 
Mr.  Bryan  to  the  Senate ;  and  although  Mr.  Bryan  made  the 
assertion  that  if  it  proved  true  he  would  personallj^  refund  that 
entire  sum,  no  record  has  been  made  of  any  refund  by  him  or  of 
a  disproval  of  the  World's  charges ;  while  Mayor  Dahlman,  of 
Omaha,  in  an  interview  widely  disseminated  frankl^y  admits  the 
receipt  of  a  contribution  from  the  committee,  which  he  says  was 
disbursed  by  him  in  the  vain  effort  to  swing  Nebraska  in  the 
Democratic  column,  and  adds  "the  money  did  good,  and  while 
Roosevelt  carried  the  State  by  something  like  83,000  majority, 
Berge  lost  it  by  less  than  10,000  votes.  If  we  had  had  $15,000 
more  we  would  have  carried  the  State  for  Berge,  our  candidate 
for  Governor." 

Commenting  upon  Mr.  Bi'j^an's  recent  attitude  with  reference 
to  contributions  to  his  campaigns,  the  New  York  World  (Demo- 
cratic) of  June  1,  1908,  has  the  following: 

Mr.  Bryan  says  that  if  Thomas  F.  Ryan  contributed  either  directly 
or  indirectly  to  the  Nebraska  campaign  fund  in  1904  he  will  personally 
repay  every  cent  of  the  contribution.  Why  this  sudden  sensitiveness  in 
regard  to  Mr.  Ryan?  Mr.  Bryan  allowed  the  silver-mine  owners  to  con 
tribute  $288,000  to  his  campaign  fund  in  3  896  and  there  could  be  no  more 
sordid  purpose  than  that  which  prompted  those  contributions.  Mr.  Bryan 
allowed  William  A.  Clark,  of  Montana,  to  contribute  to  his  campaign 
fund,  and  there  -has  been  no  more  notorious  corruptlonist  in  American 
politics.  Mr.  Bryan  gladly  accepted  political  assistance  from  Richard 
Croker,  and  there  is  no  great  mystery  as  to  where  Mr.  Croker  got  it. 
A  candidate  who  could  be  grateful  to  Clark  and  Croker  need  not  be 
overly  squeamish  about  Ryan.  Besides,  Mr.  Ryan's  Nebraska  money  was 
spent  in  a  most  sanctified  cause.  The  Hon.  Jim  Dahlman  proudly  asserts 
that  he  disbursed  it ;  that  not  a  cent  of  it  was  used  to  help  Parker,  and 
that  it  was  all  devoted  to  the  State  campaign.  Had  a  fusion  Legislaure 
been  elected,  Mr.  Bryan  would  have  been  sent  to  the  United  States  Senate, 
and  Mr.   Ryan's  tainted  contributions  would  have  been  doubly  sanctified. 


276  PUBLICITY  OF  CAMPAIdN  COXTRIBUTIOyS, 

The  New  York  World  in  its  special  publication  issued  in 
February,  1908,  entitled  "The  Map  of  Bryan  ism;  Twelve  Years 
of  Denui^of-y  and    Defeat"  says,    ( paj^es   1:3.   Ki  and    14): 

If  the  obvious  self-interest  of  the  silver  miners  in  the  16  to 
1  crusade  carried  on  by  Democrats  and  Populists  in  1896 
had  l)een  as  well  understood  as  it  should  have  been  the  names 
of  these  men  would  be  as  closely  associated  in  the  public  mind 
with  the  Silver  Trust  as  Ro.ckefeller's  is  with  oil  or  AiMuour's 
is  with  beef.  The  ])eople  have  been  made  well  acquainted  in  recent 
years  with  the  names  of  the  men  interested  in  beef,  in  oil,  in 
tobacco,  in  coal,  in  copper,  in  iron  and  steel  and  in  other  com- 
modities the  production  and  sale  of  which  is  believed  to  be  f?ov- 
erned  by  trustsu  Plow  many  of  them  know  or  have  heard  tlie 
names  of  the  producers  of  silver,  in  whose  behalf  you.  Mi-. 
Bryan,  worked  as  zealously  as  any  trust  lawyer  ever  did  for 
his  client?  When  the  Republicans,  after  many  years  of  evasion, 
finally  refiised  to  take  uj)  the  cause  of  the  miners,  the  latter 
naturally  sought  the  assistance  of  the  Populists  and  the  Demo- 
crats, and  their  reception  was  more  cordial  than  they  had  dared 
to  hope  for.  As  you  yourself  will  doubtless  aj2;-ree,  the  most 
powerful  advocate  thus  gained  was  William  Jennings  Bryan,  of 
Nebraska. 

Here  is  a  list  of  some  of  the  gentlemen  who  assisted  in  fi- 
nancing your  theory  that  50  cents'  worth  of  silver  bullion  ought 
to  be  worth  a  dollar : 

Contributions    to    Mr.    Bryan's    CnnipaiKn    Fund. 

Marcus    a    Daly,    Montana,    principal    owner    of    the    Anaconda 
Mine.      This    sum    of    $159,000.00    represents    Mr.    Daly's 

own    contribution    and    sums    collected    by    him     $159,000.00 

David    H.    Moffat,    First    Natioml    Bank,    Denver,    Col 18,000.00 

W.    S.    Stratton,    Colorado     ov.ner    of    Independence    Mine    ..  12.000.00 

William    A.    Clark,    ofc  Montana    45,000.00 

Dennis    Sheedy,    Colodado    National    Bank,    Denver,    Col 7,500.00 

Charles    D     Lane,    of    California    15  000.00 

D.    M.    Hyman,    Denver,    Col 7,500.00 

Other    C-^lorado    mining    intere  ts     6,000.00 

Utah    mining    interests     18,372,70 

The  Treasurer  of  the  fund  was  J.  R.  Walker,  of  Walker 
Bros.,  Bankers,  Salt  Lake  City.  The  chief  individual  con- 
tributors were  as  follows  : 

J.  E.   Bamberger,  President  Daly-West  Mining  Company    ....  250.00 

W.    W.    Chisholme,    Mine    owner    250.00 

John    Beck,    Mine    owner    500.00 

T.    R.    Jones,    Ore    buyer    250.00 

O.    J.    Snlsbury,    Mine   owner 500.00 

Frank   Knox,   President   National   Bank   of  Republic    100.00 

J.    McGregor,    Mine    owner    300. 00 

Centennial    Eureka    Mine    1.500.00 

Daly-West    Mining    Company    500.00 

W.  S.  McCormick.  President  Utah  National   Bank    300.00 

First    National    Sank    of    Park    City    500-00 

Salt    Lake    Valley    Loan    and    Trust    Company     500.00 

Daly    Mining    Company     1,000.00 

Bullion-Beck     Mine     1,000.00 

P.   Farnsworth,   Manager    Bullion-Beck  Mine    250.00 

R.   C.   Chambers   and  others,   owners   Ontario   Mine    2,000.00 

Swansea    Mining    Company    200.00 

Mammoth    Mine     249.00 

Mammoth    Mine   employees 120.00 

Mammoth    Mining    Company    1,000.00 

Eureka    Hill    Mining    Company    242.00 

Gemini    Mining    Company    152.00 

Godiva   Mining   Company    employees    34.00 

Swansea    Mining    Company    69.00 

John    Beck.     Mine    owner     300.00 

Bullion-Beck    Mine    employees     537.00 

Geyser   Mine   employees    116.00 

Horn    Silver    Mine    employees     307.00 

John    Beck    200.00 

Total    contributions    of    the    silver    mine    owners    to    your 

campaign     fund $288,000.00 

These  contributions,  as  you  doubtless  know,  Mr.  Bryan,  were 
all  recorded  in  the  books  of  the  Democratic  National  Com- 
mittee, although  |n  your  eloquent  appeals  for  publicity  of  politi- 
cal contributions  you  have  never  referred  to  the  fact  that  the 
silver  interests  financed  your  Presidential  campaign. 

It  Is  better  for  llils  t'oiiiitry  to  fee«l.  elotlie,  nnd  lionse  our 
««vn  lnl>or  In  this  country  than  to  sni>j>ort  fi»rel>4n  labor  ii| 
other   countries    >vith    our    nione^-.— H.    K.    Thurber. 


PUBUGITY  OF  CAMPAIGN  CONTRIBUTIONS.  277 

The     New     York     World     on     tlie     Ryan     Contribntion     to     the 
iXebraska    Cainpaigrn  Fnnd   of    1904. 

[From  the  New  York  World.  May  30,  1908.] 

After  the  Democratic  National  Convention  of  1904  had  nomi- 
nated Alton  B.  Parker  for  the  Presidency,  William  J.  Bryan 
returned  to  his  home  in  Nebraska  and  began  a  quiet  campaign 
to  secure  for  himself  a  seat  in  the  United  States  Senate.  The 
State  legislature  to  be  elected  in  November,  1904,  would  have 
the  choosing  of  a  senator.  It  was  the  hope  of  Mr.  Bryan  and 
belief  of  his  friends  that  by  an  aggressive  campaign  Nebraska 
could  be  carried  for  the  Democracy  and  that  a  Democratic  legis- 
lature would  elect  him  to  the  senate.  At  the  St.  Louis  conven- 
tion Mr.  Bryan  had  assailed  fiercely  Judge  Parker  as  a  candidate 
of  plutocratic  interests  and  had  attacked  by  name  August  Bel- 
mont and  other  New  Yorkers  who  were  backing  the  Parker 
campaign.  After  a  "week  of  reflection  Mr.  Bryan  announced  in 
a  formal  statement  that  he  would  support  the  ticket,  but  with 
the  following  threat:  "As  soon  as  the  election  is  over  I  shall, 
with  the  help  of  those  who  believe  as  I  do,  undertake  to 
organize  for  the  campaign  of  1908,  the  object  being  to  marshal 
the  friends  of  popular  government  within  the  Democratic  party 
to  a  su})port  of  a  radical  and  progressive  policy  to  make  tht^ 
Democratic  party  an  efficient  instrument  for  securing  relief 
from  the  plutocratic  element  that  controls  the  Republican  party 
and,  for  the  time  being,  is  in  control  of  the  Democratic  party,'' 

Within  two  months  after  this  declaration,  there  was  accepted 
for  Mr.  Bryan's  interests  the  sum  of  $20,000,  contributed  by 
the  prince  of  plutocrats,  Thomas  F.  Ryan. 

T.  S.  Allen  is  the  brother-in-law  of  Wm.  J.  Bryan.  He 
married  a  sister  of  the  Nebraska  candidate.  Mr.  Allen  was 
chairman  of  the  Democratic  State  Central  Committee  of 
Nebraska  in  1904  and  still  holds  that  office.  He  is  the  confidant 
and  recognized  political  agent  of  Mr.  Bryan. 

The  Democratic  National  Campaign  of  1904  was  named 
chiefly  by  August  Belmont  and  Thomas  F.  Ryan.  Each  gave 
$50,000  to  start  the  campaign  fund,  and  after  election  had  to 
make  up  a  considerable  deficiency.  William  F.  Sheehan  and  De- 
Lancey  Nicoll  were  their  principal  political  advisers.  Thomas 
Taggart  held  the  nominal  position  of  chairman  of  the  Committee, 
bit  the  four  men  named  were  in  control.  Mr.  Bryan  knew 
them,  their  records,  and  the  interests  they  had  at  stake. 

p:arly  in  the  fall  of  1904,  Mr.  Allen,  the  brother-in-law  of 
Mr.  J^rj^an,  came  to  New  York  to  consult  the  campaign  man- 
agi>rs  and  to  solicit  funds  to  promote  the  Nebraska  campaign, 
which  had  for  its  principal  object  the  election  of  Mr.  Bryan  to 
the  United  States  Senate.  Mr.  Allen  had  a  conference  with  Mr. 
Sheehan  and  Mr.  Nicoll.  He  did  not  see  Mr.  Ryan,  but  the  two 
lawyers  reported  to  the  financial  backers,  Ryan  and  Belmont, 
the  progress  of  the  negotiations.  As  a  result,  Mr.  Ryan  agreed 
to  contribute  personallj^  $20,000  to  help  along  the  Nebraska 
campaign.  In  order  to  disguise  the  source  of  this  contribution, 
Mr.  Ryan  gave  his  check  to  Mr.  Sheehan,  who  in  turn  gave 
other  checks  for  the  amount  to  Mr.  Allen.  The  New  Y'orl<ers 
believed  they  were  negotiating  with  the  aiithorized  agents  of  Mr. 
Bryan.  Furthermore,  they  gained  a  distinct  impression  that 
they  were  to  receive  something  in  return  for  Mr.  Ryan's  money. 
That  something,  so  they  understood,  was  to  be  Mr.  Bryan's 
open  and  unqualified  support  of  Judge  Parker  in  the  National 
Campaign,  and  further,  that  he  would  let  up  in  his  attacks 
on  the  financiers  who  were  backing  the  campaign.  Mr.  Allen 
accepted  the  $20,000  given  by  Mr.  Ryan  and  went  back  to 
Nebraska  to  spend  it  in  attempts  to  carry  the  State  for  Bryan. 

It  is  on  record  that  Mr.  Bryan  did  come  out  in  favor  of 
Judge  Parker,  indorsing  his  candidacy,  and  made  speeches  urg- 
ing radical  Democrats  to  vote  for  the  party's  nominee.  It  also 
is  noticeable  that  in  his  campaign  speeches  of  the  year  Mr. 
Bryan  did  not  continue  his  assaults  upon  Mr.  Belmont  and  the 
other  financiers  who  were  conducting  the  National  Campaign. 
Mr.  Ryan  thought  for  a  time  that  he  was  getting  his  money's 
worth.  The  election,  however,  dashed  all  plans.  Not  only  was 
Judge  Parker  defeated,  but  Nebraska  did  not  elect  a  Democratic 


278  PUBLICITY  OF  CAMPArON  C0XTRIBVJJ0N8. 

legislature  and  Mr.  Mrvan  was  not  chosen  to  the  United  States 
Senate.  Nebraska,  desijite  Mr.  Ryan's  $20,000,  gave  a  llepubliean 
pbirality  of  86,000  for  IJoosevelt,  and  Mr.  Burkett  was  sent  to 
the  senate  as  a  Hepiihliean.  A  few  days  after  the  election  Mr. 
Bryan  published  in  his  paper,  "The  ('omnioner,"  the  following: 

"The  Democratic  party  ha.s  nothing  to  gain  by  catering  to  organized 
and  predatory  wealth.  It  must  not  only  do  without  such  support,  but 
It  can  strengthen  Itself  by  inviting  open  and  emphatic  opposition  to  those 
elements.  The  campaign  just  closed  shows  that  it  is  inexpedient  from  the 
standpoint  of  policy  as  it  is  wrong  from  the  standpoint  of  principle  to 
attempt  any  conciliation  of  the  industrial  despots  who  are  gradually  getting 
control  of  all  the  avenues  of  wealth." 

In  an  editorial  in  the  issue  in  which  the  above  statement 
was  printed    (May  30,   1908)   the  World  says: 

"Having  been  an  ardent  advocate  of  Campaign  Fund  Publicity,  as 
shown  by  his  telegram  to  Secretary  Taft,  Mr.  Bryan  will  presumably  thank 
the  World  for  affording  publicity  to  T.  F.  Ryan's  contribution  of  $2»0,000 
in  1904  to  help  elect  Mr.  Bryan  to  the  United  States  Senate  from 
Nebraska.  This  money  was  turned  over  to  Mr.  Bryan's  brother-in-law, 
who  was  his  confidential  political  adviser,  as  well  as  chairman  of  the 
State  committee.  That  it  was  intelligently  expended  in  promoting  Mr. 
Bryan's  hopeless  candidacy  we  have  no  doubt,  However  tainted  this 
$20,000  may  have  been  at  its  source,  it  was  sancitified  in  the  uses  to 
which  it  was  put,  just  as  the  $288,000  was  sancitified  which  the  silver 
miners  contributed  in  1896  to  help  elect  Bryan  ani5  create  an  unlimited 
market  for  their  product.  *  •  *  *  Mr.  Ryan's  $20,000,  which  went 
to  aid  Bryanism  in  1904,  adds  a  new  argument  to  the  already  overwhelm- 
ing mass  of  reasons  why  campaign  publicity  should  be  established  by  law." 

Bryan's   Character  as  Revealed   by  the  Ryan   Boodle  Scandal. 

IFrom  the  New  York  Press,   June  6,   1008.] 

William  Jennings  Bryan's  statement  about  the  Ryan  con- 
tribtition  to  the  Nebraska  campaign  in  1904  is  all  that  might 
have  been  expected  ^rom  a  practical  politician  trying  to  take 
the  curse  off  an  ugly  business.  Mr.  Bryan  could  not  look  the 
facts  in  the  face  and  deal  with  them  broadly  and  boldly.  All 
that  he  has  attempted  to  do  is  to  shape  the  cotirse  of  the  inci- 
dent so  as  to  escape  its  worst  effects  on  himself  and  his  party. 

So  he  starts  out  by  giving  his  own  version  of  what  the 
charges  are.  In  order  to  strengthen  his  denial  of  them  he 
selects  the  most  reckless  accusations  about  the  gift  of  the 
$15,000  or  $20,000  by  Mr.  Ryan  and  includes  them  in  the  indict- 
ment. From  the  Democratic  newspaper  most  bitterly  opposed 
to  his  renomination  he  takes  the  charge  that  the  Ryan  boodle  was 
given  to  procure  his  open  and  unqualified  support  of  Judge 
Parker. 

It  is  easy  for  Mr.  Bryan  to  .score  a  point  against  this  charge 
by  pointing  to  the  record,  which  shows  that  he  came  out  for 
Parker  as  soon  as  the  nomination  was  made,  supporting  him 
just  as  strongly  on  the  day  before  election  as  he  did  at  any 
time  before  the  Ryan  money  was  sent  to  Nebraska. 

The  re.st  of  Mr.  Bryan's  formal  statement,  which  refers 
to  the  charges  that  have  not  been  disproved — the  meat  of  the 
dispute — is  a  sad  mess  of  evasion  and  quibble.  Thus  he  quotes 
Brother-] n-Law  Allen  and  Man  Friday  Dahlman  as  declaring  that 
the  money  in  question  came  from  the  National  committee.  "Mr. 
Allen  says  that  he  never  saw  either  Mr.  Sheehan  or  Mr.  Ryan 
and  I  have  no  reason  to  doubt  his  word."  This  does  not  con- 
flict with  the  confession  of  Mr.  Dahlman  that  he  sent  Mr.  Allen 
to  New  York  to  raise  money  for  the  Nebraska  campaign  and 
that  Mr.  Allen  came  back  with  $15,000.  The  denial  does  not 
show  that  the  money  could  not  have  come  from  Ryan  in  spite 
of  the  fact  that  Allen  did  not  see  either  Ryan  or  Sheehan.  Mr. 
Dahlman  does  not  dispute  that  the  money  was  Ryan's.  Mr. 
Br3'an  has  talked  with  Mr.  Allen  about  the  business,  but  he 
does  not  di-sclose  the  name  of  the  particular  individual  who  paid 
over  the  cash  that  the  brother-in-law  took  back  with  him  to 
Nebraska  when  he  came  to  Wall  street  to  get  it. 

Then  the  Democratic  leader  proceeds  from  this  kind  of 
quibbling  to  the  assertion  that  if  Mr.  Ryan  did  give  the  money, 
which  he  still  refuses  to  admit,  it  was  without  his  knowledge 
or  consent.  Furthermore,  Mr.  Bryan  declares  that  in  any  event 
he  "had  but  a  remote  personal  interest  in  the  Nebraska  cam- 
l)aign  that  year."  If  that  is  so  why  does  he  take  such  an  acute 
personal  interest  in  the  Ryan  contribution  to  the  aforesaid 
campaign?    And  how  does  the  Ryan  contribution,  if  it  was  made 


PUBLICITY  OF  CAMPAIGN  CONTRIBUTIOX^'^.  279 

without  his  knowledge  or  consent  to  a  campaign  in  which  he 
had  only  a  remote  personal  interest,  make  him  <jinwilling  to 
be,  in  the  slightest  degree,  obligated  to  any  favor-seeking  c(n-- 
poration?"  If  he  knew  nothing  about  the  Kyan  gift  to  the 
Nebraska  fund  and  had  no  personal  interest  in  the  outcome  of 
that  contest,  he  is  no  more  obligated  to  a  corporation  by  this 
particular  Kyan  gift  than  he  would  be  by  Ryan  boodle  sent 
to  the  New  York  State  Committee  of  his  own  party  or  even  by 
a  liyan  gift  to  the  Republican  State  Committee  of  Pennsylvania 
or  \'irginia.  Why  Mr.  Bryan  should  go  down  in  his  own'pocket 
to  reimburse  Mr.  Ryan  in  the  circumstances  described  by  the 
Nebraskan   is  a   question   that  may   well   puzzle   anybody. 

Yet  the  Democratic  candidate  for  the  Presidency  does  not 
absolutely  bind  himself  to  return  to  Mr.  Ryan  the  contribu- 
tion of  which  he  had  no  knowledge  made  to  a  campaign  in  which 
he  had  only  a  "remote  personal  interest."  Last  week  he  pledged 
himself  to  make  restitution  if  Mr.  Ryan  contributed  the  money. 
Now  he  qualifies  this  promise  by  demanding  that,  as  a  condition 
of  the  reimbursement,  a  particular  Nevv'  York  newspaper  which 
he  names  shall  prove  that  Mr.  Ryan  gave  the  money  "with  the 
understanding  that  it  would  be  used  in  the  Nebraska  campaign." 
Inasmuch  as  ^Ir.  Bryan  inferentially  reserve^^  the  right  to  be 
the  sole  judge  of  whether  the  proof  is  sufficient  he  has  a  large 
loophole  through  which  he  can  welch  on  his  promise  to  make 
restitution  to  the  New  Y^ork  Fortunatus. 

Ihis  incident  is  6f  no  great  consequence  in  itself  in  •  a 
contest  which  already  has  been  marked  by  the  lavish  secret 
use  of  funds,  and  it  is  almost  academic  in  relation  to  the  dead 
past  of  the  1904  campaign.  But  it  is  of  immense  importance  in 
so  far  as  it  reveals  the  character  and  attitude  of  vne  man 
who  will  be  one  of  the  nominees  for  the  Presidency  uf  th-^ 
United    States. 

Tlie   Publicity  Bill   Passed  by   Republjeau   Azotes  in   tlie  House 
•  and    Oi>i>osed    by   all    Democrats. 

A  bill  (H.  R.  20112)  providing  for  publicity  of  contributions 
made  for  the  purpose  of  influencing  elections  at  which  Represent- 
atives in  Congress  are  elected,  prohibiting  fraud  in  registrations 
and  elections,  and  providing  data  for  the  apportionment  of  l{ep- 
resentatives  among  the  States. 

Be  it  enacted,  etc..  That  the  term  "political  committee"  under  the 
provisions  of  this  act  shall  include  the  national  committees  of  all  p'o- 
litical  parties  and  the  national  Congressional  campaign  committees  of 
all  political  parties  and  all  committees,  associations,  or  organizations 
which  shall  in  tw'o  or  more  States  influence  the  result  or  attempt  to  in- 
fluence tne  result  of  an  election  at  whicli  Representatives  in  Congress 
are  to  be  elected. 

Sec.  2.  That  every  political  committee  as  defined  in  this  act  shall 
have  a  chairman  and  a  treasurer.  It  shall  be  the  duty  of  the  treasurer 
to  keep  a  detailed  and  exact  account  of  all  money  or  its  equivalent  re- 
ceived by  or  promised  to  such  committee  or  any  member  thereof,  or  by 
or  to  any  person  acting  under  its  authority  in  its  behalf,  and  the 
name  of  every  person,  firm,  association,  or  committee  from  whom  re- 
ceived, and  of  all  expenditures,  disbursements,  and  promises  of  pay- 
ment or  disbursement  made  "by  the  committee  or  any  member  thereof, 
or  by  any  pers'on  acting  under  its  authority  or  in  its  behalf,  and  to  whom 
paid,  distributed,  or  disbursed.  No  officer  or  member  of  such  committee,  or 
other  person  acting  under  its  authority  or  in  its  behalf,  shall  receive  any 
money  or  its  equivalent,  or  expend  or  promise  to  expend  any  money  on  be- 
haii  of  such  committee  until  after  a  chairman  and  treasurer  of  such  qom- 
mittee  shall  have  been  chosen. 

Sec.  3.  That  every  payment  or  disbursement  made  by  a  political  com- 
mJttee  exceeding  $10  in  amount  be  evidenced  by  a  receipted  bill  stating  the 
particulars  of  expense,  and  every  such  record,  voucher,  receipt,  or  ac- 
count shall  be  preserved  for  fifteen  months  after  the  election  to  which  it 
relates. 

Sec.  4.  That  whoever,  acting  under  the  authnrity  or  in  behalf  of 
such  inlitical  committee,  whether  as  a  member  thereof  or  otherwise,  re- 
ceives any  contribution,  payment,  loan,  gift,  advance,  deposit,  or  promise 
of  money  or  its  equivalent,  shall,  on  demand,  and  in  any  event  within  five 
days  after  the  receipt  of  suoh  contribution,  paym.ent,  loan,  gift,  advance,  de- 
posit, or  promise,  render  to  the  treasurer  of  such  political  committee  a 
detailed  account  of  the  same,  together  with  the  name  and  address  from  whom 
received,  and  said  treasurer  shall  forthwith  enter  the  same  in  a  ledger  or 
record  to  be  kept  by  him  for  that  purpose.  , 

Sec.  5.  That  the  treasurer  of  such  political  committee  shall,  mot  more 
than  fifteen  days  and  not  less  than  ten  days  before  an  election  at  which 
Representatives  in  Congress  are  to  be  elected  in  two  or  more  States,  file 
in  the  oflRce  of  the  Clerk  of  the  Hnu«e  of  Representatives  at  Washington, 
D.  C  ,  with  said  Clerk,  an  itemized  detailed  statement,  sworn  to  by  said 
treasurer  and   conforming   to  the    requirements   of   the   following   section   of 


280  J'UBLICITY  OF  CAMPAIGN  COyTRUiUTKmS. 

this  act.  It  snail  also  be  the  duty  of  said  treasurer  to  flk'  a  similar  and 
final  .--tatouicnt  with  said  Clerk  within  thirty  days  after  such  election,  such 
final  statinitnt  also  to  be  sworn  to  by  said  ^treasurer,  and.  to  conform  to 
the  requiicuicnts  of  the  following  section  pf^thla  act.  The  stattinents  so 
filed  with  the  Clerk  of  the  House  shall  be  preserved  by  him  for  fifteen 
months,  and  shall  be  a  part  of  the  public  records  of  his  office,  and  shall 
be  open  to  public  inspectioir. 

Skc.  6.  That  the  statements  required  by  the  preceding  section  of  this 
act  shall   state  : 

First.  The  name  and  address  of  each  person,  firm,  association,  or  com- 
mittee who  or  which  has  contributed,  promised,  loaned,  or  advanced  to 
such  polltkal  committee,  or  any  officer,  member,  or  agent  thereof,  either  in 
one  or  more  items,  mjDney  or  Its  equivalent  of  the  aggregate  amount  or 
value  of  $100  or  more. 

Second.  The  total  sum  contributed,  promised,  loaned,  or  advanced  to 
such  political  committee,  or  to  any  officer,  member,  or  agent  thereof,  in 
amounts    less   than    $100  ; 

Third.  The  total  sum  of  all  contributions,  promises,  loans,  and  ad- 
vances received  by  such  political  committee  or  any  officer,  member,  or 
agent  thereof ; 

Fourth.  The  name  and  address  of  each  person,  firm,  association,  or 
committee  to  whom  such  political  committee,  or  any  officer,  member,  or 
agent  thereof,  has  disbursed,  distributed,  contributed,  loaned,  advanced,  or 
promised  any  sum  of  money  or  its  equivalent  of  the  amount  or  value  of  $10 
or  more,  and  the  purpose  thereof  ; 

Fifth.  The  total  sum  disbursed,  distributed,  contributed,  loaned,  ad- 
vanced, or  promised  by  such  political  committee,  or  any  officer,  member, 
or  agent  thereof,  where  the  amount  or  value  of  such  disbursement,  distri- 
bution, loan,  advance,  or  promi.se  to  any  one  person,  firm,  association,  loan, 
advance,  or  pl-omise  to  any  one  person,  firm,  association,  or  committee  in 
one  or  more  items  is  less  than  $10  ; 

Sixth.  The  total  sum  disbursed,  distributed,  contributed,  loaned,  ad- 
vanced, or  promised  by  such  political  committee  or  any  officer,  member,  or 
agent  thereof. 

Sec.  7.  That  every  person,  firm,  association,  or  committee,  except  po- 
litical committees  as  hereinbefore  defined,  that  shall  expend  or  promise  any 
sum  of  money  or  other  thing  of  value  amounting  to  $'50  or  more  for  the 
purpose  of  influencing  or  controlling,  in  two  or  more  States,  the  result  of 
an  election  at  which  Representatives  to  the  Congress  of  the  United  States 
are  elected,  unless  he  or  it  shall  contribute  the  same  to  a  political  com- 
mittee as  hereinbefore  defined,  shall  file  the  statements  of  the  same  under 
oath  as  required  by  section  6  of  this  act  in  the  office  of  the  Clerk  of  the 
House  of  Representatives,  at  Washington,  D.  C,  which  statements  shall  be 
held  by  said  clerk  in  all  respects  as  required  by  section  5  of  this  act. 

Sec.  8.  That  any  person  may  in  connection  with  such  election  incur 
and  pay  from  his  own  private  funds  for  the  purpose  of  influencing  or  con- 
trolling, In  two  or  more  States,  the  result  of  an  election  at  which  Repre- 
sentatives to  the  Congress  of  the  United  States  are  elected,  all  personal 
expenses  for  his  traveling  and  for  purposes  incidental  to  traveling,  for  sta- 
tionery and  postage,  and  for  telegraph  and  telephone  service,  without  being 
subject  to  the  provisions  of  this  act. 

Sec.  9.  That  the  foregijing  provisions  of  this  act  shall  not  apply  to  the 
proprietors  and  publishers  of  publications  issued  at  regular  intervals  in  re- 
spect to  the  ordinary  conduct  of  their  business,  and  nothing  contained  in 
this  act  shall  limit  or  affect  the  right  of  any  person  to  spend  money  for 
proper  legal  expenses  in  maintaining  or  contesting  the  results  of  any  elec- 
tion. 

Skc.  10.  That  every  person  willfully  violating  any  of  the  foregoing 
provisions  of  this  act  shall,  upon  conviction,  be  fined  not  more  than  $1,000 
or  imprisoned  not  more  than  one  year,  or  both. 

Sec.  11.  That  if,  at  any  election  for  Representative  or  Delegate  In 
Congress,  or  at  any  primary  election  for  the  nomination  of  a  candidate 
for  Representative  or  Delegate  in  Congress  held  in  pursuance  of  State  or 
Territorial  law,  any  person  knowingly  personates  and  votes,  or  attempts 
to  vote,  in  the  name  of  any  other  person,  whether  living,  dead,  or  fictitious  ; 
or  votes  more  than  once  at  the  same  election,  or  primary  election,  for  any 
candidate  for  the  same  office;  or  votes  at  a  place  where  he  may  not  be 
lawfully  entitled  to  vote  ;  or  votes  without  having  a  lawful  right  to  vote ; 
or  does  any  unlawful  act  to  secure  an  opportunity  to  vote  for  himself,  or 
any  other  person:  or  by  force,  threat,  intimidation,  bribery,  reward,  or 
offer  thereof,  unlawfully  prevents  any  qualified  voter  of  any  State  or  of 
any  Territory  from  freely  exercising  the  right  of  suffrage,  or  by  any  such 
means  induces  any  voter  to  refuse  to  exercise  such  right,  or  compels  or  in- 
duces by  any  such  means  any  ofiicer  of  an  election  or  primary  cfecLion  In 
any  such  State  or  Territory  to  receive  a  vote  from  a  person  not  legally 
qualified  or  entitled  to  vote,  or  interferes  in  any  manner  with  any  officer 
of  such  election  or  primary  election  in  the  discharge  of  his  duties,  or  by  any 
such  means  or  other  unlawful  means  induces  any  ofllcer  of  an  election 
or  primary  election,  or  officer  whose  duty  it  is  to  ascertain,  announce,  or 
declare  the  result  of  such  election  or  primary  election,  or  give  or  make 
any  certificate,  document,  or  evidence  in  relation  thereto,  to  violate  or  re- 
fuse to  comply  with  his  duty  or  any  law  regulating  the  same,  or  knowingly 
receives  the  vote  of  any  person  not  entitled  to  vote,  or  refuses  to  receive 
the  vote  of  any  person  entitled  to  vote,  or  aids,  counsels,  procures,  or  ad- 
vises any  such  voter,  person,  or  officer  to  do  any  act  hereby  made  a  crime 
or  omit  to  do  any  duty  the  omission  of  which  is  hereby  made  a  crime, 
or  attempts  to  do  so,  he  shall  be  punished  by  a  fine  of  not  more  than  $500 
or  by  imprisonment  not  more  than  three  years,  or  by  both,  and  shall  pay 
the  costs  of  the  prosecution. 

Sec.  12.  That  if  at  any  registration  of  voters  for  an  election  for  Rep- 
resentative or  Delegate  in  Congress,  or  for  any  primary  election  for  the 
nomination  of  a  candidate  for  Representative  or  Delegate  in  Congress  held 
in  pursuance  of  State  or  Territorial  law,  any  person  knowingly  per.sonates 
and  registers,  or  attempts  to  register  in  the  name  of  any  other  person, 
whether  living,  dead,  or  fictitious,  or  fraudulently  registers  or  fraudulently 
attempts  to  register,  not  having  a  lawful  right  so  to  do,  or  does'  any  unlaw- 


PUBLICITY  OF  CAMPAIGN  CONTRIBUTIONS.  281 

fill  act  to  secure  registration  for  him  or  any  other  person,  or  by  force, 
threat,  menace,  intimidation,  bribery,  reward,  or  offer,  or  promise  thereof, 
or  other  unlawful  means,  prevents  or  hinders  any  person  having  a  lawful 
right  to  register  from  duly  exercising  such  right,  or  compels  Or  induces 
by  any  iDf  such  means,  or  other  unlawful  means,  any  oilicer  of  registration 
to  admit  to  registration  any  person  not  legally  entitled  thereto,  or  interferes 
in  any  manner  with  any  officer  of  registration  in  the  discharge  of  his  duties, 
or  by  any  such  means,  or  other  unlawful  means,  induces  any  officer  of 
registration  to  violate  or  refuse  to  comply  with  his  duty  or  any  law  regu- 
lating the  same,  or  if  any  such  olTicer  knowingly  and  willfully  registers  as 
a  voter  any  person  not  entitled  to  be  registered,  or  refuses  to  so  register 
any  person  entitled  to  be  registered,  or  if  any  such  officer  or  other  person 
who  has  any  duty  to  perform  in  relation  to  such  registration  or  election 
or  primary  election,  in  ascertaining,  announcing  or  declaring  the  result 
thereof,  or  in  giving  or  making  any  certificate,  document,  or  evidence  in  re- 
lation thereto,  knowingly  neglects  or  refuses  to  perform  any  duty  required 
by  law,  or  violates 'any  duty  imposed  by  law,  or  does  any  act  unauthorized  by 
law  relating  to  or  affecting  such  registration  or  election  or  primary  elec- 
tion, or  the  result  thereof,  of  any  certificate,  document,  or  evidence  in  relat- 
tion  thereto,  or  if  any  person  aids,  counsels,  procures,  or  advises  any  such 
voter,  person,  or  officer  to  do  any  act  hereby  made  a  crime,  or  to  omit  any 
act  the  omission  of  which  is  hereby  made  a  crime,  every  such  person  shall 
be  punished  by  a  fine  of  not  more  tlian  $500  or  by  imprisonment  not  more 
than  three  years,  or  by  both,  and  shall  pay  the  costs  of  the  prosecution. 

Every  registration  made  under  the  laws  of  any  State  or  Territory  for 
any  State  or  other  election,  or  primary  election  at  which  such  Representa- 
tive or  Delegate  in  Congress  may  be  nominated  or  elected,  shall  be  deemed 
to  be  a  rep'istration  within  the  meaning  of  this  section,  notwithstanding 
such  registratipn  is  also  made  for  the  purposes  of  any  State,  Territorial,  or 
municipal  election,  or  primary  election. 

Sec.  13.  That  every  officer  of  an  election  at  which  any  Representative 
or  Delegate  in  Congress  is  voted  for,  or  any  primary  election  for  the  nom- 
ination of  a  candidate  for  Representative  or  Delegate  in  Congress,  whether 
such  officer  of  election  be  appointed  or  created  by  or  under  any  law  or  au- 
thority of  the  United  States,  or  by  or  under  any  State,  Territorial,  district, 
or  municipal  law  or  authjarity,  who  neglects  or  refuses  to  perform  any  duty 
in  regard  to  such  election  or  primary  election  required  of  him  by  any  law 
of  the  United  States,  or  of  any  State  or  Territory  thereof,  or  who  violates 
any  duty  so  imposed,  or  who  knowingly  does  any  acts  thereby  unauthorized 
with  intent  to  affect  any  such  election  or  primary  election  or  tne  result 
thereof,  or  who  fraudulently  makes  any  false  certificate  of  the  result  of  such 
election  or  primary  election  in  regard  to  such  Representative  or  Delegate, 
or  who  withholds,  conceals,  or  destroys  any  certificate  of  record  so  re- 
quired by  law  respecting  the  election  of  any  such  Representative  or  Dele- 
gate or  primary  election  for  the  nomination  of  a  candidate  for  such  Rep- 
resentative or  .Delegate,  or  who  neglects  or  refuses  to  make  and  return 
such  certificate  as  required  by  law,  or  who  aids,  counsels,  procures,  or  ad- 
vises any  voter,^,  person,  or  officer  to  do  any  act  by  sections  11  or  12  thereof 
made  a  crime,  or  to  omit  to  do  any  duty  the  omission  of  which  is  by  this 
or  any  of  such  sections  made  a  crime,  or  attempts  to  do  so,  shall  be  punished 
by  a  fine  of  not  more  than  $500  or  by  imprisonment  not  more  than  three 
years,  or  by  both,  and  shall  pay  the  oDsts  of  the  prosecution. 

Sec.  14.  That  for  the  purpose  of  enabling  Cjngrts.s  to  apportion  Rep- 
pre?-entatives  among  the  several  States  in  accordance  with  the  plan  pro- 
vided in  the  second  section  of  the  fourteenth  amendment  to  the  C'onsitution, 
the  Director  of  the  Census,  as  soon  as  practicable  after  each  decennial  cen- 
sus of  population,  shall  submit  to  Congress  a  report  of  the  population  by 
States  as  shown  by  such  census,  which  report  shall  also  show  the  number 
of  male  citizens,  white  and  colored,  respectively,  in  each  State,  21  years 
of  age  and  over,  the  number  of  such  male  citizens  in  each  State  found  to 
be  illiterate,  the  number  of  votes  cast  by  male  citizens  in  each  Congres  ional 
district  at  the  last  preceding  general  election,  the  number  of  such  male 
citizens  in  each  State  that  had  not  complied  with  the  registration  and  elec- 
tion laws  therein  requiring  the  payment  of  a  poll  or  property  tax  as  a  con- 
dition precedent  to  the  right  to  register  or  vote,  and  the  number  of  such 
male  citizen  in  each  State  to  whom  the  right  to  vote  at  any  election  for 
tue  choice  of  electors  for  President  and  Vice-President  of  the  United  States, 
Representatives  in  Congress,  the  executive  and  judicial  offices  of  the  State 
or  members  of  the  legislature^ tliereof,  has  been  denied  or  in  any  way 
abridged  except  for  participation  in  crime. 

Sec.  15.  'that  all  prosecutions  under  this  act  shall  be  commenced  within 
one  year  after  the  commission  of  the  offense,  and  shall  be  brought  in  the 
United  States  circuit  court  within  the  district  in  which  such  offense  oc- 
curred. 

The  bill  passed  the  house  by  a  vote  of  161  to  126,  the  Repub- 
licans voting  solidly  in  the  affirmative,  including  the  Speaker, 
the  Democrats  in  the  negative. 

In  the  Senate  the  bill  was  referred  to  the  Committee  on  Privi- 
leges and  Elections  and  was  not  reported  because  of  the  threat 
of  Democratic  Senators  that  they  would  filibuster  and  kill  it  by 
talking  it  to  death. 

New  York  World  of  May  28,  1908,  says  of  the  Bemocratic 
vote  in  the  Hoiise  of  Representatives  against  the  bill  pro- 
viding for  the   publicity   of   campaign   contributions: 

"They  proved  by  their  votes  that  they  are  much  less  agitated 
about  full  publicity  of  campaign  contributions  than  about  full 
publicity    of    negro    disfranchisement." 


WILLIAM  JENNINGS  BRYAN. 


Mr.  llryau  uu  Guveriinient  Ownei'MUli)  uf  ItuilruudM. 

[At  Madison  Square  Garden,  New  York,  Aug.  30,  1906.1 

The  railroacl  que.stion  is  also  interwoven  with  the  trnst 
question.  ^Nearly  all  the  private  monopolies  have  received  re- 
bates or  have  secured  other  advantages  over  competitor.s.  Abso- 
lute equality  ot  treatment  at  the  hands  of  the  railroads  would 
go  far  toward  crippling-  the  trusts,  and  I  rejoice  that  tiic 
President  has  had  the  courage  to  press  this  question  upon 
Congress.  While  the  law,  as  it  was  finally  distorted  by  tlie 
>3enate,  is  not  all  that  couUl  be  wished^  it  deserves  a  fair  triaL 

J{ate  regulation  was  absolutely  necessary,  and  it  furnishes 
some  relief  from^  the  unbearable  conditions  which  previously 
existed;  but  we  must  not  forget  that  the  vesting  of  this 
enormous  power  in  the  hands  of  a  commission  appointed  by 
the  President  introduces  a  new  danger.  If  an  appointive  boarcJ 
has  the  power  to  fix  rates  and  can  by  the  exercise  of  that 
power  increase  or  decrease  by  hundreds  of  millions  of  dol- 
lars the  annual  revenues  of  the  railroads,  will  not  the  rail- 
roads feel  that  they  have  a  large  pecuniary  interest  in  the 
election  of  a  President  friendly  to  "  the  railroads?  Experi- 
ence has  demonstrated  that  mnnicipal  corruption  is  largely 
traceable  to  the  fact  that  franchise  corporations  desire  to 
control  the  city  council  and  thus  increase  their  dividends,  it 
railroad  managers  adojit  the  same  policy  the  sentiment  in 
favor  of  the  ownership  of  the  railroads  by  the  Government  is 
likely  to  increase  as  rapidly  throughout  the  country  as  the 
sentiment  in  favor  of  municipal  ownership  has  increased  in 
the    cities.  • 

I  have  already  reached  the  conclusion  that  railroads  par- 
take so  much  of  the  nature  of  a  monopoly  that  they  must 
ultimately  become  public  ]iroperty  and  be  manay-ed  by  public 
officials  in  the  interest  of  the  whole  community,  in  accordance 
with  the  well  defined  theory  that  public  ownership  is  nec- 
essary where  competition  is  impossible. 

1  do  not  know  whetlier  a  majority  of  the  members  of  the 
party  to  which  f  have  the  honor  to  belong  believe  in  the 
government  ownership  of  railroads^  but  my  theory  is  that 
no  man  can  call  a  mass  convention  to  decide  what  he  himself 
shall  think.  I  have  reached  the  conclusiou  that  there  will 
be  no  permanent  relief  on  the  railroad  question  from  dis- 
crimination between  individuals  and  between  places,  and  from 
extortionate  rates,  until  the  railroads  are  the  property  of  the 
Government  and  operated  by  the  Government  in  the  interests 
of  the  people. 

And  I  believe — I  believe  that  there  is  a  growing  belief  in 
all  parties  that  this  solution,  be  it  far  or  near,  is  the  iiltimate 
solution.  But,  my  friends,  to  me  the  dangerous  centralization 
is  a  danger  that  cannot  be  brushed  aside.  The  greatest  danger 
of  a  republic  is  the  consolidation  of  all  power  at  the  capi- 
tal remote  from  the  people,  and  because  I  believe  that  the 
ownership  of  all  the  railroads  by  the  Federal  Government 
would  so  centralize  power  as  to  virtually  obliterate  State 
lines,  instead  of  favoring  the  Federal  ownership  of  all  rail- 
roads, I  favor  the  Federal  ownership  of  trunk  lines  only,  and 
the  State  ownership  of  all  the  rest  of  the  railroads. 

Some  Ifave  said  that  it  would  be  impracticable  to  allow 
the  local  lines  to  be  owned  by  the  several  States.  T  did  not 
believe  the  argument  weighty  before  T  went  abroad,  and  my 
6bser^ations  in  other  lands  have  convinced  me  that  State 
nWnership  of  local  lines  is  entirely  feasible.  Tn  Germany 
almost  all  the  railroads  are  owned  not  by  the  Empire,  but 
by  the  several  States — not  even  the  trunk  lines  ,are  owned 
by  the  Federal  Government,  and  yet  they  have  no  difficulty  about 
interstate  traffic. 

282 


WILLIAM  JENNINGS  BRYAN.  283 

T  have  simply  iiieniioiied  this  because  you  cannot  well  dis- 
cuss the  trust  question  without  discussing  the  railroad  ques- 
tion, and  wliile  I  i-eg-ard  the  railroad  question  as  it  now  pi'e- 
sejiTs  itself^  as  a  part  of  the  trust  question,  and  not  a  para- 
mount issue,  I  could  not  in  frankness  withhold  my  views  on 
this  subject  and  therefore,  I  have  said  what  I  said. 

[At  Louisville,  Ky.,  Septembtjr  12,  1906.] 
In  my  speech  at  the  New  York  reception  I  made  some 
remarks  concerning  the  government  ownership  of  railways, 
and  thought  I  had  expressed  myself  so  clearly  that  my  po- 
sition could  not  be  misconstrued,  even  by  those  who  desired 
to  misconstrue  it.  The  New  York  speech  was  prepared  in 
advance.  It  was  not  only  written,  but  it  was  carefully  revised. 
It  stated  exactly  what  it  wanted  to  state,  and  i  have  nothing 
to  withdraw  or  modify  in  the  statements  therein  made.  What  I 
say  to-night  is  rather  in  the  nature  of  an  elaboration  of  the 
ideas  therein  presented. 

After  quoting  from  the  Democratic  platform  of  1900  that 
"a  private  monopoly  is  indefensible  and  intolerable,"  and  after 
laying  it  down  as  a  principle  that  public  ownership  should 
begin  where  competition  ends  and  that  the  people  should  have 
the  benelit  of  any  monopoly  that  might  be  found  necessary, 
I  stated  that  I  had  reached  the  conclusion  "that  railroads 
partake  so  much  of  the  nature  of  a  monopoly  that  they  must 
ultimately  become  public  property  and  be  managed  by  public 
officials  in  the  interest  of  the  whole  community." 

I  do  not  know  that  the  country  is  reauy  for  this  legis- 
lation. I  do  not  know  that  the  maiority  of  my  own  party 
favors  it,  but  I  believe  an  increased  number  of  the  mem- 
bers of  all  parties  see  in  public  ownership  a  sure  remedy  for 
discrimination  between  persons  and  places  and  for  the  ex- 
toi-tionate  rates  for  the  carrying  of  freight  and  passengers. 

I  then  proceeded  to  outline  a  system  of  public  owner- 
ship wherebv  the  advantages  of  -public  ownership  might  be 
secured  to  the  people  without  the  dangers  of  centralization. 
This  system  contemplates  Federal  ownership  of  the  trunk 
lines  only,  and  the  ownership  of  local  lines  by  the  several 
States. 

I  further  expressed  it  as  my  opinion  that  the  railroads 
themselves  were  responsible  for  the  growth  of  the  sentiment 
in  favor  of  public  ownership  and  said  that,  while  I  believed 
the  rate  bill  recently  enacted  should  be  g-iven  a  fair  trial,  we 
might  expect  to  see  the  railroads  still  more  active  in  politics 
unless  our  experience  with  them  differed  from  the  experience 
we  had  had  with  franchise-holding  corporations. 

This  statement  of  m^^  views  has  been  assailed  by  some  as 
an  attempt  to  force  these  views  upon  the  Democratic  party 
and  by  some  as  an  announcement  of  an  intention  to  insist 
upon  the  incorporation  of  these  views  in  the  next  Democratic 
national  platform. 

Let  me  answer  these  two  charges.  I  have  tried  to  make  it 
clear  that  I  expressed  my  own  opinion  and  I  have  never  sought 
to  compel  the  acceptance  of  my  opinion  by  anyone  else.  Re- 
serving the  right  to  do  my  thinking,  I  respect  the  right  of  every 
one  else  to  do  his  thinking. 

If  you  ask  me  whether  the  question  of  government  owner- 
ship will  be  an  issue  in  the  campaign  of  1908_.  I  answer  I 
do  not  know.  If  you  ask  me  whether  it  ought  to  be  in  the 
platform,  I  reply,  I  cannot  tell  until  I  know  what  the  Demo- 
cratic voters  think  upon  the  subject.  If  the  Democrats  be- 
lieve the  next  platform  should  contain  a  plank  in  favor  of 
government  ownership,  then  that  y)lank  ought  to  be  inchided. 
If  the  Democrats  think  it  ought  not  to  contain  such  a  plank, 
then   such   a  plank  ought  not  to  be  included 

It  rests-  with  the  party  to  make  the  platform  and  indi- 
viduals can  only  advise.  I  have  spoken  for  myself  and  for 
myself  only,  and  I  did  not  know  how  the  suggestion  would  be 
received.  I  am  now  prepared  to  confess  to  you  that  it  has 
been    received  more  favorably  than  I  expected. 

There  is  this,  however,  I  do  expect,  namely,  that  these 
Democrats  who  ojjpose  public  ownership  will  accompany  their 


L'84  WILLIAM  JENNINGS  BRYAN, 

ileclaration  against  it  with  the  assertion  that  they  will  favor 
government  ownership  whenever  they  are  convinced  the  coun- 
try must  choose  between  government  ownership  of  the  roads 
and  railroad  ownership  of  the  government. 

[At  Bast  Radford,  Va.,  September  15,  1906.] 

Two  years  ago  1  had  reached  the  conclusion  that  the  gov- 
ernment ownership  of  railroads  was  the  only  solution  of  the 
question.  1  did  not  say  it  when  I  was  the  leader  of  the 
party  in  either  campaign;  in  fact,  I  had  not  reached  the  con- 
clusion until  a  few  years  ago.  When  I  was  relieved  of  leader- 
ship at  St.  LouiSj  and  could  speak  as  *a  private  individual, 
1  stated  my  conclusions.  My  convictions  have  grown  since, 
and  in  New  York  1  stated  it  as  my  oi>inion  that  that  was 
the  ultimate  solution.  I  said  I  did  not  know  whether  the 
country  was  ready  for  it,  or  whether  a  majority  of  the  Demo- 
crats favored  it. 

Now,  I  want  to  say  that  my  position  has  been  misstated, 
and  in  some  places  misconstrued.  I  have  been  accused  of 
favoring  a  thing  that  would  lead  to  centralization.  Let  me 
remind  you  that  this  plan  not  only  does  not  lead  to  centrali- 
zation, but  it  is  the  first  suggestion  made  in  many  years  that 
looks  toward  the  strengthening  of  the  State  and  making  a 
bulwark  against  centralization.  People  have  been  discussing 
public  ownership  with  the  idea  that  the  Federal  Government 
would  own  the  railroads,  and  it  seemed  to  me  that  that  was 
fraught  with  danger,  because  I  believe  in  the  Democratic 
doctrine  of  local  self-government,  and  that  our  opinion  is  strong- 
est when  the  independence  of  the  State  and  the  conduct  of  its 
own  affairs  is  recognized  and  respected. 

I  believe  in  our  constitutional  doctrine  that  local  things 
are  for  the  States,  and  national  affairs  for  the  Federal  Govern- 
ment, and  therefore,  instead  of  advocating  a  Federal  ownci- 
ship  that  would  centralize  all  this  power  at  Washington,  I 
advocate  a  dual  plan,  whereby  only  the  trunk  lines  would  be 
under  the  control  of  the  Federal  Government  and  all  the 
local  lines  under  the  control  of  the  State  government. 

If  anybody  denies  that  it  is  practicable,  I  cannot  but  tell 
them  that  in  the  Empire  of  Germany  almost  all  the  railroads 
are  owned  by  the  separate  states,  and  that  today  the  Empire 
wants  to  get  the  railroads  in  order  to  strengthen  the  Federal 
Government,  but  the  States  refuse  to  surrender  them,  because 
they  are  the  influential  strength  of  the  states  oi"  the  Empire 
of  Germany.  So,  my  friends,  instead  of  being  for  centrali- 
zation, this  is  the  plan  that  gives  to  the  State  the  power 
to  strengthen  itself  and  to  attend  to  its  own  affairs. 

I  am  not  here  to  bring  you  to  my  conclusions  on  the  rail- 
road question.  So  far  as  I  am  concerned,  it  does  not  matter 
to  me  whether  or  not  every  man  in  the  United  States  agrees 
with  me  or  not.  I  believe  that  every  man  ought  to  have 
his  own  beliefs  and  his  own  convictions,  and  when  he  has 
convictions  on  the  subject  of  public  matters,  I  believe  that 
he  ought  to  give  them  to  the  people  and  take  the  respon- 
sibility for  them. 

[In  letter  to  Henry  M.  Whitney,  of  Boston,  March  25,  1907.] 
I  am  in  favor  of  both  National  and  State  regulations,  but 
I  also  believe  that  public  ownership  is  the  ultimate  solution 
of  the  railroad  question.  In  my  discussions  on  this  subject 
I  have  pointed  out  that  because  of  the  danger  of  centralization 
in  ownership  by  the  Federal  Government  of  all  the  lines  I 
prefer  a  system  in  which  the  Federal  Government  will  be 
confined  to  the  necessary  trunk  lines  and  the  ownership  of 
the  rest  of  the  lines  be  left  to  the  States.  This,  however, 
is  not  an  immediate  question;  at  least,  I  am  not  sure  that 
the  people  are  ready  to  consider  the  question  of  public  owner- 
ship, and  until  they  are  ready  to  consider  that  question  the 
interest  is  centered  in  regulation. 

[In  letter  to  Wall  Street  Journal,  April  6,  1907,  published  April  10,  1907.] 

For  some  fourteen  years  after  my   entrance   into   National 

politics    I    hoped    for    effective    railroad    legislation    and    was 


WILLIAM  JEXXING8  BRYAN.  p5 

brought  reluctaTitl3^  to  the  belief  that  government  ownership 
furnished  the  only  satisfactory  remedy  for  the  discrimination, 
rebates,  and  extortions  practiced  bj^  the  railroads  and  for  the 
corruption  which   they  have    brought   into    politics. 

My  first  public  expression  on  this  subject  was  after  the 
^National  convention  in  1904.  Two  reasons  led  nie  to  discuss 
the  subject  at  that  time.  First,  the  tT-iiimph  of  the  reaction- 
ary element  at  St.  Louis  discouraged  the  more  radical  mem- 
bers of  our  party.  Feeling  sure,  from  contact  with  the  rank 
and  file  of  our  organization,  that  the  ascendency  of  the  so- 
called  conservative  leaders  would  be  temporary,  I  appealed 
to  the  radical  Democrats  to  remain  with  the  party,  secure 
control  of  the  organization,  and  make  the  party  an  effective 
instrument  in  securing  needed   reforms. 

To  encourage  these  ])r  ogres  si  vip  Democrats  to  remain  with 
the  party  I  announced  the  conclusion  which  I  had  reached  in 
reg-ard  to  the  final  necessity  for  government  ownership.  *  *  * 
At  this  time  a  majority  of  the  people  still  seem  to  have 
faith  in  the  regulation,  and  the  first  thing-  necessary  is  to 
ascertain  the  present  vakie  of  the  railroads  and  then  pre- 
vent any  more  watering-  of  stock.  I  shall  assist  as  far  as  I 
am  able  to  test  regulation  under  as  favorable  conditions  as 
can  be  created,  but  having*  reached  the  conclusion  that,  in 
the  end,  regulation  will  be  found  ineffective,  1  have  stated 
my  conclusions. 

As  I  was  slow  in  reaching-  this  conclusion  myself  I  can 
be  patient  with  those  who  honestly  fear  government  owner- 
ship. In  the  meantime,  I  am  anxious  that  those  who  become 
convinced  of  the  necessity  of  government  ownership  shall  con- 
sider the  plan  which  reduces  centralization  to  a  minimum 
and  adds  to  the  infiuence  and  vigor  of  the  state. 

Bryan   on   Government  Ownersliin   of  Railroads. 

[New  York  World,  February,  1908  ;  printed  in  daily  Congressional  Record, 
May  29,   1908.] 

Most  people  believe,  Mr.  Bryan,  that  your  first  proclamation  of  gov- 
ernment ownership  of  railways  was  made  at  New  York  City  August  30, 
1906,  on  your  return  from  Europe.  Such  is  not  the  case.  The  plan  of 
reorganization  to  "rid  the  Democratic  party  of  plutocracy,"  which  you 
promised  on  the  adjournment  of  the  Kansas  City  convention  in  1904,  was 
given  to  a  waiting  world  on  July  21,  1904.  You  stated  the  case  'of  govern- 
ment ownership  of  railroads  as  follows  : 

"I  have  heretofore  refused  to  take  a  position  on  the  question  of  gov- 
ernment ownership  of  railroads,  first,  because  I  had  not  until  recently 
studied  the  subject ;  and,  secondly,  because  the  question  had  not  '  been 
reached.  Recent  events  have  convinced  me  that  the  time  is  now  ripe 
for  the  presentation  of  this  question.  Consolidation  after  consolidation 
has  taken  place  until  a  few  men  now  control  the  railrbad  traffic  of  the 
country  and  defy  both  the  legislative  and  executive  power  of  the  niatlon. 
I  invite  the  Democrats,  therefore,  to  consider  a  plan  for  the  govern- 
ment ownership  and  operation  of  the  railroads.  The  plan  usually  sug- 
gested is  for  the  purchase  of  those  roads  by  the  Federal  Government. 
This  plan,  it  seems  to  me,  is  more  objectionable  than  a  plan  which  involves 
the  ownership  and  operation  of  these  roads  by  the  several  States.  To  put 
the  railroads  in  the  hands  of  the  Federal  Government  would  mean  an 
enormous  centralization  of  power.  It  would  give  to  the  Federal  Govern- 
ment a  largely  increased  influence  over  the  citizen  and  the  citizen's  affairs, 
and  such  centralization  is  not  at  all  necessary.  The  several  States  can 
own  and  operate  the  railroads  wfthin  their  borders  just  as  effectively  as  it 
can  be  done  by  the  Federal  Government,  and  if  it  is  done  by  the  States  the 
objection  based  upon  the  fear  of  centralization  is  entirely  ~  answered.  A 
board  composed  of  representatives  from  the  various  States  could  deal  with 
interstate  traffic  just  as  freight  and  passenger  boards  now  deal  with  the  joint 
traffic  of  the  various  lines.  If  the  Federal  Govei-nment  had  the  railroads 
to  build  there  would  be  constant  rivalry  between  different  sections  to  se- 
cure a  fair  share  of  the  new  building  and  improvement,  but  where  this  is 
left  to  the  State  the  people  in  each  State  can  decide  what  railroads  they 
desire  to  build  or  to  buy."  i-  :.;.i".<j 

Later,  in  April,  1905,  at  a  dinner  given  by  the  Irbquois  Club,  of 
Chicago,-  on  the  birthday  of  Thomas  .Jefferson,  the  greatest  of  American 
individualists,  you  repeated  and  elaborated  this  highly  orhafeaental  scheme 
of  trinle   State  socialism.  '^ 

Angvst  29,  l606,  you  neturned  to  New  York  in  triumph  from  a  trip 
around  the  World,  to  be  greeted  by  Democrats  from  nearly  every  State  tn 
the  Union   as  their   candidate   for  President. 

You  undertook  in  your  fpeech  at  Madison  Square  Garden,  August  30, 
to   sound  the   keynote  of   a   government  ownership   campaign  : 

"I  have  already  reached  the  conclusinn  that  railroads  partake  so  much  of 
the  nature  of  a  monopoly  that  they  must  ultimately  become  public  property 
and  be  managed  by  public  officials  in  the  interest  Of  the  whole  community, 
in  accordance  with  the  well-defined  theory  that  public  ownership  is  neces- 
sary where  competition  is  impoFsible.  I  dn  not  know  whether  a  majority  of 
the  meirbers  of  the  narty  to  which  I  have  the  honor  to  belong  believe  in  the 
Government  ownership  of  railroads,  but  my  theory  is  that  no  man  can  tell 


a^t 


WILLIAM  JENNINGS  BR7AN. 


a  mass  coavention  to  decide  what  he  himself  shall  thiftk.  I  have  reached 
the  conclusion  that  there  will  be  no  permanent  relief  on  the  railroad  ques- 
tion from  discrimination  between  individuals  and  between  places  and  from 
extortionate  rates  until  the  railroads  are  the  property  of  the  Government 
and  operated  by  the  Government  in  the  interest  of  the  people.  And  I  be- 
lieve that  there  is  a  growing  belief  in  all  parties  that  this  solution,  be  it 
far  or  near,  is  the  ultimate  solution.  But  to  me,  my  friends,  the  danger  of 
centralization  is  a  danger  than  can  not  be  brushed  aside.  The  greatest 
danger  of  a  republic  is  the  centralization  of  power  at  the  capital  re- 
mote from  the  people,  and  because  I  believe  that  the  ownership  of  all 
the  railroads  by  the  F'ederal  Government  would  so  centralize  power  as 
virtually  to  obliterate  State  lines,  instead  of  favoring  the  Federal  owner- 
ship of  all  railroads,  I  favor  the  federal  ownership  of  trunk  lines  only  and 
the   state    ownership   of   all    the    rest   of   the    railroads." 

Impressed  by  vehement  protests  against  the  marriage  of  Democracy 
to  State  Socialism,  you  began  at  Louisville,  September  12,  190G,  your 
masterful   retreat : 

"I  advocate  strict  regulation  and  shall  rejoice  if  experience  proves 
that  that  regulation  can  be  made  effective.  ♦  ♦  •  Yet  I  would  not 
be  honest  with  you  if  I  did  m'>t  frankly  admit  that  observation  has 
convinced  me  that  government  ownership  can  be  undertaken  on  the 
plan  indicated  with  less  danger  to  the  country  than  is  Involved  in 
private  ownership  as  we  have  had  it  or  as  we  are  likely  to  have  it.  ♦  ♦  ♦ 
You  say  that  all  these  abuses  can  be  corrected  without  interference  with 
private  ownership.  I  shall  be  glad  if  experience  proves  that  they  can  be, 
but  I  no  longer  hope  for  it." 

The  retreat  ended  at  Lincoln,  July  19,  1907,  when  you  asked  for  an 
armistice  in  these  words  : 

"Government  ownership  is  not  an  Immediate  issue.  While  many  Demo- 
crats believe" — and  Mr.  Bryan  is  one  of  the  number — "that  public  owner- 
ship offers  the  ultimate  solution  of  the  problem,  still  those  who  believe 
that  the  public  will  finally  in  self-defense  be  driven  to  'ownership  recognize 
that  regulation  must  be  tried  under  the  most  favorable  circumstances  be- 
fore the  masses  will  be  ready  to  try  a  more  radical  remedy." 

Do  you  think  that  the  Democratic  party  can  convince  voters  that  it  hon- 
estly favors  regulation  of  railroads  if  it  nominates  a>  candidate  who 
believes  in  government  ownership  and  who  has  proclaimed  in  advance  his 
belief  that  regulation  will  prove  a  failure?  Do  you  think  that  the  Ameri- 
can people  could  safely  trust  you  to  carry  out  a  policy  of  regulation  with 
which  you  have  no  sympathy  and  for  whose  effectiveness  to  remedy  abuses 
you  have  no  hope? 

Tlie    United    States    Courts    and    the    Trnsts— Let    Us     See,    Mr. 

Bryan. 

[Printed   in   New   York  World,   February,   1908  ;   printed  in   daily   Congres- 
sional Record,  May  29,  1908.] 

Let  us  see,  Mr.  Bryan,  whether  your  campaign  against  the  Federal 
courts  had  a  more  rational  inspiration  than  your  campaign  for  a  50-cent 
dollar. 

You  gave  your  followers  to  understand  that  the  United  States  courts 
were  prejudiced  in  behalf  of  the  rich  and  powerful — were,  in  fact,  controlled 
by  trusts  and  corporations— and  were  deaf  to  the  welfare  iDf  the  people 
as  a  whole.  Not  only  have  you  appealed  to  mob  passion  against  Federal 
courts  of  justice  and  threatened  to  pack  the  Supreme  Court,  but  you  have 
persistently  advocated  t^hort  terms  and  popular  elections  for  United  States 
judges  In  order  to  make  them  creatures  of  popular  clamor.  We  have,  there- 
fore, thought  proper  to  indicate  here  as  briefly  as  possible  important  cases 
arising  since  18y6  in  which  proceedings  have  been  begun  or  judgment  has 
been  entered  against  the  very  interests  which  you  charged  were  privileged. 

The  list  is  instructive  in  many  ways,  but  in  none  is  it  more  so  than 
in  its  complete  refutation  of  the  slanders  of  socialistic  demagogism. 

In  1898  the  Supreme  Court  of  the  United  States  reversed  the  cir- 
cuit court,  southern  district  of  New  York,  and  the  circuit  court  of  appeals, 
and  enjoined  the  Joint  Traffic  Association  from  violating  the  antitrust  law. 
By  the  action  of  the  court  it  was  dis.solved. 

In  1899  the  Supreme  Court  sustained  the  circuit  court  of  appeals, 
sixth  circuit,  in  the  matter  of  an  injunction  restraining  the  operations  of 
the  cast-Iron  pipe  trust,  known  as  the  Addystone  Pipe  case. 

In  1900  the  Supreme  Court  sustained  the  constitutionality  of  the 
antitrust  law  of  Texas,   one  of  the  most  drastic   yet  adopted. 

In  1904  the  Supreme  Court,  having  the  cases  against  the  beef  trust 
before  it,  decided:  (1)  Traffic  in  live  stock  transported  from  State  to 
State  is  interstate  commerce,  and  persons  engaged  in  buying  and  selling 
such  live  stock  are  engaged  in  interstate  commerce;  (2)  the  combina- 
tion between  dealers  to  suppress  all  competition  in  the  purchase  of  live 
stock  is  an  unlawful  restraint  of  trade;  (3)  the  combination  between 
dealers  to  fix  and  maintain  a  uniform  price  in  the  sale  of  meat  through- 
out the  country  is  an  unlawful  restraint  of  trade;  (4)  the  combination 
of  dealers  to  obtain  preferential  railroad  rates  is  an  unlawful  restraint 
of  trade,  and  (5)  all  combinations  suppressing  competition  fall  under 
the    prohibition   of   the    Sherman    antitrust   act. 

In  1904  the  Supreme  Court  affirmed  the.  decree  of  the  circuit  court, 
Minnesota,  enjoining  the  Northern  Securities  Company  from  purchas- 
ing, acquiring,  receiving,  holding,  voting,  or  in  any  manner  acting  as 
the  owner  of  any  of  the  shares  of  stock  of  the  Northern  Pacific  and 
Great  Northern  Railway  Companies,  and  restraining  the  Northern  ^Se- 
curities Company  from  exercising  any  control  over  the  corporate  acts  of 
said  comppnie.';.  ■ 

In  1905  the  Supreme  Court  affirmed  a  decree  of  the  circuit  court, 
northern  Illinois,  enjoining  various  great  packers  in  Chicago,  commonly 
known  as  the  "beef  trust,"  from  carrying  out  an  unlawful  conspiracy 
between  themselves  and  railway  companies  to  suppress  competition. 

Id    1906    the    Supreme    Court    affirmed    various    Judgments    of    United 


WILLIAM  JENNINGS  BBYAy.  287 

States  courts  in  Wisconsin  and  Minnesota  against  the  General  Paper 
Company,  which  had  been  proceeded  against  as  a  trust.  The  combination 
was,   by   the  decision   of  the   Supreme   Court,    finally   dissolved. 

In  1906  the  Supreme  Court  decided  the  celebrated  Chicago  street 
railway  franchise  case  in  favor  of  the  city  and  against  the  traction 
trust. 

In  1899  a  bill  was  filed  in  the  circuit  court,  southern  Ohio,  to 
anhul  a  contract  and  dissolve  a  combination  of  producers  and  snippers 
of  coal  in  Ohio  and  West  Virginia,  formed  for  the  purpose  of  selling  coal 
at  not  less  than  a  given  price,  to  be  fixed  by  a  commiltee.  The  trust  was 
enjoined,    and    the   combination    was    dissolved. 

In  1902  the  circuit  court,  northern  California,  perpetually  enjoined 
the  Federal  Salt  Company  (the  salt  trust)  from  suppressing  competition 
west  of  the  Rocky   Mountains. 

In  1903  the  salt  trust  was  indicted  in  the  same  court,  pleaded  guilty, 
and  was  sentenced  to  pay  a   fine   of  $1,000. 

In  1905  the  Chicago,  Burlington  and  Quincy  Railroad  Company  was 
convicted  in  Missouri,  under  tlie  Elkins  Act,  of  charging  less  than  estab- 
lished freight  ratts,  and  was  fined  $15,000.  Similar  prosecutions  In 
Kentucky   resulted   aLso    in   convictions   and   fines. 

In  1905,  in  Missouri,  Thomas  &  Taggart  were  convicted  of  conspiracy 
to  obtain  rebates.  Thomas  was  sentenced  to  jail  for  six  months  and 
fined  $6,000,  and  Taggart  was  sentenced  to  jail  for  three  months  and  fined 
$4,000. 

In  1905  Well  and  others  were  convicted  in  Illinois  of  receiving  re- 
bates and  were   fined   $25,000   each. 

In  1905  the  Chicago,  Burlington  and  Quincy  Railroad  Company  and 
various  of  its  officers  were  convicted  in  Illinois  of  granting  rebates.  The 
corporation  was  fined  $40,000  and  the  officers  $10,000  each. 

In  1906  proceedings  were  begun  in  the  outhern  district  of  New  York 
against  the  tobacco  trust.  These  resulted  in  several  convictions,  fines  of 
$10,000  and   $8,000  being  inflicted  upon  two  of  the  defendants. 

In  1906  Swift  &  Co.,  Armour  &  Co.,  Nelson  Morris  Company,  and  the 
Cudahy  Company,  of  Chicago,  were  convicted  in  Missouri  of  receiving  re- 
bates and  v/ere  fined  $15,000  each. 

In  1906  the  American  Sugar  Refining  Company  and  others  were  coD' 
victed  in  New  York  of  receiving  rebates,  and  fines  aggregating  $88,000 
were   inflicted. 

In  1906  the  New  York  Central  and  Hudson  River  Railway  Company 
and  others  were  convicted  In  New  York  of  granting  rebates,  and  fines 
aggregating    $114,000    were    asse-^sed. 

In  1906  the  Ann  Arbor  Railroad  Company  was  convicted  In  Michigan 
of  granting   rebates  and   was   fined   $15,000. 

In  1907  .lohn  M.  Faithorn  ,of  the  Chicago  and  Alton  Railway  Com- 
pany, was  convicted  in  Illinois  of  granting  rebates  and  was  fined  $25,000. 

In  1907  the  Standard  Oil  Company,  of  Indiana,  was  convicted  In 
Illinois  on  1,462  counts  of  receiving  rebates  and  was  sentenced  to  pay  a 
fine  of  $29,240,000. 

Bryan  the  Candidate   of   the    Silver  Trust. 

[New  York  World,  February,   1908  ;   printed  in  dally  Congressional  Record, 

May  29,  1908.] 

Your  leadership  of  the  Democratic  party,  Mr.  Bryan,  began  with  the 
national  convention  held  in  Chicago  in  1896.  It  was  an  unfortunate 
year  for  a   national   campaign. 

The  American  people  were  paying  the  penalty  of  thirty  years'  of 
trifling  with  their  currency  and  their  monetary  standard  of  value.  In- 
dustry was  half  paralyzed,  commerce  .semiprostrate.  Crops  had  been 
poor,  the  price  of  farm  products  was  low  ;  the  farms  themselves  were 
generally  mortgaged.  The  National  Government  itself,  with  a  demoral- 
ized Treasury,  was  borrowing  money  to  pay  its  current  expen.-es  under 
the  form  of  maintaining  the  gold  reserve.  Bond  sales  to  favored  syn- 
dicates had  aroused  the  indignation  of  the  people,  without  regard  to  party. 
Probably  a  million  men  in  the  cities  were  out  of  work.  Soup  houses  had 
been  opened  during  the  two  preceding  winters,  and  in  every  large  center  of 
population  police  stations  had  been  filled  nightly  by  homeless  wanderers. 

Armies  oi  tramps  moved*  sullenly  along  the  highways.  A  Democratic 
Administration  was  in  power  which  seemingly  had  no  friends  except  its 
own  aopointees  and  beneficiaries.  Disaontent  was  almost  universal.  It 
was  the  hour  of  the  agitator,  and  the  Democratic  national  convention  was 
his  opportunity. 

When  a  temporary  organization  of  the  convention  was  effected  the 
elements  of  repudiation  and  political  revolution  found  that  while  they  had  a 
majority  of  the  delegates,  they  did  not  have  the  two-thirds  majority  neces- 
sary, In  accordance  with  Democratic  precedent,  to  nominate  a  candidate  for 
President.      This  embarrassment  was  short   lived. 

The  silver  forces,  by  prearranged  plan,  had  sent  contesting  delegations 
from  many  States,  including  Nebraska.  Only  a  majority  vote  was  necessary 
to  adopt  the  report  of  a  committee.  The  committee  on  credentials  therefore 
unseated  enough  conservative  delegates  to  insure  a  radical  two-thirds  ma- 
jority for  nominating  purposes,   and   the   issue  was  no   longer  In   doubt. 

You,  Mr.  Bryan,  were  at  the  head  of  the  contesting  delegates  from 
Nebraska  when  they  marched  into  the  convention  hall  to  take  the  seats 
of  the  sound-money  delegates  that  had  been  evicted. 

The  money  plank  in  the  platform,  which  the  convention  adopted  by 
a  vote  of  620  to. 30.'?,  was  as  follows:      *      *      * 

"We  demand  the  free  and  unlimited  coinage  of  both  silver  and  gold 
at  the  present  legal  ratio  of  16  to  1  without  waiting  for  the  aid  or  consent 
of  any  other  nation.  We  demand  that  the  standard  silver  dollar  shall  be  a 
full  legal  tender,  equally  with  gold,  for  debts,  public  and  private,  and  we 
favor  such  legi'^lation  as  will  prevent  for  the  future  the  demonetization  of 
any  kind  of  legal-tender  money  by  private  contract.      ♦      *      ♦  " 

The  great  silver  mine  ownprs  of  the  world  were  In^  despair  over  the 
deT>reciation    in    price   of    their    metal.      Its    use    for    money    of    redemption 


288  WILLIAM  JENlflNOS  BRYAN. 

had  been  discontinued  by  the  leading  commercial  nations.  The  India 
mints  had  been  closed  to  its  coinage.  Congress  had  been  forced  to  re- 
peal the  Sherman  Bilver  act,  which  had  made  the  National  Governuitut  a 
heavy   purchaser   of  sliver   in    the  market. 

The  business  of  the  mining  operators  was  In  a  bad  way  and  ruin 
stared  many  of  them  In  the  face  unhss  the  Government  of  the  United 
States  created  an  unlimited  market  for  their  product  by  throwing  open 
its  mints  to  the  free  and  unlimited  coinage  of  silver. 

Never  was  a  political  propaganda  more  vehemently  and  desperately 
advocated,  and  never  wore  the  selfish  interests  behind  It  more  adroitly 
concealed.  If  the  obvious  self-lntereft  of  the  silver  miners  in  the  1(J  to  1 
crusade  carried  on  by  Democrats  and  Populi  ts  in  1896  had  been  as  well 
understood  as  it  should  have  been  the  names  of  these  men  would  be  as 
closely  associated  in  the  public  mind  with  the  silver  trust  as  Rockefeller's 
is  with  oil  or  Armour's  is   with  beef. 

The  proposition  which  you  advanced,  Mr.  Bryan,  contemplated  open- 
ing the  mints  of  the  United  States  to  the  free  coinage  on  private  account 
at  the  rate  of  less  than  50-cents'  worth  of  bullion  to  the  dollar  of  what- 
ever portion  of  this  enormous  stock  of  silver  Its  owners  or  speculators 
might  be  moved  to  present.  You  asserted  that  free  coinage  and  the  flat  of 
Government  would  instantly  raise  every  50-cent  token  thus  minted  to  parity 
with  gold. 

If  so,  the  wealth  of  all  owners  and  producers  of  .silver  would  have  been 
doubled. 

Here  is  a  list  of  some  of  the  gentlemen  who  assisted  in  financing  your 
theory  that  50-cents'  worth  of  silver  bullion  ought  to  be  worth  a  dollar  : 

Contributions   to   Mr.    Rryan's   Camna5p;n    Fund. 

Marcus  A.   Daly,   Montana,   principal  owner  of  Anaconda   mine. 
This   sum  of  $159,000  represented  Mr.   Daly's  own  ccnliibu- 

tlon  and  sums  collected  by  him $150,000.00 

David  II.  Moffat,  Fir.-t  National  Bank,  Denver,  Colo 18,000.00 

W.  S.  Stratton,  Colorado,  owner  of  Independence  mine 12,000.00 

William  A.   Clark,  of  Montana 45,000.00 

Dennis  Shcedy,  Colorado  National  Bank,  Denver,  Colo 7,500.00 

Charles  D.  Lane,  of  California 15,000.00 

D.  M.  Hyman,  Denver,  Colo 7,500.00 

Other  Colorado   mining  interests 6,000.00 

Utah  Mining  interests    18,372.00 

Total  contrib-'lions  of  the  silver-mine  owners  to  your 

campaign     f -ncl 288,000.00 

These  contributions,  as  you  doi.btlefs  know,  Mr.  Bryan,  were  all 
recorded  in  the  books  of  the  Democratic  national  committee,  although  In 
your  eloquent  appeals  for  publicity  of  political  contributions  you  have  never 
referred  to  the  fact  that  the  silver  interests  financed  your  Presidential 
campaign,     *     ♦     • 


BRYA?i    FAVORS   PERMjINKIXT   RKTKNTION  OF   PART   OF   THE 
PHIIilPPINES. 

Propo«e8  to  Retain  Clioice  Sections  and  Set  Up  tlie  Area  ho 
itetained  as  an  ''Oriental  Territory,"  of  the  United  States 
>vith   a   Delegate  in   Con^reMH. 

.  Mr.  William  Jennings  Bryan  seems  to  have  chang-ed  his  views 
as  to  the  justice  of  American  control  in  the  Philippines,  and 
now  favors  the  retention  of  I^hilippine  territory  for  permanent 
owneiship  by  the  United  States.  At  least  this  was  his  view  in 
1906,  after  a  visit  to  tliose  islands.  In' one  of  his  syndicate  let- 
ters (sold  to  American  newspapers  at  so  much  per  column),  dur- 
ing his  trip  around  the  world,  he  put  forth  the  proposition  tha. 
the  United  States  (Jovernnient  should  take  permanent  possession 
of  such  portion  of  the  Philippine  Islands  and  harbors  as  it  might 
choose,  and  give  the  Filipinos  independence  and  protection  in 
only  such  of  the  area  as  might  remain.  Even  this  proposition  of 
generously  allowing  them  to  retain  such  parts  of  the  islands  as 
we  might  not  want  for  our  own  permanent  occupancy  and  owner- 
ship is  to  be  confined  for  the  present  to  the  northern  part  of  the 
group,  and  full  control  retained  indefinitely  (with  a  shadowy 
promise  of  something  sometime)  in  the  southern  islands,  espe- 
cially in  the  large  and  extremely  fertile  island  of  Mindanao 
(about  the  size  of  the  State  of  Indiana),  which,  he  naively  re- 
marks, "seems  to  be  the  most  inviting  place"  for  Americans. 

The  following  are  extracts  from  the  letter,  as  published  in 
the  Washington  Post  of  April  29,  1906,  and  in  many  other  news- 
papers of  the  United  States  and  Europe,  the  letter  being,  it  will 
be  observed,  "copyrighted  in  Great  Britain."  The  letter  was  also 
published  in  full  in  Mr.  Bryan's  own  paper  the  "Commoner"  on 
May  4.  1906.       ' 


WILLIAM  JEXNINdS  BI:YAN.  2&9 

By  William  Jeiiiiinss  Bryan. 

[Copyright,   1906,  by  Joseph   B.    Bowles.      Copyright  in  Great   Britain.      All 
rights  reserved.]. 

Singapore,  Jaji.    22,   1906. 

In  speaking  of  Philippine  independence  I  have  presented  some  of 
the  reasons  given  by  Filipinos  for  desiring  it,  but  there  are  arguments 
which  ought  to  appeal  especially  to  Americans.  If  it  were  our  duty-  to 
maintain  a  colonial  policy,  no  argument  could  be  made  against  it, 
because  duties  are  imperative  and  never  conflict.  If,  on  tiie  other  hand, 
the  Filipinos  desire  independence  and  are  capable  of  self-government,  we 
cannot  justify  the  retention  of  the  islands  unless  we  are  prepared  to 
put  our  own  interests  above  theirs,  and  even  then  we  must  be  satistied 
that   our   interests    will   be   advanced. 

If  it  is  urged  that  we  need  the  Philippine  Islands  as  a  base  for 
the  extension  of  our  trade  in  the  Orient,  I  answer  that  it  is  not  neces- 
sary to  deny  the  Filipino  independence  in  order  to  hold  a  sufficient 
number  of  harbors  and  coaling  stations  to  answer  all  rtyuiremeui.;  of 
trade.  The  B^'ilipiiaos  are  not  only  anxious  to  have  the  advantage  of  our 
protection,  but  they  recognize  that  to  protect  them  we  must  have  har- 
bors and  a  naval  base.  In  return  for  the  services  we  have  rendered 
them  we  have  the  right  to  ask,  and  they  would  gladly  grant,  such  reser- 
vations as  ive  might  need.  These  reservations  could  be  properly  fortified 
and  would  furnish  coaling  stations  both  for  our  own  navy  and  for  our 
merchant  marine. 

********  * 

If  our  nation  would  at  once  declare  its  intention  to  treat  the  Fili- 
pinos living  north  of  Mindanao  as  it  treated  the  Cubans,  and  then  pro- 
ceed, first,  to  establish  a  stable  government,  patterned  after  our  own ; 
second,  to  convert  that  government  into  a  native  government  by  the 
substitution  of  Filipno  officials  as  rapidly  as  possible ;  third,  to  grant 
independence  to  the  Filipinos,  reserviiui  such  harbnrs  and  naval  stations 
as  may  be  thought  necessary;  a,nd  fourth,  to  announce  its  purpose  to 
protect  the  Filipinos  from  outside  interferences  while  they  work  out 
their  destiny — if  our  nation  would  do  this,  it  would  save  a  large  annual 
expense,  protect  its  trade  interests,  gratify  the  just  ambitions  of  the 
Filipinos  for  national  existence,  and  repeat  the  moral  victory  won  to 
Cuba. 

In  return  for  protection  from  without,  the  Filipinos  would  agree, 
as  the  Cubans  did.  that  in  their  dealings  with  other  nations  they  would 
not  embarrass  us. 

The  reservations  retained  could  he  converted  into  centers  for  the  ex- 
tension of  American  influence  and  American  ideals,  and  pur  nation  would 
increase  its  importance  as  a  real  world  power.      *      •      •     ' 

Our  reservations  ought  to  contain  model  schools,  with  a  central  col- 
lege, experimental  farms,  and  institutions  in  which  the  people  could 
be  trained  in  the  arts  and  industries  most  suited  to  the  natural  re- 
sources of  the  country.  At  our  reservations  there  would  be  religious 
freedom,  freedom  of  speech,  freedom  of  press,  self-government,  and  public 
instruction  for  all,  and  every  uplifting  influence  would  have  free  pl^ty. 
If  we  believe  right  makes  might  and  that  truth  has  within  itself  a 
propagating  power,  we  cannot  doubt  the  spread  of  American  cirilizatiou 
from  these  American  centers. 

While  the  Philippine  Islands  are  under  American  authority,  the 
government  ought  to  be  administered  for  the  benefit  of  the  Filipinos,  in 
accordance  with  Secretary  Taft's  promise  If  they,  are  to  be  subject  to 
our  tariff  laws  when  they  buy  of  other  nati  :)ns,  they  ought  to  have 
free  trade  with  us,  but  the  Philippine  Islands  are  so  far  from  us  that 
it  would  be  more  just  to  allow  the  Philippine  tariff  to  be  made  by  the 
Philippine  assembly  soon  to  be  established.  The  Filipinos  belong  to  the 
Orient,  and  their  dealings  must  be  largely  with' the  countries  of  the 
Orient;  unkss  they  are  in  a  position  to  have  thfeir  tariff  laws  conform 
to  their  geographical  position,  there  must  necessarily  be  friction  and 
injustice. 

So  important  are  geographical  considerations  that  Americans  who  see 
fit  to  take  up  their  residence  upon  such  reservations  as  we  retain  for 
harbors,  coaling  stntinns  ?nd  n  navpl  base  ought  to  be  freed  from  the 
fetters  of  our  tariff  laws  and  shipping  laws. 

I  even  venture  to  suggest  the  creation  of  an  Oriental  territory,  to  he 
comj.osed  of  such  stations  and  reservations  as  we  may  now  have  or  here- 
aftp''-  acquire  in  the  Orient.  This  territor.'  should  have  a  delegate  in  Con- 
gress li'ce  other  territories,  but  should  be  free  by  constitutional  amendment 
ironi  our  tariff  laws  and  permitted  to  legislate  for  itself  upon  this  subject. 
It  could  thus  establish  free  ports,  if  it  chose,  and  give  to  its  people  the  trade 
advantages  enjoyed  by  those  who  live  in  Hong  Kong,  Singapore,  and  other 
open  ports. 

*  *  *  *  **  if.  «  * 

In  what  I  have  said  about  independence  and  self-government  in  the 
Philippines,  I  have  been  speaking  of  Luzon  and  the  other  islands  north 
of  Mindanao.  As  I  have  already  pointed  out,  the  conditions  existing  in 
Mindanao  and  Sulu  archipelago  are  so  different  from  those  existing  in 
the  northern  islands  that  the  two  groups  must  be  dealt  with  separately. 
It  would  not  be  fair  to  deny  independence  to  the  Christian  Filipinos 
living  in  the  north  merely  because  the  Moros  have  never  shown  any 
desire  to  adopt  a  republican  form  of  government.  (They  live  under 
a  sort  of  feudal  system,  with  sultan  and  datto  as  the  ruling  lords.)  But 
while  the  work  of  establishing  a  stable  government  among  the  Moros  is 
a  more  difficult  one  and  will  proceed  more  slowly,  the  same  principles 
should  govern  it  *  *  *  While  I  do  not  believe  that  any  large  number 
of  Americans  could  be  induced  to  settle  permanently  in  Mindanao  (and 
Mindanao  seems  to  be  the  most  inviting  place),  there  will  be  ample  time 
to  test  this  question  while  a  government  is  being  established  among  the 
Moros. 


290  WILLIAM  JENNINGS  BRYAN. 

So  it  appears  that  Mr.  Bryan,  after  seeing-  the  islands,  has  be- 
come an  Imperialist  in  the  full  sense  of  tiie  word,  and  calmly 
proposes  that  instead  of  governing  them  with  the  plan  of  ulti- 
mate independence  for  all  their  people  and  territory,  we  shall 
seize  as  much  of  the  territory  as  we  may  desire,  including,  of 
course,  its  best  harbors,  and  set  it  up  as  a  Territory  of  the 
United  States,  without  any  question  as  to  the  wishes  of  the 
people  there  residing  and  owning  homes.  He  has  insisted  that 
the  liepublican  policy  of  depriving  the  Filipinos  of  self-govern- 
m^'nt  even  temporarily  is  wrong ;  now  he  proposes  to  compel 
them  to  pay  for  independence  in  a  part  of  their  territory  by 
giving  up  another  part  to  become  permanently  a  part  of  the 
United  States.  Nor  does  he  indicate  how  large  an  area  he 
would  compel  them  to  pass  over  to  us,  whether  one-tenth,  one- 
fourth,  or  one-half  of  the  islands  would  ultimately  become  the 
proposed  "Oriental  Territory,"  with  a  delegate  in  the  United 
States  Congress. 

If  one  visit  to  the  islands  convinces  Mr.  Bryan  that  we  should 
retain  a  part  of  their  area  (the  most  valuable  of  course)  and 
make  it  a  Territoiy  of  the  United  States,  with  a  delegate  in 
Congress,  would  another  visit  convince  him  that  we  should  re- 
tain them  all  and  bring  them  in  as  States,  with  Senators  and 
Representatives  ? 

Mr.  Bryan  has  asserted  that  we  were  and  are  doing  the  Fili- 
pinos great  injustice  by  depriving  them  of  independence.  Now 
he  proposes  that  we  compel  them  to  buy  that  independence  for  a 
part  of  their  people  by  giving  us  therefor  a  part  of  their  area 
and  population,  and  that  we  make  that  area  a  Territory  of  the 
United  States.  If  it  \y^s  wrong  to  even  temporarily  deprive  the 
islands  as  a  whole  of  independence,  how  would  it  be  right  to 
take  a  part  of  that  territory  (no  matter  how  small)  and  make  it 
forever  .subject  to  the  United  States,  forcing  the  people  to  assent 
to  this  as  the  price  of  giving  up  the  remainder?  Does  he  pro- 
pose that  we  must  now  be  paid  for  doing  what  he  says  should 
have  been  freely  done  long  ago? 

The  national  Democratic  platform  also  supports  the  proposi- 
tion in  modified  form,  as  follows : 

"We  favor  an  immediate  declaration  of  the  nation's  purpose  to  recog- 
nize the  independence  of  the  Philippine  Islands  as  soon  as  the  stable  gov- 
ernment can  be  established,  such  independence  to  be  guaranteed  by  us  as  we 
guarantee  the  independence  of  Cuba,  until  the  neutralization  of  the  islands 
can  be  secured  by  treaty  with  other  powers.  In  recognizing  the  independ- 
ence of  the  Philippines  our  government  should  retain  such  land  as  may  be 
necessary  for  coaling  stations  and  naval  bases." 

Bryan  Yearns  over  Filiiiinos,  but  Tvill  not  Imperil  his  Politi- 
cal   Cliances    to   Demand    Jnstice    for   tlie    American    Neg^ro. 

[New* York  Evening  Post,  Democratic] 
Mr.  Bryan  made  his  great  bid  for  Southern  delegates  last 
night,  and  we  do  not  doubt  that  he  will  get  them.  In  answer 
to  a  question  after  his  address  on  "Universal  Brotherhood"  at 
Cooper  Union,  he  stood  up  openly  for  negro  disfranchisement  in 
the  South.  Of  cotirse,  he  had  to  put  in  the  usual  assertion  that 
if  Northern  Republicans  had  lived  in  the  South  they  would  hav^e 
done  the  same  as  Southern  Democrats,  but  what  has  that  to 
do  with  a  question  of  morals  and  of  law,  which  Mr.  Bryan  was 
professing  to  discuss  without  any  perrsonal  or  party  interest? 
He  yearns  over  the  oppressed  Filipino ;  his  heart  bleeds  for  the 
poor  and  down  trodden  everywhere  ;  yet  when  it  comes  to  equal 
treatment  for  the  black  men  of  his  oAvn  counti-y,  all  he  has  to 
say  is  that  "the  white  men  of  the  South  are  determined  that  the 
negro  shall  be  disfranchised  everywhere  it  is  necessary  to  pre- 
vent the  recurrence  of  the  horrors  of  carpet-bag  rule."  This  will 
be  telegraphed  all  over  the  South  to-day,  and  will  doubtless  kill 
off  the  opposition  to  Bryan  there,  but  it  leaves  his  "Universal 
Brotherhood"  looking  like  the  cheapest  kind  of  cant.  The 
wronged  negro  asks :  "Am  I  not  a  man  and  a  brother,"  but  Mr. 
Bryan's  reply  is:  "Not  if  you  live  in  the  South,  and  if  saying  a 
word  for  your  rights  would  imperil  my  political  fortunes." 


WILLIAM  JEXNINGS  BRYAN.  291 


Dryaii   says  lie  is   Mure  Kadieal   tlian  in  189(t. 

London,  July  12,  1906. 

William  J.  Bryan,  having-  read  the  American  newspapers,  con- 
sented to-day  to  discuss  questions  raised  since  he  again  became 
prominent  as  a  Presidential  possibility.     He  said : 

"1  notice  that  I  am  now  described  by  some  as  a  conservative.  In 
one  sense  I  always  have  been  a  conservative.  The  Democratic  p'oli- 
(  i<.s  are  conservative  in  that  they  embody  old  principles  applied  to  new 
conditions. 

"If,  however,  by  the  word  conservative  they  mean  that  I  have 
changed  my  positions  on  any  public  question  or  moderated  my  opposition 
lo  corporate  aggrandizement  they  have  a  surprise  waiting  for  them.  I 
am  more  radical  than  I  was  in  1896  and  have  nothing  to  withdraw 
on   economic   questions   which   have  been   under  discussion. 

"The  only  question  we  discussed  in  1896  upon  which  there  has  been 
any  apparent  change  is  the  silver  question,  and  that  has  not  been  a 
change  in  the  advocates  of  bimetallism,  but  in  conditions.  I  believe  in 
bimetallism,  and  I  believe  that  the  restoration  of  silver  would  bring  still 
further  prosperity,  bes'les  restoring  par  in  exchange  between  gold  and 
suver  using  countries  ;  *but  I  recognize,  as  do  all  other  bimetallists  whom 
1  have  met  ^broad,  that  the  unexpected  and  unprecedented  increase  in 
gold  production  has  for  the  present  removed  the  silver  question  as  an 
issue." 

At  the  Fourth  of  July  meeting-  of  the  American  Society  in 
London  Mr.  Bryan  said  with  reference  to  the  silver  question : 

"I  wish  to  say  that  when  I  see  the  progress  my  country  has 
made  walking  on  one  lt,g,  i  wonder  what  it  would  have  done  walking 
on   two    legs." 


Bryan's  jNonilnation  Means  Taft's  Ejection. 

[New  York  World,  June  19,  1908.] 

With  Mr.  Bryan  as  Mr.  Taft's  opponent  the  campaign  can  end 
only  in  a  liepublican  victory.  Mr.  Bryan  has  been  leader  of  the 
Democratic  party  virtually  for  twelve  years,  and  the  state  of  the 
j>arty  bears  eloquent  testimony  to  the  quality  of  his  leadership. 
Of  forty-six  States  the  Democrats  control  only  thirteen  and  the 
Republicans  thirty  three.  There  are  only  thirty-one  Democrats 
in  the  United  States  Senate  to  sixty-one  Kepublicans,  and  an- 
other Eepublican  Senator,  elected  in  Kentucky  to  succeed  a  Dem- 
ocrat, will  take  his  seat  March  4.  There  are  only  two  anti- 
Uepublican  Senators  north  of  the  line  of  the  Missouri  Compro- 
mise. Outside  of  New  York  city  there  are  only  thirty-seven 
Democrats  in  both  houses  of  Congress  from  the  entire  East, 
North,  and  West. 

Mr.  Bryan's  own  State  has  gone  liepublican  in  every  election 
for  seven  years,  although  he  arranged  a  fusion  ticket  and  framed 
a  platform  for  every  campaign.  New  Jersey,  the  only  Northern 
State  which  failed  to  give  its  electoral  votes  to  Lincoln  in  18G0 
and  which  went  Democratic  in  everj^  national  election  but  one 
for  forty  years  .gave  a  Republican  majority  of  87,000  against  Mr. 
Bryan  in  1896  and  has  been  Republican  ever  since. 

The  story  of  New  York  is  not  greatly  unlike  the  story  of  New 
Jersey.  Thanks  to  Bryanism,  New  York  ceased  to  be  a  debat- 
able State  in  Presidential  elections.  The  Repul)lican  plui-ality 
in  1896  was  268.000;  in  1900  it  was  143.000;  in  1901  it  wa"s 
175.000.  In  most  of  the  counties  of  this  State  the  Democratic 
party  has  all  but  gone  out  of  existence.  A  parallel  to  the  dis- 
astrous consequences  of  Bryan  leadership  can  be  found  only  in 
the  civil  war. 

Every  idea,  principle,  or  issue  represented  by  Mv.  Bryaii  or  pre- 
sented against  him  by  the  Re])ublicans  has  been  submitted  to 
the  verdict  of  the  voters  in  the  Congressional  elections  during 
the  last  twelve  years  no  less  than  in  the  Presidential  elections, 
and  in  every  House  of  Representatives  chosen  the  Republicans 
have  had  a  majority.  It  is  evident  that  only  new  conditions, 
new  issues,  and  new  candidates  can  produce  any  decided  change 
from  the  results  of  these  preceding  elections.  W^ith  an  Tin- 
beaten  candidate  on  an  unbeaten  platform  the  Democrats  Avould 
have  a  fighting  chance  in  the  cainpaign,  despite  the  long  demor- 
alization of  their  party:  but  what  can  a  th  r  ice -be  at'^n  party  do 
with  a  twice-beaten  candidate  whose  policies  have  already  over- 
whelmed the  Democratic  organization  in  wreck  and  ruin? 


292  WILLIAM  JENNIN08  BR7AK. 

Mr.    Bryun**!    Trntit    Ratio. 

Clevki.ani),  Ohio,  Sept.  15,  1906. 

In  a  reply  to  a  personal  letter  of  request  by  Editor  Georg-e 
Smart,  of  the  Iron  Trades  Keview,  that  William  Jenning-s  Bryan 
define  more  clearly  and  succinctly  his  position  in  reg-ard  to  the 
so-called  trusts,  the  Democratic  leader  has  responded  in  the  fol- 
lowing- words : 

•'1  am  not  prepared  to  state  just  how  much  a  proportion  a  cor- 
poration can  control  without  becoming  a  trust  in  the  sense  that  it 
limits  competition,  and  competition  controls  the  price  and  terms  of  sale. 
For  the  conduct  of  my  paper,  I  drew  the  line  at  50  per  cent,  and  do 
not  accept  an  advertisement  of  a  corporation  controlling  more  than  50 
per  cent  of   the  product   in  which  it  deals. 

"I  am  inclined  to  believe,  however,  that  the  steel  trust  controls, 
more  of  the  product  than  it  is  good  for  the  American  people  that  one 
corporation    should 

"In  saying  that  a  corporation  should  not  be  licensed  when  it  con- 
trols enough  to  eliminate  competition,  I  do  not.  mean  to  say  that  the 
individual  industries  that  are  under  one  management  should  be  destroyed. 
The  corporation  shoald  simply  be  compelled  to  reduce  its  factories  until 
its  production  is  in  the  limit  fixed  by   law." 


WILLIAM  RANDOLPH   HEARST   ON  THE  DEMOCRATIC  PARTY 
AND    ITS    CANDIDATE. 

[Trom   Mr.    Hearst's  sneer-h   to   the  National   Convention  of  the  Independence 
Party  at  Chicago,  July  28,  1908.] 

The  Democratic  platform  contains  some  good  and  original  things, 
but,  as  has  been  said,  the  original  things  are  not  good  and  the  good  things 
are  not  original. 

It  was  built  by  political  jackdaws  who  feathered  their  nests  with 
the  plumes  of  others  without  understanding  of  their  significance  or  inten- 
tion  as   to   their   performance. 

It  is  the  habitation  of  a  hermit  crab  which  has  no  shell  of  its 
own  and  invades  the  first  convenient  one  without  regard  to  propertjr  or 
propriety. 

It  is  a  platform,  too,  of  reconciliation  and  retraction  of  atonement 
and  apology,  of  harmony  and  hypocrisy,  for,  in  compliance  with  a  former 
compact,  Parlcer  has  pronounced  peace.  Bill  Bailey  has  poured  Standard 
Oil  upon  the  troubled  waters,  and  Bryan  has  killed  not  only  the  fatted  calf 
but  the  goose   that  laid  the  golden  egg. 

No  man  can  serve  two  masters,  and  no  man  can  conciliate  the  con- 
flicting elements  of  the  Democratic  party.  He  who  tries  must  serve  one 
and  deceive  the  other ;  must  make  public  pretense  to  the  people  and 
private  compact  with  the  trusts. 

The  Democratic  vanguard  is  a  Palstaff's  army.  It  is  led  by  a 
knight  arrayed  in  a  motley  of  modified  professions  and  compromised  prin- 
ciples, of   altered  opinions  and  retracted  statements. 

A  Falstaff's  army,  whose  banner  bears  on  one  side  a  watchword 
for  the  people  and  on  the  other  a  password  for  the  trusts,  whose  only 
object  is  office  at  any  cost,  whose  motto  is  "after  us  the  deluge." 

Assuming  that  Mr.  Bryan  himself  is  all  that  his  most  ardent  admirers 
claim  him  to  be,  a  great  lawyer,  an  enlightened  statesman,  an  inspired 
patriot,  still  a  man  is  known  by  the  company  he  keeps,  and  no  decent 
Democrat  can  tolerate  his  free  companions.  No  honest  citizen  can  let 
down  the  bars  of  office  to   such  an   Ali   Baba's  band  of  boodlers  and  bravos. 

No  prudent  citizen  will  support  a  combination  to  which  Taggart  sup- 
plies a  candidate  and  Parker  a  platform  for  which  Bryan  will  pay  the 
freight  and   the  people   will   pay  the  penalty. 

Mr.   Hearst's    Reply   to   Mr.   Gompers's    Messagre. 

[Prom  the  New  York  American,  July  17,  1908.] 

The  following-  cablegram  from  Mr.  Hear.st  has  been  received 
in  reply  to  a  message  transmitted  to  Mr.  Hearst  from  Sa  nuel 
Gompers,  stating  that  in  view  of  the  Democrats'  stand  for  labor 
it  would  be  "an  act  of  greatest  patriotism  for  the  IndejxMidence 
Party  to  indorse  the  Democratic  platform,"  and  urging  hiui  not 
to  run  a  third  ticket,  as  it  would  elect  Mr.  Taf t : 

Paris,  July  13th. 

"Tell  Mr.  Gompers  that  I  am  not  authorized  to  speak  for  the  mem- 
bership of  the  Independence  Party,  but  according  to  my  personal  standards 
a  purer  patriotism  consists  in  laboring  to  establish  a  new  party  which  will 
be  consistently  devoted  to  the  interest  of  the  citizenship,  and  particularly 
to   the   advantage   and    advancement   of   the    producing   classes. 

"I  do  not  think  the  path  of  patriotism  lies  in  supporting  a  discredited 
and  decadent  old  party,  which  has  neither  conscientious  conviction  nor 
honest  intention,  or  indorsing  chameleon  candidates  who  change  vlie  color 
of  their  political  opinion  with  every  varying  hue   of  opportunism. 

"I  do  not  think  the  best  benefit  of  laboring  men  lies  in  supporting 
that  old  party  because  of  a  sop  of  false  promise,  when  the  performance  of 
that  party  while  in  power  did  more  to  injure  labor  than  all  the  injunc- 
tions ever  issued  before  or  since. 


WILLIAM  JEXyiNOSi  BnYAX.  293 

"I  have  lost  faith  in  the  empty  professions  of  an  unregenerate  De- 
mocracy. I  have  lost  confidence  in  the  ability,  in  the  sincerity  and  even 
in  the  integrity  of  its  leaders. 

"I  do  not  consider  it  patriotism  to  pretend  to  support  that  which, 
as  a  citizen  I  distrust  and  detest,  and  I  earnestly  hope  that  the  Inde- 
pendence Party  will  give  me  an  opportunity  to  vote  for  candidates  that 
are  both  able  and  honest,  and  for  a  declaration  of  principles  that  is  both 
sound   and  sincere. 

"WILLIAM    RANDOLPH    HEARST." 


WATTERSON'S    OPINION    OF    BRYAN    AND    BRYANISM    IN    1896. 

Extracts  From  Louisville  Courier  Journal  Duringr  Mr.  Bryan's 
First    Cninpaifirn    for    tlie    Presitlency. 

[Prom  Courier-Journal,  Tuesday,  July  14,  1896.] 
Geneva,   Switzerland,  July   13,   1896,  via  French  Cable. 
Walter  N.  Haldeman,  President  Courier- Journal  Company,  Louis- 
ville, Ky. : 
Another  ticket  our  only  hop^.    No  compromise  with  dishonor. 
Stand  firm. 

Henry  Wattebson. 

The  Democratic  party  seems  threatened  with  engulfment  in  a  deluge 
of  populism  and  anarchy.  *  *  Swayed  backward  and  forward  by  the 
latest  utterances  of  ridiculous  oratory,  they  ended  by  making  a  platform 
which  is  in  itelf  an  insult  to  every  Democrat,  and  placed  upon  that  plat- 
form a  fire-eating  populist,  whose  chief  merit  is  a  capacity  for  arousing 
similar  people  by  inflammatory  rhetoric.  As  one  of  our  contemporaries 
puts  it,  "Lunacy  having  dictated  the  platform,  it  is  perhaps  natural  that 
hysteria  should  evolve  the  candidate."  Men  like  Bryan  are  agitators, 
rabble-rousers  and  spellbinders  ;  but  no  man  would  trust  them  at  the  head 
of  an  ordinary  business  to  manage  its  executive  affairs,  much  less  at  the 
head  of  a  great  nation.  *  ♦  *  To  elect  him  would  mean  repudiation, 
anarchy,    and    national    and    social    ruin.— ComH.t   Journal,   July    IS,    1896. 

If  this  were  a  campaign  of  common  sense,  or  even  of  sanity,  Mr.  Bryan 
could  be  counted  on  to  quickly  talk  himself  to  death  ;  but  as  it  is  Mr. 
Bryan's  demagogic  loquacity  is  to  be  the  main  reliance  of  his  party  for 
rabble-rousing    votes. — Courier    Journal,    July    15,    ISOG. 

"Bryan  is  only  Tillman  in  better  English."  There  Is  a  deal  of 
truth  in  that.  Tillman  and  Bryan  teach  the  same  creed,  but  Tillman  is 
rough  and  uncouth,  whereas  Bryan  knows  the  art  of  oratorical  expression. 
Bryan  was  nominated  because  he  was  the  first  man  who  was  able  to 
make  the  convention  see  and  feel  that  he  was  as  wild  as  it  was. — Courier 
Journal,   July   15,    1896. 

Mr.  Bryan  is  nothing  but  a  Populist  in  doctrine  and  practice.  •  * 
The  same  hands  which  opened  the  gates  to  the  admission  of  the  Tillmans, 
the  Altgelds,  the  Debses,  and  such  like  cattle,  drove  out  the  Carlisles, 
the  Vilases,  the  Whitneys,  the  Herberts,  the  Palmers  and  other  stalwart 
exponents  of  Democracy  who  have  fought  every  fight  their  party  has 
known  for  years  and  have  never  laid  sturdier  blows  on  Republicanism 
than   on    anarchy    and    populism. — Courier   Journal,   July   16,    1896. 

The  flag  that  floats  over  the  names  of  Bryan  and  Sewall  is  the  flag 
of  pirates,  *  *  of  the  socialists,  and  of  anarchists,  rather  than  that 
of  Democrats. — Courier  Journal,  July  17,   1896. 

Outside  of  the  radical  declaration  for  free  coinage,  no  part  of  the 
Chicago  platform  has  occasioned  more  alarm  than  the  plank  which  con- 
demned the  Federal  Government  for  interfering  to  preserve  life  and  order 
during  the  great  riots  of  1894.  *  *  *  The  defeat  of  the  candidate 
representing  such  sentiments  is  not  partisan  nor  a  sectional  issue,  but 
a  moral  duty. — Courier  Journal,  July  21,  1896. 

The  Populists  did  the  consistent  thing  in  nominating  Mr.  Bryan  for 
the  Presidency.  There  is  hardly  a  plank  in  the  Chicago  platform  which 
is  not  also  in  the  Populist  platform.  Bryan,  judged  by  his  record  and 
by  his  professed  principles,  is  just  as  good  a  Populist  as  any  of  them. 
With  one  foot  on  the  Chicago  platform,  and  the  other  on  the  St.  Louis 
platfrom,  he  can  stand  comfortably  on  either  leg  or  both.  It  is  truly 
a  strange  and  disgusting  spectacle  to  real  Democrats. — Courier  Journal, 
July    26,    1896. 

Is  it  Bryan  and  Sewall  or  Bryan  and  Watson?  It  is  immaterial. 
In  either  case  it  is  Bryan  and  Populism,  Bryan  and  repudiation,  Bryan 
and  riot,   Bryan  and   ruin. — Courier  Journal,  July  21,  1896. 

The  three  R's  of  Bryan's  campaign  seem  to  be  Repudiation,  Riot, 
and  Ruin. — Courier  Journal,  July  29,  1896. 

Bryan  seiemed  proud  to  be  introduced  to  make  one  of  his  speeches 
by  Coxey's  man.  Carl  Browne.  How  does  that  sit  upon  the  stomach  or 
the  Democrat  and  those  who  must  vote  for  Bryan? — ■  Courier  Journal, 
August   12,   1896.  • 

The  fierce  light  that  beats  upon  a  Presidential  candidate  is  bringing 
out  the  weaknesses  and  absurdities  of  Mr.  Bryan's  public  career  with 
a  vengeance.  No  matter  under  what  guise  he  presents  his  views  on  gov- 
ernmental politics,  the  same  communistic  principles  are  always  apparent. 
*  *  *  That  any  party  should  have  stooped  to  take  up  a  candidate 
with  such  crazy-quilt  ideas  of  political  economy  is  hardly  more  dis- 
gustig  than  alarming.  What  would  Jefferson  or  Hamilton  or  the  other 
great    statesmen  of   the   Revolutionary   period   think   if   they  were   informed 


iJ94  WILLIAM  JENNINGS  BRYAN. 

that  this  intellectual  whipper-snapper,  this  puling  infant  of  logic  would  one 
day  be  deemed  worthy  of  a  seat  at  the  same  table  with  them. — Courier 
Journal,   August   26,    1896. 

Bryan's  program  is  on  a  more  majestic  scale  than  Coxey's,  but  it 
is  essentially  the  same  and  is  fully  as  ridiculous  and  as  dangerous. — Courier 
Journal,   Aupust   26,   1896. 

Of  course  government  ownership  is  what  all  Populists  desire,  and  it 
would  be  especially  gratifying  to  Mr.  Bryan  and  his  crowd,  since  this 
would  provide  several  thousand  lucrative  places  for  the  spoilsman. — 
Courier   Journal,   January    IS,    1897. 

Without  exceptions,  the  free  silver  leaders  are  either  visionary  men 
of  limited  business  experience,  or  else  mere  professional  politicians,  hold- 
ing or  seeking  office  *****  are  both  incompetent  and  obsolete.  They 
belong  to  a  past  age.  They  may  flourish  a  while  longer  as  Populists.  But 
they  can  do  nothing  as  Democrats.  They  will  grow  fewer  and  fewer,  and 
beautifully  less, until  as  leaders  they  peter  out  altogether. — Cowier  Journal, 
January  H,  1897. 

As  far  as  the  Courier  Journal  is  concerned  it  will  support  NO  man 
for  office  who  has  the  smell  of  Altgeldlsm  or  Tillmanism  upon  his  gar- 
ments, or  whose  boots  carry  one  speck  of  Populist  mud,  either  at  the 
heel  or  at  the  toe.  ♦  *  ♦  ♦  a  short  horse  is  soon  curried,  and  this  16  to  1, 
go-as-you-please,  stick-in-the-mud,  free  silver  short  horse,  is  very  short. 
Indeed,  as  a  matter  of  fact,  very  little  short  of  a  jackass.— Cotirier  Journal 
January   15,   1897. 

When,  last  July,  a  convention  met  in  Chicago,  bearing  the  cre- 
dentials of  the  National  Democracy,  authorized  to  enunciate  a  Demo- 
cratic platform  and  choose  Democratic  leaders ;  when  that  convention 
leaped  madly  into  the  arms  of  Coi».munism,  snatched  up  the  alien  flag 
of  Populism  and,  amid  scenes  of  wildest  abandonment  to  unreason  and 
passion,  proclaimed  it  the  ensign  of  Democracy  ;  when  the  convention,  break- 
ing in  contempt  the  time-honored  tablets  of  the  father's  creed,  set  up  in 
their  stead  the  new  faith  of  all  the  clashing  and  clamoring  malcontents 
who  had  fashioned  their  fanaticism  upon  opposition  to  Democracy  ;  when 
that  convention,  following  out  its  frantic  surrender  to  heretic  dogmas, 
nominated  for  the  Presidency  a  young  and  desperate  adventurer  because 
h»'  had  the  voice  and  the  presence  to  best  give  expression  to  the  evil 
passions  of  the  hour,  and  nominated  for  the  Vice-Presidency  a  lobbyist 
for  Government  subi^idies  to  his  individual  interests,  it  struck  a  stinging 
blow  full  in  the  face  of  every  true  Democrat. — Courier- Journal,  September 
?,   1896. 

This  youngster,  who  has  set  himself  up  as  the  financial  teacher  of 
the  American  people,  travels  over  the  land  with  a  tireless  tongue  and  a 
voluminous  vocabulary,  blandly  telling  the  people  of  the  impossible  things 
that  will  happen  in  the  future  and  free  coinage  of  silver,  when  he  is 
utterly  ignorant  of  the  simplest  facts  of  our  past  financial  history. — Courier- 
Journal,  September  S,  1896. 

The  workingman,  threatened  with  the  loss  of  49  cents  in  every 
dollar  of  wages,  is  consoled  with  the  assurance  that  should  he  strike  for 
the  restoration  of  the  wages  he  is  getting  now,  in  the  shape  of  a  larger 
number  of  silver  dollars,  he  will  be  allowed  to  proceed  to  any  acts  of 
violence  by  either  the  State  or  National  Government.  A  few  workmen 
may  be  silly  enough  to  accept  this  substitute  of  a  stone  for  bread. — Courier- 
Journal,  September  12,   1896. 

The  speeches  which  William  J.  Bryan  has  been  making  on  his  tours 
are,  without  exception,  the  most  incendiary  and  dangerous  utterances 
ever  addressed  to  the  American  people  by  a  Presidential  candidate.  He 
has  not  been  content  to  hold  up  himself  and  his  followers  as  the  only 
champions  of  the  poor  and  oppressed ;  he  has  denounced  the  supporters 
of  an  honest  monetar  standard  aj  no  better  than  midnight  robbers, 
and  he  urges  that  they  be  treated  as  an  invading  army.  He  has  gone  even 
farther  than  to  countenance  an  open  revolution  ;  he  has  asked  the  Ameri- 
can people  to  become  hypocrites  and  liars. — Courier-Journal,  September 
5,  1896. 

Mr.  William  J.  Bryan  has  come  to  Kentucky,  and  Kentuckians  have 
taken  his  measure.  He  is  a  boy  orator.  He  is  a  distinguished  dodger. 
He  is  a  daring  adventurer.  He  is  a  political  fakir.  He  is  not  of  the 
material  of  which  the  people  of  the  United  States  have  ever  made  a  Presi- 
dent, nor  is  he  even  of  the  material  of  which  any  party  has  ever  before 
made  a  candidate  for  the  Presidency. — Courier-Journal,  September  15,  1896, 
the  day  after  Bryan's  speech  in  Louisville. 

Mr.  Bryan  and  his  silver  friends  announce  that  they  are  not  afraid 
to  be  called  demagogues.  Let  us  remind  them  that  Benjamin  Franklin  once 
observed  that  experience  was  a  dear  school,  but  fools  would  learn  in  no 
other,  and  often  not  even  in  that.  In  no  country  in  the  world  are 
demagogues  so  despised  and  distrusted  as  in  America.  Let  the  people 
once  understand  Bryan's  real  character  and  they  will  drop  him  as  com- 
pletely as  they  dropped  Denis  Kearney  and  "Gen."  Coxey. — Courier-Journal, 
September  IS,  1896. 

We  are  told  that  the  farmers  of  the  West  and  South  will  support 
Bryan  because  they  feel  that  they  must  fight  the  "capitalistic  classes," 
whose  interests,  it  is  alleged,  are  diametrically  opposed  to  theirs.  We 
do  not  believe  this  for  several  reasons.  *  *  ♦  ^q  have  many  farmers 
who  are  very  wealthy  men,  who  have  large  numbers  of  employees  and 
bank  accounts.  *  *  *  Now  what  does  this  mean?  Simply  that  to  the 
repudiators  and  anarchists  like  Altgeld,  Tillman  and  Debs,  who  are  tak- 
ing such  a  pronounced  part  in  this  campaign,  the  farmer  with  his  com- 
fortable home  and  comparative  financial  independence  is  bound  .,to  become 
an  object  of  suspicion  and  attack — if  not  now  at  some  very  early  date. — • 
Courier-Journal,  September,  26,  1896. 

Bourke  Cockran  said  no  brighter,  truer  thing  in  his  great  speech 
here  than  was  embodied  in  his  definition  of  Populism:     "Sonorous  declama- 


WILLIAM  JENNINGS  BRYAN.  295 

tlon  based  upon  a  fundamental  misconception  of  facts."  This  satire  eats 
li^^e  vitriol  into  the  shallow  assertions  of  calamity  howlers,  but  from 
Bryan  to  Weaver,  down  to  Watson  and  Blackburn  it  fits  them  to  a  T. — Edi- 
torial, Courier -Journal  J  October  zl,   IHHy. 

It  is  apparent  that  Mr.  Bryan  is  much  better  adapted  for  a  theatrical 
press  agent  than  for  a  Unitfid  States  President,  but  it  is  als.)  apparent  that 
he  would  shine  still  better  standing  on  a  red  wagon  oratorically  selling 
some  magic  preparation,  like  Bryan's  blessed  balsam  for  bunions. — Editorial, 
Courier-J ournal,   October  21,  It'Jit. 

Bryan  is  beaten — ipgloriously  and  overwhelmingly.  So  closes  the 
second  great  era  of  national  peril  which  has  menaced  our  Government. 
So  lift  the  clouds  of  fiatLsm  and  rep;:diation  which  lowered  above  the  Innd 
in  ominous  threat  of  dishonor  and  disaster.  So  breaks  the  sun  of  a  new 
dawn  upon  our  manhood  proven,  our  integrity  vindicated,  our  intelligence 
victorious,  our  institutions  impregnable.  *  *  *  Thank  God.  In  the 
name  of  a  long-suffering  people,  thank  God. — Courier-Jovrnnl.  Novemhr 
',.    /-^%^   cditnrinl   headed  "The  Inevitable." 


"UK     IS     IX    POLITICS    BiCCAlSK     IT     HKLl'S    TIIK     GATE 
RECEIPTS." 

What  Rog-er  C.  Sullivan.  DeiMoc-ratic  lVatii»naI  Coininitteemaii, 
"  Said   ot    Mr.    Bryan    in    lOd!;. 

[From   public   statement  issued   at   Chicago,    September   7,    1906,    by   Roger   0. 
Saliivan,  then  the  Illinois  member  of  the  Democratic  National  Committee.] 

Mr.  Bryan  has  twice  led  the  Democratic  party  to  defeat,  the 
second  a  \vor.se  defeat  than  the  first.  If  he  is  proud  of  that 
*'\  idence  of  the  people's  confidence  in  his  sincerity,  he  is  welcouie 
1()  it.  Bijt  his  boast  of  sincerity  merits  further  consideration. 
He  insin!  ates  that  I  make  money  out  of  politics,  and  that  his 
;  sincerity  therefore  couij^els  him  to  oppose  my  particijiation  in 
Democratic  affairs.  The  plain  inference  is  that  Mr.  Bryan  thinks 
':':  wrong-  to  make  money  out  of  j)olitics.  This  boast  of  his  puts 
1  le  stamp  of  insincerity  all  over  him.  If  Mr.  Bryan  thinks  it 
wrong  to  make  money  ov;t  of  politics,  he  should  quit  making- 
money.  Mr.  Bryan  has  not  one  dollar  that  he  ever  made  out 
of  anything-  but  politics.  He  tried  to  be  a  lawyer;  he  was  a 
fai!ii]-e  at  it.  He  tried  to  be  a  newspaper  editor;  he  was  a  failure 
at  that.  He  is  a  now  a  man  of  property.  As  f(jrtiines  g-o.  he  is 
a  i-ich  man.  He  made  every  dollar  of  his  fo!-tune  ont  of  politics 
as  a  ittej)])ing--;-tone  to  the  lecture  platform.  Mr.  Bryan  dis- 
<  (;\ered.  many  years  ago.  that  he  could  make  his  political  prom- 
inence pay.  He  is  a  shrewd  advertiser,  and  in  his  way  a  clever 
h  siness  man.  He  has  discovered  that  so  long  as  he  is  candi- 
(I  ite  for  President  and  a  possible  nominee,  gifted  with  the  ability 
t(»  wea\e  flowing-  sentences  into  well-rounded  periods,  the  public 
win  come  to  hear  him  at  so  much  a  head.  He  is  in  politics 
l)(M'a-\se  it  helps  the  gate  receipts.  Like  the  actresses  who  have 
discarded  the  stolen  diamonds  dodge  for  the  g-reater  publicity 
a  d'vorce  s"it.  Mr.  Bryan  will  quit  running  for  PresidtMit 
and  will  qi;it  politics  just  as  soon  as  he  discovers  that  some 
other  form  of  advei'thsing  will  bring  more  dollars  to  the  box 
ofH?e  v\hen  he  is  announced  to  appear  on  the  stage. 


CEXTRALIZATIOIV. 


MarlitMi    <  lijtnue    in    Democratic    Sentiment    as    Illustrated    by 
th«'    Hryjin    Platforms. 

The   Now   ^'ork   Times    (Democratic)    publishes   the   following 
exti'acts  froui   nation-il  DemDcratic  platforms,   showing-  how  the 
ryan    platform    ri.ns  counter  to  Democratic   tradition: 

1872 

w     I  ocal   .'-•elf -government  with  impartial  suffrage  will  guide  the 
rights, of  al!  citii^ens  more  securely  than  any  centralized  power. 

1876. 
*     '•     "'•■     A  con- apt  centralism  which     *     *     has  honeycombed 
the  oilijcs  of  the  Federal  Governmentj 


298  WILLIAM  JENNINOS  BRYAN. 

1880 

*  ♦  *  Opposition  to  central izationism  and  to  that  dan- 
gerous spirit  of  encroachment  which  tends  to  consolidate  the 
powers  of  all  the  departments  in  one,  and  thus  to  create,  wliat- 
ever  the  form  of  government,  a  real  despotism. 

1884. 
The  reserved  rif»-hts  of  the  States  and  the  supremacy  of  the 
Federal  Government  \vithin  the  limits  of  the  Constitution  will 
ever  form  the  true  base  of  our  liberties,  and  can  never  be  sur- 
rendered without  destroying  that  balance  of  rights  and  powers 
which  enables  a  continent  to  be  develojxHl  in  peace  and  social 
order  to  be  maintained  by  means  of  local  self-goveninieut. 

1888. 

*  *  *  Strictly  specifying  every  granted  power  and  ex- 
pressly reserving  to  the  States  or  people  the  entire  ungranted 
residue  of  power. 

1892. 
The  tendency  to  centralize  all  power  at  the  Federal  capital 
has  become  a  menace  to  the  reserved  rights  of  the  Stat(>s  that 
strikes  at  the  very  roots  of  our  Government  under  the  Constitu- 
tion, as  framed  by  the  fathers  of  the  liepublic. 

1896. 
During  all  these  years  the  Democratic  party  has  resisted  the 
tendency  of  selfish  interests  to  the  centralization  of  govern- 
mental power  and  .steadfastly  maintained  the  integrity  of  the 
dual  system  of  government  established  by  the  founders  of  this 
republic  of  republics. 

1900. 
Bryan's  platform  contains  no  reference  to  centralization. 

1904 
Under   them    (the    Democratic    party)    local    self-government 
and  national  unity  and  prosperity  were  alike  established. 

1908. 

We  favor  such  le'gislation  as  will  increase  the  power  of  the 
Interstate   Commerce    Commission. 

We  believe  that  in  so  far  as  the  needs  of  commerce  require 
an  emergency  currency  such  currency  should  be  issued,  con- 
trolled by  the  Federal  Government. 

We  pledge  the  Democratic  party  to  the  enactment  of  a  law 
to  regulate  the  rates  and  services  of  telegraph  and  telephone 
companies  engaged  in  the  transaction  of  messages  between  the 
States,  under  the  juri.sdiction  of  the  Interstate  Commerce  Com- 
mission. 

Among  the  additional  remedies  we  specify  *  *  *  a  license 
system  which  will,  without  abridging  the  right  of  each  State 
to  create  corporations  or  its  right  to  regulate  as  it  will  foreign 
corporations  doing  business  within  its  limits,  make  it  necessary 
for  a  manufacturing  or  trading  corporation  engaged  in  intei'- 
state  commerce  to  take  out  a  Federal  license. 


Pa8»ed  at  the  instance  of  Mr.  Roosevelt,  it  <tl»e  Rate  law) 
Htanda  as  a  nionnnieitt  to  tlie  principle  wliicli  lie  lias  in- 
cessantly maintained  in  speech  and  action,  that  the  laws 
must  he  so  made  that  they  can  he  enforced  as  well  against 
the  sins  of  the  ^veaithy  and  the  po^verfnl  as  ajL^ainst  those 
of   the   poor.— Hon.   Wm.   H.  Taft,   at   Colnmhns,  Ohio. 

Mr.  Bryan  says  he  wonld  extirpate  trusts,  root  and 
hranch.  If  Mr.  Ilr^an's  lanKuase  Is  more  than  mere  rhetoric 
an<l  he  means  ta  seize  the  proyerty,  to  divide  it  up  and 
sell  it  in  pieces,  and  disassemhle  the  parts,  then  I  am  nof 
in  favor  of  his  method  of  dealing:  witli  trusts,  hecanse  I 
helieve  that  such  lar^e  comhinatlons  legitimately  conducted 
Srreatly  a«ld  to  the  prosperity  of  the  country.— Hon.  Wm.  H. 
Taft,  at   Columhus,   Ohio. 

One  vital,  dominating;-  fact  confronts  the  Democratic 
party  ^vhich  no  oratory,  which  no  eloquence,  which  no 
rhetoric  can  ohscure;  BRYAIV'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New   York  Worl4, 


"EQUAL  JUSTICE  TO    ALL    MEN    WITH- 
OUT REGARD  TO  RACE  OR  COLOR." 


Tlie  Demand   of  tlie   Republican    Party— Contrast   tlie    Attitude 
of  the   Democratic  Leaders  and   Party. 

IIEFUBLICAN    SENTIMENTS.       DEMOCRATIC    SENTIMENTS. 


"The  Republican  party  has 
been  for  more  than  fifty  years 
the  consistent  friend  of  the 
American  negro.  It  gave  him 
freedom  and  citizenship.  Iti 
wrote  into  the  organic  law  the 
declarations  that  proclaim  hi« 
civil  and  political  rights,  and 
it  believes  to-day  that  his  note- 
worthy progress  in  intelli- 
gence, industry  and  good  citi- 
zenship has  earned  the  respect 
and  encouragement  of  the  na- 
tion. We  demand  equal  jus- 
tice for  all  men,  without  re- 
gard to  race  or  color;  we  de- 
clare once  more,  and  without 
reservation,  for  the  enforce- 
ment in  letter  and  spirit  of  the 
thirteenth,  fourteenth  and  fif- 
teenth amendments  to  the 
Constitiition,  which  were  de- 
signed for  the  protection  and 
advancement  of  the  negro,  and 
we  condemn  all  devices  that 
have  for  their  real  aim  his  dis- 
franchisement for  reasons  of 
color  alone,  as  unfair,  unAmer- 
ican  and  repugnant  to  the  su- 
preme law  of  the  land." — From 
Republican  platform  adopted 
at  National  Convention  1908. 


"The  white  man  in  the  South 
has  disfranchised  the  negro  in 
self-protection ;  and  there  is 
not  a  Republican  in  the  North 
who  would  not  nave  done  the 
same  thing  under  the  same 
circumstances.  The  white  men 
of  the  South  are  determined 
that  the  negro  will  and  shall 
be  disfranchised  everywhere  it 
is  necessary  to  prevent  the  re- 
currence of  the  horrors  of  car- 
petbag rule." — William  Jen- 
nings Bryan  in  speec-h  at  New 
York  in  1908. 

"I  favor,  and  if  elected  will 
urge  with  all  my  power,  the 
elimination  of  the  negro  from 
politics." — Hoke  Smith,  Gover- 
nor of  Georgia ;  Secretary  of 
Interior  under  President  Cleve- 
land. 

"In  my  opinion  the  granting 
of  universal  suffrage  to  the 
negro  was  the  mistake  of  the 
nineteenth  century." — Col.  Hil- 
ary A.  Herbert,  Secretary  of 
Navy  under  President  Cleve- 
land. 

"We  stuffed  ballot  boxes,  we 
shot  negroes ;  we  are  not 
ashamed  of  it." — Senator  Till- 
man in  United  States  S;Miate. 


THE  ELECTION  LAWS  OF  THE  SOUTH. 

The  folowing  are  sections  of  some  of  the  election  laws  of  the 
South,  many  of  them  framed  for  the  avowed  purpose  of  depriv- 
ing Afro-American  citizens  of  the  right  to  vote.  It  will  be  seen 
that  the  Louisiana  and  North  Carolina  laws  are  especially 
framed  for  the  purpose  of  making  the  educational  test  apply 
only  to  the  A  fro- Americans,  and  all  persons  who  were  voters 
prior  to  January  1,  1867,  and  their  lineal  descendants  are  exempt 
from  the  provisions  of  the  law,  which  disqualifies  persons  because 
of  illiteracy : 

Mississippi. 

"Section  244.  On  and  after  the  first  day  of  January,  1892,  every 
elector  shall,  in  addition  to  the  foregoing  qualifications,  be  able  to  read 
any  section  of  the  Constitution  of  this  State  ;  or  he  shall  be  able  to  under- 
stand the  same  when  read  to  him,  or  to  give  a  reasonable  interpretation 
thereof      *      *      *." 

.  Louisiana. 

"Section  3.  He  (the  voter)  shall  be  able  to  read  and  write,  and 
shall  demonstrate  his  ability  to  do  so  when  he  applies  for  registration,  by 
making,  under  oath  administered  by  the  registration  officer  or  his  dep  ty, 
written  application  therefor,  in  the  English  language  or  his  mother  tongue, 

297 


808  EQUAL  JUSTICE  TO  ALL. 

which  application  shall  contain  the  essential  facts  necessary  to  show  that 
he  Is  entitled  to  register  and  vote,  and  shall  be  entirely  written,  dated 
and  signed  by  him.  in  the  presence  of  the  registration  officer  or  his 
deputy,  without  asKistance  or  suggestion  from  any  person  or  memorandum 
whatever,  except  the  form  of  application  hereinafter  set  forth.  ♦  ♦  • 
'•Section  5.  No  male  person  who  was  on  January  1st,  1S67,  or  at 
any  date  prior  thereto,  entitled  to  vote  under  the  Constitution  or  statutes 
of  any  State  of  the  United  States,  wherein  he  then  resided,  and  no  son 
or  grandson  of  any  such  person  not  less  than  twenty-one  years  of  age  at 
the  date  of  the  adoption  of  this  Constitution,  and  no  male  person  of 
foreign  birth,  who  Was  naturalized  prior  to  the  first  day  of  January,  1885, 
shall  be  denied  the  right  to  register  and  vote  in  this  State  by  reason 
of  his  failure  to  possess  the  educational  or  property  qualifications  pre- 
scribed by  this  Constitution  ;  provided,  he  shall  have  resided  in  this 
State  for  five  years  next  preceding  the  date  at  which  he  shall  apply  for 
registration,  and  shall  have  registered  in  accordance  with  the  terms  of  this 
article  prior  to  September  1,  1898,  and  no  person  shall  be  entitled  to 
register    under    this    section    after    that   date." 

Nortli   Carolina. 

"Section  4.  fJvery  person  presenting  himself  for  registration  shall 
be  able  to  read  and  write  any  section  of  the  Constitution  in  the  English 
language.  *  *  But  no  male  person  who  was,  on  January  1,  1867,  or 
at  any  time  prior  thereto,  entitled  to  vote  under  the  laws  of  any  State 
In  the  United  States  wherein  he  then  resided,  and  no  lineal  descendant 
of  any  such  peraon  shall  be  denied  the  right  to  register  and  vote  at  any 
election  in  this  State  by  reason  of  his  failure  to  possess  the  educational 
qualifications  herein  prescribed ;  Provided,  he  shall  have  registered  in  ac- 
cordance with  the  terms  of   this    section   prior  to   December  1,    1908. 

"The  General  Assembly  shall  provide  for  the  registration  of  all  per- 
sons entitled  to  vote  without  the  educational  qualifications  herein  pre- 
scribed, and  shall,  on  or  before  November  1,  1908,  provide  for  the  making 
of  a  permanent  record  of  such  registration,  and  all  persons  so  registered 
shall  forever  thereafter  have  the  right  to  vote  in  all  elections  by  the  people 
of  this  State,  unless  disqualified  under  section  2  of  this  article  :  Provided, 
such  person  shall   have   paid  his  poll  tax  as   above  prescribed." 

Alabama. 

1st.  Those  who  can  read  and  write  any  article  of  the  Constitution 
of  the  United  States  in  the  English  language,  and  who  are  physically 
unable  to  work  ;  and  those  who  can  read  and  write  any  article  of  the 
Constitution  of  the  United  States  in  the  English  language  and  who  have 
worked  and  been  regularly  engaged  in  some  lawful  employment,  business 
or  occupation,  trade  or  calling  for  the  greater  part  of  the  twelve  months 
next  preceding  the  time  they  offer  to  register,  and  those  who  are  unable 
to  read  and  write,  if  such  inability  is  due  solely  to  physical  disability  ;  or, 

2nd.  The  owner  in  good  faith  In  his  own  right,  or  the  husband  of 
a  woman  who  is  the  owner  in  good  faith  in  her  own  right,  of  forty  acres 
of  land  situate  in  this  State,  upon  which  they  reside ;  or  the  owner  in 
good  faith  in  his  own  right  or  the  husband  of  any  woman  who  is  the 
owner  in  good  faith  in  her  own  right  of  any  real  estate  situate  in  the 
State  assessed  for  taxation  at  the  value  of  three  hundred  dollars  or  more, 
or  the  owner  in  good  faith  in  his  own  right  or  the  husband  of  any  woman 
who  is  the  owner  in  good  faith  of  her  own  right  of  personal  property  in 
this  State  assessed  at  taxation  at  three  hundred  dollars  or  more  ;  pro- 
vided that  the  taxes  due  upon  such  real  estate  or  personal  property 
for  the  year  next  preceding  the  year  for  which  he  offers  to  register  shall 
have  been  paid  unless  the  assessment  shall  have  been  legally  contested 
and  is  undetermined. 

Sontli   Carolina. 

Section  174.  Every  male  citizen  of  this  State  and  of  the  United 
States,  twenty-one  years  of  age  and  upwards,  not  laboring  under  disa- 
bilities named  in  the  Constitution  of  1895  of  this  State,  and  who  shall 
have  been  a  resident  of  the  State  for  two  years,  in  the  county  one  year, 
In  the  polling  precinct  in  which  the  elector  offers  to  vote  four  months 
before  any  election,  and  shall  have  paid  six  months  before  any  election 
any  poll  tax  then  due  and  payable,  and  who  can  read  and  write  any 
section  of  the  said  Constitution  submitted  to  him  by  the  registration  offi- 
cers, or  can  show  that  he  owns  and  has  paid  all  taxes  collectible  due 
the  previous  year  on  property  in  the  State  assessed  at  $300  or  more 'and 
who  shall   apply   for  registration  shall  be  registered. 

Virsrinia. 

Sec.   20.     Who  may   register   after   1904. 

After  the  first  day  of  January,  1904,  every  male  citizen  of  the  United 
States  having  the  qualifications  of  age  and  residence  required  by  section 
18  shall  be  entitled  to   register,  provided  : 

1st.  That  he  has  personally  paid  to  the  proper  officer  all  State  poll 
taxes  assessed  or  assessable  against  him  under  this  or  the  former  Consti- 
tution for  the  three  years  next  preceding  that  in  which  he  offers  to  reg- 
ister ;  or.  If  he  comes  of  age  at  such  time  that  no  poll  taxes  shall  have 
been  assessed  against  him  for  the  year  preceding  the  year  in  which  he 
offers  to  register,  has  paid  one  dollar  and  fifty  cents  In  satisfaction  of 
the  first  year's  poll  tax  assessable  against  him  ;   and 

That  unless  physically  unable,  he  makes  application  to  register  In 
his  own  handwriting  without  aid,  suggestion  or  memorandum  in  the 
presence  of  the  registration  officers,  stating  therein  his  name,  age,  date, 
and  place  of  birth,  residence  and  occupation  at  the  time  and  whether  he 
has  previously  voted,  and  if  so,  the  State,  county  and  precinct  in  which 
he  voted   last,    and, 


EQUAL  JUSTICE  TO  ALL.  299 

Third.  That  he  answer  on  oath  any  and  all  questions  affecting  his 
qualifications  as  an  elector  submitted  to  him  by  the  officers  of  registration, 
which  questions  and  his  answers  thereto  shall  be  reduced  to  writing,  cer- 
tified by  the  said  officers  and  preserved  as   part  of  their  official   records. 

Sec.  22.  No  person  who  during  the  late  war  between  the  States 
served  in  the  Army  or  Navy  of  the  Confederate  States  shall  at  the  time 
be  required  to  pay  a  poll  tax  as  a  prerequisite  to  the  right  to  vote.      *      *      * 

Tlie   Georgia.  Constitutional   Amendment. 

The  amendment  to  the  Constitiition  of  Georg-ia,  which  is  to 
be  submitted  to  the  voters  of  that  State  in  November,  is  as  fol- 
lows : 

"Section  1.  Elections  by  the  people  shall  be  by  ballot,  and  only 
those  persons  shall  be  allowed  to  vote  who  have  first  been  registered  in 
accordance   with   the   requirements  of   law. 

'Par.  2.  Every  male  citizen  of  the  State  who  is  a  citizen  of  the 
United  States,  twenty-one  years  old  or  upwards,  not  laboring  under  any 
of  the  disabilities  named  in  this  article,  and  possessing  the  qualifications 
provided  by  it,  shall  be  an  elector  and  entitled  to  register  and  vote  at 
any  election  by  the  people  ;  provided,  that  no  soldier,  sailor,  or  marine  in 
the  military  or  naval  service  of  the  United  States  shall  acquire  the  right.', 
of  an  t  lector  by  reason   of  being  stationed  on  duty   in   this  State. 

••par.  3.  To  entitle  a  person  to  register  and  vote  at  any  election 
by  the  people,  he  shall  have  resided  in  the  State  one  year  next  pre- 
ceding the  election,  and  in  the  county  in  which '  he  offers  to  vote  six 
months  next  preceding  the  election,  and  shall  have  paid  all  taxes  which 
may  have  been  required  of  him  since  the  adoption  of  the  Constitution 
of  Georgia  of  1877,  that  he  may  have  had  an  opportunity  of  paying 
agreeably  to  law.  Such  payment  must  have  been  made  at  least  six 
months  prior  to  the  election  at  which  he  offers  to  vote,  except  when  such 
elections  are  held  within  six  months  from  the  expiration  of  the  time 
lixed   by   law    for   the   payment  of   such   taxes. 

'Par.  4.  Every  male  citizen  of  this  State  shall  be  entitled  to  reg- 
i.-^ter  as  an  elector  and  to  vote  at  all  elections  of  said  State  who  is  not 
disqualified  under  the  provisions  .of  section  2  of  article  2  of  this  Con- 
stitution, and  who  possesses  the  qualifications  prescribed  in  paragraphs 
2  and  3  of  this  section  or  who  will  possess  them  at  the  date  of  the  elec- 
tion occurring  next  after  his  registration,  and  who  in  addition  thereto 
comes  within  either  of  the  classes  provided  for  in  the  five  following  sub- 
divisions   of   this    paragraph.    • 

"1.  All  persons  who  have  honorably  served  in  the  land  or  naval 
forces  of  the  United  States  in  the  Revolutionary  war,  or  the  war  of 
1812,  or  in  the  war  with  Mexico,  or  in  any  war  with  the  Indians  or  in 
the  war  between  the  States,  or  in  the  war  with  Spain,  or  who  honorably 
served  in  tl\«  land  or  naval  forces  of  the  Confederate  States,  or  of  the 
State   of   Georgia    in    the    war   between   the    States,    or, 

"2.  'All  persons  lawfully  descended  from  those  embraced  in  the 
sub-division   next  above,   or, 

"3.  All  persons  who  are  of  good  character,  and  understand  the 
duties  and  obligations  of  citizenship  under  a  republican  form  of  govern- 
ment, or, 

"4.  All  persons  who  can  correctly  read  in  the  English  language 
any  paragraph  of  the  Constitution  of  the  United  States  or  of  this  State, 
and  correctly  write  the  same  in  the  English  language  when  read  to  him 
by  any  one  of  the  registrars,  and  all  persons  who,  solely  because  of 
physical  disability,  are  unable  to  comply  with  the  above  requirements,  but 
who  can  understand  and  give  reasonable  interpretation  of  any  paragraph 
of  the  Constitution  of  the  United  States  or  of  this  State,  that  may  be 
read   to   them   by   one   of   the   registrars,    or, 

•'5.  Any  person  who  is  the  owner  in  good  faith  in  his  own  right  of 
at  least  forty  acres  of  land  situated  in  this  State,  upon  which  he  resides, 
or  is  the  owner  in  good  faith  in  his  own  right,  of  propertj^  situated  in 
this  State  and  assessed  for  taxation  at  the  value  of  five  hundred  dollars."' 

Par.  5.  The  ri^ht  to  register  under  sub-divisions  1  and  2  of  para- 
granh  4  shall  continue  only  until  January  1,  1915.  But  the  registrars 
shall  prepare  a  ropter  of  all  persons  who  register  under  sub-divisions 
1  and  2  of  paragraph  4,  and  shall  return  the  same  to  the  Clerk's  office 
of  the  Superior  Court  of  their  counties  and  the  Clerks  of  the  Superior 
Court  shall  send  copies  of  the  same  to  the  Secretary  of  State,  and  it 
i-hnll  be  the  duty  of  these  officers  to  record  and  permanently  preserve 
these  rosters.  Any  person  who  has  been  once  registered  under  either 
of  the  sub-divisions  1  or  2  of  paragraph  4,  shall  thereafter  be  permitted 
to  vote,  provided,  he  meets  the  requirements  of  paragraphs  2  and  3  of 
this    section. 

Par.  6.  Any  person  to  whom  the  right  of  registration  is  denied  by 
the  registrars  on  the  ground  that  he  lacks  the  qualifications  set  forth 
in  the  five  sub-divisions  of  paragraph  4,  shall  have  the  right  to  take 
an  appeal,  and  any  citizen  may  enter  an  appeal  from  the  decision  of 
the  regi  trars  allowing  any  person  to  register  under  said  sub-divisions. 
All  appeals  must  be  filed  in  writing  with  the  registrars  within  ten  days 
from  the  date  of  the  decision  complained  of  and  shall  be  returned  by 
the  registrars  to  the  ofiice  of  the  Clerk  of  the  Superior  Court  to  be  tried 
as    other    appeals. 

Par.  7.  Pending  an  appeal  and  until  the  final  decision  of  the  case, 
the  judgment   of  the   registrars   shall   remain   in   full    force. 

Par.  8.  No  person  shall  be  allowed  to  participate  in  a  primary  of 
any  political  party  or  a  convention  of  any  political  party  in  the  State 
who   is    not   a   qualified    voter. 

Maryiantl. 

The  following-  is  the  text  of  the  amendment  to  the  Constitu- 
tion of  the  State  of  Maryland,  which  is  to  be  submitted  to  the 
voters  of  that  State  at  the  November  election : 


300  EQUAL  JUSTICE  TO  ALL. 

Section  1.  All  elections  shall  be  by  ballot,  and  every  male  citizen 
of  the  United  States  of  the  age  of  twenty-one  or  upward,  who  has  been 
a  resident  of  the  State  for  two  years  and  of  the  Legislative  District  of 
Baltimore  City  or  In  the  county  in  which  he  may  offer  to  vote,  for  one 
year  next  preceding  the  election,  and  who,  moreover.  Is  duly  registered 
as  a  qualified  voter  as  provided  In  this  article,  and  shall  be  entitled 
to  "vote  in  the  ward  or  election  district  in  which  he  resides,  at  all  elec- 
tions hereafter  to  be  held  in  this  State,  and  In  case  any  county  or  city 
shall  be  so  divided  as  to  form  portions  of  different  electoral  districts 
for  the  election  of  Representatives  in  Congress,  Senators,  Delegates  or 
other  officers,  then,  to  entitle  a  person  to  vote  for  such  officers,  he  must 
have  been  a  resident  of  that  part  of  the  county  or  city  wlilch  shall 
form  a  part  of  the  electoral  district  In  which  he  offers  to  vote  for  one 
year  next  preceding  the  election  ;  but  a  person  who  shall  have  acquired  a 
residence  In  such  county  or  city  entitling  him  to  vote  at  any  such  elec- 
tion shall  be  entitled  to  vote  In  the  election  district  from  which  he  re- 
moved until  he  shall  have  acquired  a  residence  in  the  part  of  the  county 
or  city  to  which  he  has  removed. 

Every  male  citizen  of  the  United  States  having  the  above  prescribed 
qualifications  of  age  and  residence  shall  be  entitled  to  be  registered  so 
as   to   become   a   qualified   voter   if  he   be : 

First. — A  person  who,  on  the  first  day  of  January  In  the  year  eighteen 
hundred  and  sixty-nine,  or  prior  thereto,  was  entitled  to  vote  under  the 
laws  of  this  State,  or  of  any  other  State  of  the  United  States,  wherein 
he   then    resided  ;    or 

Second. — A  male  descendant  of  such   last  mentioned  person  ;  or 

Third. — A  forclgn-born  citizen  of  the  United  States,  naturalized  be- 
..ween  the  first  day  of  .January  in  the  year  eighteen  hundred  and  sixty- 
nine  and  the  date  of  the  adoption  of  this  section  of  this  article  ;  or 

Fourth. — A  male  descendant  of  such  last  mentioned  person  ;  or 

Fifth.— A  person  who,  in  the  presence  of  the  officers  or  registration, 
shall,  in  his  own  hand-writing,  with  pen  and  Ink,  without  any  aid,  sug- 
gestion, or  memorandum  whatsoever,  and  without  any  question  or  di- 
rection addressed  to  him  by  any  of  the  officers  of  registration,  make  ap- 
plication to  register,  correctly  stating  in  such  application  his  name,  age, 
date  and  place  of  birth,  residence  and  occupation  at  the  time  and  for 
the  two  years  next  preceding  ;  the  name  or  names  of  his  employer  or 
employers.  If  any,  at  the  time  and  for  the  next  two  years  preceding,  and 
whether  he  has  previously  voted,  and  If  so,  the  State,  county  or  city,  and 
district  or  precinct  In  which  he  voted  last,  and  also  the  name  In  full 
of  the  President  of  the  United  States,  of  one  Of  the  Justices  of  the  Su- 
preme Court  of  the  United  States,  of  the  Governor  of  Maryland,  of  one 
of  the  Judges  of  the  Court  of  Appeals  of  Maryland  and  of  the  Mayor 
of  Baltimore  City,  if  the  applicant  resides  in  Baltimore  City,  or  of  one 
of  the  County  Commissioners  of  the  county  in  wliich  the  applicant  resides  ; 
and  any  person  who  is  unable  to  comply  with  the  foregoing  requirements 
as  to  making  application  for  registration  in  his  own  hand-writing,  solely 
because   he    is   physically   disabled    from   so    doing ;    or 

Sixth. — A  person,  or  the  husband  of  a  person,  who,  at  the  time  of 
his  application  for  registration,  is  the  bona  fide  owner  of  real  or  personal 
property  in  an  amount  of  not  les"^  than  five  hundred  dollars.  Is  assessed 
therefor  on  the  tax  books  of  the  City  of  Baltimore,  or  of  one  of  the  coun- 
ties of  this  State,  has  been  such  owner  and  so  assessed  for  two  years 
next  preceding  his  application  for  registration,  shall  have  paid,  and  shall 
produce  receipts  for,  the  taxes  on  said  property  for  paid  two  years,  and 
shall  at  the  time  of  his  application  make  affidavit  before  the  officers  of 
registration  that  he  is,  or  that  he  is  the  husband  of  the  person  who  is, 
the  bona  fide  owner  of  the  property  so  assessed  to  him  or  to  her,  as 
the  case  may  be,  and  that  he  or  she  has  been  the  owner  for  two  years  next 
preceding  his   application. 

No  person  not  qualified  under  some  one  of  the  above  clauses  shall  be 
entitled  to  be  registered  as  a  qualified  voter  or  be  entitled  to  vote. 

Every  written  application  to  be  registered,  presented  to  the  officers 
of  registration  by  any  person  applying  to  be  registered  under  the  above 
fifth  clause,  shall  be  carefully  preserved  by  said  officers  of  registration 
and  shall  be  produced  in  any  Court,  if  required,  as  hereinbefore  provided. 

The  affidavit  of  any  applicant  for  registration,  duly  made  to  the  officers 
of  registration  or  in  Court,  that  he,  the  applicant,  is  a  person  who  was 
entitled  to  vote  on  or  before  the  first  day  of  January  in  the  year  eighteen 
hundred  and  sixty-nine,  as  aforesaid,  or  that  he  has  become  a  naturalized 
citizen  of  the  United  States  between  the  first  day  of  January  in  the  year 
eighteen  hundred  and  sixty-nine  and  the  date  of  the  adoption  of  this 
section  of  this  article,  as  aforesaid,  or  his  affidavit  upon  information 
and  belief  that  he  is  a  de.scendant  of  a  person  who  was  entitled  to  vote 
on  or  before  the  first  day  of  January  in  the  year  eighteen  hundred  and 
sixty-nine,  or  that  he  is  a  def^cendant  of  a  person  who  has  become  a  natu- 
ralized citizen  of  the  United  States  between  the  first  day  of  January  in 
the  year  eighteen  hundred  and  sixty-nine  and  the  date  of  the  adoption 
of  this  section  of  this  article,  shall  be  prima  facie  evidence  of  any  of 
said  facts  so  sw'orn  to. 

A  willfully  false  statement  upon  the  part  of  any  applicant  for  regis- 
tration in  relation  to  any  of  the  matters  aforesaid  shall  be  perjury,  and 
punishable  as  perjury  is  punished  by  the  laws   of  this   State. 

Any  person  who  feels  aggrieved  by  the  action  of  any  board  of  officers 
of  registration  in  refusing  to  register  him  as  a  qualified  voter,  or  in 
registering  any  disqualified  person,  may  at  any  time,  either  before  or 
after  the  last  session  of  the  board  of  officers  of  registration,  but  not  later 
than  the  Tuesday  next  preceding  the  election,  file  a  petition,  verified  by 
affidavit,  in  the  Circuit  Court  for  the  county  in  which  the  cause  of  com- 
plaint arises,  or,  if  the  cause  of  complaint  arises  in  Baltimore  City,  in 
any  a^urt  of  common-law  jurisdiction  in  said  city,  setting  forth  the 
grounds  of  his  application  and  asking  to  have  the  action  of  the  board 
of    officers    of    registration    corrected. 

The  court  shall  forthwith  set  the  petition  for  hearing  and  direct 
summons  to  be  Issued  requiring  the  board  of  officers  of  registration  com- 
plained   against    in    said    petition    to    attend    at    the    hearing    in    person    or 


EQUAL  JUSTICE  TO  ALL.  301 

by  counsel,  and  where  the  object  of  the  petition  is  to  strike  off  the  name 
of  any  person,  summons  shall  also  be  issued  for  such  person,  which  shall 
be  served  by  the  Sheriff  within  the  time  therein  designated ;  and  said 
several  courts  shall  have  full  jurisdiction  and  power  to  review  the  action 
of  any  board  of  oflEicers  of  registration  and  to  grant  or  withhold,  as  it  may 
seem  lawful  and  proper,  the  relief  prayed   for  in   the  premises. 


THE  JIM-CROW  CAR. 

HoTT  the  Democratic  Legrislators  of  the  South  Endeavor  to  De- 
grade and  Humiliate  the  Afro-American. 

In  their  efforts  to  degrade  and  humiliate  the  race,  the  Demo- 
cratic legislators  of  every  Southern  State  have  provided  a  system 
of  "jim-crow"  cars  for  Afc-o-Araericans.  "~ 

The  laws  say  that  the  accommodations  "shall  be  equal,  but 
separate."  As  a  matter  of  fact,  they  are  seldom  equal  and  usually 
very  inferior,  especially  on  the  smaller  lines,  where  wornout  cars, 
which  are  generally  in  a  filthy  condition,  are  used  for  Afro- Amer- 
icans. 

On  the  larger  roads  better  cars  are  used,  but  the  "jimcrow" 
car  is  generally  placed  next  to  the  locomotive,  where  the  occu- 
pants get  the  full  benefit  of  the  dust  and  smoke. 

Several  States  have  enacted  laws  forbidding  sleeping  car  com- 
panies to  sell  berths  to  Afro- Americans. 

These  laws  were  not  passed  for  the  reason  that  Southern 
Democrats  are  anxious  to  avoid  close  proximity  to  Afro-Ameri- 
cans, for  servants  are  allowed  under  the  law  to  ride  in  the  same 
car  with  the  whites.  The  idea,  which  is  to  humiliate  the  race,  is 
clearly  expressed  by  H.  D.  Wilson,  a  Southern  Democrat,  memlaer 
of  the  Louisiana  Legislature  and  author  of  the  Louisiana  jim- 
crow car  law,  who  said : 

"It  is  not  only  the  desire  to  separate  the  whites  and  blacks  on  the 
railroad  for  the  comfort  it  will  provide,  but  also  for  the  moral  etfect. 
The  separation  of  the  races  is  one  of  benefit,  but  the  demonstration  of 
the  superiority  of  the  white  man  over  the  negro  is  a  greater  thing.  There 
is  nothing  which  shows  it  more  conclusively  than  the  compelling  of 
negroes   to   ride   in   cars   marked    for   their   especial   use." 

Eecently  a  number  of  Afro-American  bishops,  ministers,  doc- 
tors, lawyers,  and  other  prominent  men  visited  the  White  House 
and  called  the  attention  of  President  Koosevelt  to  the  condition 
of  affairs  on  the  Southern  railroads,  and  he  at  once  directed  the 
Interstate  Commerce  Commission  to  institute  proceedings  against 
the  roads  and  compel  them  to  furnish  equal  accommodations. 

Afro-Americans  in  Government   Service. 

In  a  number  of  speeches  William  J.  Bryan  has  said : 

"The  Afro-American  has  bestowed  presidencies  upon  the  Re- 
publican party  and  received  janitorships  in  return." 

The  statement  is  absolutely  false.  The  Afro-American  has  re- 
ceived more  recognition  under  the  Eoosevelt  Administration  than 
ever  before  in  the  history  of  this  country.*"  That  the  places  have 
not  been  confined  to  janitorships  will  be  seen  by  the  following 
list  showing  the  official  positions  and  occupations  of  Afro-Ameri- 
cans in  the  service  of  the  United  States  Governnlent : 

Auditor  of  the  Navy  Department,  assistant  district  attorneys, 
assistant  librarians,  architects,  assistant  postmasters,  assistant 
weighers,  attorneys,  bookbinders,  bookkeepers,  boatmen,  collect- 
ors of  customs,  collectors  of  internal  revenue,  consuls,  chiefs  of 
division,  compositors,  chaplains,  custodians,  cleaners,  caster  help- 
ers, clerks,  counters,  charwomen,  carriage  drivers,  deputy  collect- 
ors of  customs,  deputy  collectors  of  internal  revenue,  deputy 
United  States  marshals,  domestics  and  w^aiters,  draughtsmen,  en- 
voy extraordinary  and  minister  plenipotentiary,  examiners  of 
merchandise,  engineers,  elevator  conductors,  folders,  farmers, 
firemen,  fioor  hands,  gaugers,  guards,  heads  of  departments, 
helpers,  inspectors  of  customs,  immigrant  inspectors,  imposers, 
janitors,  letter  carriers,  laboratory  assistant  laborers,  minister 
resident  and  consul  general,  miisicians,  messengers,  messenger 
boys,  machine  operators,  monotype  keyboard  operators,  mimeo- 
graph operators,  openers  and  packers,  postmasters,  patent  exam- 
iners, pressmen,  press  feeders,  pay  clerks,  private  secretaries,  re- 
ceivers of  public  monies,  register  of  treasury,  registers  of  land  of- 
fices, recorder  of  deeds,  railway  postal  clerks,  rural  delivery  car- 
riers,   surveyor-general,    superintendents    of    construction,    sam- 


302 


EQUAL  JUSTICE  TO  ALL. 


piers,  shippers,  ste nogf raphe rs  and  typewriters,  storekeepers, 
skilled  laborers,  sewers,  stablemen,  teachers,  translators,  time- 
keepers, wag-on  messeng-ers,  watchmen,  wrappers,  wagon  drivers. 

The  highest  salary  paid  an  Afro-American  is  received  by  the 
Envoy  Extraordinary  and  Minister  Plenipotentiary  of  the  United 
States  to  Haiti,  whose  salary  is  $10,000  per  annum.  A  number  of 
government  officials  recei\  e  from  $2,500  to  $5,000  per  year.  Clerks 
are  paid  from  $900  to  $1,800. 

The  number  of  Afro-Americans  in  the  service  of  the  Govern- 
ment, exclusive  of  the  Army  and  Navy,  has  more  than  doubled 
in  the  last  four  years  of  the  Roosevelt  Administi'ation,  and  ag- 
gregate pay  has  increased  from  $3,000,000  in  1904  to  $8,000,000  in 
1908. 

One  of  the  most  important  offices  in  the  Treasury  Depart- 
ment, that  of  the  Register  of  the  Treasury,  has  been  continuously 
filled  by  colored  men,  imder  Republican  appointment,  during  more 
than  a  quarter  of  a  century,  M'hile  under  Democratic  administra- 
tions during  that  time  no  Negro  was  considered  worthy  to 
occupy  that  position.  The  importance  of  this  office  is  indicated 
by  the  fact  that  the  signature  of'  the  Register  as  well  as  that  of 
the  Treasurer  of  the  United  States  is  attached  to  all  paper 
currency  issued  by  the  Government,  and  the  signature  of  a  colored 
man  has  thu^  been  one  of  the  two  names  attached  to  every  piece 
of  paper  money  issued  under  Republican  administrations  since 
1881,  when  Blanche  K.  Bruce  was  appointed  Register  of  the 
Treasury;  while  under  Democratic  administrations  names  of 
white  Democrats  were  substituted  when  Rosecrans  q-nd  Tillman, 
respectively,  were  appointed  to  that  position. 

The  following  table  shows  the  number  of  Afro-American  em- 
ployees in  the  service  of  the  Federal  Government : 

Afro-American  officers,  clerks,  and  other  employees  in  the  service 
of  the  United  States  Government,  1908. 


No. 


Salaries. 


Diplomatic  and  consular  service 

D^nartmental  Service,  Washington,  D.  0.: 

State  — - 

Treasury   

War 

Navy    

Post  Office  

Interior 

Justice  — - 

Agriculture  

Commerce  and  Labor... 

Government  Printing  Office 

Interstate  Commerce  Commission 

Unite!'.  States  Capitol 

Washington,  D.  C,  City  Post  Office 

District    of    Columbia    Gfbvernment,     including    unskilled 
laborers — 

Departmental  Service  at  large: 

Customs  and  Interiial  Revenue ._. _. 

Post  Office - 

Interior  

Commerce  and  Labor... 

United  States  Army,  officers 

United  States  Army,  enlisted  men 

Miscellaneous,  including  unclassified. _ — 

Total - 

Recapitulation  by  localities: 

Foreign  stations 

Washington,  D.  C 

Chicago,   111 

Indianapolis,   Ind 

New  Orleans,  La 

Boston,   Mass 

Mobile,  Ala 

Detroit,  Mich 

Baltimore,    Md 

Brooklyn,  N.  Y. 

Richmond,  Va 

Cleveland,  Ohio. 

Denver,  Colo 

At  miscellaneous  points. 

Total 


19 
683 
146 

47 
176 
405 

22 
120 
119 
552 

31 
185 
190 


585 

2,958 

23 

66 

11 

2,890 

1,935 


$35,000 

14,200 

470,201 

103. 8  j2 

35,736 

106,468 

237,775 

14,300 

63,924 

17,040 

376,180 

15,440 

126,420 

150,240 

1,252,588 


492,181 

2,298,424 

26,226 

44,002 

29,285 

901,083 

1,161,250 


13.978 

$8,032,355 

11 

$35,500 

5,499 

3,044,404 

529 

431,704 

35 

25,910 

244 

231,162 

79 

67,480 

50 

43,7  0 

31 

25,210 

70 

49,085 

23 

18,100 

75 

62,800 

30 

25,300 

17 

15,200 

7,285 

8,956,690 

13.978 


EQUAL  JUSTICE  TO  ALL.  303 

''■We  Deny  the  Negrro  the  Rigrht   to  Vote  and  Hold   Office,   but 
Have    Never    Denied    Him    the    Ri^ht    to    "Work." 

[Extract   from  remarks   of   Hon.    THOMAS   SPIGHT   of  Mississippi,   in   dally 
Congressional  Record.  March  16.  1904.] 

What  is  called  the  "negro  problem"  has  become  a  question  of 
national  interest,  and  demands  attention,  wherever,  North  and 
South,  the  negro  appears  in  any  considerable  numbers.  Fracti- 
callij  all  of  the  Southern  States,  in  which  the  negro  forms  such  a 
percentage  of  the  population  as  to  make  him  a  political  factor  to 
be  reckoned  with,  have  hy  constitutional  provision  deprived  him 
of  his  power  for  harm  in  the  administration  of  our  domestic  af- 
fairs, and  we  have  done  it  because  it  was  absolutely  necessary  to 
protect  our  people  from  financial  ruin  and  to  preserve  our  civili- 
zation. For  a  time  we  were  compelled  to  employ  methods  that 
were  extremely  distasteful  and  very  demoralizing,  hut  now  we 
are  accomplishing  the  same  and  even  better  results  by  strictly 
constitutional  and  legal  procedure.  For  more  than  ten  years  the 
negroes  of  Mississippi  have  understood  that  they  were  not  to  be 
allowed  to  participate  in  State  or  county  governments,  and  as  a 
result  we  have  had  but  little  trouble  with  them,  and  they  have 
been  better  satisfied  and  more  prosperous  than  at  any  time  since 
their  emancipation.  We  recognize  that  the  negro  is  a  producer  of 
wealth,  especially  in  our  cotton  fields,  and  this  fact,  coupled  with 
the  naturally  kind  feelings  entertained  for  him  by  the  white 
people  with  whom  he  has  lived  all  his  life,  gives  him  an  opportu- 
nity for  honest,  productive  labor  not  enjoyed  by  his  race  any- 
where else.  We  deny  him  the  right  to  vote,  under  certain  con- 
ditions, and  to  hold  office,  but  have  never  denied  him  the  right  to 
work  for  an  honest  living. 

"We  Stuffed  Ballot  Boxes,  We  Shot  Them,  W^e  are  ^ot  Ashamed 
of  It." 

[Extract  from  remarks  of  Hon.  BEN-IAMIN  E.  TILLMAN  of  Soutii  Carolina, 
in  daily  Congressional  Record,   February  26,    1900.] 

I  will  tell  you,  while  I  am  talking  about  negro  suffrage,  why 
they  are  so  dangerous  as  voters.  In  any  State  where  the  whites 
divide — and  they  have  divided  in  every  Southern  State  except 
mine  and  Mississippi — into  Populists  and  Democrats,  the  negro 
has  been  the  balance  of  power,  through  which  one  side  or  the 
other  has  controlled  the  elections  by  means  of  bribery,  for  the 
negro  vote  was  a  purchasable  one.  Therefore  we  have  been  con- 
fronted by  the  condition  of  a  large,  ignorant,  debased  vote,  thrust 
upon  us  by  the  fourteenth  and  fifteenth  amendments.  *  *  Yet 
you  stood  up  here  and  insisted  that  we  must  give  these  people 
a  "free  vote  and  a  fair  count."  They  had  it  for  eight  years,  as 
long  as  the  bayonets  stood  there,  and  in  1876  they  sent  more  bayo- 
nets, because  we  had  got  the  devil  in  us  by  that  time  and  we  did 
not  care  whether  we  had  any  government.  We  preferred  to  have  a 
United  States  Army  officer  rather  than  a  government  of  carpet- 
baggers and  thieves  and  scallywags  and  scoundrels,  who  had 
stolen  everything  in  sight  and  had  mortgaged  posterity ;  who  had 
run  their  felonious  paws  into  the  pockets  of  posterity  by  issuing 
bonds.  When  that  happened,  we  took  the  government  away.  We 
stuffed  the  ballot  boxes.  We  shot  them.  We  are  not  ashamed  of 
it.  WMth  that  system — force,  tissue  ballots,  etc. — we  got  tired  our- 
selves. So  we  had  a  constitutional  convention,  and  we  eliminated, 
as  I  said,  all  of  the  colored  people  whom  we  could  under  the  four- 
teenth and  fifteenth  amendments. 

"A   Horde  of  Beings   who   Have  Forgrotten   the   God  that  Made 
Them." 

[Extract  from  speech  of  Hon.   ADAM  M.  BYRD  of  Mississippi,  in  daily  Con- 
gressional Record.  60th  Congress,  1st  Session,  January  24,  1908.] 

]Mr.  Chairman,  above  all  things,  we  are  going  to  stand  by  our 
franchise  laws,  though  every  negro  should  leave  that  section. 
*  *  There  are  fewer  colored  people  in  Mississippi  to-day  than 
ten  years  ago,  and  the  State  is  being  blessed  by  their  dej^rture. 
The  honest  white  laborers  are  largely  doing  our  farm  work. 
They  subscribe  to  all  the  virtues  of  an  enlightened  civilization. 


304  EQUAL  .JUSTICE  TO  ALL. 

They  believe  in  the  education  of  their  chiUlren — in  schools,  in 
homes,  in  churches,  in  society,  in  C^hristianity,  in  God,  and  in 
their  country — and  1  for  one  will  never  vote  to  conii)el  them  to 
labor  in  competition  with  a  beinj^  or  horde  of  bein<^s  who  have 
forg-otten  the  (Jod  that  made  them,  who  never  knew  an  oblig-a- 
tion  to  society,  who  are  void  of  ])atriotism,  who  believe  in  rear- 
ing their  ofT's|)riu<>  in  ignorance  and  vice,  and  who  can  live  on 
less  than  one-half  it  takes  to  bring-  comfort  to  the  home  of  the 
average  white  farmer. 

"No  Sal-vatlon   for  the  South   Short   of  the  Repeal   of  the  Con- 
N 1 1  ^  11 1  <  on  n  1    A  men  <1  in  en  t  m. 

[Extract   from   remarks   of    Hon.    JAMES   M.    GRIGOS   of   Georgia,    in   dally 
Congressional  Record,    April  21,   190;;.] 

There  is  not  a  white  man  in  any  of  the  so-called  negro  States 
who  would  not  glatlly  see  the  repeal  of  the  con.stitutional  amend- 
ments making  the  negro  a  citizen  and  a  voter.  While  this  is 
true,  there  is  a  disposition  in  some  quarters  of  the  South  to 
laugh  at  the  efforts  of  earnest,  patriotic  men  in  this  direction. 
There  is  no  complete  salvation  for  the  South  outside  of  this  one 
thing.  Many  gentlemen  say  it  is  impossible.  The  same  gentle- 
men woidd  very  probably  have  said  ten  years  ago  that  present 
conditions  and  feelings  of  the  people  North  and  South  on  the 
social  side  of  this  question  were  inqjossible.  This  is  absolutely 
necessary  to  our  final  salvation.  Everything  else  is  a  misez'able 
makeshift,  only  to  tide  us  over  to  the  time  when  public  opinion 
everywhere  will  approve  of  the  repeal  of  these  amendments 
and  the  correction  of  these  terrible  mistakes.  A  union  half  white 
and  half  black  can  live  no  more  than  a  union  "half  slave  and 
half  free."  Separation  of  the  races  would  be  best  for  white  and 
black  alike ;  but  it  seems  that  neither  race  is  yet  ready  for  that. 
The  time  will  be,  however,  in  the  years  to  come  when  the  man- 
hood of  the  country,  North  and  South,  white  and  black  alike,  will 
demand  it.  Separation  will  not  come  in  our  generation,  but  many 
of  us  here  to-day  will  live  to  see  the  repeal  of  these  amendments. 
Separation  will  follow  disfranchisement,  as  the  night  the  day. 


"ThlH  is  the  Country  of  the  White  Man,  Not  the  Home  of  the 
Mongrel." 

[Extract  from  remarks  of  Hon.    FRANK  CLARK,   of  Florida,   in  daily  Con- 
gressional Record,  May  11,  1908.] 

Having  had  the  exiierience  of  a  lifetime  with  them,  I  express 
it  as  my  deliberate  judgment  that  it  is  better  to  keep  them  sep- 
arate— better  for  them,  better  for  their  race,  better  for  every- 
body ;  and  this  system  is  working  well  in  the  State  of  Florida,  in 
our  larger  cities,  where  we  have  street  cars,  and  upon  our  steam 
railroads  all  over  the  State.  There  never  has  been  any  confusion 
or  trouble  on  account  of  the  separation  of  the  rac6s  on  pul)lic 
conveyances.  Before  the  ado])tion  of  that  system  there  was  a 
great  deal  of  trouble.  I  admit  that  at  times  it  was  caused  by  the 
white  man.  I  am  not  holding  him  up  as  entirely  blameless. 
This  class  of  white  man  is  not  peculiar  to  any  section  of  our 
country.  I  have  seen  him  in  the  North,  in  the  East,  in  the  West, 
and  in  the  South.  I  have  seen  a  lot  of  white  people  of  that  sort, 
and  when  one  of  this  class  gets  a  drink  or  two  inside  of  him.  and 
he  gets  himself  inside  of  a  street  car,  there  is  generally  trouble. 
If  you  desire  to  reduce  the  chances  of  trouble  to  the  minimum 
and  sub.serve  the  best  interests  of  all  the  people,  yon  had  better 
keep  the  races  apai-t  in  all  [)ublic  conveyances.  Imagine  a  nice, 
new  passenger  coach,  packed  with  dirty,  greasy,  filthy  negroes, 
down  South,  in  midsummer,  and  you  can  readily  understand  why 
that  car  does  not  long  remain  as  good,  as  clean,  and  as  desirable 
as  a  similar  car  occupied  exclusively  by  white  travelers.  *  *  * 
The  gentleman  from  New  Kork  [Mr.  Driscoll]  says  that  we 
have  been  allowed  to  have  our  own  way  down  South  with  this 
question  for  so  long  that  we  have  grown  "bold"  enough  to 
come  on  the  floor  of  this  House  and  make  demands  for  this 
kind  ol  legislation.  The  gentleman  uses  the  word  "bold"  as 
though  he  thought  we  did  not  have  the  right  to  corne  here  and 
make  demands.     We  do  demand,  and  we  have  the  right  to  de- 


EQUAL  JUSTICE  TO  ALL,  305 

mand.  This  is  our  country,  as  it  was  the  country  of  our 
fathers.  The  country  of  the  white  man,  not  the  home  of  the 
mongrel.  It  will  always  be  the  white  man's  country.  If  the 
black  man  and  the  yellow  man  each  desire  to  remain  with  us, 
occupying  the  sphere  in  life  for  which  God  Almighty  intended 
each,  let  them  do  so.  If  not  content  with  that  let  them  go 
elsewhere. 

"The   Intelligent   Negfro  Does   Not   Worship   False    Gods." 

[Extracts  from  remarks  of  Hon.  EDWARD  S.   TAYLOR,  Jr.   (Republican),  in 
daily  Congressional  Record,  May  27.   1908.] 

With  defeat  staring  it  in  the  face,  without  a  real  and  virile  is- 
sue except  those  embodied  in  the  "Peerless  One,"  Democracy  is 
preparing  for  the  conflict  in  expectation  of  winning  with  the  votes 
of  negroes  in  the  North  and  without  the  votes  of  negroes  in  the 
South.  And  this  delusion,  Mr.  Speaker,  is  the  crowning  climax 
of  political  clowning.  The  negro,  disfranchised  in  the  South  by 
the  Democratic  party,  is  expected  to  swing  Kepublican  States  of 
the  North  into  the  power  of  his  oppressors.  From  the  days  of  its 
birth  this  party  has  not  only  halted  its  boasted  Democracy  at  the 
color  line,  but  bragged  about  it. 

The  intelligent  negro  of  the  North  does  not  worship  false 
gods.  He  is  thoroughly  familiar  with  the  unfortunate  condition 
of  the  colored  man  in  the  South.  He  knows  that  at  heart  the 
leaders  of  the  Democratic  party  do  not  wish  his  association  in 
politics,  but  only  hope  to  use  him  and  to  disgruntle  him  against 
the  Republican  party  in  order  that  they  may.  without  benefit  to 
him,  be  elevated  into  power.  It  does  not  need  the  declaration  of 
the  gentleman  from  Illinois  [Mr.  Eainey]  that  the  Democratic 
party  is  a  "white  man's  party"  to  convince  them  that  their 
interests  and  future  welfare  lie  in  the  hands  of  the  Eepublican 
party  and  its  patriotic  electors. 

Who  is  this  citizen  whom  Mr.  Rainey  and  his  colleagues  find 
so  obiioxious  who  is  not  permitted  to  vote  in  the  South?  Can 
they  not  for  a  moment  cease  in  hunting  isolated  cases  where 
criminal  negroes  have  committed  grave  outrages  and  look  to  the 
broad  development  of  the  negro  as  a  race?  What  has  he  done  to 
earn  his  citizenship? 

Education  for  the  negro  began  with  the  emancipation  procla- 
mation. The  illiteracy  of  the  whole  race,  which  may  be  admitted 
to  have  been  total  at  emancipation,  has  been  reduced  to  44.5  per 
cent  when  the  last  census  was  taken.  In  the  ten  years  from  1890 
to  1900  jt  had  been  reduced  from  57.1  per  cent  to  44.5  per  cent. 
Italy  to-day  has  38  per  cent  of  illiteracy ;  Spain,  68  per  cent,  and 
Portugal,  79.2  per  cent.  These  are  white  countries  with  centuries 
of  civilization  behind  them.  There  are  40,000  negro  students  in 
higher  institutions  of  learning,  pursuing  all  branches  from  trade 
to  classical  and  scientific  courses.  Forty  thousand  colored  youth 
have  graduated  from  secondary  institutions  of  learning,  and  4,000 
from  colleges.  The  race  has  developed  30,000  teachers,  more 
than  16,000  clergj-men.  4,000  musicians,  more  than  2,000  actors 
and  showmen,  more  than  1,700  physicians  and  surgeons,  about 
1,000  lawj-ers,  300  journalists,  250  dentists.  236  artists  and  art 
teachers,  100  literarj^  persons,  120  civil  engineers  and  surveyors, 
82  bankers  and  brokers,  and  52  architects.  It  has  about  200  in- 
stitutions for  higher  education  in  the  United  States.  In  1904  it 
owned  property  amounting  to  $1,100,000,000.  In  1900  the  farm 
property  belonging  to  negroes  was  valued  at  $200,000,000.  almost 
$300  for  each  negro  family.  It  operates  746,715  farms  and  owns 
187,797  farms,  or  25  per  cent  of  the  total.  It  rents  557,174  farms, 
or  74.6  per  cent  of  the  total.  This  is  not  a  bad  showing  for  a  race 
which  gentlemen  of  the  minority  have  declared  unfit  to  exercise 
its  citizenship,  and  which  they  claim  to  be  a  purchasable  quantity 
when  it  comes  to  exercise  its  suffrage. 

Mr.  Bryan's   "Commoner"  on  tlie   Race  Q,nestion  at  the   South. 

[From  the  "Commoner,"  December  3,  1904.] 

If  the  race  question  j)resented  itself  to  the  North  as  it  does  to 
the  South,  it  is  not  likely  that  it  would  be  met  in  a  different 
spirit  or  in  a  different  way,  and  if  the  race  question  were  a 
Northern  question  rather  than  a  Southern  one,  the  people  of  the 


306  EQUAL  JUSTICE  TO  ALL. 

South  would  be  as  indifferent  to  it  as  the  people  of  the  North 
ui-e.  There  is  no  disposition  in  the  North  to  interfere  with  the 
manner  in  which  the  problem  is  now  being  worked  out  by  the 
South.  Once  in  a  while  the  question  is  raised,  but  it  is  usually 
for  political  purposes.  It  is  not  likely  that  any  serious  attempt 
will  be  made  to  secure  national  legislation  on  the  subject.  If 
such  an  attempt  is  made  it  should  be  made  with  logic  and  with 
light,  not  with  the  calling  of  names  and  with  heat. 

[From  the  "Commoner,"  November  1.  1901.] 

But  when  conditions  force  the  two  races  to  live  under  the 
same  government  in  the  same  country,  the  more  advanced  race 
never  has  consented,  and  probably  never  will  consent,  to  be  dom- 
inated by  the  less  advanced.  Whether  the  conditions  in  the  South 
are  such  as  to  justify  the  amendments  which  have  been  adopted 
is  a  question  of  fact  which  must  be  decided  upon  evidence — not  a 
question  of  theory  which  can  be  settled  by  those  far  removed 
from  the  conditions  which  have  to  be  considered. 


[From  West  Virgrljoia  Democratic  Platform  of  1908.] 
Jim    Crow    Plunk. 

We  favor  the  enactment  of  a  law  requiring  common  carriers 
engaged  in  passenger  traffic  to  furnish  separate  coaches  or 
compartments  for  white  and  colored   passengers. 

Eilective    Fi^ncliise    Plank. 

Believing  that  the  extension  of  the  elective  franchise  to  a 
race  inferior  in  intelligence  and  without  preparation  for  the  wise 
and  prudent  exercise  of  a  privilege  so  vital  to  the  maintenance 
of  good  government  was  a  mistake,  if  not  a  crime,  committed 
by  the  Kepnblican  party,  during  the  reign  of  passion  and 
prejudice  following  the  Civil  War,  for  political  ends  and  pur- 
poses, we  declare  that  the  Democratic  party  is  in  favor  of  so 
amending  the  Constitution  as  to  preserve  the  purity  of  the 
ballot,  and  the  electorate  of  the  state  from  the  evil  results  from 
conferring  such  power  and  privilege  upon  those  who  are  unfitted 
to  appreciate  its  importance,  as  it  affects  the  stability  and 
preservation  of  good  government. 


Plans  kave  been  suf^^iireMtefl  for  tlie  mi»-ration  of  tlie  ne- 
8:roes  to  some  other  country,  Avliere  tliey  ^v«»ul«l  live  l»y  tUeni- 
selves  and  gfrow  np  by  tlteniselves,  and  have  a  soelety  l»y 
themselves,  and  create  a  nation  hy  tltemselvcM.  Such  a  suk- 
arestion  is  chimerical.  The  ncRro  has  no  desire  to  k,o,  and 
the  people  of  the  South  tvonld  seriously  object  to  his  Koinju;-. 
—Hon.    Wm.    H.    Taft,   at    Plymouth    Church,    Brooklyn. 

What  the  nesrro  and  his  friends  demand  is.  equality  of 
enforcement  of  the  law  under  the  Constitution,  and  to^vard 
that  end  I  feel  convinced  that  all  the  influence  of  industrial 
proKTresM  in  the  South  and  the  closer  union  between  the 
sections  necessarily  are  makini^-. — Hon.  "Wm.  H.  Taft,  at 
Plymouth    Church,    Brooklyn. 

In  the  history  nf  all  the  peoples  of  the  earth,  there  is 
no  more  uniform  story  of  absolute  fldellty  to  trust  than  that 
^vhlch  was  exhibited  by  the  negroes  of  the  South  to^vard 
the  families  of  their  masters,  >vhen  th-<-  men  Avere  K'one 
to  the  Avar,  and  none  but  the  women  and  children  were 
left  at  home.— Hon.  Wm.  H.  Taft,  at  Plymouth  Church,  Brook- 
lyn. 

I  am  a  protectionist  becan^^e  I  c«n  see  very  clearly  that 
the  political  independence  which  every  patriot  -wou^d  sacri- 
fice his  life  to  preserve  to  his  country  cap  only  be  safely 
assured  when  we  are  indnstrlally  independent,  and  1  am 
g^lad,  if  it  re<iu ires '  that  lesser  sacrifice,  to  foreyro  a  few 
pennies  of  my  savings  to  <lo  my  part  to  secure  that  assur- 
ance.—Prof.  R.  H.  Thurston,  of  Cornell  University,  in  the 
American    Economist. 

One  vital,  dominating^  fact  confronts  the  Democratic 
party  vrhich  no  oratory,  which  no  elo«iuence,  wliich  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
ELECTION.— New    York    World, 


GUARANTEE  OF  BANK   DEPOSITS. 


The  Democratic  platform  of  1908  pledges  the  party  to  legis- 
lation under  which  the  national  banks  shall  be  required  to  es- 
tablish a  guarantee  fund  for  the  prompt  payment  of  depositors 
of  any  insolvent  national  bank,  and  making  the  system  available 
to  all  other  banks  desiring  to  join  in  such  plan.  Trie  plank, 
which  is  heralded  in  Mr.  Bryan's  "Commoner"  as  being  based 
upon  a  bill  introduced  in  Congress  by  Mr.  Bryan  when  a  mem- 
ber of  that  body,  is  as  follows : 

"We  pledge  ourselves  to  legislation  under  which  the  national  banks  shall  be 
required  to  establish  a  guarantee  fund  for  the  prompt  payment  of  the  de- 
positors of  any  insolvent  national  bank,  under  an  equitable  system  which 
shall  be  available  to  all  State  banking  institutions  wishing  to  use  it.  We 
favor  a  postal  savings  bank  if  the  guaranteed  bank  cannot  be  secured." 

Mr.    Taft's    Response. 

No  feature  of  the  Democratic  platform  met  a  more  vigorous 
and  scathing  denunciation  at  the  hands  of  Mr.  Taft  in  his  speech 
of  acceptance  than  did  this  proposition,  which  he  declared,  if 
adopted  exactly  as  the  platform  suggests,  would  "bring  the  whole 
banking  system  of  the  country  down  in  rviin."  His  discussion  of 
the  proposition  on  that  occasion  was  as  follows : 

"The  Democratic  platform  recommends  a  tax  upon  national  banks  and 
upon  such  State  banks  as  may  come  in,  in  the  nature  of  enforced  insurance, 
to  raise  a  guaranty  fund  to  pay  the  depositors  of  any  bank  which  fails. 
How  State  banks  can  be  included  in  such  a  scheme  under  the  Constitution  is 
left  in  the  twilight  zone  of  State's  rights  and  federalism  so  frequently  dim- 
ming the  meaning  and  purpose  of  the  promises  of  the  platform.  If  they 
come  in  under  such  a  system,  they  must  necessarily  be  brought  within  the 
closest  national  control,  and  so  they  must  really  cease  to  be  State  banks  and 
become  national  banks.  The  proposition  is  to  tax  the  honest  and  prudent 
banker  to  make  up  for  the  dishonesty  and  imprudence  oif  others.  No  one 
can  foresee  the  burden  which  under  this  system  would  be  (imposed  upon  the 
sound  a.nd  conservative,  bankers  of  the  country  by  this  obligation  to  make 
good  the  losses  caused  by  the  reckless,  speculative  and  dishonest  men  who 
would  be  enabled  to  secure  deposits  under  such  a  system  on  the  faith  of  the 
proposed  insurance;  as  In  its  present  shape  the  proposal  would  remove  all 
safeguards  against  recklessness  in  banking,  and  the  chief,  and  in  the  end  prob- 
ably the  only,  benefit  would  accrue  to  the  speculator,  who  would  be  delighted 
to  enter  the  bankdng  business  when  it  was  certain  that  he  could  enjoy  any 
profit  that  would  acertae,  while  the  risk  would  have  to  be  assumed  by  his 
honest  and  hard-working  fellow.  In  short,  the  proposal  is  wholly  impracti- 
cable unless  it  is  to  be  accompanied  by  a  complete  revolution  in  our  banking 
system  with  a  supervision  so  close  as  practically  to  create  a  government 
bank.  T;f  the  proposal  were  adopted  exactly  as  the  Democratic  platform  sug- 
gests it  would  brang  the  whole  banking  system  of  the  country  down  in  ruin, 
and  this  proposal  is  itself  a:n  excellent  illustration  of  the  fitness  for  national 
control  of  a  party  which  will  commit  itself  to  a  scheme  of  this  nature  without 
the  slightest  sense  of  responsibility  for  the  practical  oiperation  of  the  law 
proposed.  The  Democratdc  party  announces  its  adhesioin  to  this  plan,  and 
only  recommends  the  tried  system  of  postal  savings  banks  as  an  alternative 
If  the  new  experimental  panacea  is  not  available." 

How  tlie  Plan   Would  Work  Out   in    Practice. 

The  proposition  to  tax  banks  to  secure  deposits  is  a  financial 
chimera  like  that  talked  in  1896,  when  it  was  solemnly  held  by  a 
great  party  that  the  price  of  wheat  was  governed  by  the  volume 
of  currency, -and  also  that  the  price  of  silver  governed  the  price 
of  grain,  fallacies  which  even  the  do/en  years  since  that  time 
have  so  ruthlessly  exposed  that  the  Democratic  platforms  of 
1904  and  1908  have  been  silent  on  the  subject. 

What  is  the  usual  inducement  to  establish  a  bank?  It  is  the 
need  of  banking  facilities  in  the  community,  and  the  belief  that, 
if  properly  conducted,  it  will  be  profitable  to  its  proprietors  and 
beneficial  to  the  commimity.  The  bank,  to  pay,  must  add  to  its 
profits  by  loaning  its  deposits,  as  well  as  the  money  originally 
invested  by  its  shareholders. 

Interest  Deposits  are  one  Form  of  Investment. 

The  inducements  for  making  deposits  are  various.  Some  de- 
posit simply  for  the  safe-keeping  of  their  money  to  be  used  for 
domestic  purposes  or  for  limited  business.     These  depositors  are 

307 


308        ,  GUARANTEE  OF  BANK  DEPOSITS. 

of  but  little  advantage  to  the  bank  and  expect  but  little.  Their 
deposit  is  called  an  inactive  accownt.  Others  make  deposits  with 
an  agreement  that  they  shall  receive  a  specified  rate  of  interest 
thereon — either  time  deposits  at  3%  or  4%,  or  on  daily  balances 
2%. 

The  depositor  who  by  making  these  deposits  loans  his  money 
to  the  bank  on  time  in  fact  invests  his  funds  in  the  bank  at,  say, 
3%  per  annum.  He  deems  this  better  than  other  investments, 
because  he  is  not  subject  to  fluctuation  in  prices  as  he  would  be 
did  he  purchase  securities  in  the  market.  He  has  prospect  of 
quite  as  good  a  return,  and  is  reasonably  sure  of  having  his 
nu^ney  back  without  loss  at  maturity.  To  guarantee  this  class  of 
depositors,  as  proposed  by  the  Democratic  platform,  the  bank 
would  be  obliged  to  tax  itself,  not  only  to  pay  an  interest  on  his 
deposits,  hut  to  inaure  his  investment,  which  is  a  dual  capacity 
and  responsibility  that  no  wise  business  man  would  deem  either 
conservative  or  safe. 

The  persons  or  firms  who  make  the  largest  deposits  are  those 
who  deposit  for  business  purposes.  They  naturally  expect  recip- 
rocal benefit  in  the  way  of  loans  on  their  notes  or  on  security 
acceptable  to  the  bank.  It  may  be,  and  it  usually  is,  that  such 
a  depositor  has  his  credit  greatly  increased  by  the  addition  to 
his  bank  account  of  the  proceeds  of  these  discounted  notes.'  His 
balance  is  not  represented  so  much  by  monetary  deposits  as  by 
this  credit  which  the  bank  has  extended  him.  Why,  then,  should 
the  shareholders  of  a  bank  be  compelled  to  tax  themselves  to 
guarantee  a  credit  deposit  that  they  have  extended  to  the  cus- 
tomer of  the  bank.  A  man  investing  his  funds  in  a  corporation 
does  not  expect  that  the  purchase  price  paid  for  its  securities 
will  be  guaranteed  to  him  by  the  corporation.  He  takes  the 
chances  of  loss  or  gain.  Why  should  there  be  a  difference  in 
the  business  principle  that  governs  a  bank  and  that  governing 
any  other  business  corporation?  This  would  be  class  legislation 
of  a  demoralizing  type.  The  proposition  to  guarantee  deposits  is 
confined  to  commercial  banks  or  banks  of  discount  and  deposit. 
Savings  banks  are  not  included  therein.  Why  should  this  ex- 
ception be  made? 

liVhy    not    Gnarantee    Other     F''orin8    of    Savin|$-s    Investment? 

It  is  important  to  have  in  mind  that  the  larger  portion  of  the 
people  keep  no  commercial  bank  account.  Their  savings,  which 
they  depend  on  in  cases  of  misfortune  or  death,  are  invested  in 
life  insurance  companies,  annuities,  mutual  benefit  associations, 
savings  banks,  etc.  If  the  public  welfare  is  to  be  considered 
fairly,  why  should  not  the  Government  guarantee  investments  in 
these  enterprises,  as  well  as  investments  in  banks  made  mainly 
for  selfish  purposes,  accommodation  or  gain?  Why  should  a 
bank  that  performs  the  function  of  distributing  credits  and  cur- 
rency assets  of  a  country  be  any  more  safely  guarded  than  en- 
terprises patronized  by  the  poorer  class  of  people? 

Among  the  various  kinds  of  business,  the  greatest  earning 
power  of  the  people  comes  from  agriculture,  railroad  and  steam- 
boat transportation,  manufacturing  and  mining.  These  enter- 
prises are  owned  by  a  great  number  of  people  as  shareholders, 
and  large  numbers  of  persons  are  given  employment  by  them.  If 
protection  is  to  be  given  to  the  banking  interests  and  insurance 
against  loss  to  preserve  confidence,  why  should  not  some  share  of 
protection  be  afforded  to  agricultural  interests  that  banking  ac- 
commodations be  had  whereby  in  times  of  panic  they  need  not  be 
obliged  to  sell  their  products  at  ruinous  prices?  Why  should 
not  shareholders  in  railroad  and  steamboat  transportation  com- 
panies, involving  the  investment  of  billions  of  dollars,  be  safe- 
guarded by  protective  legislation?  Why  should  the  manufactu- 
rer be  obliged  to  shut  down  his  business  and  throw  thousands 
of  people  out  of  employment?  This  affects  (in  a  calamitous  way) 
more  homes  than  would  be  affected  bjr  loss  on  deposits. 

Mr.  Bryan  claims  that  his  aim  is  to  protect  the  masses.  His 
argument  for  the  guarantee  of  bank  deposits  would  affect  a  class 
— and,  as  a  i*ule.  the  richer  class,  for  not  many  laborers  have 
even  the  spare  money  to  keep  an  active  bank  account. 


GUARANTEE  OF  BANK  DEPOSITS.  309 

Bank  Notes  vs.  Bank   Deposits. 

Xhe  arg-iiment  is  frequently  made  thtit  the  man  who  holds 
national  bank  notes  is  secured  by  a  guarantee  of  the  Government, 
because  it  requires  that  bonds  be  deposited  with  the  Treasury 
Department  before  the  bank  notes  may  be  issued.  Why,  it  is 
asked,  should  thei-e  be  favoritism?  It  must  be  remembered, 
however,  that  the  i-elation  of  the  dej^ositor  to  his  bank  is  far  more 
intimate  than  of  the  billholder  to  the  bank  issuing-  the  bills 
which  he  receives,  since  the  biliholders  are  scattered  widely  over 
the  continent,  perhaps  over  the  commercial  world.  The  bill- 
holders  are  obliged  to  receive  bank  notes  issued  by  banks  dis- 
tant from  their  places  of  residence,  arud  of  which  they  can 
know  nothing-,  since  this  class  of  currency  constitutes  a  great 
part  of  the  money,  whereby  they  can  carry  on  business  trans- 
actions ;  and  the  acceptance  of  that  medium  is  in  a  way  compul- 
sory. They  have  but  little  means  of  knowing  the  i*esources  of  a 
bank,  the  manner  in  which  its  business  is  managed,  while  the 
depositor  is  in  close  touch.  It  by  no  means  follows  that  be- 
cause of  this  system  in  behalf  of  the  bank  note  holder  the  Gov- 
ernment should  also  guarantee  the  depositor.  The  relations  of  the 
two  classes  of  men  ai'e  vastly  different.  The  officials  of  the  banks 
and  the  depositors  come  together  in  mutual  interest,  but  it  is  a- 
different  interest  trom  that  of  the  bill-holder,  which  is  only 
transitory  and  sometimes  a  momentary  interest.  It  was  the 
g-reat  scheme  of  Secretary  Chase  to  protect  the  bill-holders  who 
were  unfavorably  placed  to  protect  themselves. 

The    Experiment    lias    been    Tried     and    the    Result     TFa» 
Disastrous. 

We  are  not  entirely  without  ex})eriencc  in  the  matter  of 
guaranteeing  bank  deposits.  The  experiment  was  tried  in  the 
State  of  New  York  in  1829,  during  Governor  Van  Buren's  ad- 
ministration, under  the  act  known  as  the   Safety  Fund   System. 

This  law  grew  out  of  remarkable  conditions  in  the  bauking 
experience  of  the  State.  Governor  Van  Buren,  in  his  messag-e 
of  that  year,  called  attention  to  the  fact  that  the  charter  of  31 
of  the  40  incorporated  banks,  among-  them  eight  large  New  York 
city  banks,  would  expire  within  four  years. 

There  had  been  a  great  monopoly  in  banking  and  the  control 
of  it  had  been  maintained  largely  throiigh  influence  exerted  in 
political  affairs.  The  banks  were  opposed  to  any  new  legal  re- 
strictions on  their  former  freedom  to  issue  unlimited  quantities 
of  bank  notes  or  increase  their  reserve  of  specie.  The  public 
insisted  on  the  legal  control  of  bank  note  issues,  by  requiring  all 
note  issues  to  be  registered  at  the  Comptroller's  office,  and  that  a 
stricter  regulation  and  a  larger  reserve  of  specie  be  maintained. 
Public  excitement  ran  high.  The  banks  took  an  open  hand  in 
electing  assemblymen  favorable  to  their  interests,  and  also 
joined  forces  with  promoters  of  Jnternal  improvements  to  secure 
from  their  friends  suflicient  vote^5  to  insure  the  i-enewal  of  their 
charters  without  burdensome  conditions.  It  is  said  that  on  the 
part  of  the  banks,  a  reciprocal  return  was  to  be  made  by  assist- 
ing the  promoters  of  internal  improvements,  in  financing  some  of 
their  enterprises,  provided  the  vote  was  successful-. 

The  new  constitution  of  1821  required  a  two-thirds  vote  in  the 
legislature  to  secure  incorporation  of  new  banks  or  renewal  of 
charters  of  the  existing  banks.  When  a  vote  was  taken  on  the 
question,  the  bankers'  coinbination,  to  their  great  amazement, 
were  defeated  by  only  one  or  two  votes.  This  defeat  paved  the 
way  for  a  new  banking  system. 

Governor  Van  Buren  had  outlined  in  his  message  his  plail, 
known  as  the  Safety  Fund  Law.  It  was  suggested  to  him  and 
worked  out  by  Judge  Joshua  Forman,  of  Syracuse,  N.  Y.  Its 
provisions  were  mainly  designed  to  insure  protection  to  the  bill- 
holders  and  check  the  spirit  of  reckless  banking  speculation  in 
wildcat  enterprises.  Among  its  provisions  was  that  a  tax  of 
J/2  to  1%  be  levied  annually  on  the  capital  stock  paid  in  until  3% 
of  the  bank's  capital  had  been  collected.  This  sinn  was  to  be  de- 
posited with  the  Comptroller  and  invested  and  laid  aside  to 
protect  the  bill-holders  of  failed  or  liquidating  banks. 


310  GUARANTEE  OF  BANK  DEPOSITS. 

One  of  the  great  defects  in  the  system  was  that  the  fund  was 
not  to  be  nst'<l  nntil  the  assets  of  the  failed  bank  had  been  ex- 
luinsted  and  the  deficiency  determined  by  winding-  up  the  bank's 
affairs.  This  defect  in  the  law  was  made  apparent  to  the  leg-is- 
hitiire  on  the  faihire  of  five  banks,  three  of  which  were  in  the 
city  of  Hiitfalo,  and  in  order  to  prevent  depreciation  and  loss  to 
tlie  bill-holder,  an  amendment  was  made  to  the  law,  in  1837, 
anthori/ing-  the  Comptroller  to  pay  immediately  the  notes  of 
the  failed  bank  whenever  the  liabilities  of  the  bank  did  not  ex- 
ceed two-thirds  of  the  amount  of  the  safety  fund. 

There  were  no  more  failures  until  1840  to  1842,  at  which  time 
there  were  90  banks  in  operation  under  the  safety  system  and  12 
outside.  The  failure  in  this  period  of  11  banks  greatly  reduced 
the  money  in  the  safety  fund.  A  test  case  was  made  in  1840,  by 
the  Wayne  County  Bank,  of  Palmyra,  N.  Y.  The  court  construed 
this  law  to  mean  liability  to  the  depositor  as  well  as  to  the  bill- 
holder.  This  feature  of  the  law  was  not  generally  understood 
by  the  public  or  the  banks,  and  came  as  a  great  shock.  As  soon 
as  the  decision  became  known  that  depositors,  as  well  as  bill- 
holders,  were  protected  by  the  safety  fund,  a  reckless  spirit  of 
investing-  in  bank  stocks  seemed  to  prevail.  A  fictitious  credit 
was  thereby  given  to  the  banks,  which  was  used  by  inexperi- 
enced, rash  and  dishonest  men  most  injudiciously  in  contracting 
debts  in  wild  speculative  adventures.  Through  this  bad  man- 
ag-ement  the  safety  fund,  which  at  one  time  had  accumulated  to 
nearly  two  million  dollars,  became  insolvent. 

The  decision  to  combine  protection  to  the  bill-holder  and  de- 
positors was  so  vast  and  tremendous  in  its  responsibilities  that 
the  public  demanded  the  repeal  of  the  law,  in  1842,  by  confimng 
the  responsibility  oi  the  fund  to  bank  notes  alone. 

Hon.  Millard  Fillmore,  then  State  Comptroller,  said : 

"It  is  apparent  that  the  safety  fund  system  would  have  proved  a:n  ample 
indemnity  to  the  bill-holder  had  it  not  been  applied  to  the  payment  of  other 
debts  (depositors)  than  those  due  for  circulation." 

Since  that  time  there  has  been  no  attempt  on  the  part  of  ad- 
vocates of  the  g-uaranty  of  bank  deposits  in  New  York  to  secure 
any  enactment  to  provide  for  the  insurance  of  bank  deposits, 
and  it  was  not  until  the  passage  of  such  a  law  recently  in  Okla- 
homa that  this  subject  was  again  brought  prominently  before  the 
public. 

The  free  banking  act  of  New  York,^passed  in  1838,  provided 
for  the  security  of  the  bill-holder  by  the  registration  of  all  bank 
issues  and  a  security  of  stock  and  bonds  deposited  with  the 
Comptroller.  On  these  bank  notefi,  the  fact  that  the  holders 
were  secured  was  printed  on  the  face  of  the  notes. 


Safety  of  Present   System. 

Tt  should  be  borne  in  mind  that  under  the  present  National 
Banking  System,  during  the  past  42  years,  the  loss  to  depositors 
has  not  exceeded  l/26th  of  one  per  cent  per  annum. 

In  many  of  the  bills  introdiiced  in  the  recent  Congress  pro- 
viding for  the  guarantee  of  bank  deposits,  the  argument  was 
made  that  if  deposits  should  be  guaranteed,  future  panics  would 
be  prevented ;  and  that  wa»,  of  such  serious  importance  as  to 
justify  extraordinary  legislation.  It  was  claimed  that  the  Gov- 
ernment had  the  same  right  and  power  to  compel  national  banks 
to  submit  to  a  tax  to  guarantee  deposits  as  the  Government  had 
to  tax  banks  for  the  circulation  of  its  bank  notes.  They  failed 
to  observe  that  there  is  no  principle  in  law  that  will  justify  the 
taxing  of  one  person  (the  shareholder)  for  another  (the  depos- 
itor). 


No  Snolt   Plan  Kno-v^n  to   tHe  Business  "World. 

Attention  is  being  called  just  no»vv  to  the  financial  systems  of 
the  whole  w^orld,  but  no  case  has  been  shown  where  the  depositors 
in  banks,  outside  of  the  usual  liability  of  the  stockhojders,  are 
guaranteed  against  the  loss  of  their  deposits.  If  we  are  trying 
to  follow  the  successful  experience  of  the  world  in  finance,  why 
not  heed  this  object  lesson? 


GUARANTEE  OF  BANK  DEP08IT8.  311 

[Prof.    J.    Laurence  Laughlin,   of   the  Univers-ity   of   Chicago',    in   Scribner's, 

KJuly.  1908.] 
t^  The  existence  of  complicated  monetary  and  banking  prob- 
ms,  understood  by  only  a  few,  furnishes  the  opportunity  for 
professional  politicians  to  bring  forward  measures  which  may 
appeal  to  the  private  interests  of  one  class  against  another,  but 
which  show  utter  want  of  analysis  and  ignorance  of  fundamental 
principles.     *     *     * 

Of  such  a  character  was  the  "rag  baby"  of  Greenback  days, 
or  the  free  coinage  of  silver  of  more  recent  memory ;  and  the 
last  member  to  be  added  to  this  motly  collection  is  the  guaranty 
of  bank  deposits.  Its  appearance  at  this  moment,  soon  after  a 
financial  crisis,  follows  the  usiial  sequence  of  freak  schemes  in 
the  wake  of  a  business  disturbance.*  *  Superficial  thinking  as 
to  panics,  and  little  understanding  of  the  actual  operation  of 
banks,  have  provided  a  soil  in  which  the  proposal  for  a  guaranty 
of  bank  deposits  may  take  quick  root.     *     *     * 

The  purpose  of  the  scheme  is  to  distribute  the  losses  to 
depositors  arising  from  bank  failures  among  a  large  number 
of  banks,  instead  of  allowing  them  to  fall  on  the  innocent  de- 
positors who  are  not  responsible  for  them.  To  this  end  it  is 
proposed  to  levy  a  tax  ou  the  bankers  to  create  a  fund  which, 
in  charge  of  the  National  Treasury,  shall  be  used  to  pay  off  at 
once  the  claims  of  depositors  in  insolvent  banks.  Some  advocate 
the  guaranty  of  the  Government,  others  lay  the  whole  burden 
on  the  banks,  aided,  perhaps,  by  an  initial  grant  from  the  Gov- 
ernment.    *     * 

In  proposing  to  guarantee  depositors  in  general,  there  is 
an  obvious  lack  of  discrimination  in  failing  to  distinguish  be- 
tween deposits  in  savings  banks,  whose  assets  must  necessarily 
be  of  an  investment  character,  and  depositors  engaged  in  active 
business,  who  keep  checking  accounts  at  commercial  banks, 
which  must  always  keep  assets  in  cash  sufficient  to  meet  normal 
demand  requirements.  ******  The  protection  for  de- 
positors in  savings  banks  (or  small  private  banks)  is  a  wholly 
different  problem  from  one  dealing  with  commercial  banks.  It 
is  for  this  first  class  that  Government  postal  banks  ai'e  suggested 
as  offering  absolute  safety.     *     * 

The  real  question,  therefore,  has  to  do  with  commercial 
banks,  such  as  our  national  banks,  and  some  of  those  created 
by  the  States;  for  the  trust  companies  and  State  banks,  while 
carrying  on  savings  departments,  actively  strive  for  the  busi- 
ness of  commercial  banks,  and  cannot  by  any  means  be  ignored. 
*  *  *  *  Because  the  national  banks  issue  notes,  the  in- 
surance of  these  notes  by  a  guaranty  fund,  providing  for  their 
immediate  redemption,  has  been  generally  admitted  as'  desirable 
and  feasible ;  although  their  ultimate  redemption  is  secured  by 
a  first  lien  on  assets  by  the  deposit  of  bonds.  If,  then,  the 
insurance  of  the  note-holder  is  regarded  as  necessary,  why  not 
extend  the  same  idea  to  the  depositors?  There  is.  however,  a 
wide  difference  in  the  position  of  a  note-holder  and  the  depositor. 
When  a  demand  liability  of  a  bank,  in  the  form  of  a  note,  comes 
to  be  used  as  money,  and  is  passed  from  hand  to  hand  by  buyers 
and  sellers  who  have  no  knowledge  whatever  of  the  standing  of 
the  issuing  bank,  it  must  have  universal  af'ceptnbilitv,  *  * 
*  *  *  It  is  quite  otherwise  with  the  deposit.  While  the  note 
performs  a  general  and  social  function,  the  deposit  arises  solely 
from  a  personal  and  voluntary  act.  *****  The  de- 
positor selects  his  own  bank  and  takes  the  risks  implied  in  a 
voluntary  choice,  thus  becoming  responsible  for  his  act,  just  as 
any  one  does  when  he  gives  ci'edit  to  a  buyer  or  lets  a  house. 
Consequently,  the  reasons  for  a  guaranty  of  the  notes  are 
obvious ;  while  they  would  have  no  application  to  the  guaranty 
of  deposits.     *     *     * 

A  depositor  is,  of  course,  a  ci'editor  of  a  bank ;  that  is,  the 
relation  of  a  depositor  to  a  bank  is  only  one  of  many  other 
relations  existing  between  creditor  and  debtor.  Is  there  any- 
thing peculiar  in  the  case  of  the  depositor  which  sets  him  apart 
from  all  other  creditors  who  have  voluntarily  entered  into  a 
creditor  relation,  and  which  entitles  him  alone  to  protection 
against  the  consequences  of  his  own  acts  ?    If  one  sort  of  creditor 


312  GUARANTEE  OF  BANK  DEPOSITS. 

should  be  insured  against  the  usual  mischances  of  business,  why 
should  we  not  insure  all?  Why  discriminate  in  favor  of  him 
who  is  i-ich  enough  to  have  a  bank  deposit?  A  himible 'washer- 
woman who  often  has  outstanding  debts  which  she  cannot  collect 
ought  to  be  insured  against  loss  as  well  a^  a  depositor;  she  has 
little  ineans  of  knowing  except  by  bitter  experience,  whom 
to  trust.  And  the  same  might  be  said  of  the  cobbler,  the 
uiilknuin.  the  grocer,  the  doctor,  the  mei'chant,  or  the  large 
wholesale  seller  of  drygoods,  or  of  any  other  article  ;  for  which 
they  have  accounts  against  others  for  which  they  need  the  collec- 
tion as  well  as  the  depositor  in  a  bank — perhaps  more.  Why 
this  sudden  excess  of  interest  in  the  creditors,  when  in  the  silver 
agitation  ever}'  true  j)atriot's  heart  was  burning  with  zeal  to 
help  out  the  poor  debtor?"  Has  the  politician  exhausted  the 
possibilities  of  sympathy  in  the  debtor  and  wishes  to  try  new 
pastures?  Obviously,  the  proposal  to  insure  depositors  as  an 
application  of  a  general  principle  of  insuring  all  creditors  is 
childish,  and  has  been  born  in  the  mind  of  a  man  who  does 
not  think  of  things  beyond  his  own  nose.     ***** 

The  honest  Tind  efficient  banks  cannot  in  justice  be  asked  to 
make  up  to  a  depositor  in  a  failed  bank  losses  for  which  the 
honest  and  efficient  banks  had  no  responsibility  whatever.  It 
would  be  clearly  unfair  to  hold  a  small  conservatively  managed 
country  bank  responsible  for  the  "frenzied  finance"  of  some 
large  bank  in  a  great  city.  All  reason,  all  justice,  demand  that 
the  punishment  be  inflicted  pn  the  doer  of  the  wrong  and  not 
on  the  innocent  neighbor.  In  fact,  the  ethical  justification  for 
taxing  sound  banks  to  cover  the  lapses  of  unsound  banks  has 
no  existence  whatever.  It  is  unmoral.  Moreover,  it  is  a  ques- 
tion whether  the  courts  would  enforce  such  a  law  against  the 
rights  of  property. 

More  than  that,  it  is  not  supported  by  any  theory  of  political 
expediency  but  the  socialistic.  The  advocates  of  insurance  de- 
])lore  the  suggestion  that  it  is  socialistic,  and  are  as  much 
horrified  by  the  mention  of  socialism  as  the  devil  is  by  the  sight 
of  the  cross;  and  yet  what  does  the  analysis  show?  It  is  not 
necessary  to  explain  to  intelligent  readers  that  socialism  is  not 
opposed  to  individualism ;  socialists  look  to  the  State  to  do  for 
them  what  they  admit  they  cannot  do  for  themselves  under  a 
system  of  free  competition.     ****** 

The  plan  for  insurance  of  deposits  is  urged  by  its  advocates 
as  one  which  will  induce  more  careful  banking,  because  con- 
tributors to  the  fund  will^be  more  vigilant  in  acting  as  police- 
men over  other  bankers,  and  stop  illegitimate  methods  in  their 
inception.  On  the  other  hand,  its  opponents  claim  that  it  will 
reduce  the  best-managed  to  the  level  of  the  worst-managed 
banks,   and   remove    all  premium   on   skill,   honesty   and   ability. 

*  *     * 

To  relieve  the  banker  from  the  logical  consequences  of  his 
own  mistakes,  of  his  own  weaknesses,  is  to  take  away  practically 
the  only  real  safeguard  effective  on  human  nature  in  a  business 
touching  the  trusts  of  countless  financial  interests.  The  result 
of  such  a  guaranty  would,  in  my  opinion,  tend  to  put  a  premium 
on  the  "popular"  and  "obliging"  banker,  as  against  the  careful 
.and  judicious  banker;  to  spread  throughout  the  country  the 
^influence  of  men  who  care  more  for  bigness  than  safety  in 
their  accotints ;  to  build  up  credit  unsupported  by  legitimate 
trade ;  and  in  the  end  would  bring  on  financial  convulsions  pro- 
portional in  disaster  to  the  extent  of  the  doubtful  banking. 
Not  only  would  it  be  unjust  to  ask  the  efficient  to  meet  the 
losses  of  the  inefficient,  but  it  is  poor  policy  to  stimulate  the 
inefficient  to  try  to  do  that  for  which  they  are  unfit.     *     *     * 

*  4f      *      *      *      *      * 

Finally,  the  appeal  to  history  gives  the  plan  no  authority. 
We  have  had  experience  with  a  guaranty  of  deposits  in  New 
York  under  the  Safety  Fund  Act,  April  2,  1829.  The  conditions 
of  the  country  and  the  understanding  of  banking  were  such  at 
that  time  that  the  lessons  from  that  experiment  cannot  have 
very  much  value.  Then,  there  was  held  only  one  reserve  for 
both  notes  and  deposits.  Expansion  of  loans  in  thovse  days 
meant,  in  the  main,  an  expansion  of  notes.  The  safety  fund 
was,  therefore,  a  protection  to  both  notes  and  dej)ositsj  but  as 


GUARANTEE  OF  BANK  DEPOSITS.  ^13 

business  was  then  largely  done  by  notes,  its  service  was  much 
as  would  be  rendered  to-day  by  a  guaranty  of  deposits.  What, 
then,  was  the  outcome?  The  fund  was  established  by  levying 
a  tax  of  one-half  of  one  per  cent  on  the  capital  stock  until  a 
fund  of  3  per  cent  was  reached.  After  eight  years  the  fund 
was  tested  by  the  crisis  of  1837,  when  there  were  90  banks  in 
operation  with  a  capital  of  $32,200,000.  All  the  banks  suspended 
and  the  act  itself  was  suspended  for  a  year.  Again,  in  1840- 
1842,  the  system  was  put  to  test  by  eleven  s.erious  bank  failures. 
Thereupon,  in  1842,  it  was  decreed  that  the  fund  should  hereafter 
be  used  only  for  the  redemption  of  the  notes  of  failed  bairks. 
The  experience  of  Vermont  and  Michigan  is  still  less  satisfactory. 

[Hon.  George  E.  Roberts^  former  Director  of  the  Mint,  before  the  Montana 
Bankers'  Association  Convention.] 

The  first  objection  to  the  guaranty  of  deposits  is  that  it 
ignores  the  fundamental  defect  of  our  currency  system,  its 
rigidity.  There  is  an  actual  need  for  more  money  to  handle 
the  business  of  the  country  in  the  fall  of  the  year  than  in  the 
other  seasons,  and  the  guaranty  plan  does  not  meet  that  demand. 
The  advocates  of  the  guaranty  plan  recognize  no  evil  in  the 
present  situation,  but  the  evil  of  the  panic,  when  the  fact  is 
that  the  panic  is  simply  the  last  stage  of  the  disorder.  A  panic 
marks  the  stage  where  the  system  finally  collapses,  but  there 
is  a  costly  strain  which  precedes  the  collapse  and  which  does 
not  always  come  to  collapse.  A  panic  comes  only  once  in  ten  or 
fifteen  years,  or  twenty  years,  but  the  strain  and  cost  of  our 
inflexible  currency  system,  the  curtailment  of  credits,  the  en- 
hanced interest  charges,  the  inadequate  facilities  for  handling 
the  business  of  the  country,  the  burden  upon  the  producers  of 
the  country,  these  come  every  year,  and  the  guarantee  of  de- 
posits offers  no  remedy.  Instead  of  seeking  to  strengthen  the 
banking  systems  and  provide  the  means  by  which  the  banks 
may  i»eet  all  the  calls  upon  them,  whether  those  of  panic  or 
of  legitimate  business,  this  policy  proposes  that  we  continue  to 
endure  the  annual  ev^ls  of  the  most  inadequate  currency  system 
in  the  world,  and  confine  ourselves  to  an  attempt  to  persuade 
depositors  not  to  call  for  their  money.  Give  the  bankers  of  the 
United  States  an  institution  behind  them  like  the  Bank  of  France 
or  the  Bank  of  Germany,  and  they  will  meet  all  demands  upon 
them  whether  prompted  by  panic  or  otherwise. 

The  second  objection  to  the  guaranty  of  deposits  is  that  it 
eliminates  character  as  a  necessary  factor  in  the  banking  busi- 
ness. Under  present  conditions  the  investments,  the  personal 
habits,  general  character,  and  abilities  of  the  banker  are  a 
matter  of  public  interest  and  constantly  under  the  scrutiny 
of  the  community.  After  all  allowance  is  made  for  occasional 
instances  in  which  the  public  has  been  deceived,  who  can.  doubt 
tkat  this  alert  and  interested  public  opinion  has  a  great  in- 
fluence in  maintaining  proper  standards  of  banking  practice? 
We  cannot  afford  to  do  without  that  influence. 

The  conservative  banker  has  some  reward  to-day  in  the 
preference  which  a  discriminating  public  gives  him.  It  is  some 
protection  against  deinoralizing  competition.  He  can  follow  his 
own  policy  and  be  assured  that  at  least  a  share  of  the^  public 
will  appreciate  his  methods  and  support  him.  There  are  people 
who  are  not  influenced  in  the  selection  of  their  bank  bj^  the 
highest  rate  of  interest  offered  on  deposits.  A  banker  now 
prizes  the  reputation  of  doijig  a  safe  business,  and  cannot  afford 
to  have  a  reputation  for  impriulence  or  speculative  tendencies. 
And  yet,  although  held  in  check  by  these  powerful  considera- 
tions, the  pressure  of  competition  carries  the  business  too  near 
the  danger  line  now.  There  is  too  much  competition  for  de- 
posits now,  and  the  ambition  of  the  more  venturesome,  and  the 
pace  they  set.  puts  the  whole  system  under  strain. 

But  what  are  likely  to  be  the  conditions  in  the  business  when 
the  public  is  no  longer  concerned  about  the  management  of  a 
bank  and  all  the  rewai'ds  for  conservatism  and  restraints  upon 
recklessness  are  removed?  Practically  all  the  considerations 
which  in  the  past  ha\o  tended  to  safegTuird  the  business  and 
advance    its   standards   would  be   gone.     The   public   would   care 


314  GUARA\Tf<lH  Oh'  /.' I  VA'   mH'fiSirs. 

nothing'  for  the  personality  of  the  l)anl<t'r.  'I'he  question  reiatiiig- 
to  his  fitness  for  the  enstody  of  money  woukl  become  obsolete. 
The  reckless  and  ineomix*tent  jjeople  who  are  now  evcliided  from 
the  hanking-  business  or  held  in  cheek  by  the  distrust  which  the 
public  feels  toward  them,  would  make  the  pace  to  which  cv(My- 
•body  else  would  have  to  conform  or  get  out  of  the  business. 

The  hardest  com])etitor  in  any  line  of  business  is  the  inex- 
perienced or  incomy)etent  man  who  doesn't  know  whether  he  is 
making  or  losing  money  and  whose  only  idea  of  building  up  his 
business  is  to  offer  a  little  greater  inducements  than  his  rival 
will  give.  In  the  banking  business  with  deposits  made  a  joint 
liability,  it  is  difficult  to  see  why  they  shoidd  not  all  go  to  the 
people  who  will  bid  the  highest  for  them,  a  condition  that  would 
be  unjust  and  intolerable  to  the  class  of  men  best  qualified  to 
handle  the  banking  business  of  the  country. 

The  argument  for  the  guai-anty  of  deposits  is  based  on  the 
ground  of  public  policy.  Tt  is  admitted  that  it  may  be  injurious 
to  the  banker  of  experience  and  established  character,  but  urged 
that  their  interests  should  be  subordinated  to  the  general  good. 
But  on  broad  grounds  of  public  policy  is  it  desirable  to  eliminate 
experience  and  established  character  as  factors  in  the  banking 
business?  It  cannot  be  advantageous  to  the  community  in  the 
long  run  to  have  its  accumulated  savings  and  working  capital 
pass  into  the  hands  of  the  venturesome  class  who  will  bid  most 
for  them.  Such  a  system  will  break  down  eventually  through 
its  inherent  weakness  as  a  similar  one  did  break  down  in  the 
State  of  New  York  years  ago.  The  fact  that  the  first  bank 
failure  in  Oklahoma  since  the  law  went  into  effect  was  followed 
by  immediate  reimbursement  of  the  depositors  at  the  expense 
of  the  other  bankers  of  the  State,  proves  nothing  as  to  the 
practicability  of  the  system  in  the  long  run.  What  will  the 
influence  of  the  system  be  upon  the  banking  business  and  its 
standards?  Will  it  tend  to  secure  more  careful  and  capable 
investment  of  the  vast  sums  which  the  people  of  this  country 
keep  in  banks,  or  will  it  tend  to  weaken  the  personal  responsi- 
bility for  these  funds  and  divert  them  into  incapable  and  waste- 
ful hands?  Instead  of  looking  for  security  to  the  individual 
banker  who  received  the  deposit  and  invests  it.  the  depositor 
will  pay  no  attention  to  him.  but  rely  flpon  an  outside  "fund." 
It  is  a  superficial  policy  which  neglects  real  safeguards  and 
relies  upon  a  false  principle  which  is  itself  an  element  of  peri!. 

[Prom  address  of  Mr.  Jno.  B.  Marony,  President  Montana  Bankers'  Associa- 
tion Convention.] 

Among  other  remedies  for  the  prevention  of  financial  strin- 
gency and  panic  that  has  been  widely  proposed  is  the  guarantee- 
ing by  the  Federal  Government  of  de])osits  in  national  banks,  and 
the  guaranteeng  by  the  several  States  of  deposits  in  State  banks. 
Such  a  thing,  in  my  opinion,  is  utterly  impracticable  and  a  dan- 
gerous experiment.  Personally.  1  am  opposed  to  paternalism  in 
any  government,  and,  in  my  judgment,  this  is  paternalism  in  the 
extreme. 

So  much  has  been  written  pro  and  con  upon  this  subject  that 
it  would  be  presumptuous  on  my  part  to  inflict  upon  you  my 
views  "thereon  at  any  length,  but  if  the  Government  is  to 
guarantee  deposits  in  banks,  *;hy  not  go  into  the  insurance  busi- 
ness in  all  of  its  aspects  and  ramifications?  Why  not  guarantee 
that  the  grocer  sells  his  sugar  without  sand,  or  that  your  house 
will  not  burn  down,  or  that  your  crops  will  always  prove  bounti- 
ful? 

If  this  guarantee  and  insurance  business  is  to  be  carried  out 
of  its  legitimate  or  illegitimate  ends,  following  the  guarantee  of 
bank  deposits,  why  not  supplant  Lloyds  and  take  a  bet  on  any- 
thing from  a  storm  at  sea  to  the  clip  of  wool  on  a  sheep's  back. 
Will  the  Government  or  State  say  by  such  a  law  that  one  bank  is 
as  good  as  another,  and  that,  as  a  result  of  the  guarantee  of  de- 
posits? Will  they  say  that  the  ijlunger  and  reckless  banker  can 
establish  a  bank  on  one  corner  of  the  street,  paying  whatever 
interest  on  deposit  he  will,  or  in  any  manner  he  choovses  stimu- 
late and  increase  his  deposits  to  the  end  that  he  may  build  up  a 
big  deposit  account,  and  then  loan  money  regardless,  and  that 


GUARANTEE  OF  BANK  DEPOSITS.  315 

the  safe  and  conservative  banker  with  his  institution  of  many 
years  standing,  on  the  opposite  corner,  shall  pay  into  the  common 
pot  of  insurance  to  maintain  the  credit  and  make  good  on  de- 
posits drawn  into  the  recklessly  managed  bank  regardless  of  con- 
sequences. I  say  to  you  that  such  a  law  would  run  counter  to 
the  current  of  human  nature.  No  law  can  successfully  do  that. 
No  legislation  can  turn  that  current.  Men  are  human,  and  bank 
managers  are  cast  along  different  lines,  with  different  views  and 
different  ideas  of  running  their  institutions. 

The  State  of  Oklahoma  guarantees  deposits  in  State  institu- 
tions. I  read  an  advertisement  the  other  day  that  an  Oklahoma 
bank  with  $10,000  capital  was  advertising  to  pay  four  per  cent  on 
its  deposits,  and  citing  the  State's  guarantee  for  the  security  of 
these  deposits.  Why  not  this  bank  with  its  $10,000  capital  and 
its  extraordinary  inducement  for  deposits  build  up  its  deposit 
account  to  a  million  dollars  or  ten  million  dollars,  and  doing 
that,  to  live,  must  loan  its  money?  Will  an}'  man  argue  that 
those  loans  will  be  safe  or  conservative?  A  notable  article  on 
this  subject  was  recently  written  by  Prof.  J.  Laurence  Laughlin, 
a  noted  political  economist  of  the  University  of  Chicago.  He 
maintains  that  "the  ethical  justification  for  taxing  sound  banks 
to  cover  the  lapses  of  unsound  banks  has  no  existence  what- 
ever." It  is  immoral  and  illogical.  "The  deposits  of  a  bank  are 
as  safe  as  the  value  of  the  assets  in  its  loan  item,  no  more,  no 
less."  It  is  idle,  in  my  judgment,  to  discuss  this  matter  to  a 
convention  of  intelligent  bankers,  for  I  am  sure  that  they  are 
almost  unanimously  of  the  same  opinion,  and  that  is  one  of  ab- 
solute opposition  to  any  such  theories. 

[Prom   address  ot  Mr.   H.  V. 

tdon  Convention.] 

Two  important  plans  affecting  our  financial  system  have  been 
much  discussed  this  year.  One,  the  guaranteeing  of  bank  de- 
posits, will,  I  believe,  be  the  subject  of  the  address  of  this  con- 
vention. In  this  connection,  T  only  wish  to  quote  a  sentence  from 
a  recent  able  address,  which  you  probably  have  all  read,  but 
which  contains  so  much  wisdom  that  it  can  not  be  too  often  re- 
peated. It  is  as  follows — speaking  of  deposit  guarantee :  "The 
unsound  banks  would  actually  take  business  away  from  the 
sound  ones  with  specious  promises,  to  which  conservatively  man- 
aged banks  would  not  resort,  and  on  reckless  terms  with  which 
they  would  not  compete  ;  while  to  the  extent  of  their  contribu- 
tions to  the  guaranty  fund,  the  sound  institutions  would  support 
the  unsound  in  their  recklessness,  besides  giving  them  a  standing 
and  credit  which  they  could  not  otherwise  obtain." 

[From  annual  address  of  Pres.  Kaufman,  of  MieMgan  Bankers'  Association.] 

Government  insurance  of  dejDOsits  is  a  cordial  invitation  to 
those  who  wish  to  carry  on  dishonest  banking  to  enter  the  busi- 
ness, and  compels  the  honest  and  the  skillful  banker  to  bear  the, 
burden  for  the  slovenly  financier  and  the  thief.  If  one  of  the 
latter  class  goes  to  the  wall,  under  the  insurance  plan  the  bank 
that  has  spent  years  in  careful  and  honest  administration  and 
built  up  a  reputation,  must  devote  part  of  its  earnings  to  make 
good  the  losses  of  the  get-rich-quick  fiend  after  he  has  deliber- 
ately allowed  his  institution  to  collapse.  The  argument  is  used 
by  friends  of  the  insurance  plan  that  the  criminal  law  reaches 
this  style  of  banker,  and  that,  therefore,  failures  would  be  few 
and  far  between. 

The  criminal  law  will  reach  them  if  they  do  business  under 
the  general  banking  law  of  the  State  or  under  the  national  bank- 
ing law,  demonstrating  there  is  no  real  necessity  for  insurance 
to  protect  depositors  in  well  managed  institutions,  and  the  other 
kind  should  not  exist. 

Government  insurance  of  deposits  would  mean  a  tax  upon  the 
people  patronising  banks  in  order  to  protect  the  man  who  should 
have  sense  enough  to  protect  himself.  In  other  words,  it  would 
place  a  premium  on  incompetency  of  the  depositor  as  well  as  the 
banker.  This  species  of  paternalism  is.  in  my  estimation,  for- 
eign to  the  spirit  of  our  democracy,  which  protects  every  man 
m  his  rights,  and  leaves  him  to  manage  his  own  business  as  he 


316  GUARANTEE  OF  BANK  DEPOSITS. 

deems  best.  If  the  Government  is  to  g-iiarantee  bank  deposits, 
why  not  guarantee  all  kinds  of  credits  and  tax  the  retailers  in  all 
lines,  so  that  the  wholesalers  who  sell  on  sixty  and  ninety  days' 
time  can  be  sure  of  getting  their  money.  One  is  just  as  logical 
as  the  other. 

lender  a  Government  guarantee,  or  any  other  guarantee  of 
deposits,  years  of  effort,  initiative,  character,  judgment  and  soimd 
integrity,  methods  of  building  up  and  maintaining  a  banking 
institution  count  for  nothing  in  attracting  depositors.  The  bank 
of  sound  creation  and  the  mushroom  institutions  of  yesterday 
are  on  the  same  level  in  the  eyes  of  the  depositor. 

The  Oklalioma  Guarantee  Plan  and  the  National  Banks- 
Decision  of  the  Attorney  General , and  Comptroller  <»f  the 
Currency. 

The  recent  decisions  of  the  Attorney  General  and  Comptroller 
of  the  Currency  as  to  the  right  of  national  banks  to  participate 
in  the  Oklahoma  guarantee  fund  plan,  are  outlined  in  the 
following  extracts  therefrom :  Certain  of  the  national 
banks  of  Oklahoma  had  requested  permission  from  the  Comp- 
troller of  the  Currency  to  participate  in  the  Oklahoma 
guarantee  system,  but  he  declined  to  grant  the  permission,  re- 
questing an  opinion  from  the  Attorney  General,  who  held  that  a 
national  bank  has  no  right  to  enter  into  a  contract  or  other  ar- 
rangement with  State  officials  for  the  purpose  of  creating  a 
guarantee  fund  out  of  the  bank's  deposits  or  capital  stock  to  be 
used  in  paying  the  depositors  of  any  bank  included  within  the 
terms  of  a  State  statute  any  de^ciency  there  may  be  in  the 
amount  to  be  received  by  them  from  assets  of  such  bank  in  the 
event  of  its  failure.     The  decision  in  part  says : 

The  statute  of  Oklahoma  to  which  you  call  mj'-  attention  cre- 
ates a  State  Banking  Board,  composed  of  certain  designated 
State  officers,  and  requires  the  said  board  to  "levy  against  the 
capital  stock  an  assessment  of  1  per  cent  of  the  bank's  daily 
average  deposits,"  with  certain  deduction  "upon  each  and  every 
bank  organized  and  existing  under  the  laws  of  this  State."  This 
assessment  is  to  constitute  what  is  designated  as  a  "depositor's 
guarantee  fund,"  and  additional  assessments  are  to  be  levied 
against  the  capital  stock  of  the  banks,  proportionately  to  the 
amount  of  their  dejjosits,  so  as  to  always  maintain  the  fund  at  the 
designated  amount. 

It  is  generally  recognized  .that  a  national  bank  has  no  power 
to  guarantee  the  obligations  of  a  third'  party  unless  in  connec- 
tion with  a  sale  or  transfer  of  its  own  property,  and  as  an  inci- 
dent to  the  banking  business. 

It  has  been  argued  that  the  bank  in  this  case  would  not  guar- 
antee the  obligations  of  other  banks,  but  would  only  agree  to  put 
the  State  of  Oklahoma,  through  its  Banking  Board,  in  funds  to 
make  effectual  such  a  guarantee  on  its  part.  I  think  this  is  a 
distinction  without  a  difference. 

I  have  not  overlooked  the  fact  that  by  the  terms  of  the  pro- 
posed contract  between  the  bank  in  question  and  the  State  or  its 
Banking  Board  the  said  bank  agrees  to  do  nothing  which  shall 
be  in  conflict  with  the  Federal  laws,  but  this  provision  is  not 
relevant,  for  the  entire  contract  is  ultra  vires  for  a  national 
bank,  and  prohibited  by  the  necessary  intendment  of  the  statute. 
I  hold  that  such  is  the  fact  with  respect  to  the  contract  proposed 
in  this  case — that  it  is  illegal  for  the  officers  of  any  national 
bank  to  enter  into  such  an  agreement  as  is  contemplated  by  sec- 
tion 4  of  the  Oklahoma  statute,  and  that  persistent  and  willful 
action  to  this  effect  on  the  part  of  any  such  bank  would  be  just 
cause  for  the  forfeiture  of  its  charter. 

The  opinion  of  Attorney  General  Bonaparte  sustains  the  po- 
sition taken  by  Comptroller  Eidgely,  and  later  by  his  successor, 
Comptroller  Murray. 

PcTF  National  Banks  Favoring  the   Oklahoma  Plan. 

Washington,  Aug.  26.— ^T.  P.  Kane,  acting  Comptroller  of  the 
Currency,  makes  the  following  statement : 

"A  statement  Js  going  the  rounds  of  the  press  to-  the  effect  that  a  large 
number  of  the  national  banks  In  Oklahoma  have  notified  the  Comptroller  of 


GUARANTEE  OF  BANK  DEPOSITS.  317 

the  Currency  of  their  intention  to  surrender  their  national  charters  and  enter 
the  State  banking  system,  because  of  thte  opinion  rendered  by  the  attorney- 
general  that  they  cannot  lawfully  avail  themselves  of  the  State  guaranty  law. 
This  statement  is  not  dn  accord  with  the  facts.  There  are  about  310  national 
banks  in  the  State  of  Oklahoma.  Only  57  entered  into  the  guaranty  scheme. 
On  August  8,  1908,  these  57  banks  were  notified  that  they  must  withdraw 
from  the  agreement,  and  so  far  replies  have  been  received  from  33  of  them. 
Twenty-seven  have  informed  the  Comptroller  that  they  have  notified  the  State 
Banking  Board  of  their  desire  to  withdraw  from  the  guaranty  agreement. 
Seven  have  indicated  their  intention  to  surrender  their  national  charters  and 
reorganize  as  State  banks,  but  two  only  have  thus  far  actually  gone  into 
voluntary  liquidation  for  that  purpose.  Replies  have  been  received  from  134 
of  the  253  banks  that  have  not  entered  into  the  agreement.  A  majority  of 
them  state  they  had  no  intention  of  doing  so,  as  they  were  not  in  sympathy 
with  the  movement.  One  national  bank,  recently  chartered,  states  that  its 
purpose  dn  converting  from  a  State  bank  to  the  national  system  was  to 
escape  the  requirements  of  the  guaranty  law." 


Tlie  organization  of  capital  into  corporations  witli  the 
position  of  advantage  ^vliicli  tills  gives  it  in  a  dispute  Tvitli 
single  laborers  over  Tvages,  makes  it  absolutely  necessary 
for  labor  to  unite  and  maintain  itself.— Hon.  Wm.  H.  Taft, 
at    Cooper    Union,    Nctf    York    City. 

If  I  am  elected  President,  I  sliall  urge  upon  Congress,  vritli 
every  liope  of  success,  that  a  lave  be  passed  requiring  a 
flling  in  a  Federal  ofHce  of  a  statement  of  the  contributions 
received  by  committees  and  canditlates  in  elections  for  mem- 
bers of  Congress  and  in  sucli  other  elections  as  are  consti- 
tutionally T»'ithin  the  control  of  Congress. — From  Hon.  Wm. 
H.    Taft's     speech    accepting    Presidential    nomination. 

There  is  a  class  of  capitalists  ^vho  look  upon  labor  unions 
as  per  se  vicious  and  a  class  of  radical  labor  unionists 
who  look  upon  capital  as  labor's  natural  enemy.  I  believe, 
however,  that  the  great  majority  of  each  class  are  grad- 
ually becoming  more  conciliatory  in  their  attitude,  the  one 
toward  the  other.  Between  them  is  a  larger  class,  neither 
capital  nor  labor  unionist,  w^ho  are  without  prejudices,  and 
I  hope  I  am  one  of  those.— Hon.  Wm.  H.  Taft,  at  Cooper 
Union,    New    York    City. 

"U'^e  are  winning  lieadship  among  the  nations  of  the  world 
because  our  people  are  able  to  keep  their  high  average  of 
individual  citizenship  and  to  sho-\v  their  mastery  in  the  hard, 
complex,  pushing  life  of  the  age.  There  will  be  fluctuations 
from  time  to  time  in  our  protsperity,  but  it  w^ill  continue  to 
grow  just  so  long  as  we  keep  up  this  high  average  of  Indi- 
vidual citizenship  and  permit  it  to  w^ork  out  Its  own  sal- 
vation under  proper  economic  legislation. — President  Roose- 
velt   at    Minneapolis,    April    4,    1903. 

The  American  people  are  studying  these  questions  as 
never  before.  They  prize  their  independence.  They  insist, 
and  w^ill  forever  insist,  upon  that  liberty  w^hich  is  among 
the  most  precious  of  their  possessions;  but  they  realize 
more  an<l  more  as  the  years  go  by  that  when  liberty  becomes 
license,  when  great  power  is  misused,  and  great  privileges 
are  abused,  they  as  individuals  suffer,  and  the  citizenship 
in  which  they  glory  is  weakened  and  discredited. — Address 
of  Secretary  Cortelyou  at  the  annual  banquet  of  the  Syracuse 
Chamber  of  Commerce,  Syracuse,  N.  Y.,  Tuesday  evening. 
April  21,   1908. 

I  have  review^ed  what  have  properly  come  to  be  know^n 
as  President  Roosevelt's  policies.  I  have  attempted  to  point 
out  one  or  two  instances  in  w^hich  I  w^ould  qualify  details 
of  future  policies  ^vhich  he  has  sketched,  but  w^ith  these 
minor  exceptions  as  to  method,  I  am  glad  to  express  my 
complete,  thorough,  and  sincere  sympathy  w^ith,  and  ad- 
miration for,  the  great  conserving  and  conservative  move- 
ment with  which  he  has  w^ith  Ti^onderful  success  initiated 
and  carried  so  far  against  bitter  opposition,  to  remedy  the 
evilsi  c)f  our  prosperity  and  preserve  to  us  the  institutions 
we  have  inherited  front  our  fathers.— Hon.  Wm.  H.  Taft,  at 
Columbus,  Ohio. 

Labor  needs  capital  to  secure  the  best  production,  w^lille 
capital  needs  labor  in  producing  anything.  The  share  of 
each  laborer  in  the  joint  product  is  aft'ected  not  exactly, 
but  in  a  general  ^vay,  by  the  amount  of  capital  in  use  as 
compared  with  the  number  of  those  who  labor.  The  more 
capital  in  us^  the  more  ^vork  there  is  to  do,  and  the  more 
work  there  is  to  do  the  more  laborers  are  needed.  The 
greater  the  need  for  laborers  the  better  their  pay  per  man. 
Mahifestly,  it  is  in  the  direct  interest  of  the  laborer  that  • 
capital  shall  increase  faster  than  the  number  of  those  who 
work.  Everything  which  legitimately  tends  to  increase  the 
accumulation  of  wealth  and  its  use  for  production  tvHI  give 
each  laborer  a  larger  share  in  the  joint  result  of  capital 
and  labor.— Hon.  W^m.  H.  Taft,  at  Cooper  Union,  New  York 
City. 


PRESIDENT  ROOSEVELT. 


Theodore  Koosevelt :  born  in  New  York,  October  27,  1 858 ; 
elected  to  the  New  York  leg-islature  in  1881;  delegate-at-large 
to  the  Republican  National  Convention  in  1884 ;  United  States 
Civil  Service  Commissioner  1889-95 ;  President  of  New  York 
Police  Board  1895-7 ;  Assistant  Secretary  of  the  Navy  1897-8 ; 
Lieutenant-Colonel  and  Colonel  of  Rough  Riders'  regiment  during 
the  war  with  Spain ;  Governor  of  New  York  1899-1900 ;  was 
elected  to  the  Vice-Presidency  in  1900  and  succeeded  to  the 
Presidency  on  death  of  President  William  McKinley,  September 
14,  1901. 

He  devoted  the  remainder  of  that  presidential  term  to  carry- 
ing out  the  policies  of  President  McKinley,  in  Cuba,  in  the 
Philippines,  in  developing  and  strengthening  the  Monroe  doctrine, 
in  his  dealings  with  the  various  aspects  of  the  Venezuelan  ques- 
tion, and  in  his  official  relations  with  the  various  American 
countries ;  gave  prompt  recognition  to  the  infant  republic  of 
Panama,  in  which  he  was  quickly  followed  by  the  principal  na- 
tions of  the  world ;  inaugurated  the  Panama  canal  work ;  pnt 
in  operation  the  new  Department  of  Commerce  and  Labor ;  ad- 
justed, through  arbitration,  the  anthracite  coal  troubles  when 
the  sti'ain  between  labor  and  capital  was  the  greatest  ever 
known  in  this  country ;  and  instituted  through  the  Attorney- 
General's  office  a  rigorous  enforcement  of  existing  laws  against 
iliscriminations  and  other  unjust  dealing  by  trusts  and  other 
|:reat  corporations  of  the  country. 

In  November,  1904,  Mr.  Roosevelt  was  elected  to  the 
Presidency  by  the  largest  popular  majority  ever  given  in  the 
history  of  the  country.  He  carried  every  State  north  of  Vir- 
ginia and  the  Ohio  River,  and  every  State  west  of  the  Mississippi 
excepting  Arkansas,  Louisiana,  ^nd  Texas.  His  triumph  was 
fully  expected,  and  it  was  accepted  with  content,  if  not  with 
marked  ajjproval,  in  the  States  which  had  given  their  majorities 
to  Judge  Parker.  Early  on  election  evening  Judge  Parker  sent 
the  President  the  following  telegram :  "The  people  by  their  votes 
have  emphatically  approved  your  administration,  and  I  con- 
gratulate 3'^du."  At  the  same  moment, — namely,  on  Tuesday  even- 
ing,— as  the  sweeping  nature  of  the  victory  came  to  be  known, 
President  Roosevelt  made  a  remarkable  announcement,  which  ap- 
peared in  the  newspapers,  Wednesday  morning,  along  with  the 
reports  of  the  election  : 

I  am  deeply  sensible  of  the  honor  done  me  by  the  American  people 
in  thus  expressing  their  confidence  In  what  I  have  done  and  have  tried 
to  do.  I  appreciate  to  the  full  the  solemn  responsibility  this  confidence 
Imposes  upon  me,  and  I  shall  do  all  that  in  my  power  lies  not  to  forfeit 
It.  On  the  Fourth  of  March  next  I  shall  have  served  three  and  one- 
half  years,  and  this  three  and  one-half  years  constitutes  my  first  term.  The 
wise  custom  which  limits  the  President  to  two  terms  regards  the  sub- 
stance and  not  the  form.  Under  no  circumstances  will  I  be  a  candidate 
for  or  accept  another  nomination. 

Mr.  Roosevelt  was  not  under  any  kind  of  pressure  or  obliga- 
tion to  make  such  a  statement.  He  had  been  re-elected  by  the 
people  of  the  country,  without  reliance  upon  the  special  aid  of 
any  individuals  or  interests,  and  he  could  have  left  the*  fnture 
to  shape  itself.  But  he  believed  that  he  could  do  the  work  that 
lay  before  him  more  effectually  if  it  were  known  that  he  was 
not  unduly  elated  by  his  personal  success,  and  that  he  meant 
to  bring  all  his  efforts  to  bear  upon  the  performance  of  the 
duties  of  his  office  without  diverting  the  smallest  degree  of 
energy  toward  the  winning  of  support  for  still  another  term. 

This  statement  made  a  profound  effect  upon  the  country.  It 
is  not  often  that  a  man  of  such  decision  and  strength  as  Mr. 
Roosevelt  can  escape  a  change  in  the  wind  of  popular  favor.  Yet, 
if  Mr.  Roosevelt  had  not  made  it  clear  that  he  woiild  hold  firmly 
to  his  announcement  of  November,  1904,  the  Republican  party 
would  have  renominated  him  by  acclamation  and  he  would  not 
only  have  carried  all  the  States  that  gave  their  majorities  for 

318 


PRESIDENT  ROOSEVELT.  HIO 

him  in  1904,  but  he  would  also  probably  have  carried  several 
others.  Since  Mr,  Roosevelt  was  firm  in  his  decision,  in  spite 
of  miich  pressure  brought  to  bear  upon  him,  it  was  highly 
fortimate  that  his  personal  judgment  concurred  with  that  of 
the  great  majority  of  the  party  in  believing  that  thi^  lion.  William 
H.  Taft,  Secretary  of  War,  was  the  man  best  suited  under  all 
existing  circumstances  and  conditions  to  receive  the  nomination. 
At  no  point  in  his  brilliant  career  have  the  moral  strength  and 
political  integrity  of  Theodore  Roosevelt  been  cleai-er  to  the 
country  and  to  the  world  than  in  the  part  he  took  in  helping 
the  party  to  carry  out  what  was  its  own  best  judgment  in  choos- 
ing Mr.  Taft  with  the  hearty  acceptance  of  evec.y  Republican 
factor  and  element. 

Mr.  Roosevelt's  administration  has  been  so  replete  with  valu- 
able achievements  that  a  mere  recapitulation  of  them  would  fill 
many  pages.  At  no  time  in  our  history  have  our  relations  with 
foreign  countries  been  so  friendly,  and  at  no  time  has  our  posi- 
tion as  an  influence  for  good  in  the  affairs  of  the  world  been 
so  solid  and  unquestioned  as  in  this  period  of  Mr.  Roosevelt's 
administration.  There  is  not  a  European  power,  great  or  small, 
with  which  our  government  is  not  iipon  terms  of  good  under- 
standing. With  none  of  the  great  powers  is  there  an^^  question 
pending  that  occasions  friction. 

Our  relations  to  our  own  continent  have  been  vastly  improved. 
Outstanding  qiiestions  between  this  counti-y  and  the  Doiniuiou  of 
Canada  are  all  either  cleared  up  or  in  the  way  of  settlement 
through  friendly  negotiations.  Mr.  Roosevelt  and  his  dis 
tinguished  Secretary  of  State,  Mr.  Root,  have  almost  com])letely 
-changed  the  attitude  of  South  America  toward  our  government, 
having  convinced  the  leading  republics  of  the  South  of  our  friend- 
liness and  good  will. 

To  have  been  instrumental  in  calling  the  second  Hague  Con- 
fpreuce  belongs  to  the  credit  of  President  Roosevelt,  and  this 
work  for  the  promotion  of  peace  was  attended  with  the  negotia- 
tion of  numerous  special  arbitration  treaties  with  foreign  coun- 
tries ;  by  practical  steps  which  secured  neutrality  for  China  in 
the  Russo-Japanese  War ;  and,  finally,  by  the  masterly  states- 
manship which  secured  an  ending  of  hostilities  in  the  Far  East 
and  the  assembling  on  American  soil  of  the  representatives  of 
Russia  and  Japan  to  fix  upon  terms  of  peace. 

The  successive  stages  in  the  organization  of  government  and 
of  engineering  work  at  Panama  have  been  of  lasting  credit  to 
Mr.  Roosevelt  and  his  administration.  What  was  the  most  un- 
wholesome has  now  become  perhaps  the  healthiest  spot  in  the 
whole  tropical  world  through  enlightened  sanitary  work.  Enor- 
mous progress  has  been  made  in  digging  the  Panama  Canal,  with 
an  efficiency  on  the  part  of  government  officers  that  fully  equals 
that  recently  shown  by  great  American  railroad  and  industrial 
corporations  in  their  own  improvement.  One  important  step 
in  bringing  this  about  was  the  President's  own  personal  visit 
to  Panama  in  November,   1906. 

INIr.  Roosevelt  has  served  in  the  Presidency  during  a  period 
of  inevitable  readjustment  following  the  astounding  material 
progj'ess  of  the  country.  Different  kinds  of  industries  were  com- 
ing under  the  control  of  great  unified  corporations,  popularly 
known  as  trusts.  Railroads  were  being  reorganized  and  amal- 
gamated in  lai-ge  systems.  It  became  necessary  for  the  welfare 
of  the  public  to  bring  these  large  aggregations  of  capital  under 
the  reasonable  authority  of  law  and  government.  No  President 
of  finn  character  and  statesmanlike  understanding  could  have 
avoided  the  serious  duties  and  responsibilities  which  this  condi- 
tion in  the  country  had  created.  Mr.  Roosevelt's  attitude  toward 
questions  of  this  character  was  that  of  a  firm  executive  rather 
than  of  an  aggressive  innovator. 

It  was  the  judgment  of  fair-minded  and  wise  men  that  the 
practice  of  rebating  and  the  granting  of  various  forms  of 
special  favor  by  railroads  to  large  corporations  and  shippers  could 
no  longer  be  tolerated.  The  fact  that  such  practices  have  been 
almost  entirely  broken  up  will  stand  to  the  credit  of  President 
Roosevelt's  administration.  The  public  and  the  railroads  alike 
are  benefited.  The  small  industries  are  now  secure  in  their 
rights  as  against  their  large  competitors.     This  process  of  bring- 


320  PRESIDENT  ROOSEVELT. 

Ing  even-handed  justice  to  bear  upon  the  economic  life  of  the 
coiintrv  is  not  yet  comploto<  but  the  main  lines  are  laid  down 
upon  whicli  to  proceed.  I'resident  Itoosevelt  has  again  and 
a^niin  declared  in  favor  of  sucli  modifications  of  existing  laws  as 
would  make  is  easier  to  break  up  methods  that  are  injurious, 
while  placing  no  obstacles  in  the  way  of  lawful  and  beneficial 
enterprise.  The  creation  of  the  new  Department  of  Commerce 
and  Labor  with  its  various  activities  has  proved  itself  a  measure 
of  constructive  statesmanship  that  will  also  stand  to  the  credit 
of   President   Koosevelt's   administration. 

No  President  has  ever  worked  more  intelligently  and  con- 
stantly at  the  business  of  his  high  oflRce  than  President  Koose- 
velt,  and  yet*  he  has  managed  to  travel  and  observe  conditions 
in  all  parts  of  the  country.  Within  the  first  year  of  his  second 
term  it  could  be  said  that  since  entering  upon  the  duties  of  the 
Presidency  he  had  visited  and  spoken  in  every  State  and  Terri- 
tory of  the  Union.  His  trips  to  different  parts  of  the  country 
have  been  taken  in  such  a  way  as  to  add  to  his  already  extensive 
knowledge  of  resources  and  conditio^is.  No  other  man  among  his 
fellow  citizens  is  so  well  informed  as  he  about  all  sorts  of 
things  in  all  parts  of  the  country.  This  broad  knowledge  has 
been  of  inestimable  value  in  the  carrying  on  of  the  wor".;  of 
various  departments  and  bureaus.  The  great  reclamation  work 
carried  on  under  government  engineers  has  flourished  largely  by 
reason  of  Mr.  Roosevelt's  personal  knowledge  and  interest.  A 
like  statement  might  be  made  regarding  various  reforms  in  the 
public  land  service.  The  work  of  the  forestry  bureau  under  his 
fostering  care  and  wise  enthusiasm  has  grown  to  such  pro- 
portions as  to  give  reassurance  for  the  future,  where  otherwise 
the  outlook  for  destruction  of  all  our  forests  was  very  grave.  The 
taking  in  hand  by  the  government  of  the  improvement  of  the 
coimtry's  interior  waterways  is  another  policy  with  which  Mr. 
TJoosevelt  is  to  be  credited  as  the  foremost  leader.  At  no  time 
has  he  stood  before  the  whole  country  in  a  more  patriotic  and 
creditable  way  than  in  his  conduct  .of  the  great  conference  of 
Governors  and  various  experts  in  the  spring  of  19Q8  at  the 
White  House  to  consider  the  proper  care  of  the  country's  natural 
rcaources. 

In  all  matters  relating  to  the  army  and  navy  President  Roose- 
velt is  a  high  authority,  and  he  has  placed  thf  country's  defenses 
in  a  position  that  has  enhanced  the  respect  in  which  our  govern- 
ment is  held  everyAvhere  without  arousing  any  antagonism  or 
jealousy  among  the  nations.  In  the  remission  of  the  Chinese 
indemnity,  granted  by  Congress  on  his  recommendation,  another 
evidence  has  been  given  of  our  good  will  towards  the  great 
Celestial  Empire.  In  the  negotiations  with  Japan  regarding 
attacks  upon  Japanese  citizens  in  our  Western  States  and  the 
desira'bility  of  limiting  Japanese  immigration.  President  Roose- 
velt and  Mr.  Root  have  allayed  ruffled  feeling  and  made  peace  a 
permanent  fact.  The  great  naval  expedition  around  the  world 
as  determined  upon  and  executed  by  Mr,  Roosevelt  against  much 
bitter  criticisms  has  justified  his  highest  expectations  and  made 
friends  everywhere  for  the  government  and  people  of  the  United 
f  cates. 

Our  diplomatic  and  consular  services  abroad  have  been  im- 
proved in  the  most  signal  way  under  President  Roosevelt,  and 
our  representatives  in  official  life  in  Porto  Rico,  Cuba,  the  Philip- 
pines, and  elsewhere  have  been  so  fortunately  selected  as  to  reflect 
much  credit  and  no  scandal  upon  the  administration  at  home. 
Never  befoi-e  have  the  various  scientific  sf-rvices  of  the  United 
States  Government  been  so  expertly  and  efficiently  carried  on. 

Tluis,  to  sum  up,  Mr.  Roosevelt  as  President  has  added  to  ovir 
strength  in  improved  relations  with  all  European  powers;  has 
made  the  Monroe  Doctrine  respected  everywhere  and  brought 
about  the  most  fortunate  relations  with  South  America ;  has 
managed  our  insular  dependencies  so  well  as  to  have  made  so- 
called  "imperialism"  no  longer  an  issue ;  has  made  it  popular 
throughout  the  country  to  put  talent,  honesty,  and  zeal  at  the 
service  of  State  and  nation;  has  set  a  fine  example  of 
vigor  and  character  before  all  our  young  men.  When  Mr.  Roose- 
velt's term  ends  and  he  retires  from  office  next  jNlarch  it  will  be 
as  our  only  living  ex-President  and  as  our  foremost  citizen,  with 


]'jnJSn)E\T  liOOSFAELT.  H21 

undiminished  capacity  for  public  nsefnlness  and  a  demonstrated 
patriotism  beyond  tlie  prompting-s  of  personal  ambition. 

Much  of  President  Ifoosevelt's  work  and  that  of  his  ad- 
ministration is  outlined  in  the  chapters  on  the  work  of  the  Ue- 
partnients. 

Some    Iiunortiiut   Ineitlents   in   AdmiiiiHtration    of   Presulent 
Roosevelt. 

Abroji-ation  of  the  Clayton-Bulwer  Treaty. 

Prompt   recognition   of  the   Panama   Republic. 

Inaug-uration   of  work   on   the   Panama   (Vinal. 

lieciprocity  treatj^  with  Cuba. 

Mediation  in  the  Venezuelan  dispute  with  (Germany  autl 
England. 

Mediation  in  San  Doming-o. 

Mediation  in  the  llusso- Japanese  war. 

Mediation  in  the  Central  American  hostilities. 

Mediation  in  the  coal  strike  in  the  United  States. 

Intervention  in  and  temporary  occupation  of  Cuba. 

Call  of  Peace  Conference  at  The  Hague. 

Investigation  of  packing  houses  and  strengthening  of  pure 
food  laws. 

^.    Postoffice    department    investigations. 

1(',  Enforcement  of  laws  with  reference  to  Interstate  carriers. 
iSettlement  of  the  Alaskan  boiindary  dispute. 
'Establishment  of  the  Irrigation  and  Tfeclamation  Service,  and 
[tension  of  forest  reserves. 


[Defense    agrainst    injnrions     iniportntions    is    as     necessary 
jnstiftable   as   is   an   army    and   navy. — Hon.    B.    F.   Jones. 

'Cl»an»es  in  tariif  scliedules  can  with  safety  be  made  only 
by  those  wliose  devotion  to  the  principle  of  protection  is  be- 
5'ond  qnestibn.— Prom  President  Roosevelt's  speech  of  accept- 
ance. 

We  cannot  help  labor  by  reducing  the  value  of  the  money 
in  Ti'hich  labor  is  paid.— Hon.  Wm.  McKinley  to  deleKation  o;f 
ivorlvin»-men,   Angnst   24,   1890. 

The  bnsiness  -tvorld — that  is,  the  entire  American  world- 
can  not  alford,  if  it  has  any  regard  for  its  o>vn  -tvelfare,  even 
to  consider  the  advisability  of  abandoning-  the  present  [pro- 
tection] system.— President  Roosevelt  at  MinneanolAs,  April 
4,  1903. 

We  can  as  little  afford  to  tolerate  a  dishonest  man  in  tlie 
pnblic  service  as  a  co^vard  in  the  army.  The  murderer  takes 
a  single  life;  the  corrni>tionist  in  pnblic  life,  wliether  he  be 
bribe  giver  or  bribe  taker,  strilteft  at  the  heart  of  the  com- 
nionvi^ealth.— President  Roosevelt's  speech  at  Sherman  statue 
unveiling,   Oct.    15,    1903. 

It  is  always  safe  to  array  yourself  on  the  side  of  your 
country;  it  is  always  safe  to  stand  against  laTvlessness  and 
repudiation.- Maj.   McKinley   at    Canton,    Sept.   23,   1896. 

We  have  lower  interest  and  higher  Tvages,  more  xuon«y 
and    fewer    mortgages.— President    McKinley. 

While  this  is  a  big  country,  it  is  not  no^v,  and  may  it 
never  be,  big  enough  kno^vingly  to  admit  into  the  ranks  o^f 
its  citizenship  any  avow^ed  disorganizer  of  government  or 
any  avowetl  scolfer  at  our  republican  institutions.  But  our 
Stands  are  outstretched  to  those  ^-ho  come  to  us  ^tvith  worthy 
purpose. — Postmaster-General    Cortelyou. 

The  only  antitrust  law  on  the  Federal  Statute  hooks  bears 
the  name  of  a  Republican  Senator.  The  law  creating  an 
Interstate  Commence  Commission  bears  the  name  of  another 
Republican  Senator  and  all  the  \ti\y  is  being  enforced  by  a 
Republican  President.— Hon.  E.  Ij.  Hamilton,  in  Congress, 
April    14,    1904. 

AVe  do  well  to  give  the  sanction  of  the  Federal  laTV  to  the 
principle  of  arbitration.  We  should  encourage  a  spirit  of 
concord  and  mutual  respect  between  employer  and  employee, 
betvreen  the  common  carriers  of  interstate  commerce  and 
their  employees.— Hon.  C.  W.  Fairbanks,  in  U.  S.  Senate,  May 
'2,  1S98. 

One  vital,  dominating  fact  confronts  the  Democratic 
party  which  no  oratory,  ^vhich  no  eloauence,  which  no 
rhetoric  can  oTSjscures  BRYAN'S  DOMINATION  MEANS  TAFT'S 
EVECTIQN.— New    York    World. 


THE  60TH  CONGRESS. 


Wliut  (lie  liepuhlioan  Majority  Iium  ]3<»ne. 

[From  the  New  York  Tribune.] 

With  the  adjournment  of  the  first  session  of  the  60th  Congress,  an- 
other creditable  page  has  been  added  to  the  history  of  the  Uepublicau 
party.  Meeting  under  condiLion.s  n^t  whjlly  a..i>picious,  cuafiouted  by 
unsettled  business  conditions  and  haaipered  ai.a^.-t  throughout  the  session 
by  the  unrtasonable  filibustering  tacUc  ci  tat-  D^uuocrats  in  the  House, 
the  leaders  of  the  majority  have  written  namtrous  valuable-  laws  on  the 
national  statute  books  and  have  addtu  a  y^jLa  Vj  the  b  )dy  of  international 
law  uevgr  before  equaled  by  any  session  in  the  annals  of  the  nation. 

In  the  lace  of  widely  varying  opinions  on  t-ie  subject  of  finance  the 
Republican  majority  has  once  more  demon- trated  its  remarkable  ability 
to  subordinate  ptronal  views  and  preferences  to  the  opinion  of  the  ma- 
jority, and  the  most  important  law  of  the  session,  the  c  )mpromise  financial 
bill,  is  the '  result.  W  hatever  view  may  be  entertained  of  the  respective 
merits  of  the  various  financial  theorems  which  found  abundant  expression 
in  course  of  the  session,  few  impartial  judges  will  withhold  admiration  for 
the  party  discipline  which  brought  harmony  out  of  practically  irreconcilable 
differences  and  enacted  a  law  which,  although  it  will  probably  nevvjr  be 
called  into  action,  constitutes  an  insurance  against  recurring  monetary 
stringencies  and  their  consequent  panics.  Moreover,  the  constructive 
ability  which  made  this  law  possible  furnishes  an  earne.st  of  the  highly 
desirable  results  to  be  expected  from  the  work  of  the  National  Monetary 
Commission,  which  has  been  created  to  evolve  a  new  financial  system  which 
shall  obviate  all  reasonable  objections  to  exi:  ting  methods  and  place  the 
federal  finances  on  a  basis  as  sound  as  the  demands  of  a  rapidly  and 
steadily  growing  country  and  a  constantly  expanding  commerce  require. 

Aside  from  the  financial  law,  the  legislation  of  this  session  is  com- 
posed of  a  great  number  of  comparatively  small  laws,  thoughtfully  con- 
ieived  and  perfected  with  much  hard  work  and  care,  the  aggregate  con- 
ritituting  a  highly  valuable  addition  to  the  federal  statute  ■,  although 
few  are  in  themselves  of  outstanding  importance.  The  work  of  the  Senate 
In  perfecting  and  approving  international  conventions  must  compel  ad- 
miration   from    every   student   of    public   affairs. 

The  most  perfect  harmony  and  cooperation  have  existed  between  the 
Department  of  State  and  the  Senate,  and  rarely  has  the  Committee  on 
Foreign  Relations  held  a  formal  meeting  without  the  attendance  of  Secre- 
tary Root,  whose  wise  counsel  has  been  eagerly  sought,  whose  lucid  ex- 
planations and  logical  arguments  have  proved  invaluable  to  the  com- 
mittee, with  the  result  that  forty-one  treaties  have  been  ratified  and  only 
one  is  left  for  further  consideration,  the  international  convention  goverijing 
the  operation  of  wireless  telegraphy.  Three  Hague  conventions  have  been 
left  without  action,  but  two  of  theSe  were  not  signed  by  the  American 
olenipotentiaries  to  the  second  Hague  convention,  and  ratification  of  the 
,hird  was   not  urged  by  the  Secretary   of  State. 

The  cause  of  arbitration  has  been  promoted  by  the  ratification  of 
treaties  with  twelve  of  the  great  powers ;  the  approval  of  eleven  Hague 
conventions  will  materially  make  for  peace  and  diminish  the  hardship  to 
non-combatants  in  international  wars,  while  treaties  with  Japan  protecting 
the  integrity  of  American  trademarks  and  copyrights  from  imitations  and 
infringement  by  Japanese  citizens  in  China  and  Korea  will  go  far  to 
dissipate  a  hitherto  productive  source  of  friction  between  this  country 
and  Japan.  The  skillful  negotiations  of  the  representatives  of  the  United 
States  and  Great  Britain  and  the  cordial  cooperation  of  the  Senate  have 
removed  numerous  obstacles  to  the  friendly  relations  of  Canada  and  this 
republic,  and  the  result  of  the  conventions  ratified  will  be  the  impossibility 
of  boundary  and  jurisdiction  controversies. 

One  of  the  most  important  laws  enacted  perfects  former  legislation 
increasing  the  efficiency  of  the  militia.  Under  the  former  law  the  equip- 
ment of  the  militia  with  arms  and  accoutrements  similar  to  those  of  the 
regular  army  was  partly  accomplished,  but  the  new  statute  practically 
makes  the  national  guardsmen  an  integral  part  of  the  national  military 
establishment,  subject  to  the  call  of  the  President  in  time  of  need,  ob- 
viating the  necessity,  of  reorganization  and  even  partial  re-equipment  pf 
the  state  forces  during  the   stress  of  threatened  hostilities. 

True  to  its  promises  as  expres.sed  in  several  national  platforms  the 
Republican  party  has  cheerfully  acknowledged  the  arrival  of  the  hour 
when  the  existing  tariff  schedules  must  be  readjusted  to  meet  new  con- 
ditions, and  both  houses  of  Congress  have  made  ample  provision  for  the 
accumulation  and  compilation  of  such  information  as  may  be  needed  in 
the  revision  scheduled  to  occur  at  a  special  session  of  Congress  to  be  held 
next  spring. 

Responding  to  the  recommendation  of  the  President,  the  Congress  has 
made  provision  for  an  act  of  international  justice  and  generosity  only 
paralleled  by  the  relinquishment  of  the  control  of  Cuba — the  voluntary 
remission  of  more  than  $10,000,000  of  the  Indemnity  exacted  from  China 
to  meet  damages  resulting   from  the   Boxer   uprising. 

Generous  provision  has  been  made  for  the  extension  and  completion 
of  the  national  defenses  by  the  addition  of  two  modern  battleships  to  the 
navy,  besides  several  smaller  vessels ;  the  fortification  of  Pearl  Harbor 
and  the  establishment  there  of  an  effective  naval  base,  the  (y)mpletlon  of 
several  coaling  stations  already  begun,  and  the  perfection  of  modern  sys- 
tems of  fire  control,   the  installation  of   up-to-date  batteries   and  the  con- 

332 


THE  SIXTIETH  CONGRESS.  323 

struction  of  modern  ordnance  for  coast  defenses  already  established. 
Proper  pr'ovi.'-ion  has  been  made  for  the  increased  demands  of  the  modern 
navy  by  increasing  the  personnel  by  six  tliousand  men  and  the  marine 
corps  by  six  hundred  officers  and  men,  and  the  pay  of  the  army,  navy  and 
marine  corps  has  been  increased  in  accordance  with  the  demands  of 
modern  civilization  and  the  increased  requirements  of  foreign  service  and 
numerous   and    long    tran  fers   of    station. 

The  Republican  party  has  pursued  its  customarily  generous  course  to- 
ward the  veterans  of  past  wars  and  has  cared  for  the  dependents  of  the 
men  who  have  given  their  all  to  their  country  by  an  increase  of  the  small 
stipends   of   their   widows   by   50    per   cent. 

The  Philippines  have  not  been  forgotten,  an  additional  member  having 
been  added  to  the  islands  commission  and  the  application  of  the  coastwise 
laws  of  this  country  to  the  archipelago  having  been  suspended  in  the 
interest  of   Philippine  commerce   and   prosperity. 

In  the  light  of  experience  gained  from  past  misfortunes  the  navigation 
laws  of  the  country  have  been  revised  and  strengthened  at  every  point, 
and  the  safety  of  those  who  for  pleasure  or  duty  go  down  to  the  sea  in 
sh'.pb  has  been  enhanced  and  safeguarded  in  every  possible  manner,  in- 
cluding the  establishment  of  numerous  additional  lighthouses,  placing  of 
buoys,    and    the   control    of    the   vessels    and    their    crews. 

Labor  has  been  cared  for  in  many  ways.  A  revised  employers'  lia- 
bility law  has  been  enacted  to  replace  that  declared  unconstitutional  by  the 
Supreme  Court ;  a  federal  liability  law.  protecting  those  government  em- 
ployes engaged  in  hazardous  ui.dertakings  has  been  placed  in  the  statuteb, 
and  only  the  extravagant  demands  of  certain  labor  leaders  have  prevented 
(he  enactment  of  an  equitable  anti-injunction  law,  to  which  subject  the 
entire  Republican  membership  of  the  House  devoted  many  hours  ;  and  for 
the  juvenile  wage  earners  a  child  labor  law  has  been  enacted  for  the 
District  of  Columbia  which  it  is  hoped  and  believed  will  serve  as  a  model 
for  numerous  state  statutes. 

Matters    Left    for    Future    Action. 

Among  the  measures  left  for  further  consideration  at  the  next  session 
of  Congress  are  some  of  the  most  spectacular  propositions  of  the  -session, 
some  policies  urged  by  the  President  and  other-  advocated  vociferously  in 
the  public  prints,  many,  perhaps,  of  hardly  equal  importance  to  measures 
which  have  been  enacted  without  attracting  exten'-ive  popular  attention. 
But  intelligent  examination  of  these  policies  and  propjsed  laws  reveals 
the  fact  that  they  are  replete  with  difficulties,  and  that  only  that  prudent 
deliberation  which  has  ever  characterized  the  legislative  work  of  the  Re- 
publican party  can  in  ure  the  sirccess  of  such  policies  when  finally  enacted 
and  avert  ttie  pitfalls  offered  by  hasty  or  incon  iderate  action.  M  ich 
time  and  thought  have  been  devoted  at  this  session  to  every  important 
subject  which  failed  of  action,  time  and  thought  which  must  ultimately  re- 
sult in  wi'e  legislation  free  from  those  errors  of  Kplicy  and  inaccuracies  of 
statutory  expression  which  are  inevitable  concomitants  of  hasty  consider- 
ation   of    important    and    intricate    leglislative    problems. 

liniiortant   La^vs   Enacted. 

Sixtieth    Congress,    First    Session,    December    2,    1907,     to    May     30,    1908. 

Financial  law  whereby  banks  in  periods  of  financial  stringency  may 
issue  currency  to  the  amount  of  $500,000,000,  depositing  as  security  therefor 
bonds,  commercial  paper  or  other  assets,  such  emergency  currency  being 
so  taxed  as  to   insure   its   retirement   as   soon   as   the  stringency   ha«    passed. 

Customs  law  changed  so  that  importers  must  present  all  evidence  iri 
appeal  before  board  of  appraisers,  simplifying  procedure,  increasing  ap- 
praisers'   salaries  and    making   them    removable   only    for   cause. 

Militia  made  integral  part  of  the  national  military  establishment, 
with  additional  appropriation  of  $2,000,000  for  equipment,  etc.,  making 
total    annual   appropri.-'.tion    for   militia    of    $5,000,000. 

Public  buildings  bill,  authorizing  many  needed  structures,  purchase  of 
sites,  etc.,  including  site  for  Departments  of  State  and  Commerce  and 
Labor,    adjoining    Treasury    and    White    House    grounds. 

Nfvtional  monetary  commission  created  to  devise  a  s'ound  monetary 
system    for   the   government. 

Two  new  battleships,  at  cost  of  $6,000,000  each,  exclusive  of  armor 
and  armament ;  ten  torpedo  boat  destroyers,  three  steam  c'olliers  and  eight 
submprin'cf-. 

Ccn  I'lar  service  reorganized,  abolishing  unnecessary  consulships  and 
cons;\l   generalships  and  establishing   those  most  needed. 

Widows'  pensions  increa'-ed  from  $8  to  $12  a  month  and  certain  un- 
necessary   re^  frictions    abolished. 

Importation   of  impure  tea,   tea   siftings,   etc.,   prohibited. 

"In    God  We   Trust"    restored    to    gold   and    silver   coins. 

Investigation  of  tariff,  preliminary  to  revision,  confined  to  Ways  and 
Means   and   F"inance   committees. 

Model   child   labor   law   for  District   of   Columbia. 

Employers'  liability  bill  enacted  to  replace  that  pronounced  uncoij- 
stitutional   by    Supreme    Court. 

Government  liability  law,  providing  compensation  to  all  federal  em- 
ployes   for    injuries    received    in    line    of    duty. 

Additional   safeguards   pr'ovided    for   regattas. 

Provision  for  fortified  naval  base  at  Pearl  Harbor,  Hawaii,  for 
Hawaiian  drydock  and  the  completion  of  coaling  stations  at  San  Diego  and 
Calif^irnia    City   Point. 

Efficiency  of  army  medical  corps  increased  by  additional  officers  and 
creation   of    reserve   medical   corps. 

Game  in  Alaslis  protected. 

Increasing  arnty  pay,  officers  approximately  $500  a  year  each  and 
enlisted  men  about  40  per  cent,  increase  applying  to  both  retired  aiul  acthC 
lists. 


324  TUB  SIXTIETH  CONGRESS. 

TppTMsing  niivy  pay,  oflioers  nn<i  enlisted  ineu  practically  cQualiz-ed 
with    ariiiy.      Kiilited    force   increased    U.OOO    men. 

Marint'  c;)rps  increased  approximately  600  officers  and  enlisted  men. 

Restrictions  on  lands  of  the  Five  Civilized  Tribes  removed  adding 
$160,000,000  to  taxable  property  of  Oltlahoma.         *  * 

Addition   bf   one   iiember  to 'Philippine  CommiBsion.  j 

Numerous    udditu/n.'il    lights,    lighthouses,    and    buoys.  ,  ,  '! 

Creation  of  rank  of  captain  in  Philippine  Scouts,  companies  having' 
heretofore  been   commanded  by   lieutenants. 

[Enlarging  the  classification  of  employees  to  whom  railroads  may  grn:i; 
free    transportation. 

Provision  that  appeals  from  decisions  of  federal  .  courts  on  habcis 
corpus  proceeding.s  .'■hall  be  had  only  when  such  court  or  a  Justice  of  the 
Supreme  Court  decides  there  is  ground  for  appeal. 

Immigration    station    established    at  Philadelphia    at   cost    of   $250,000. 

Additional    safeguards    for   passenger-carryiug   ships   provided. 

Bfl'.ciency  of  life-saving  service  promoted  by  raising  compensation  and 
providing  pensions. 

Payment  of  damages  of  $400,000  for  Catholic  Church  property  de- 
stroyed   in    I'hilippines. 

Establishing  thirty  additional  fish  hatcheries  and  otherwise  increasing 
efficiency  of  Fish   Commission. 

Granting  3,000  pensions  to  deserving  veterans  of  the  Civil  and  Spanish 
wars. 

Repealing   application  of  coastwise    laws   to   the   Philippine   Islands. 

Secretary  of  Na^'V  authorized  to  receive  and  care  for  gifts  to  na\;il 
vessels. 

Creation  of  commission  and  appropriation  of  $1,500,000  for  repre- 
8(6ntalion   of    the   United   States   at   the    Tokyo   exposition. 

Prohibiting  desecration  and  improper  use  of  the  flag. 

Revenue  cutter  service  increased  by  transfer  to  that  service  of  gua- 
boat  \ icksburg. 

Salaries  of  assistants  to    Cabinet   officers    raised  to   $5,000  fi   year. 

Appropriation  of  $14,500  to  meet  expenses  of  counting  electoral  vote. 

Appropriation  of  $29,227,000  for  the  Panama   canal. 

Appropriation  of  $20,000  for  continuing  survey  and  marking  boundary 
between   the   United  States   and   Canada. 

Female  nurse  corps  established  for  navy  hospitals  and  navy  hospital 
ships. 

Military  bands   must   not   compete  with    civilian   musicians 

Drainage  of  public  lands  in  Minnesota,   including  all  unpatented  lands. 

Joint  maneuvers  of  army  and  militia  authorized,  with  $1,000,000  ap- 
propriation. 

Remission  of  $10,800,000  of  the  Chinese  indemnity  resulting  from 
Boxer  uprising. 

Anarchistic  and  seditious  publications  and  intoxicants  and  cocaine  ex- 
cluded  from  the   mails. 

Attorney  General  directed  to  institute  suits  to  compel  forfeiture  to  the 
United  States  of  certain  lands  granted  to  the  Central  Pacific,  Oregon  Short 
Line,  etc.,  on  ground  of  violation  of  contract. 

Invitation  extended  to  all  nations  to  send  delegates  to  the  International 
Tuberculosis  Congress,  to  be  held  at  Washington,  beginning  September  21, 
1908. 

Chippewa    national    forest    reserve    created    in    Minne.sota. 

Patent  law  amended  so  that  all  patents  shall  issue  within  three 
months  after  final  fee  is  paid,  and  that  in  the  event  of  the  death  of  patentee 
any    patent   pending   shall   issue    to   his    legal   heirs. 

Secretary  of  War  authorized  to  expend  $250,000  for  the  relief  of  suf- 
ferers from  cyclone  of  April,  1908,  in  Georgia,  Alabama,  Mississippi  and 
Louisiana. 

Interstate  Commerce  Commission  authorized  to  prescribe  regulations 
for  the  transportation  by  common  carriers  of  explosives,  to  promote  the 
safety   of    passengers    and    employees. 

Penalty  imposed  on  soldiers  who  sell  their  arms,  uniforms,  or  accouter- 
ments   mitigated. 

Railroads  engaged  in  interstate  commerce  prohibited  after  January 
1,  1910,  from  using  any  locomotive  equipped  with  an  ashpan  which  neces- 
sitates  an   employee  getting  under  the   engine. 

Sixty-two  laws  authorizing  construction  of  bridges  over  navigable 
streams.  • 

Five  laws-  authorizing  construction  of  dams  in   navigable   streams. 

Nine  laws  affecting  federal   courts,  judicial  districts,  etc. 

Seven  laws  affecting  customs,  granting  increased  privileges  to  certain 
ports,   etc. 

Twenty-five   laws  affecting  public   lands,    making  special   grants,    etc. 

Seven  laws  for  the  District  of  Columbia,  including  prohibition  of  all 
betting  within  the  District  and  providing  for  free  examination  of  sputum 
in  suspected  cases  of  tuberculosis. 

Five  laws  authorizing  the  Secretary  of  War  to  donate  obsolete  ordnance 
to  quasi-military  organizations,  including  one  of  Confederate  veterans  and 
one  erecting  a    Confederate  monument. 

Pediment  for  House  front  of  the  Capitol  provided  for  at  cost  of  $75,000. 

Resolutions  condemning  Representative  Lilley  and  exonerating  members 
of  the  House  from  implication  of  improper  influences  in  connection  with 
submarine   boat    appropriations. 

Commission,  consisting  of  Secretary  of  War,  chairmen  both  committees 
on  Public  Buildings  and  one  District  commissioner,  to  investigate  Bieber 
land  scandal   and   similar    cases. 

Investigation  of  wood  pulp  industry ;  House  c'ommittee  reported  no 
warrant  for  altering  tariff  at  this  time  and  no  conclusive  evidence  of  a 
trust,   but  sufficient   ground   for  -further  investigation. 

One   hundred   and   fifty-two  public  laws  were  enacted. 

There  were  2,300   invalid  pension   acts  and   about  700  private   pension 
acts. 
t        BUis  introduced:     la   Bouse,  over  22,000;   in   Senate,  over   7.000. 


THE  SIXTIETH  CONGREf^,^.  325 


Measures   Left   Over   for  Next   Session. 

Venezuelan  reprisals,  correspondence,  etc.,  left  in  Senate  Committee 
on  Foreign  Relations. 

Brownsville  resolutions,  providing  for  restoration  to  the  army  of  cer- 
tain .'Soldiers  discharged  from  the  25th  Infantry. 

Changes  in  administrative  customs  laws,  in  accordance  with  agree- 
ment with  Germany. 

Postal  savings   bank  bill.     Left  on   Senate  calendar. 

Parcels  post  reduction.   No   action  by  either  house. 

Provision  for  model  of  battleship  for  each  state  for  which  such  ship 
is   named.      Left   in   House   committee. 

Federal  injunctions  against  state  statutes  to  be  issued  only  by  majority 
of  three  federal  judges  ;    left   in    House  Judiciary  Committee. 

Anti-injunction    legislation.      Left   in    House   Judiciary   Committee. 

Federal   grain   inspection.      Left    in    Interstate    Commerce   Committee. 

Amendments  to  Sherman  anti -trust  law.  Left  in  House  Judiciary 
Committee. 

Campaign    publicity    legislation.    Left    in    Senate    committee. 

Creation    of    public    utilities    commission    for   District    of    Columbia. 

Amendment  'of  interstate  commerce  law  to  give  states  jurisdiction  wfer 
intoxicating    liquors    brought    within    their    boundaries. 

Naturalization  law  amended  increasing  the  fees  for  complete  nat- 
uralization from  $5  to  $10  and  providing  for  additional  clerks  of  courts 
authorized    to    grant    naturalization. 

Treaties   Ratiiied   by   Senate   This    Session. 

Eleven  Hague  conventions — rights  •of  neutrals,  laws  of  war  on 
land,  hospital  ship^,  naval  bombardments,  rights  of  capture  in  naval  war, 
restriction  of  submarine  mines,  prohibiting  discharge  of  projectiles  and 
explosives  from  balloons,  pacific  settlement  international  controversies,  limit- 
ing employment  of  force  for  collection  of  contractual  debts,  governing  open- 
ing of  hostilities  and  adapting  Geneva  convention  to  maritime  warfare. 

Establishment    of    international    health    office. 

Pan-Anifrican    copyright   and   code   of    international   law. 
Twelve   arbitration   conventions— Denmark,    France,    Great   Britain,    Italy, 
Japan,  Mexico,  Netherlands,  Norway,   Portugal,   Spain,  Sweden  and  Switzer- 
land. 

With  Great  Britain — Canadian  boundary,  Canadian  fisheries,  wreckage 
and  salvage  and  conveyance  of  prisoners  in  United  States  and  Canadian 
territory. 

Extradition  with   Spain,    San    Marino  and   Portugal    and    Uruguay. 

Protection  of  tradr-niarks  in  China  and  Korea  with  Japan. 

Naturalization  with   Peru,   Portugal   and  Salvador. 

Treaties    Considered    bnt    Not    Ratified. 

Three  Hague  conventions — creation  of  international  prize  court,  affect- 
ing status  of  merchant  ships  at  outbreak  of  war  and  conversion  of  mer- 
chant  ships   into   warships.      Disapproved   by    committee. 

Wireless  convention — international  treaty  defining  duties  of  wireless 
telegraph  companies,  etc. 

Presidential  Messa^res. 

The  President  sent  to  Congress  twenty  messages,  including  nine  trans- 
mitting reports  of  federal  officers,  in  response  to  resolutions,  etc.  Eleven 
special  messages  recommended  general  or  special  legislation.  The  most 
important  executive  communications  were  the  annual  message  of  December 
3,    1907j    and  special  messages,   as  follows : 

December    21,    asking    continuance    of    Biological    Survey. 

January  6,  urging  that  additional  census  employees  be  subject  to  Civil 
Service   regulations. 

January  28,   urging  pensions,  etc.,   for   life-saving  service. 

March   25,   urging   general    legislation. 

April   14,    urging   authorization   of   four   battle   ships. 

April    27,    urging   general    legislation. 

The  President  also  sent  to  Congress  one  veto  message,  in  which  he 
disapproved  a  bill  granting  an  extension  of  time  to  a  company  previously 
authorized  to  dam  tlie  Rainy  River,  in  Minnesota,  but,  with  his  consent, 
it  was  later  passed  over  his  veto. 

Detailed   Appropriations  This  Session  for  Fiscal   Year  ending 
Jane  30,   1908. 

Agriculture     ....  .$11,672,106   00       Pension    $163,053,000  00 

Army      95,382,247    61       Post-Office 222,962,392  00 

Diplomatic      a  n  d  Sundry    civil     .  .  .  112,937,313  22 

Consular    3,577,463   91  Urgent     deficiency  24,050,125  48 

District  of  Colum-  Additional    urgent 

bia    10,117,668   85  deficiency     ....  2,163,000  00 

Fortification     .  .  .*  9,317,145   00  General    deficiency  30,782,848  17 

Indian    9,253,347   87  Minor   miscellane- 

Legi'^lative,   etc...  32,833,821   00           ous 3,000,000  00 

Military    Acadtmy  845,634   87  Permanent  annual  154,194,295  12 

Navy    122,662,485   47 

Total    1,008,804,894  57 


320  THE  S/.\TfETH   CONdREl^!^. 

The  Record  of  AitiiroprintioiiN  f<»r  Twenty  Fiseul    YearH. 


1909  

$1,008,804,894  57 

9r)7,()44,0»)5  05 

1899  . 

$862  68"  -187  0( 

1 908  

1898 

1907   

870,589,185  16 

1897 

4ti9  494  010  4] 

1906   

820,184,634  86 

1896 

457  088  .344  75 

1905  

781,172  375  18 

1895 

459  92.5  178  6i 

1904   

736  578  402  76 

1894 

479  932  667  Of 

1903   

796  633  864  79 

1893 

463  684  385  2( 

1902  

757  607  464  72 

1892 

514  424  019  4^ 

1901  

719  278  826  89 

1891 

509  368  345  8( 

1900   

690  667  188  54 

1890 

385  522  367  61 

INCRKASB    OF    OFFICES    DURING    THE    PAST     YEAR. 

Cliiefly   Postal    Clerkii   to   enlargre   the   Mail    Service,   and   Sea- 
men   in   the   Navy   to   Equip   New   Vessels. 

The  Democratic  platform  of  1908  says :  "During  the  past 
year  23,784  office  holders  were  added,  costing  $16,156,000." 

An  official  statement  prepared  and  issued  by  the  clerj^s  of 
the  House  and  Senate  appropriation  committees,  showing  the 
appropriations,  new  offices,  etc.,  of  the  60th  Congress,  states  the 
number  of  new  offices  specifically  created  16,824,  and  those 
omitted,  6,142,  making  the  net  increase  10,682.  The  total  of  sal- 
aries for  the  new  offices  above  named  is  given  at  $13,766,376, 
and  that  of  those  omitted  $4,678,389,  making  the  net  increase 
in  salai'ies  for  offices  specifically  created,  $9,087,987.  In  addition 
there  was  appropriated  for  new  offices  in  which  the  niunber 
and  salary  of  each  was  not  named  a  sum  of  $2,948,687,  and 
omitted  in  this  class  a  sum  of  $319,984,  making  the  net  increase 
in  this  group  $2,628,703,  and  the  net  total  of  increase 
for  all  salaries  $11,716,690  instead  of  the  $16,156,000  named  in 
tue  Democratic  platform. 

The  principal  increase  in  number  of  "new  offices"  were  as  fol- 
lows :  6,000  seamen  in  the  navy  at  $36.60  per  month ;  7,980  postal 
employees  at  salaries  ranging  from  $100  per  month  downward. 
All  of  these  increases  were  supported  by  Democrats  and  Kepub- 
licans,  irrespective  of  party. 

Another  "increase  in  salaries"  which  will  doubtless  be  ex- 
ploited bj^  the  same  class  of  fault  finders,  is  the  advance  in 
salaries  of  129.928  existing  offices  at  an  increased  annual  ex- 
pense of  $9,146,575.  The  princiiial  items  in  this  increase  are  as 
lollows:  49.277  private  soldiers  in  the  army,  pay  increased  $2.00 
per  month;  36,000  seamen,  pay  increased  .$3.60  per  month;  7,169 
privates  in  the  marine  corps,  pay  increased  $2.00  per  month ; 
2  500  apprenticed  seamen,  pay  increased  $1.60  per  month,  the  re- 
mainder of  the  increase  being  in  most  cases  non-commissioned 
officers  in  Army  and  Navy,  and  the  rate  of  increase  small. 


National  Expenditures,  Thouf^h  Growing:  Rapidly,  do  not 
Keep  Pace  IVith  the  Increasingr  National  Wealth — So 
the  Burden  of  the  National  Government  Becomes 
Smaller    and    Smaller    w^ith    tlie    Passing:    of    the    Decades. 

[Statement  of  Census   Bureau,    printed   in   daily   Congressional    Record   May 
30,  1908  as  a  part  of  speech  of  Hon,  James  A.  Tawney.] 

The  average  annual  per  capita  expenditure  of  the  National  Govern- 
ment payable  from  taxes  for  eight  years  1846  to  1853  was  ;t;^.02  ; 
for  the  eight  year  ending  June  30,  1905,  it  was  $6.65  ;  and  for  the  year 
ending  June  30.  1907,  $6.77.  The  average  for  the  eight  years  1898  to 
1905  was  3.29  times,  and  that  for  1907  was  3.35  times,  the  correspond- 
ing average  for  the  period  1846  to  1853.  To  the  extent  represented  by 
these  numbers  did  the  expenditures  payable  from  taxes  increase  faster 
than   population. 

The  per  capita  of  national  taxable  wealth  was  _3308  in  1850  and 
$1,234  in  1904.  In  the  latter  year  it  was  four  times  what  it  was  in 
ISr^O,  indicating  thrt  the  relative  ability  of  the  nation  to  pay  taxes  had 
increa'^ed  in  fifty-fnur  years  four  times,  while  the  nati'^nal  expenditures 
r^vable  from  ta^f«  hod  increaserl  in  the  fiftj'-sevon  yenrs  ending  in 
''907  only  3.35  times.  The  national  wealth,  or  the  ability  to  meet  govern- 
1  ^ntal  exprndit  re';,  increaped  at  least  20  and  possibly  25  per  cent  more 
then   did   the    national   expenditures   to   be  met    from  taxation.     Considering 


THE  SIXTIETH  CONGRESS. 


327 


the  number  of  people  in  the  country  to  be  taxed  the  present  National  Ad- 
ministration makes  the  Government  3.35  times  as  ostly  to  th,  taxpayer  as 
did  the  Government  of  18-f6  to  1853.  But  ta  lin^  acount  of  the  wealth 
of  the  citizens  or  their  ability  to  support  the  Government,  the  Administra- 
tion of  the  United  States  in  1907  was  only  75  or  80  per  cent  a-  b  rdensome 
as  that  which  controlled   the  country  at  the  middle  of  the  last  century. 

The  following  table  presents  the  actual  exp -nditures  of  the  Federal 
Government  by  decades,  from  1850  to  1907  a  period  of  fifty-seven  years, 
and  the  amount  which  such  expenditures  represents  per  $1,000  of  national 
wealth  as  compiled  at  the  various  census  periods  mentioned.  The  propor- 
tion per  $1,000  of  national  wealth  of  the  taxes  levied  to  mett  the  expend- 
iture, including  schools,  for  government  other  than  Federal,  from  1860 
to  1902,  and  the  grand  total  of  expenditure  for  government,  exclusive  of 
Federal,  compiled  only  at  the  Eleventh  and  Twelfth  Censuses,  are  also  pre- 
sented. 

Total  national  wealth  and  expenditures  of  the  Federal  Govern- 
ment  and  of  State,  county,  municipal,  and  all  local  govern- 
ments, per  $1,000  of  wealth,  1860  to  1907. 


1850 
1860 
1870 
1880 
1890 
1900 
1902 
1904 
1907 


Total  na- 
tional wealth. 


Total  expendi- 
tures of  Nation- 
al Governmeut 
taxable  . 


$7, IS'), 780, 228  $16, 448, .Sfb 


16,159,616,068 
24,054,814,806 
41,067.122,000 
61,203,755,972 
82,304,517,845 
a91, 238, 732, 842 
100,272,947,840 
alls, 749, 270, 337 


71,71S,9t3 
313,429,226 
298,16-^,117 
358,618,5S5 
5')0,06S,871 
593,038,905 
725,984,!)  16 
762,488,752 


Tax  1  vy  for  ex- 

pendltu  res  for 
States,  cou7itie«, 
qitiesmr  orifiv- 
11  dlvlsloiD^..  In- 
cluding schools. 


Per  I'er 

natior.all'^^"""^'  u  .tloun 
wealth.  wealti 


$6.5 
4.4 

IS. 2 
7.3 
5.9 
7.2 
6.5 
7.2 


Payment  for  ex- 
peiidl  t  u  res  for 
fetate  ,  counties, 
cit'es.  uilnoic  v 
11  divlsl  ns,  m- 
cludl   g schools. 


Per 
r>,  00 
oi  ua- 
ti<>nHl 
wealth 


$94,186,7(6 
226, 185,  (;2:)  I 
313,921,  t/ll 
171,335,1^01 


$5.8 
9.4 


721,736,53.) 


7.9 


$-)6J.252,63l 
14537147^085 


$3.3 


a  Estimated  on  basis  of  increase  1900-1901. 

The  expenditures  of  the  National  Government  payable  from  taxation 
may  be  coinpared  with  the  general  property  taxes  levied  for  the  support 
of  State  and  municipal  governments.  The  tax  levies  for  State  and  munic- 
ipal governments  were  ascertained  by  the  Bureau  of  the  Census  for  1880, 
1890,  and  1902.  For  1880  the  per  capita  of  such  levies  was  $6.26,  and 
In  1902,  $9.22.  In  twenty-two  years  it  increased  47.3  per  cent.  The 
per  capita  of  national  expenditures  payable  from  taxation  in  1880  was 
$5.28,  and  in  1902,  $5.91,  and  in  1907,  $6.77.  The  percentage  of  in- 
crease from  1880  to  1902  was  12,  and  from  1880  to  1907,  only  28.2. 
The  former  was  only  a  fourth  and  the  latter  barely  60  per  cent  of  the 
corresponding  percentage  of  increase  of  State  and  local  taxation  for 
twenty-two  years.  State  and  'local  taxation  is  increasing  proportionately 
with  national  wealth  and  the  ability  of  the  people  to  meet  the  added  costs 
of  local  government,  while  national  expenditures-^though  growing  rapidly 
— do  not  keep  pace  with  the  increasing  national  wealth  ;  and  so  the  burden 
of  National  Government  becomes  pm.aller  and  smaller  with  the  passing  of 
the  decades — at  least,  that  has  been  the  general  trend  of  affairs  since  the 
middle  of  the  nineteenth  century,  in  spite  of  the  cost  of  the  civil  war  with 
Its  legacy   of  heavy   interest  and  pension  charges. 


THE    IVOOD    PUL,P    AND    PAPER    INVESTIGATION. 

The  following  are  extracts  from  the  report  of  the  House  Com- 
mittee appointed  to  inquire  into  the  complaint  that  prices  of 
news-print  paper  had  been  arbitrarily  and  unjustly  advanced  by  a 
trust  or  combination : 

The  select  committee  of  the  House  appointed  to  inquire  into  the  ele- 
ments and  conditions  involved  in  the  production  and  supply  of  wood  pulp 
and  print  paper  in  so  far  as  the  same  are  or  may  be  affected  by  any  com- 
bination or  conspiracy  to  control,  regulate,  monopolize,  or  restrain  inter- 
state or  foreign  commerce  and  trade  in  the  manufacture,  supply,  distribu- 
tion, or  sale  of  wood  pjilp  or  paper  of  any  kind,  or  any  of  the  articles  en- 
tering into  the  same,  or  any  of  the  products  of  paper,  and  how  far  the 
same  may  be  affected  by  the  import  duties  upon  wood  pulp  or  paper  of  any 
kind,  and  how  far  the  same  may  be  affected  by  the  rapid  destruction  of  the 
forests  of  the  United  States  and  consequent  increase  in  the  price  of 
wood  which  enters  into  the  manufacture  of  wood  pulp,  and  also  to  in- 
quire whether  the  present  prices  of  print  and  other  paper  .are  controlled 
in  whole  or  in  part  by  any  combination  of  persons  or  corporations  en- 
gaged in  commerce  among  the  several  States  or  with  foreign   nations,   and 


^28  thf;  sixtieth  congress. 

If  so.  to  Inquire  into  the  orgaiiizutiou,  methods,  and  practices  of  such  cor- 
porations or  peraons',  and  also  to  inquire  into  certain  alleged  facts  and 
to  obtain  all  possible  information  in  regard  to  the  same,  beg  leave  to  sub- 
mit a  partial  and  preliminary  report  and  to  say  that  since  its  appoint- 
ment (he  I'ommittce  has  boon  diligent  in  making  its  investigation,  and  the 
members  of  the  committee  have  devoted  practically  their  entire  time  Blnoe 
appointment  to  the  work  of  the  committee,  neglecting  their  other  ofRcial 
duties  for  that  purpose. 

The  committee  listened  with  interest,  attention,  and  care  from  April 
25  to  May  14  to  the  witnesses  appearing  in  behalf  of  the  contentions 
of  the  American  Newspaper  Publishers'  Association,  and  followed  with 
painstaking  care  the  statements  made  and  evidencre  presented  by  Mr. 
John  Norris,  who  appeared  as  the  special  representative  of  that  associa- 
tion. Every  opportunity  has  been  given  to  newspaper  publishers  to  present 
evidence  before  the  committee,  though  not  all  of  the  publishers  who  offered 
to  appear  or  whom  the  committee  would  like  to  hear  have  yet  been  ex- 
amined. 

Th  addition  to  the  testimony  presented  before  the  committee,  your 
committee  sent  out,  May  6,  7,000  letters  to  various  newspapers  and  other 
publications  throughout  the  country. 

Contention   of  PubliMliers. 

It  has  been  the  contention  of  the  newspaper  publishing  interests — 

First.  That  the  price  of  news-print  paper  wa.s_.  advanced  in  Septem- 
ber. 1907,  to  $50  per  ton  in  New  York  and  corFeapondlngly  elsewhere, 
a  figure  that  was  claimed  to  be  $12  per  ton  in  advance  of  the  price  ol 
two  years  previous,  and  that  a  still  further  advance  was  threatened  of 
$10  per  ton  more,  thereby  planning,  as  claimed,  an  advance  of  $22  per 
ton. 

Second.  That  the  advance  actually  made  and  the  planning  of  a  fur- 
ther advance  were  both  the  result  of  a  combination  or  conspiracy  en- 
tered into  by  the  news-print  paper  manufacturers  or  their  selling 
agents. 

Third.  That  such  advance  in  price  and  such  combination  to  make 
further  advance  were  caused,  or  at  least  in  part  aided,  by  the  tariff  duties 
imposed  on  wood  pulp  and  print  paper,  and  hence  that,  in  justice  to  the 
newspapers  and  other  printing  and  publishing  interests  of  the  country,  the 
duties  on  pulp  and  paper  should  be  repealed. 

Fourth.  That  the  decree  of  the  United  States  court  dissolving  the 
General  Paper  Company  had  been  willfully  violated  by  paper  manu- 
facturers in  Michigan,  Wisconsin,  and  Minnesota,  parties  to  that  decree, 
who  had  in  violation  of  the  decree  acted  in  concert  and  agreed  as  to  prices 
and  to  the  imposition  of  conditions  upon  the  manufacture,  sale,  and  distri- 
bution   of  the   paper   manufacturei. 

The  above  may  not  completely  state  the  contention  of  the  newspaper 
publishers,  but  it  gives  a  general  and  fair  idea  of  their  claims. 

One  of  the  inquiries  submitted  to  your  committee  was  to  the  effect 
of  the  destruction  of  the  forests  of  the  United  States  upon  the  production, 
supply,  and  price  of  wood  pulp  and  print  paper. 

It  appears  that  the  average  price  received  by  the  International  P^per 
Company  for  paper  delivered  was,  in  1900,  $2.06;  in  1901,  $2.12;  in  1902, 
$2.07;  in  1903,  $2.14:  in  1904,  $2.12;  in  1905,  $2.07;  in  1906,  $1.99;  in 
1907,  $2.05.  and  for  the  first  three  months  of  the  current  year,  $2.20  per 
hundred    pounds. 

The  average  selling  price  of  the  St.  Regis  Paper  Company  per  hun- 
dred pounds  of  news-print  paper  f.  o.  b,  mill  for  January,  1903,  waa 
$1.75;  January,  1904.  $1.75;  January,  1905,  $1.74;  January,  1906,  $1.47; 
January,  1907,  $1.75;  January,  1908,  $2.13.  The  evidence  shows  that 
at  this  mill,  while  the  selling  price  f.  o.  b.  .mill  had  increased  from  $1.75 
in  January,  1903,  to  $2.13  in  January,  1908,  the  cost  of  production,  ex- 
cluding interest  and  depreciation,  had  increased  from  $1.30  in  January, 
1903,  to  $1.61  in  January.  1908,  and  that  in  January,  1906,  while  the  aver- 
age selling  price  was  $1.47  the  average  production  cost  was  $1.54. 

Combination  in  Restraint  of  Trade. 

The  evidence  before  the  committee  so  far  fails  to  prove  any  combina- 
tion of  print-paper  manufacturers  to  advance  prices  or  otherwise  in  re- 
straint of  trade,  but  considerable  evidence  was  presented  which  might  excite 
suspicion  that  such  a  combination  had  been  made  and  was  in  existence. 
Evidence  was  presented  in  relation  to  a  combination  of  manila  and  fiber 
manufacturers,  and  it  seems  to  be  admitted  that  that  combination  did  exist, 
has  since  been  dissolved  with  a  fall  in  the  price  of  its  products,  and  is  now 
under  investigation  through  the  Department  of  Justice  in  the  United  States 
court  at  New  York. 

Such  of  the  paper  manufacturers  as  have  appeared  before  your  com- 
mittee during  its  hearings  have  strenuously  and  completely  denied  under 
oath  the  existence  of  any  combination,  agreement,  or  understanding  of  any 
nature  whatever  among  the  paper  mannfacturers  or  their  selling  agents  to 
regiiiat*,  control,  or  advance  the  price  of  paper,  the  assignment  ol  custom 
ej-s,  or  for  any  other  purpose   in  restraint   of  trade. 

Increased    Cost   of  I'roductloii. 

The  mill  owners  In.sist  that  there  Lias  been   a   decided  increase  in  the  i 
cost  of  producing  paper,   caused —  ^  I 

First.   By  the   increase   in   the    cost'  of    pulp   wood   and  wood   pulp.  1 

Second.   By   increase   in   the   wages   of   1  le   employees. 
Third.   By  reduction  of  the  hours  of  lab  n-  per  employee  per  day. 

Fourth.    By  the  increase  in  the  cost  of  other  articles  which  enter  in- 
to the  production  of  paper. 


THE  SIXTIETH.  C0N0RES8. 


929 


Increased   Cost  of  Wood    Pulp. 

There  seems  to  have  been  a  decided  Increase  in  the  cost  of  pulp  wood. 
This  is  admitted  by  everyone.  The««,verage  cost  to  the  International  Paper 
Company  of  pulp  wood  in  the  rough  per  cord,  delivered  at  the  mill,  from 
1898  to   1908   is  stated  to  us  as  follows  : 


1898 $5.33 


1899. 
1900. 
1901. 
1902. 
1903. 


5.26 
6.07 

6.43 
6.83 
6.77 


1904 

1905 , 

1906 

1907 

1908    (first  three  months) 


$7.49 
7.79 
8.00 
8.54 

10.14 


The  average   cost   to   the   Northwest   Piiper   Company,   at  Cloquet,   Minn. 
for  pulp  wood  per  cord,   in  the    rough,    8-foot  lengths : 


1902 $3.15 

1903 3.40 

1904 3.60 


1905 $4.10 

1906 6.15 

1907 7.40 


There  seems  to  have  been  a  considerable  increase  in  the  average  weekly 
wage  of  the  employees  in  the  paper  and  pulp  mills.  This  increase  has  not 
been  greater  than  seems  to  your  committee  to  have  been  necessary,  owing 
to  the  increased  cost  of  living,  and  the  wages  now  paid  in  the  paper  and 
pulp  mills  would  not  be  generally  cousidored  high  as  compared  with  other 
skilled  labor,  though  this  may  be  largely  owing  to  the  fact  that  the  mills 
are  generally  located  on  streams  apart  from  large  centers  of  population. 


Some   Increase   in   the   Price    of  Paper   Jastifted. 

It.  would  appear  that  the  increase  in  tlie  value  and  cost  of  pulp  wood, 
the  increase  in  wages,  the  decrease  in  the  hours  of  labor  of  many  of 
the  employees,  and  the  increase  in  the  cost  of  other  materials  used,  justi- 
fied some  increase  in  the  price  of  paper  ovei  the  prices  previously  prevailing, 
notwithstanding  «ome  economies  perfected  in  the  production  of  pulp  and 
paper.  The  International  Paper  Company  1.,  the  largest  producer  of  news- 
print paper  in  the  United  States,  and  produces  from  30  to  40  per  cent  of  the 
entire  output. 

The  evidence  shows  that  the  net  earnings  of  that  company  for  the  fiscal 
year  ending  June  30,  1901,  were  $3,054,00) ;  that  the  average  net  earn- 
ings of  the  company  for  the  fiscal  years  from  1899  to  1905,  inclusive,  were 
$2,316,000  ;  that  for  the  fiscal  year  ending  .June  30,  1906,  the  net  earn- 
ings fell  off  to  $1,985,000,  and  for  the  fiscal  year  ending  June  30,  1907, 
to  $1,623,000  and  for  the  first  six  months  of  the  calendar  year  1907,  to 
$777,000  :  that  about  the  middle  of  the  calendar  year  1907  the  manufactur- 
ing department  of  the  said  company  submitted  reports,  showing  an  estimated 
increased  cost  of  production  for  the  calendar'  year  of  1908  of  $1,500,000 
over  that  for  the  fiscal  year  ending  June  UO,  1907,  based  on  the  same 
quantity  of  paper.  ^. .  ■ . \  ^ ,  0^m.-w0fiiK^^-.^ 

Canadian     Comi»etition. 

The  principal  competition  with  the  newt-print  paper  and  pulp  mills 
of  the  United  States  comes  from  the  Canadian  mills.  From  Canada  we 
import  a  large  and  rapidly  increasing  amount  of  pulp  wood.  We  also  import 
a  considerable  quantity  of  wood  pulp  and  are  .aow  importing  some  quantity 
of  news-print  paper. 


Exportations   from    C'tmada. 


Some  of  the  provincial  governments  in  Canada  now  discriminate  against 
pulp  wood  for  exportation.  It  is  said  that  most  of  the  forests  in  the  Prov- 
inces of  Quebec  and  Ontario  suitable  for  pulp  wood  are  public,  or  Crown 
lands  belonging  to  the  provincial  government.;.  The  Province  of  Quebec 
makes  a  license  or  stumpage  charge  of  65  centi,  for  each  cord  of  pulp  wood 
cut  on  its  Crown  lands,  with  a  rrduction  or  rebate  of  25  cents  for  each  cord 
manufactured  into  pulp  within  the  Dominion  of  Canada. 

This  amounts  to  an  exnort  charge  of  25  cents  per  cord,  or  nearly  40 
per  cent  of  the  original  license  or  stumpage  charge.  It  is  from  the 
Province  of  Quebec  that  most  of  the  pulp  wood  now  imported  into  the 
United  States  is  obtained.  Wisconsin  and  othiir  western  paper  and  pulp 
mills  could  much  more  cheaply  obtain  wood  \pulp  from  the  Province  of 
Ontario  than  from  Quebec,  but  the  Province  of  Ontario  absolutely  prohibits 
the  exportation  from  Canada  of  any  pulp  wood  cut  on  its  public  lands, 
though   permitting   such   cr.tting   for   manufacture    at   home. 

The  committee  is  firmly  of  the  opinion  that  ih;  tariff  on  news-print  paper 
and  on  wood  pulp  should  not  be  removed  as  to  paper  or  pulp  coming  from 
any  country  or  place  which  prohibits  the  e.tportation  of  pulp  wood, 
or  which  levies  any  export  duty  on  paper,  pulp,  cr  pulp  wood,  or  makes  any 
higher  charge  in  any  way  upon  wood  pulp  or  pulp  wood  intended  for  ex- 
portation to  the  United  States. 

The  evidence  taken  so  far  would  seem  to  indicate  that  the  temporary 
suspension  or  entire  removal  of  the  present  tariff  would  not  have  any 
great  immediate  effect,  and  if  the  tariff  is  remo\ed  at  any  time  it  should 
be  coupled  with  the  right  to  free  exportation  of  pulp  wood  from  the  Cana- 
dian forests.  The  removal  of  the  tariff  on  print  paner  and  wood  pulp,  if 
followed  by  an  eXTport  duty  on  pulp  wood  coming  Vrom  Cinada,  would  prob- 
ably result  in  a  cou'^^iderable  increase  in  the  price  of  print  paper  and  the 
early  destruction  of  tlie   pulp  wood  forests  in  the  United   States. 

A  low  or  even  moderate  price  for  print  paper  in  the  future  is  de- 
pendent mainly  upon  the  future  supply  and  co,;t  of  pulp  wood.  Ab  vat 
one-third  of  the  pulp  wood  now  consumed  in  the  manufacture  of  paper 
by  our  mills  is  imported  from  Canada.  If  an  exi^Drt  duty  should  be  levied 
by  Canada  upon  the  exportation  of  pulp  wood,  oi  if  the  Province  of  Que 
bee  should  follow  the  example  of  the  Province  of  Ontario  and  entirely  pro- 


330  THE  SIXTIETH  CONOREBB. 

hiblt  the  exportation  of  pulp  wood  cut  on  its  Crown  lands,  the  cost  of  pulp 
wood  In  the  United  States  would  bo  greatly  enhanced  and  the  price  of  paper 
would  go  up. 

A  mistaken  policy  might  easily  p»ove  of  inestimable  damage  and  cause 
the   practical  destruction  of  the  cheap  daily   newspaper. 

It  would  seem  thai  for  the  American  publisher  to  be  assured  of  low 
prices  for  his  paper,  it  is  es.scntial  to  maintain  papor  mills  in  the  United 
States.  Any  policy  that  would  give  the  Canadian  mills  a  prefe.■•e^ltial  advan- 
tage over  American  mills  in  obtainint;;  the  raw  material  at  a  l^^ver  price 
must  inevitably  result  in  the  dismantling  of  American  paper  machines  and 
the  ultimate  dependence  of  American  publishers  on  Canadian  mills.  Under 
such  conditions  Canada  could  levy  export  duties  on  print  paper  that  would 
result  in  enhanced  prices  without  the  presence  of  competition  from  American 
paper  manufacturers. 

So  far  ai^  the  information  yet  presented  to  the  committee  discloses  the 
facts,  your  committee  is  Inclined  to  the  opinion  that  if  the  American  mills 
can  obtain  pulp  wood  from  CanoJa  on  even  terms  with  the  Canadian  mill^^, 
they  can  make  ground  wood  pulp  as  cheaply  as  it  can  be  imported  from 
Canada  free  of  any  duty.  What  effect  the  removal  of  the  tariff  upon  piper 
would  have  as  to  Norwegian  and  other  European  compr'titi.in,  your  com- 
mittee is  at  present  unr>ble  to  say,  though  it  has  been  claimed  before  your 
committee  that  the  wages  paid  in  European  countries  are  only  one-third  to 
one-half  of  the  wa??ts  paid  in  the  mills  of  the  United  States,  and  that  under 
free  trade  competition  the  low  wages  in  the  European  countries  would 
be  disastrous  to  the  wage  scale  and  the  hour  scale  in  the  American  paper 
mills. 

Your  committee  proposes  during  the  summer  vacation  to  continue 
its  investigation  and  expects  to  be  able  to  present  to  the  House  at  the  next 
session  of  Congress  df^flnite  recommendations,  based  upon  complete  informa- 
tion thoroughly  considered,  as  to  the  various  matters  of  Inquiry  submitted  to 
the  committee. 


What  I  nin  anxious  to  eninluiKlze  is  tliat  there  is  a  Tvide 
economic  and  hnMineitei  fle!d  in  which  the  interests  of  the 
Ti-ealthiest  ca:!>itaIiNt  and  the  liunihlest  laborer  are  exactly 
the  same.— Ho-n.  Wm.  H.  Taft,  at  Cooper  Union,  New  York 
City 

Tlie  tarlflf  affects  trnsts  oi«ly  as  it  aflfects  all  other  In- 
terests. It  makes  all  these  interests,  larsre  or  sianll,  profit- 
able; and  its  benefits  can  be  talcei'i  from  the  !ar;i,e  only  under 
penalty  of  talcing-  them  from  the  small  a' so. — I'resident  Roose- 
velt   at    Minneapolis,    Minn.,    April    7,    19<)3. 

It  is  sreatly  in  the  Interest  of  tlie  ^vorlcinsnian,  there- 
fore, that  corporate  capital  should  be  fairly  treated.  Any 
Inlnstice  done  to  it  acts  directly  u»»on  the  MraR-e-enrners, 
^rlto  miuit  look;  to  corporate  wealth  for  tlieir  emtiloyment. 
—Hon.   Wm.   H.   Taft,   at   Cooper  Union,   New   York   City. 

Our  ainj  should  be  to  preserve  tlie  policy  of  a  protective 
tariff,  in  which  the  nation  as  a  whole  has  acqnlesced,  and 
yet  vrherever  and  whenever  necessary  to  chanj^e  the  duties 
in  particular  paragraphs  or  schedules  as  matters  of  lej^lsla- 
tlve  detail  if  such  chanse  is  demanded  by  the  interests  of 
the  nation  as  a  whole.— President  Roosevelt  at  Minneapolis, 
Minn..  April   4,   1903. 

The  eflfect  of  the  organization  of  labor,  on  the  whole, 
has  been  hlKThly  beneficial  in  secnrinjg'  better  terms  of  em- 
ployment for  the  whole  laborinjur  community.  I  have  not 
the  sliKThtest  flonbt,  and  no  one  >vho  knows  anythiuHr  about 
the  subject  can  doubt,  that  the  existence  of  labor  unions 
steadies  waftes.— Hon.  "Wm.  H.  Taft,  at  Cooper  Union,  New 
York    City. 

*  *  Because  there  are  men  prominent  l<t  the  business 
world  who  are  forsreifnl  of  the  privllepres  {{^ranted  them, 
and  of  their  relations  to  their  fello'»vs,  there  is  no  occasion 
for  indiscriminate  condemnation. — Postmaster-Ceneral  Cort- 
elyou,  to  YounpT  Men's  Republican  Club,  at  Grand  Rapids, 
Mich.,   Feb.    13,    190G. 

The  Republican  party  is  not  only  rich  in  men,  but 
rich  in  practical  and  lieneflcent  principles — it  is  rich  too 
in  its  record,  in  promises  performed  and  pledges  falfllled, 
and  so  -we  are  for  party  an<l  party  principles  first  and 
will  acquiesce  in  the  choice  of  the  majority,  rallyini?  around 
the  stniKlard  bearer  who  will  carry  us  ag;ain  to  victory.— 
Hon.     James     S.     Sherman. 

All  the  prosperity  enjoyed  by  the  American  people — ab- 
solutely all  the  prosperity,  without  any  reservation  w^hat- 
ever — from  the  foundation  of  the  United  States  Government 
do^vn  to  the  present  time,  has  been  undei*  the  reij^n  of  pro- 
tective principles;  and  all  the  hard  times  suffered  by  the 
American  people  in  tlie  same  period  have  been  preceded 
eitlier  liy  a  heavy  reduction  of  duties  on  imports  or  by  in- 
sufficient protection,  tiius  refutini?  all  free-trade  theories 
on  the  subject.  As  I  desire  my  native  land  to  be  on  the  apex 
of  prosperity,  rather  than  under  the  heel  of  hard  times,  I 
am  a  protectionist.— David  H.  31ason,  in  the  American  IDcou- 
omist. 


DEPARTMENT  OF  STATE. 


Work  of  the  Department  of  State,  1897-1908. 

Within  the  last  ten  years  the  United  States  has  assumed  far 
greater  power  and  significance  among  the  countries  of  the 
world.  There  has  been  a  great  increase  in  the  number  of  our 
people  who  travel  abroad,  and  an  enormous  increase  in  the 
number  of  people  of  other  countries  who  are  annually  coming 
here.  Our  citizens  are  going  to  other  countries  and  are  in- 
vesting their  money  there.  In  Latin  America  alone  there  is 
invested  over  a  billion  dollars  of  American  money.  The  United 
States  has  today  many  new  and  significant  points  of  conto.ct 
with,  the  world  that  were  unknown  or  at  least  tmimportant  a 
few  years  ago.  All  these  changed  conditions  and  closer  rela- 
tions with  other  countries  and  x>eoples  throw  upon  the  De- 
partment of  State  an  enormous  amount  of  work.  It  is  no 
exag-geration  to  say  that  the  work  of  that  Department  today  is 
at  least  eight  times  as  great  as  it  was  ten  years  ago. 

Consideration  of  the  series  of  important  events  in  the  Orient, 
the  open  door  policy  in  China,  the  insistence  upon  Chinese 
territorial  and  administrative  entity  during  the  Boxer  trouble, 
the  settlement  of  the  Panama  Canal  question,  the  growth  in 
the  authority  and  recognition  of  the  Monroe  Doctrine  after  Mr. 
Hay  teecame  Secretary  of  State,  the  expansion  of  foreign  markets 
for  American  goods.  Secretary  Eoot's  efiicient  sui)port  and 
emphatic  insistence  upon  the  application  of  the  principle  of 
international  arbitration  in  a  practical  way  to  disputes  between 
nations,  the  great  improvement  broug-ht  about  by  him  in  the 
diplomatic  and  consular  service,  and  the  closer  relations  betweeai 
the  United  States  and  Latin  America,  will  show  in  what  direc- 
tions have  been  our  greatest  activities  and  achievements  in  the 
world  of  diplomacy,  and  what  they  are  likely  to  be  in  the  imme- 
diate future.  No  period  in  the  history  of  the  nation  has  been 
richer  in  diplomatic  triumphs  of  an  important  and  far-reaching 
character  than  the  last  ten  years. 

Settlement    of    Large    Claims    of     American     Citizens     ag^ainst 
Foreign  Governments. 

During  the  administration  of  Presidents  McKinley  and  Koose- 
velt  there  were  collected  and  settled  through  the  Department 
of  State  and  its  representatives  abroad  claims  of  American  citi- 
zens against  foreign  governments  amounting  in  the  aggregate 
to  the  enormous  sum  of  $27,546,892.28.  This  record  illustrates 
and  marks  one  of  the  greatest  practical  achievements  of  our 
diplomacy. 

Equal  in  importance  with  the  practical  pecuniary  triumph 
and  of  the  vast  sum  of  money  gained  through  the  medium  of 
pacific  adjustment  for  American  claimants  was  the  great  ga'n 
in  international  good  feeling  due  to  the  settlement  of  the  many 
disputes  of  long  standing  growing  out  of  these  claims. 

Many  Important  Treaties   Made., 

The  record  of  the  Department  of  State  in  the  matter  of  treaty 
making'  during  the  last  ten  years  is  a  noteworthy  one.  The 
treaties  range  in  subject  from  the  settlement  of  claims  of  pri- 
vate citizens  to  the  control  and  construction  of  the  Panama 
Canal  and  the  settlement  of  the  fisheries  controversy  with  Great 
Britain,  which  has  extended  over  nearly  a  century. 

Among  the  more  important  of  .these  compacts  are  those  pro- 
viding for  the  extradition  of  fugitives  from  justice,  the  list 
including  conventions  with  Belgium,  Bolivia,  Brazil,  Chile.  Den- 
mark, Great  Britain  (a  supplementary  treaty  extending  the  cata- 
logue of  extraditable  crimes),  Guatemala,   Mexico    (with  which 

331 


332  STATE   DEPARTMENT— TREATIES    MADE. 

power  also  a  supplemental  agreement  was  concluded  adding 
bribery  to  the  list  of  extraditable  crimes),  Peru,  Servia,  Switzer- 
land, and  the   Netherlands. 

This  series  of  treaties,  together  with  the  extradition  con- 
vention preceding  it  and  with  i)euding  negotiations,  closes  the 
doors  of  almost  all  the  civilized  nations  of  the  world  against 
fugitives   from  justice  of  the   United   States. 

Other  treaties  of  marked  importance  are  the  peace  protocol 
;iMd  peace  treaty  with  Spain,  of  August  and  December,  1898v 
respectively;  the  cession  of  outlying  islands  of  the  Philippines; 
the  real  and  personal  property  convention  with  Great  Britain, 
providing  for  the  holding  and  disposition  of  real  and  personal 
property  of  aliens  by  will  and  deed  on  a  liberal  basis;  a  treaty 
with  Guatemala  to  the  same  effect ;  trade-mark  conventions 
with  Japan  and  Guatemala,  securing  equal  protection  with  that 
afforded  native  subjects  and  citizens ;  a  temporary  arrangeaient 
of  the  disputed  Alaskan  boundary  question  in  October,  1899 ; 
the  appointment  of  a  joint  commission  to  consider  for  settle- 
ment questions  at  issue  between  the  United  States  and  (Jreat 
Britain  respecting  Canada ;  the  adhesion  of  the  United  States 
to  the  additional  articles  to  the  Bed  Cross  convention  ;  the  ar- 
ticles concerning  naval  warfare — a  great  humanitarian  gain ; 
the  adhesion  of  this  Government  to  the  International  Conven- 
tion of  Brussels  of  1899,  for  the  regulation  of  the  importation 
of  spirituous  liquors  into  Africa ;  the  canal  protocols  of  Decem- 
ber 1,  1900,  with  Costa  Rica  and  Nicaragua,  providing  a  meoris 
of  agreement  for  the  construction  and  control  of  an  inter- 
oceanic  canal  by  the  Nicaragua  route.  From  1898  to  1900 
reciprocal  commercial  arrangements  were  entered  into  with 
France,  Germany,  Italy  and  Portugal,  under  section  3  of  the 
tariff  act  of  Congress  of  1897,  and  in  1899  the  United  States 
participated  in  and  became  a  party  to  the  Hague  Conventions, 
for  arbitration  of  international  disputes,  for  regulating  war  on 
land,  for  regulating  maritime  warfare,  and  the  declaration  to 
prohibit  for  five  years  the  launching  of  projectiles  and  explo- 
sives from  balloons,  and  other  new  methods  of  a  similar  nature. 

During  the  past  ten  years  numerous  claims  of  private  citi- 
zens have  been  settled  by  special  negotiations  between  our  own 
Government  and  those  against  which  the  claim  was  preferred, 
the  foreign  governments  concerned  being  Guatemala,  Haiti, 
Mexico,  Nicaragua,  Peru,  Salvador,  Santo  Domingo  and  Vene- 
zuela, while  by  the  treaty  of  March  24,  1897,  the  Chilean  Claims 
Convention  of  August  7,  1892,  was  revived  and  additional  claims 
adjusted.  It  is  hardly  necessary  to  add  that  this  Government 
bore  a  most  material  share  in  the  settlement  of  the  international 
difficulties  in  China  after  the  Boxer  revolutionary  movements, 
culminating  in  the  final  protocol  of  September  7,   1901. 

It  may  be  noted  here  that  this  Government  has  recently 
given  evidence  of  its  friendship  for  China  by  legislation  which 
authorizes  the  remission  of  all  punitive  damages  for  the  Boxer 
rebellion  of  1900  and  the  reduction  of  the  indemnity  bond,  given 
by  China  to  the  United  States  after  that  rebellion,  from 
$24,000,000  to  $13,000,000.  This  is  also  an  exhibition  of  that 
spirit  of  justice  and  fair  dealing  that  has  characterized  the 
international  relations  of  the  United  States  during  the  past 
ten  years. 

Treaties   Neerotlated    During  tlie   Aclmlnistrntion    €»f  President 
Roosevelt. 

Among  the  proclaimed  treaties  the  more  important  are  the 
Hay-Pauncefote  treaty  (second)  of  November,  1901,  to  facilitate 
the  building  of  the  Panama  Canal ;  the  canal  treaty  with  the 
Republic  of  Panama ;  the  Alaskan  boundary  treaty ;  the  Pious 
Fund  arbitration  treaty;  the  treaty  of  friendahij^  with  Spain; 
the  commercial  treaty  with  China  and  extradition  treaties  with 
Belgium,  Denmark,  Guatemala,  Mexico  (supplementary),  and 
Servia ;  the  series  of  arbitration  treaties ;  the  treaty  for  the 
settlement  of  the  Northeastern  Fisheries  question ;  and  the 
German  and  French  commercial  agreements,  by  which  threatened 
tariff  Avars  were  averted  by  mutual  concessions  made  uiulcr  the 
authority  given  to  the  President  in  the  third  section  of  the  Ding- 


STATE   DEPARTMENT—TREATIES    MADE.  333 

ley  Tariff  Act.  The  supplementary  extradition  treaty  with 
Mexico  is  specially  noteworthy  as  providing  for  the  extradition 
of  bribe  givers  and  bribe  takers,  tlie  crime  of  bribery  being 
thus  added  to  the  existing  list  of  extraditable  offenses. 

The  Hay-Pauncefote  treaty  (of  November  18,  1901)  by  repeal- 
ing, or  rather  by  superseding,  the  Clayton-Bulwer  treaty  (of 
April  19,  1850)  cleared  the  way  for  direct  negotiations  for  the 
construction  of  an  interoceanic  canal.  Inunediate  advantage 
was  taken  of  this  fact  and  the  Hay-Herran  canal  treaty  was 
concluded  January  22,  1903,  but  subsequently  rejected  by 
Colombia. 

The  Panama  treaty  (November  18,  1903)  followed,  and  was 
proclaimed  February  25,  1904,  assuring  the  construction  of  a 
canal. 

The  Alaskan  boundary  convention  (January  24,  1903)  pro- 
vided a  tribunal  by  which  the  last  important  question  at  issue 
between  Great  Britain  and  the  United  States  was  satisfactorily 
adjusted  almost  entirely  in  accordance  with  the  points  claimed 
by  our  Government,  one  of  the  British  members  of  the  tribunal 
participating  in  the  decision  so  largely  in  accordance  with  our 
contention. 

The  treaty  with  Mexico  for  the  arbitration  of  the  Pious 
Fund  claim  is  distinguished  not  only  as  providing  for  the  set- 
tlement of  an  important  question  long  open,  but  also  as  submit- 
ting the  first  international  case  to  the  Permanent  Court  of 
Arbitration  at  The  'Hague.  By  a  later  international  agreement 
this  Government  participated  in  a  convention  for  the  submission 
to  the  same  tribunal  of  the  question  of  preferential  treatment 
of  recent  claims  against   Venezuela. 

In  addition  to  the  commercial  treaty  with  Cuba,  by  which 
preferential  benefits  are  secured  to  both  contracting  govern- 
ments, an  agreement  providing  naval  and  coaling  stations  for 
ships  of  the  United  States  has  been  concluded  and  proclaimed, 
as  well  as  two  others — one  respecting  the  status  of  the  Isle  of 
Pines,   and  the   other   defining  our  relations  with    Cuba. 

The  commercial  treaty  with  China  contains  several  very 
important  provisions,  besides  a  satisfactory  tariff  schedule. 
The  Likin  tax  (the  collection  of  a  tax  on  goods  in  transit  with- 
in the  Empire)  is  a^^olished ;  revision  of  Chinese  mining  regula- 
tions is  secured ;  protection  in  the  use  of  trade  marks  and 
ownership  of  patents  is  stipulated ;  a  uniform  national  Chinese 
coina"^e  is  projected ;  but  more  important  than  all,  two  new 
ports  are  opened  to  foreign  trade  in  China,  namely,  Mukden 
and  Antung,  in  INIanchuria,  with  the  result  not  only  of  strength- 
ening American  policy  of  the  open  door,  but  also  that  of  main- 
taining Chinese  jurisdiction  in  the  territory,  and  tending  to  the 
integrity  of  China. 

Three  agreements  Avith  Spain  have  been  perfected,  that  of 
July  3,  1902,  reestablishing  friendly  relations  and  containing 
the  provisions  general  in  treaties  of  friendship — trade,  residence, 
property  and  testamentary  rights,  diplomatic  and  consular  priv- 
ileges, etc.  Another  (January  to  November,  1902),  by  exchange 
of  diplomatic  notes,  restores  the  international  copyright  agree- 
ments; while  another,  earlier  (August  to  November,  1901),  by 
exchange  of  notes  and  a  joint  declaration,  facilitates  the  ex- 
change of  letters  rogatory  between  Porto  Rico,  the  Philippine 
Islands  and   Spain. 

Other  treaties  are,  a  consular  convention  with  Greece  (No- 
vember, 1902)  ;  a  trade-mark  agreement  with  Germany  for 
Morocco ;  the  reciprocal  commercial  agreement  with  France 
(August  20,  1902)  under  section  3  of  the  existing  tariff  act; 
treaties  for  the  settlement  of  claims  with  Venezuela,  the  Do- 
minican Bopublic,  Salvador,  and  Brazil ;  naturalization  with 
Haiti ;  import  dvities  and  light  and  harbor  dues  in  Zanzibar ; 
treaties  with  Luxemburg  and  Roumania  for  the  protection  of 
trade  marks ;  extradition  treaties  with  Cuba,  Panama,  Haiti, 
Denmark.  Japan,  Great  Britain,  Nicaragua ;  a  copyright  treaty 
with  Japan";  a  treaty  with  Great  Britain  for  surveying  and  mark- 
ing the  Alaskan  Boundary ;  conventions  with  Mexico  for  an 
equitable  distribution  of  the  waters  of  the  Rio  Grande ;  con- 
ventions for  the  amelioration  of  the  wounded  in  armies  in  the 


384       STATE  DEPARTMENT— INTERNATIONAL  PEACE. 

field  and  for  the  exemption  of  hospital  ships  in  time  of  war  from 
payment  of  harbor  dues ;  a  treaty  for  the  establishment  of  an 
international  Institute  of  Agriculture  at  Rome;  treaties  of  ar- 
bitration with  France  and  other  powers. 


Work    in    the    IntereMt    of    International    Pence. 

Upon  the  initiative  and  through  the  mediation  and  powerful 
influence  of  President  Roosevelt  the  Envoys  of  Russia  and  Japan 
were  brought  together  on  the  5th  of  August.  1905,  on  the  neutral 
and  friendly  territory  of  the  United  States  and  the  war  between 
the  two  nations — the  greatest  war  of  modern  times — was 
brought  to  an  end  by  the  treaty  of  peace  signed  at  Portsmouth 
on  the  5th  of  September,  1905. 

When  the  dispute  between  Germany  and  France  regarding 
the  right  of  control  in  Morocco  threatened  to  involve  all  Europe 
in  war,  and  a  conference  was  called  at  Algeciras  on  January  16, 
1906^  to  consider  the  various  questions,  the  active  influence  which 
its  own  disinterested  position  enabled  the  United  States  to  exer- 
cise, both  directly  and  through  its  representative  at  the  con- 
ference, played  a  great  part  in  bringing  about  the  peaceful 
solution  reached  on  April  7,  1906,  after  a  session  of  three  months. 
The  German  Minister  for  Foreign  Affairs  testified  in  the  Reich- 
stag to  the  work  of  the  representative  of  the  United  States  at 
that  conference  in  the  following  words : 

"I  wish  to  avail  myself  of  this  opportunity  to  declare  that  we  have 
reason  to  be  grateful  to  America  for  its  attitude  at  the  conference.  •  * 
It  maintained  its  neutral  position  throughout,  but  its  distinguished  and 
highly  respected  representative,  Mr.  White,  omitted  no  opportunity  to 
remove  difficulties  and  to  aid  toward  an  agreement  which  should  be 
satisfying  to  all  the  parties  in  Interest.  That  was  a  great  service  which 
America  rendered  to  the  peace  of  the  world,  because  the  failure  of  the 
conference  of  Algeciras  would  not  only  have  broken  the  relations  between 
Germany  and  France,  but  would  have  disturbed  the  general  political  situa- 
tion of  the  world.  •  ♦  *  This  was  the  second  great  service  which 
America  rendered  to  the  peace  of  the  world,  the  first  being,  the  reestablish- 
ment  of  peace  between   Japan    and   Russia." 

The  United  States  and  Mexico  have  been  cooperating  to 
bring  about  better  conditions  which  would  put  an  end  to  all 
discord  and  restore  peace  and  prosperity  in  Central  America.  ,\t 
the  instance  of  the  United  States  and  Mexico  a  Peacs  Con- 
ference of  all  the  five  Central  American'  countries  was  held 
in  Washington  in  November  and  December,  1907,  and  at  this 
conference,  which  was  attended  by  representatives  of  the  United 
States  and  Mexico,  a  series  of  treaties  was  made  of  the  f>reatest 
practical  importance,  among  them  being  a  treaty  which  provided 
for  a  pei'manent  international  court  for  the  trial  and  decision 
of  all  questions  whatever  arising  between  Central  American 
countries.  This  court  has  just  been  inaugurated  in  Costa  Rica. 
A  long  step  has  been  taken  in  the  direction  of  prosperity  and 
peace  in  Central  America  and  the  United  States  has  won  the 
gratitude  which  is  freely  expressed  by  the  good  and  peaceful 
citizens  of  all  those  countries. 


International  Arbitration. 

The  administrations  of  McKinley  and  Roosevelt  have  been 
distinguished  by  the  efforts  put  forth  to  promote  peace  among 
the  nations  and  alleviate  the  evils  of  war. 

President  McKinley  was  active  in  seeking  to  have  incorpora- 
ted into  international  law  the  principle  so  long  advocated  by 
our  country  of  the  exemption  of  private  property  on  the  sea 
from  seizure  during  war,  a  measure  so  greatly  desired  in  the 
interes-t  of  maritime  commerce.  He  instructed  our  delegates  to 
the  Hague  Peace  Conference  in  1899  to  urge  this  principle,  and 
when  the  conference  decided  that  it  had  no  jurisdiction  over  th^ 
subject  he  asked  Congress  to  authorize  him  to  bring  aliout  an 
international  conference  for  the  consideration  of  this  subject 
and  President  Roosevelt  has  renewed  the  recommendation  to 
Congress. 

The  United  States  was  among  the  first  of  the  Powers  to  re- 
spond favorably  to  the  request  of  the  Emperor  of  Russia  in  1898 
for  a  peace  conference.  One  of  the  few  practical  results  of  that 
conference  was  the  arbitration  convention,  which  was  brought 


STATE  DEPARTMENT— INTERNATIONAL  PEACE.       335 

about  mainly  by  the  efforts  of  the  American  deleg-ates.  Presi- 
dent McKinley  had  the  honor  of  sending-  to  the  Permanent  Ar- 
bitration Court  established  by  that  convention  the  first  case 
ever  submitted  to   it. 

A  notable  opportunity  was  presented  to  President  Eoosevel*, 
in  1903  to  show^  his  faith  in  international  arbitration  and  in 
the  efficacy  of  The  Hague  court.  He  was  called  upon  by  Great 
Britain,  France,  and  Italy  to  arbitrate  their  differences  with 
Venezuela,  a  distinguished  mark  of  confidence  in  his  ability  and 
impartiality.  But  he  declined  the  honor  and  referred  the  war- 
ring powers  to  the  Permanent  Arbitration  Tribunal  as  the  proper 
place  to  adjust  their  controversy. 

The  delegates  of  the  United  States  to  the  Pan-American  Con- 
ference of  the  American  Republics,  which  met  in  the  City  of 
Mexico  in  1901-2,  were  prominent  in  the  adoption  of  a  number 
of  conventions  and  agreements  for  the  better  regulation  of  the 
commerce  and  intercourse  of  the  American  states,  and  among 
these  was  a  convention  for  the  settlement  by  arbitration  of 
claims  not  susceptible  of  diplomatic  arrangement. 

But  while  President  Roosevelt  has  committed  himself  so 
heartily  to  international  arbitration,  he  recognizes  that  there 
are  some  political  questions  which  jnay  not  be  proper  to  submit 
to  such  an  adjustment.  The  Alaskan  boundary  had  in  recent 
years  become  a  matter  of  serious  controversy,  and  stood  as  an 
obstacle  to  the  maintenance  of  peaceful  relations  with  Canada. 
In  vievVHof  our  long  and  undisputed  occupation  of  the  territory 
in  question-  the  President  declined  to  allow  the  reference  of 
the  controversy  to  The  Hague  court,  but  instead  he  proposed 
the  creation  of  a  judicial  tribunal  of  an  equal  number  of  mem- 
bers from  each  country,  feeling  confident  that  our  claim  would 
be  established  by  such  a  body.  Against  much  opposition  and 
prediction  of  failure  such  a  tribunal  was  created,  ami  its  de- 
cision has  happily  confirmed  the  wisdom  of  the  Pr^v-ident's 
action,  peacefully  settled  this  irritating  controversy,  and  re- 
stored good  relations  with  our  northern  neighbors.  It  has 
proved  one  of  the  most  notable  diplomatic  triumphs  of  our 
Government. 

With  the  active  participation  of  the  delegates  of  the  United 
States,  the  Second  International  Peace  Conference  at  The  Hague 
in  the  summer  of  1907  entered  into  agreements  which  consti- 
tute one  of  the  greatest  advances  ever  made  towards  the  rea- 
sonable and  peaceable  regulation  of  international  conduct. 
Twelve  treaties  agreed  upon  at  that  Conference,  all  designed 
for  reducing  the  probability  or  mitigating  the  horrors  of  war. 
have  been  approved  by  the  Senate  and  ratified  by  the  President 
of  the  United  States,  Important  among  these  treaties  was  the 
agreement  proposed  and  urged  upon  the  Conference  by  the 
United  States,  under  which  all  the  civilized  powers  agree  not  to 
use  force  for  the  collection  of  contract  debts  claimed  by  their 
citizens  against  other  coimtries,  so  long  as  the  alleged  debtor 
seeks  the  protection  of  arbitration  as  to  the  justice  and  the 
amount  of  the  debt  or  time  and  mode  in  which  it  ought  to  be 
paid. 

Following  the  action  of  The  Hague  Convention  in  providing 
greater  facilities  for  the  use  of  the  Permanent  Court  of  Arbi- 
tration at  The  Hague,  the  United  States  has  concluded  general 
treaties  of  arbitration  with  England,  France,  Spain,  Portugal, 
the  Netherlands,  Denmark,  Sweden,  Norway,  Switzerland,  Italy, 
Mexico,  and  Japan,  while  many  other  similar  treaties  are  m 
course  of  negotiation.  Under  the  general  treaty  with  Great 
Britain  the  two  countries  have  agreed  to  arbitrate  before  The 
Hague  Tribunal  the  difficult  and  vexatious  questions  which  ruv 
more  than  a  century  have  caused  so  much  ill-will  and  controversy 
regarding  the  rights  of  our  fishermen  in  the  fisheries  on  the 
coasts  of  Newfoundland  and  the  maritime  Provinces  of  Canada. 

Negotiations  for  the  settlement  of  the  various  controversies 
with  Canada  have  been  undertaken  and  great  progress  toward 
the  complete  settlement  of  the  controversies  has  been  made. 
The  Surveyors  appointed  by  the  two  countries  have  nearly  com- 
pleted the  marking  of  the  boundary  of  Alaska  in  accordance 
with  the  decision  of  the  Tribunal  of  1903,  a  new  treaty  has  been 
made  for  the  adjustment  of  all  other  questions  relating  to  the 


886       8TATB  DEPARTitENT— INTERNATIONAL  PEACE. 

determination  of  the  bo^ndary  from  the  Atlantic  to  the  Pacific, 
the  Northeastern  fisheries  question  is  abont  to  be  disposed  of 
by  an  agreement  for  arbitration  under  the  general  treaty,  a 
new  treaty  has  been  made  for  the  making  and  enforeement  of 
joint  regnlations  for  the  preservation  of  the  food-fish  sui)ply 
in  all  the  boundary  waters,  including  both  the  Great  Lakes 
and  the  Atlantic  and  l*acific  waters,  and  a  treaty  has  been  Uiade 
giving  reciprocal  rights  for  the  conveyance  of  prisoners  across 
each  other's  t,erritory  and  the  rights  of  wrecking  and  salvage 
in  each  other's  waters. 

The  questions  between  Japan  and  the  United  States  which 
caused  so  much  public  excitement  in  1907  have  been  disposed 
of  to  the  satisfaction  of  the  people  of  both  countries.  The  San 
Francisco  school  question  has  been  settled  pursuant  to  an 
understanding  with  the  San  Francisco  School  Board ;  the  im- 
migration of  Japanese  laborers  is  being  regulated  by  the  con- 
current action  of  the  President,  under  authority  conferred  upon 
him  for  that  purpose  by  the  Congress,  and  of  the  Japanese 
Government.  The  friendship  and  sympathy  between  the  two 
Governments  have  now  been  signalized  by  the  general  treaty 
of  arbitration  concluded  between  them ;  by  treaties  for  the  pro- 
tection of  copyrights  and  trade-marks  in  China  and  Korea ;  by 
the  invitation  and  acceptance  of  the  invitation  for  the  visit 
of  our  fleet  to  Tokyo  and  by  the  response  of  the  United  States 
to  the  invitation  of  Japan  to  participate  in  the  great  exposition 
which  is  to  be  held  at  Tok^'^o  in  1912,  for  which  Congress  has 
authorized  the  expenditure  of  one  million  and  a  half  of  dollars, 
the  greatest  sum  ever  appropriated  for  a  foreign  exposition. 

The  United  States  has  secured  the  assent  of  all  the  nations 
having  possessions  in  the  Orient  to  a  united  effort  with  China 
to  put  an  end  to  the  curse  of  opium  in  the  Orient  and  an  in- 
ternational conference  under  the  leadership  of  the  United  States 
has  been  agreed  upon  to  meet  at  Shanghai  on  the  first  of  next 
January  for  the  purpose  of  devising  and  formulating  an  inter- 
national agreement  to  prevent  the  production,  sale,  and  use  of 
opium. 

Visit  of  the  Secretary  of  State  to  Sonth  America  and   Me.vico. 

In  August,  1906,  the  participation  of  the  United  States  in 
the  Pan-American  Conference  at  Eio  de  Janeiro  and  the  visit 
of  Secretary  Root  to  that  Conference  and  to  all  the  principal 
maritime  countries  of  South  America  put  an  end  to  the  sus- 
picion and  distrust  with  which  the  growing  power  of  the  United 
States  was  regarded  by  the  Latin-American  races,  and  began  a 
new  era  of  friendship  and  sympathy  between  all  the  American 
Republics.  This  has  been  followed  and  added  to  by  the  Secre- 
tary's visit  to  Mexico  as  the  guest  of  the  Mexican  Republic  of 
October,  1907,  and  by  the  visit  of  the  American  fleet  to  the 
chief  maritime  republics  of  South  America,  and  by  the  enlarged 
and  great  development  of  the  work  of  the  International  Bureau 
of  the  American  Republics  for  the  dissemination  of  knowledge 
and  the  cultivation  of  trade  and  friendly  relations  between  the 
different  American  countries,  for  which  all  the  Republics  are 
uniting  in  the  construction  of  a  splendid  building  in  the  City 
of  Washington.      ' 

'  fitestoration   of  Peace    in   Santo   Domlnpro   an«i    in    Cul»a. 

For  many  years  Santo  Domingo  has  been  the  scene  of  a 
series  of  revolutions  which  de^'astated  the  country,  crushed  out 
all  progress,  and  left  the  Treasury  in  utter  bankruptcy,  with  a 
host  of  insistent  creditors,  both  foreign  and  domestic.  In  the 
face  of  imminent  likelihood  of  another  revolution  and  foreign 
intervention  a  treaty  was  concluded  between  the  United  States 
and  S^nto  Domingo,  with  the  approval  of  the  United  States 
Senate,  under  which,  by  the  appointment  of  an  American  agent 
to  collect  Dominican  cu.stoms  revenues  and  apply  the  surplus 
toward  the  payment  of  the  Dominican  debts,  complete  peace  has 
been  maintained  for  four  years  past,  the  commerce  and  in- 
dustry of  the  island  have  revived,  the  revenues  have  doubled  and 
the  nominal  indebtedness  of  over  $40,000,000  has  been  adjusted 


STATE  DEPARTMENT— CONSULAR  SERVIOE.  337 

and  settled  at  less  than  $20,000,000,  for  which  interest  and  sink- 
ing- fund  payments  are  completely  assured  by  the  revenues  result- 
ing from  the  new  prosperity.  The  republic's  credit  has  been 
established  on  a  higher  plane,  works  of  internal  improvement 
undertaken,  and  civil  quiet  and  adequate  revenues  for  the  main- 
tenance of  the  government  assured  and  danger  of  foreign  in- 
tervention  removed. 

In  the  summer  of  1906,  an  impending  civil  war  in  Cuba  led 
to  the  intervention  of  the  United  States  under  the  wisely  de- 
vised terms  of  the  Cuban  Constitution  and  American  statutes 
which  regulated  the  relations  between  the  two  countries.  The 
opposing  forces  were  induced  to  lay  down  their  arms  and  re- 
turn to  their  homes,  all  differences  having  been  adjusted,  a  new 
census  of  the  island  has  been  taken  and  on  the  basis  of  that 
census  new  and  fair  elections  are  being  held  for  the  recon- 
stitution  of  a  Cuban  Government;  and  the  control  of  the  islaud 
is  to  be  restored  by  the  United  States  to  the  real  choice  of  the 
Cuban  people   during  the  coming   winter. 

Tlie   Consular    Service. 

Among  the  many  notable  achievements  of  the  administration 
of  President  Roosevelt  few  have  been  of  more  importance  to  the 
individual  American  than  the  reorganization  of  the  consular 
service  and  placing  it  upon  an  efficient  basis. 

The  consular  officers  of  no  other  government  have  such  varied 
and  important  duties  to  perform  as  have  the  consular  officers 
of  the  United  States.  Of  these  duties  perhaps  none  are  so 
important  as  those  relating  to  the  protection  of  American  citi- 
zens and  their  interests  abroad.  Our  consuls  have  displayed  un- 
usual ability  in  discharging  these  duties.  American  citizens 
arrested  or  subjected  to  annoyance  in  foreign  countries  have, 
with  rare  exceptions,  found  the  American  consuls  energetic  aucl 
successful  in  their  behalf.  In  China,  Central  and  South  America 
the  consular  officers  have  been  called  upon  to  perform  delicate 
and  trying  duties  of  a  diplomatic  character  and  have  discharged 
those  duties  with  rare  tact  and  ability.  They  have  cared  for 
and  sent  home  the  bodies  of  Americans  who  have  died  abroad 
and  have  collected  and  forwarded  to  legal  representatives  in 
this  country  the  property  of  deceased  American  citizens  in 
foreign  countries. 

But  perhaps  the  most  significant  and  valuable  work,  in  a 
money  sense,  that  has  been  achieved  by  the  consuls  has  been  in 
the  way  of  detecting  and  preventing  attempts  to  defraud  the 
customs.  In  their  investigations  of  values  of  merchandise  ex 
ported  to  the  United  States  our  consuls  have  shown  wonderful 
skill  and  industry,  and  their  work  in  the  direction  of  prevent- 
ing exporters  to  the  United  States  from  undervaluing  their 
merchandise  has  resulted  in  vast  increases  in  the  customs  dues 
collected.  An  approximate  idea  of  the  value  of  this  work  of 
our  consuls  may  be  formed  when  it  is  recalled  that  the  work  of 
one  consular  officer  alone  has  increased  receipts  from  customs 
about  one  million  dollars  a  year  since  1898,  a  total  of  six 
million  dollars  in  six  years.  There  are  330  consular  officers  who 
are  carr3dng  on  the  same  kind  of  work.  They  are  for  the  most 
part  equally  energetic  and  efficient,  and  it  is  estimated  that  fully 
ten  million  dollars  have  been  saved  to  the  revenues  of  the 
United  States  by  the  active,  intelligent  and  persistent  efforts  of 
our  consuls  abroad.  It  is  safe  to  say  that  this  branch  of  our 
service  alone  has  saved  about  ten  times  its  total  cost  to  the 
Government. 

By  means  of  a  series  of  carefully  planned  instructions  the 
department  has  secured  a  degree  of  cooperation  on  the  part 
of  consuls  with  Treasury  officials  that  has  hitherto  been  un- 
attained. 

The  consuls  have  rendered  a  great  deal  of  varied  and  im- 
portant service  to  other  departments  of  the  Government  than 
the  Treasury.  Acting  under  recent  instructions  our  consular 
officers  have  been  of  great  assistance  to  the  Navy  Department - 
in  the  apprehension  of  deserters  and  stragglers  from  war  ves- 
sels and  colliers  and  are  in  constant  communication  with  men- 
of-war  in  local  waters,  supplying  them  with  much  valuable 
information. 


388  STATE  DEPARTMENT— CONSULAR  SERVICE. 

During  the  war  with  Spain  they  rendered  invuiuuble  serv- 
ice to  the  Government  of  the  United  States.  They  foruKMl  a 
series  of  intellig-cnt  observers  throufrliout  tlie  world  and  the 
information  and  rei)orts  g-athered  by  them  were  often  of  the 
highest  vahie  and  importance  to, those  directing-  oar  military 
and  naval  operations. 

At  the  instance  of  the  Secretary  of  Af^ricidtare  airl  in  pur- 
suance of  the  pure  food  law  of  March  3,  1903,  the  Depai-tment 
of  State  issued  instructions  to  consuls  reqnirino-  pron)pt  re- 
ports of  the  shipment  of  food  products  ti)  this  country.  The 
character  of  these  reports  and  the  promptness  of  their  trans- 
mission to  the  Bureau  of  Chemistry  of  the  Dejjartmeni,  ot  Agri- 
culture have  been  most  gratifying-  and  have  to  a  great  degree 
made  possible  an  intelligent  and  successfid  enforcement  of  the 
law. 

In  their  work  in  behalf  of  onr  export  trade  consuhir  officers 
have  shown  themselves  very  efficient.  In  the  introduction  to 
the  review  of  the  world's  commerce  for  1902j  it  was  stated  by 
the  chief  of  the  Bureau  of  Foreign  Commerce  of  the  Depart- 
ment of  State,  that : 

"whatever  may  be  the  defects  of  our  consular  service  it  is  at  least  show- 
ing itself  to  be  generally  alert  and  responsive  to  the  new  conditions. 
*  •  *  The  consuls, have  also  been  most  active  in  sending  reports  at 
frequent  intervals  on  a  great  variety  of  subjects  of  interest  to  the  indus- 
trial and  commercial  world,  *  *  ♦  A  most  gratifying  evidence  of 
the  increasing  value  of  the  Consular  Reports  *  ♦  *  is  found  in  the 
widespread  demand  for  them  on  the  part  of  colleges  and  schools  as  ref- 
erence books  in  special  courses  of  commercial  instruction.  *  *  ♦  In 
addition  to  the  published  reports,  the  consuls  of  late,  by  means  of  cor- 
respondence conducted  under  the  supervision  of  the  Department  of  State, 
have  supplied  a  great  mass  of  information  to  trade  bodies  and  business 
firms,  and  in  many  cases  have  voluntarily  exerted  themselves  in  other 
ways  to  promote  commercial  expansion.  Their  efforts  frequently  elicit 
warm  commendation  in  letters  to  the  Department  from  the  trade  interests 
thus  benefited,  and  even  when  a  consular  officer  lacks  other  qualifications, 
it  seldom  happens  that  he  fails  to  exhibit  the  characteristic  American 
spirit    in    'hustling'    for    business,    not    for    himself,    but    for   his    country." 

The  activity  of  the  consuls  has  been  greatly  stimulated  by 
the  prompter  publication  and  wider  distribution  of  their  re- 
ports. In  December,  1897,  the  department,  discarding  traditions, 
began  the  daily  publication  of  such  reports  as  were  of  current 
interest.  The  result  has  far  exceeded  all  expectations  and  has 
marked  a  new  era  in  the  practical  utilization  of  consular  in- 
formation. Our  business  men  have  been  warm  in  their  praises 
for  it.  One  firm  wrote  the  department,  "attribute  our  having 
nearly  doubled  our  foreign  trade  during  .the  last  three  years 
in  great  degree  to  the  light  we  obtained  from  careful  perusal 
of  these  reports."  A  manufacturing  firm  said  respecting  the 
assistance  derived  from  the  reports,  "the  result  is  to-day  from 
30  per  cent  to  35  per  cent  of  otir  entire  product  in  certain  lines 
of   hardware   we  export." 

That  this  method  of  distributing  commercial  information  is 
of  great  practical  value  is  also  shown  by  the  fact  that  it  was 
promptly  imitated  in  part  by  both  Great  Britain  and  Germany. 

Undoubtedly  a  large  part  of  our  commercial  progres.s  in  re- 
cent years  is  due  to  the  keen  business  instinct  and  activity  of 
o\ir  consular  officers  in  pointing  the  way  to  new  markets,  and 
to  a  great  degree  is  due  to  them  the  credit  for  the  enormous  in- 
crease of  our  exports  from  .$886,606,938  in  1896  to  $1,880,851,078 
in   1907 — over  $994,000,000  in  eleven  years. 

The  consular  fees  collected  have  increased  steadily,  amount- 
ing for  the  fiscal  year  ended  June  30,  1906,  to  $1,672,802.15. 
The  expenditures  for  the  consular  service  for  the  year  amounted 
to  $1,177,635.72,  making  the  net  cost  of  the  service  only 
$104,833.57. 

With  a  view  to  the  improvement  of  the  consular  service  a 
law  was  passed  by  Congress  and  approved  by  the  President  on 
April  5,  1906,  abolishing  unofficial  fees,  providing  all  consuls 
with  fixed  salary,  requiring  the  appointment  of  Americans  to 
the  more  important  subordinate  positions,  and  creating  -a  corps 
of  inspectors  to  inspect  each  consulate  every  two  years.  On 
June  27,  1906.  President  Roosevelt  issued  regulations,  in  ac- 
(  ordance  with  the  laws  enacted  by  Congress,  by  which  the  prin- 
ciples of  civil  service  reform  have  been  extended  to  the  con- 
sular   service    by    limiting    original    appointments    to    the    two 


STATIS  DEPARTMENT— CONSULAR  SERVICE.  339 

lowest  grades  of  the  service  after  examination  by  a  board  of 
which  the  Chief  Examiner  of  the  Civil  Service  Commission  is  a 
member;  requiring-  all  the  hig-her  posts  to  be  filled  by  promotion 
of  men  from  the  lower  grades  on  the  basis  of  efficiency  alone ; 
and  requiring"  appointments  to  be  made  so  as  to  secure  pro- 
portional i-epresentation  of  all  the  States  and  Terdntories  in 
the  service.  Yonng  men  of  high  attainments  and  excellent  char- 
acter are  being  appointed  to  the  lower  ranks  of  the  service, 
offices  are  being  maintained  on  a  better  scale,  and  in  evei\y  way 
the  organization   has  been  vastly   improved. 

Our  consulates  are  on  the  whole  in  excellent  conditon,  both 
as  regards  the  general  character  of  the  consuls  and  their  work 
and  their  manner  of  performing  it,  and  it  may  justly  be  said 
that  we  have  reason  to  congratulate  ourselves  upon  the  per- 
sonnel and  efficiency  of  the  consular  service.  The  consular 
corps,  which  suffered  great  demoralization  during  the  period 
from  1893  to  1897,  owing  to  the  violent,  ill-judged,  and  wholesale 
removals,  has  been  brought  to  its  present  state  of  manifold 
usefulness,  cleanness,  and  high  etKiciency  during  the  last  ten 
years.  Taken  as  a  whole,  it  is  composed  of  a  higher  and  better 
type  of  men  than  it  has  ever  before  been  able  to  enlist,  and  it 
is  doing  much  better  and  more  intelligent  work.  A  few  years 
ago  our  consular  service  would  hardly  have  challenged  t"  e  emu- 
lation of  other  countries.  To-day  it  is  regarded  by  the  best 
authorities  abroad  as  the  most  efficient  organization  of  i  s  kind 
in  the  world  for  increasing  the  sale  of  goods,  for  stimulating 
home  industry  and  enterprise,  and  for  informing  exporters  as 
to  trade  conditions  in  every  important  market  of  the  globe. 

Throughout  the  recent  consular  reform  move.uent  in 
England  the  American  consular  service  was  constantly  held 
up  as  a  model  of  what  the  British  service  should  be.  An 
English  trade  journal  said :  "The  United  States  is  ahead  of  the 
world  in  regard  to  quick  consular  reports."  An  eminent  Ger- 
man authority  on  consular  matters  recently  referred  to  United 
States  consular  officers  as  "inspectors  of  our  exports,  and 
vigilant  sentinels  who  spy  out  every  trade  opening  or  advantage 
and  promptly  report  on  it."  They  "d\ve  into  the  economic  con- 
dition of  their  districts  and  obtain  information  the  result  of 
which  is  discernible  in  the  steadily  incfeasing  exportations  of 
their  home  country.  *  *  *  The  United  States  consular 
officers  give  their  Government  better  service  aid  better  in- 
formation than   any  on  earth." 

Improvements  have  also  been  made  in  the  selection  of  young 
men  for  the  diplomatic  service  by  requiring  them  to  demon- 
strate their  fitness  before  a  board  of  exapiiners.  The  princi- 
ple of  promotion  for  efficiency  and  merit  has  been  consistently 
ajjplied  in   the   diplomatic  service. 


Tlie  American  system  of  locatins  manufactories  next  to 
tlie  ploTV  and  tlie  pasture  lias  producert  a  result  noticeable 
by  tbe   intellij^ent  portion    of  all   commercial   nations. — Grant. 

If  -tve  have  grood  ^vayes?  tliey  ai'c  better  by  being-  paid  in 
good  dollars,  and  if  we  liave  i>oor  ivases  tliey  are  made 
poorer  by  being:  paid  in  poor  dollars.— Maj.  McKinley  to  dele- 
gation   of   -^vorlcing-men,    at    Canton,    1896. 

We  bave  established  in  the  islands  a  soAcrnment  by 
Americans  assisted  by  Filipinos.  We  are  steadiSy  strivjLnft- 
to  transform  this  into  self-s'overnment  by  the  Filipinos  as- 
sisted by  Americans. — President  Roosevelt's  speech  accept- 
ing-  1904  nomination. 

W^e  are  the  trustees  and  guardians  of  the  ivhole  Filipino 
people,  and  peculiarly  of  the  ignortint  masses,  and  onr  trust 
In  not  discharged  until  those  masses  are  given  education 
sufficient  to  know  their  civil  rights  and  maintain  them 
agatT^st  a  more  po-tverful  class  and  safely  to  everi'isc  the 
political  franchise.— Hon.  Wm.  H.  Taft,  in  special  report  to 
the   President. 

No  sophistries  or  subtleties  can  make  money  or  create  a 
currency  ^vhich  is  good  for  one  and  ^vhich  is  not  ea«ally 
good  for  the  other.  The  interests  of  laboi*  and  capital  are 
always  identical.— Hon.  C.  W.  Fairbanks,  in  U.  S.  Senate, 
March  5,  1900. 


DEPARTMENT  OF  JUSTICE. 


The  Work   of  tlie   Department   of  Justice. 

The  effort  of  that  portion  of  the  administration  of  President 
Roosevelt  which  is  under  the  jurisdiction  of  the  Department 
of  Justice  has  been  to  determine  by  careful  and  painstaking 
investigation  whetner  the  many  complaints  which  have  been 
made  of  the  violations  of  Federal  law  were  well  foimded,  and 
to  i)resent  such  violations  as  were  found  to  actually  exist  to  the 
Federal  courts  so  that  exact  justice  might  be  done ;  that  no 
violator  of  the  Federal  statutes  might  escape  due  punishment ; 
but  at  the  same  time  that  frivolous  and  unfounded  prosecutions 
might  be  avoided  and  that  the  machinery  of  the  Federal  power 
might  not  be  used  to  further  the  end  of  private  litigants.  The 
success  of  certain  proceedings  against  persons  and  corporations 
for  acts  in  restraint  of  trade  forbidden  by  the  Sherman  Act, 
so-called,  naturally  led  to  appeals  to  rhe  Department  of  Justice 
for  Federal  procedure  in  a  very  large  number  of  cases,  and  the 
work  of  the  Department  of  Justice  has  been  as  largely  in  deter- 
mining which  of  such  complaints  indicated  actual  violations  of 
the  law  as  in  prosecuting  offenses  found  to  have  been  com- 
mitted. There  has  been  a  uniform  application  of  the  rule  that 
proceedings  should  only  be  brought  when  some  public  interest 
was  involved  or  some  piiblic  benefit  to  be  secured.  The  Depart- 
ment has  been  careful  to  see  that  no  litigation  has  received  its 
sanction,  or  been  participated  in  by  the  Government,  in  which 
the  foregoing  was  not  the  fact,  and  has.  been  interested  only  in 
an  impartial  and  vigorous  prosecution  of  this  law  and  other 
Federal  statutes. 

Proaecntiona   Under   Slierman    Act   and   Interstate     Commerce 

Iiavrs. 

It  has  been  the  duty  of  the  Department  of  Justice  to  defend 
the  soundness  of  the  position  taken  by  it  in  matters  relating 
to  prosecutions  under  the  Sherman  Anti-Trust  Act,  so-called, 
and  also  under  the  Interstate  Commerce  Act,  by  carrying  pro- 
ceedings thus  inaugurated  through  the  various  courts  and  to  a 
final  determination  in  the  Supreme  Court  of  the  United  States. 
It  has  been  the  constant  endeavor  of  the  Department  to  have  the 
material  questions  involved  settled  as  soon  as  practicable,  and 
to  this  end  it  has  moved  to  advance  cases,  and  has  been  insist- 
ent upon  the  prosecution  of  the  various  appeals  and  interme- 
diate steps  involved.  The  result  has  been  a  definition  by  the 
Supreme  Court  of  many  aspects  of  the  Sherman  Law,  and  a 
series  of  decisions  under  which  further  proceedings  in  enforce- 
ment of  this  law  can  be  taken  with  rea-sonable  hope  of  success ; 
the  facts  in  each  case  being  determined  by  a  thorough,  and  fre- 
quently expensive,  examination  by  the  Department  of  Justice. 

The  Details  of  the  Work  of  the  Department  of  Justice  in  the 
Enforcement  of  Law  with  Reference  to  Corporations  will  be 
Found  Under  the  Chapter  Entitled  ''Regulation  of  Corpor- 
ations. 

^        Enforcement   of   the   Naturalization   Act. 

Among  the  several  recent  salutary  Federal  enactments  stand- 
ing to  the  credit  of  the  Republican  administration  of  national 
affairs  is  the  Naturalization  Act,  which  went  into  effect  June 
29,  1906.  The  terms  of  this  Act  proviile  for  representation  of  the 
Tnited  States  at  hearings  held  for  the  purpose  of  determining 
the  suitability  of  aliens  for  admission  to  American  citizenship. 
The  duty  of  representing  the  United  States  in  this  important 
function  devolves  upon  the  Department  of  Justice,  and,  as  a  mere 

840 


DEPARTMENT  OF  JVSTICB.  341 

pro  forma  a^jpearaiice  without  knowledge  of  the  facts  in  each 
case,  except  as  they  appeared  in  court,  would  be  of  little  value, 
a  system  of  examination  has  been  developed  under  the  Depart- 
ment of  Justice  by  which  every  application  for  naturalization 
Is  effectively  scrutinized.  The  great  boon  of  American  citizenship 
should  not,  it  is  agreed,  be  conferred  except  upon  those  who  are 
worthy  of  the  privileges  it  bestows  and  who  can  make  an  ade- 
quate return  in  the  character  and  quality  of  their  acts  as  citi- 
zens, for  the  confidence  which  they  have  enjoyed.  It  is  recog- 
nized that  the  best  cure  for  undesirable  citizens  is  to  apply  such 
tests  as  will  develop  the  fact  of  their  undesirability  before  they 
have  been  added -to  the  voting  strength  of  the  country.  In  their 
examination  of  the  claims  of  aliens  for  citizenship,  the  officials 
of  the  Department  of  Justice  have  not  only  been  able  to  'secure 
the  rejection  of  the  applications  of  undesirable  persons,  but 
thej'  have  been  able  to  assist  in  the  naturalization  of  aliens 
whose  addition  to  the  body  politic  is  desirable,  and  they  have 
also  been  able  to  secure  the  cancellation  of  certificates  of  nat- 
uralization formerly  obtained  by  aliens  before  the  present  law 
went  into  effect.  Too  high  an  estimate  cannot  be  put  upon  the 
value  of  a  careful  scrutiny  and  examination  of  applications  for 
7iatnralization.  Many  of  the  ills  which  threaten  the  political, 
sooial  and  economic  affairs  of  the  United  States  at  the  present 
time  may,  in  all  probability,  be  checked  by  the  denial  of  citizen- 
ship to  those  who,  from  ignorance,  imperfect  training  or  per- 
verted views,  are  likely  to  become  additions  to  ignorant,  venal, 
or  vicious  classes  of  voters  constituting  a  constant  temptation  to 
undesirable  political  methods  from  the  fact  that  they  cannot  be 
swayed  by  those  considerations  and  arguments  which  are  suc- 
cessfuly  addressed  to  the  reason  of  the  thousands  of  naturalized 
citizens  now  fully  in  accord  and  sympathy  with  the  aims  and 
objects  of  the  Government  of  the  United  States.  To  these  the 
new  naturalization  law  and  the  work  of  the  Department  of 
Justice  as  a  means  of  assistance  in  securing  American  citizen- 
ship are  guaranties  that  such  citizenship,  once  attained,  will 
not  be  cheapened  and  depreciated  by  a  too  easy  access  under 
unfair,  unequal,  and  inequitable  conditions. 

Elnded  tlie  Lottery   STeindles. 

The  Administration  of  President  Roosevelt  has  seen  the  final 
destruction  of  the  lotteries  which  had  for  years  been,  in  the 
opinion  of  the  large  majority  of  the  people  of  the  United  States, 
a  great  national  evil.  Althoug-h  legislation  was  passed  in  1895 
intended  to  eradicate  this  immorality,  by  reason  of  delays  in- 
cident to  litigation  and  to  various  evasions,  on  the  part  of  those 
interested  in  the  lottery  business,  the  Government  was  not  able 
until  1903  to  put  effective  measures  into  operation  for  the  ter- 
mination of  the  illegal  transactions  involved.  In  1903  a  fav- 
orable decision  was  secured  from  the  Supreme  Court  and  until 
1907,  one  device  after  another  was  disclosed  by  the  active  in- 
vestigations of  the  Secret  Service,  and  terminated  by,  prompt  and 
vigorous  prosecutions  by  the  Department  of  Justice,  until,  in 
May  of  the  year  last  mentioned,  complete  cases  were  made 
against  the  officers' of  the  Honduras  National  Lottery  Company, 
the  successor  of  the  Louisiana  State  Lottery  Company.  The 
interests  involved,  for  the  first  time,  acknowledged  their  defeat, 
and  without  contesting  the  cases,  pleaded  guilty,  paid  fines  ag- 
gregating $264,700,  and  agreed  to  go  out  of  business  and  sur- 
render all  of  the  paraphernalia  of  the  Company  to  the  Govern- 
ment for  destruction.  This  was  the  company  which  had  been 
doing  the  very  large  ])roportion  of  the  lottery  business  in  the 
country,  and  which  had  been  able,  by  various  secret  devices,  to 
continue  in  bvisiness,  although  at  a  constantly  increasing  expense 
and  risk.  The  result  of  this  successful  prosecution  terminated 
the  last  of  the  lottery  operations,  which  had  a  widespread  field, 
and  the  warfare  of  the  administration  has  ended  in  a  complete 
victory  over  the  chief  organization  conducting  such  a  business, 
an  organization  which  at  one  time  deemed  itself  almost  im- 
pregnable on  account  of  the  resources  and  influence  of  the  per- 
sons interested. 


342  DEPARTMENT  OF  JUSTICE.  - 

Knforoenieiit   of  the   Luiitl   Lavi's. 

The  vig-orous  and  impartial  ciiforccnient  of  the  land  laws  of 
the  United  States  which  has  marked  the  pi*esent  Administration 
has  been,  and  is  being,  carried  on  without  cessation,  and  every 
means  at  the  disposition  of  the  Govermnent  is  being-  utilized  to 
recover  lands  fraudulently  obtained  from  the  United  States.  As 
a  result  of  the  proceedings  so  far  completed,  $502,736.92  has 
been  recovered  in  judgments,  $57,587.37  in  fines,  and  1,177,836 
acres  of  land  have  been  i^eturned  to  the  public  domain,  while  the 
amounts  in  lands  and  money  involved  in  proceedings  now  pend- 
ing- will  far  exceed  the  figures  abov'e  given.  Jn  four  cases  in 
Colorado  demurrers  as  to  indictments  were  sustained  by  the 
lower  court  and  apj^eals  from  this  decision  will  be  taken  to  the 
Supreme  Court  under  a  law  passed  by  a  Eepublican  Congress 
giving  the  United  States  a  privilege  not  previously  possessed 
by  it  of  taking  appeals  in  criminal  cases  on  points  of  law.  While 
the  tendency  of  these  appeals  has  the  result  of  temporarily  post- 
poning the  trial  of  criminal  proceedings  in  some  cases,  active 
litigation  iS  being  carried  on  wherever  civil  suits  are  deemed  to 
be  desirable  to  recover  lands  alleged  to  have  been  fraudulently 
secured  from  the  United  States.  Safeguards  to  the  acquirement 
of  the  public  lands  have  been  increased,  so  that  adequate  returns 
are  being  secured  and  will  be  secured  hereafter  from  all  those 
who  acquire  public  lands  from  the  United  States. 

During  the  past  two  years,  the  Department  of  Justice  has 
been  engaged  in  the  active  investigation  of  the  rights  and  re- 
sponsibilities of  the  holders  of  the  titles  of  lands  involved  in 
certain  railroad  land  grants  in  the  ^Northwestern  States.  The 
Oregon  and  California  Railroad  Company,  among  others,  was 
granted  certain  tracts  of  land  in  aid  of  its  railroad  under  con- 
ditions that  it  .should  sell  the  land  thiis  granted  to  bona  fide 
settlers  in  tracts  of  not  more  than  160  acres  at  a  price  not  to 
exceed  $2.50  an  acre.  Complaints  were  made  to  the  Department 
that  the  Company  had  refused  to  sell  a  certain  portion  of  this 
land  according  to  the  terms  of  the  grant,  and  that  it  had  sold 
other  portions  in  larger  tracts  and  for  greater  sums  than  above 
named.  In  order  to  properly  test  the  rights  of  the  Government 
and  the  duties  of  the  holders  of  the  lands  it  became  necessary 
to  secure  from  the  Congress  certain  additional  legislation  which 
was  promptly  passed  by  virtue  of  the  Republican  majority  in 
both  Houses  and  ample  authority  given  the  Attorney  General  for 
a  thorough  test  of  the  many  difficult  cjuestions  involved.  At  the 
same  time,  it  is  proposed  that  these  proceedings  shall  be  con- 
ducted so  that  there  shall  be  no  serious  disturbance  of  commer- 
cial and  industrial  conditions  within  the  States  in  which  these 
lands  lie. 

Proceedings    Against    Peonage. 

Commercial  g-reed  is  not  localized,  but  it  may  be  noted  that  in 
certain  States  which  have  been  dominated  by  political  tenets 
opposed  to  the  doctrines  of  the  Republican  party,  a  peculiarly 
obnoxious  form  of  this  vice  has  been  stimulated  by  legislation. 
In  the  solid  South,  so-called,  it  has  been  x^ossible,  by  reason  of 
State  statutes  on  the  subject  of  personal  debts,  to  hold  large 
numbers  of  people  to  enforced  labor  with  the  result,  as  shown 
by  developments  in  courts  of  justice,  that  men,  women,  and  chil- 
dren have  been  reduced  to  and  kept  in  that  condition  of  slavery 
known  as  peonage,  a  condition  involving  evils  as  great  as  those 
involved  in  chattel  slavery,  even  though  the  characteristics  of 
the  two  forms  of  bondage  are  not  identical.  The  slavery  which 
has  been  found  to  exist  is  not  confined  to  persons  of  the  negro 
race,  but  has  included  a  large  number  of  white  persons,  many  of 
whom  are  alleged  to  ]iave  been  decoyed  into  the  localities  where 
peonage  was  practiced  by  false  ]n-omises  and  representations. 
Under  sections  5525  anji  5526  of  the  Revised  Statiites.  constitut- 
ing holding  in  slavery  or  peonage  an  offense  against  the  laws  of 
the  United  States,  and  in  consequence  of  the  numerous  com- 
plaints received,  the  Department  of  .Justice  has.  during  the  pre- 
sent administration,  undertaken  a  thorough  investigation  of  the 
conditions  obtaining  in  various  forms  of  labor  and  industry  in 
remote  portions  of  certain  Southern  States,  with  the  result  that, 


DEPARTMENT  OF  JUSTICE.  343 

as  a  consequence  of  the  agitation  produced,  and  the  prosecutions 
sustained  in  the  Federal  courts,  this  evil  has  been  substantuilly 
checked  and  a  healthful  public  opinion  created  in  the  direction 
of  the  repeal  of  the  laws  under  which  peonage  became  possible. 
In  connection  with  the  investig-ations  into  the  facts  surround- 
ing conditions  of  peonage,  it  has  been  developed  that  this  offense 
against  the  Federal  laws  has  gone  hand  in  hand  with  violations 
of  the  contract  labor  laws,  and  that  a  systematic  importation  of 
aliens  had  found  its  outlet  in  the  utilization  of  labor  thus  im- 
ported under  conditions  which  resulted  in  the  forcible  restric- 
tion of  aliens  within  labor  camps  and  charges  against  them  of 
indebtedness  for  current  support  which,  added  to  the  cost  of  their 
passage  to  this  country,  made  a  sum  total  which  it  was  almost 
hopeless  that  they  should  discharge.  While  it  is  true  th«,t  it 
has  not  been  possible  to  obtain  convictions  on  some  of  the  in- 
dictments which  have  been  secured,  this  failure  has  been,  in 
large  part,  due  to  local  influences  and  circumstances  and  the 
result  of  the  convictions  which  have  been  obtained  was  a  whole- 
sale release  of  persons  who  had  been  held  to  involuntary  servi- 
tude under  the  plea  of  requiring  them  to  pay  their  debts,  such 
debts,  it  must  be  remembered,  being  frequently  made  up  of 
exorbitant  and  unjust  charges.  This  method  of  seciiring  labor 
has  been  effectively  restricted,  if  not  wholly  suppressed,  by  the 
activity  of  the  Administration,  and  the  investigations  and  efforts 
to  punish  those  involved  in  these  infractions  of  the  Federal  laws 
are  being  continued  and  will  be  continued  by  the  present  Ad- 
ministration. 


Tlie  national  credit  is  of  too  paramount  importance  and 
nothing:  shonld  be  done  to  tarnish  or  impair  it. — Hon  W.  Mc- 
Kinley,    in    House    of    Representatives,    April    15,    1878. 

I  am  President  of  all  the  people  of  the  United  States, 
■tT'ithont  resnrd  to  creed,  color,  birthplace,  occupation,  or 
social  condition.  My  aim  is  to  do  equal  and  exact  justice 
as  among  them  all.— President  Roosevelt,  in  a  statement  to 
executive  council  American  Federation  of  Labor,  Sept.  25), 
1903. 

A  railroad  company  ensaffed  in  Interstate  commerce 
should  not  be  permitted,  therefore,  to  issue  stoclc  or  bonds 
and  put  them  on  sale  In  the  market  except  after  a  certtflcate 
by  the  interstate  commerce  commission  that  the  securities 
are  issued  vrith  the  approval  of  the  commission  for  a  lepriti- 
mate  railroad  purpose.— Hon.  Wm.  H.  Taft,  at  Columbus,  Ohio. 

Passed  at  the  instance  of  Mr.  Roosevelt,  it  (the  Rate  law) 
stands  as  a  monument  to  the  principle  which  he  has  in- 
cessantly maintained  in  speech  and  action,  that  the  laTvs 
must  be  so  made  that  they  can  be  enforced  as  well  against 
the  sins  of  the  weafthy  and  the  powerful  as  against  those 
of   the   poor.— Hon.   Wm.   H.   Taft,   at    Columbus,    Ohio. 

Mr.  Bryan  aslcs  me  what  I  would  «lo  with  the  trusts.  I 
answer  that  I  would  restrain  unlaTvful  trusts  Tvitli  all  the 
etilciency  of  injunctive  process  and  woulil  punish  w^ith  all 
the  severity  of  criminal  prosecution  every  attempt  on  the 
part  of  aggregated  capital  through  the  illegal  means  I  have 
described  to  suppress  competition.— Hon.  Wm.  H.  Taft,  at 
Columbus,    Ohio. 

You  must  face  the  fact  that  only  harm  -will  come  from  a 
proposition  to  attack  the  so-called  trusts  in  a  vindictive 
spirit  by  measures  conceived  solely  vrith  a  desire  of  hurting 
them,  without  regard  as  to  whether  or  not  discrimination 
should  be  made  between  the  good  and  evil  in  them,  and 
without  even  any  regard  as  to  ^vhether  a  necessary  seauence 
of  the  action  would  be  the  hurting  of  other  interests.— Presi- 
dent   Roosevelt    at    Cincinnati,    Sept.    20,    1902. 

Every  one  -who  knoAvs  anything  about  the  management  of 
railroads  knoT\-s  that  there  has  been  a  revolution  in  respect  to 
their  obedience  to  the  law.  IVo  longer  are  special  privileges 
granted  to  the  fevr — no  longer  are  secret  rebates  extended  to 
build  up  the  monopoly  of  the  trusts.  The  railroads  are  oper- 
ating within  the  la-\v,  and  the  railroad  directors  and  otfleers 
and  stockholders  ought  to  rise  up  and  call  blessed  the  men 
■»vho  are  responsible  for  the  passage  of  the  Rate  bill. — 
Hon.  Wm.   H.   Taft,   at   Kansas    City,    Mo. 

It  would  be  hard  to  find  in  modern  times  a  better  example 
of  successful  constructive  stutt^smanship  than  the  American 
representatives  have  given  to  the  Philippine  Islands. — Presi- 
dent Roosevelt  at  Providence,  R.  I.,  August  23,  1902. 


THE  WAR  DEPARTMENT. 


ITS   EFFICIENT   AND   ECONOMICAL.   ADMINISTRATION. 

Splendid    Record    of    the   Army    an    Mllitiiry    antl    Civil    Pnl>Iic 
Servants,   Pioneers,    uud    HuniunitarianN. 

The  events  of  the  past  decade  have  brought  the  War  De- 
partment into  great  prominence.  The  war  with  Spain  and 
conditions  growing  out  of  it  enormously  enlarged  the  duties 
of  this  Department,  thrusting  new  and  unusual  responsibilities 
upon  it  and  widening  the  field  of  its  operation  until  it  now 
extends  more  than  half-way  around  the  world — from  Cuba  and 
Porto  Rico  off  our  Atlantic  seaboard  to  the  Philippine  Islands 
on  the  other  side  of  the  globe,  8,000  miles  from  our  Pacific 
coast. 

The  work  of  the  War  Department  throughout  all  this  history- 
making  period  has  been  tremendous  in  mass,  varied  and  excep- 
tional in  character.  The  armies  of  the  United  States  from  Valley 
Forge  to  Santiago  have  been  the  bulwark  of  the  nation,  and 
their  historic  deeds  are  cherished  with  pride  by  every  Ameri- 
can heart.  In  the  winning  of  the  great  West  the  army  bore  a 
memorable  and  indispensable  part.  By  its  achievements  in  the 
Philippines,  in  Cuba  and  in  Porto  Rico,  where  it  served  first  as 
soldiers  and  afterwards  as  civil  administrators,  it  has  added  a 
brilliant  and  unique  chapter  to  our  annals.  How  the  duties  and 
responsibilities  of  this  trying  epoch  have  been  met  and  discharged 
by  the  War  Department  and  the  Army,  what  splendid  work  our 
soldiers  have  done  for  humanity  and  the  flag,  and  what  im- 
provements have  been  made  in  the  military  service  to  strengthen 
the  coimtry's  defenses  and  its  preparedness  for  war,  it  is  the 
purpose  of  this  chapter  briefly  to  describe. 

Tlie  War  witli  Spain. 

Just  prior  to  the  outbreak  of  the  Spanish  War  the  strength  ot 
the  regular  army  was  about  26,040  enlisted  men  and  2,143 
officers.  Under  the  President's  first  and  second  calls  for  troops 
in  April  and  May,  1898,  the  strength  of  the  army,  including 
regulars  and  volunteers,  was  quickly  increased  to  11,108  officers 
and  263,609  enlisted  men.  Meanwhile,  before  it  moved  as  an 
army,  the  war  with  Spain  had  practically  been  ended  with  an  in- 
vading army  or  expeditionary  force  of  less,  than  seventeen  thou- 
sand officers  and  men,  who  had  become  master  of  the  Island  of 
Cuba,  though  there  were  stationed  on  the  island  at  that  time 
80,000  veteran  Spanish  soldiers,  who,  according  to  the  prin- 
ciple of  the  survival  of  the  fittest,  were  regarded  as  the  hard- 
ened remnants  of  the  army  of  210,000  men  which  Spain  had 
sent  in  the  attempt  to  dominate  Cuba. 

Difficult  Tasks  FolIovFlng:  tlie  liVar  VFlth   Spain. 

The  war  with  Spain  ended,  the  next  three  years  under 
President  McKinley  were  marked  by  the  most  extraordinary 
conditions  involving  careful  and  arduous  administration  of 
the  War  Department.  Instantly,  without  preparation,  design, 
or  desire  the  United  States  as  a  conquering  nation  had  become 
suddenly  saddled  with  the  duty  of  governing  three  different 
sections  of  foreign  countries,  disconnectedly  situated  in  two 
hemispheres,  and  which,  by  reason  of  their  different  peoples 
and  varying  traditions  and  customs,  presented  political  prob- 
lems and  complications  \inparalleled  in  the  history  of  the  world. 

In  meeting  this  emergency  the  President  found  himself 
charged  not  only  with  the  constitutional  powers  of  the  execu- 
tive, but  charged  also  by  the  peculiar  nature  of  the  newly  de- 
veloped conditions  with  the  obligations  of  all  three  of  the 
usually  divided  duties  of  state — the  legislative  and  judicial  in 
addition   to    the    executive.     His    Secretary    of   War   had    then 

344 


WAR  DEPARTMENT.  345 

necessarily  to  be  a  man  capable  of  acting-  for  him  in  the  im- 
mediate siii)ervision  of  all  military  affairs,  for  in  the  begin- 
ning- of  the  g-overnment  of  the  newly  acquired  territory  the 
War  Secretary  was  not  only  required  to  frame  and  prescribe 
the  laws,  but  was  called  upon  likewise  to  interpret  and  enforce 
them. 

In  the  beg-inning-  of  the  new  and  anomalous  conditions  that 
prevailed,  the  Secretary  of  War  was  virtually  the  framer  of 
three  separate  governments  for  three  different  alien  people,  a 
task  so  well  accomplished  that  in  a  little  more  than  three 
years  the  Cubans  were  enabled  to  hoist  their  own  flag-  as  a 
se})arate  and  independent  nation,  while  the  Porto  Ricans  and 
the  Filipinos  were  quickly  permitted  to  enjoy  civil  forms  of 
g-overnment  with  only  a  mere  fractional  element  of  military 
control,  without  the  cost  of  a  dollar  to  the  United  States 
Treasury  except  for  the  money  paid  in  salaries  to  Federal 
officers. 

Tlie  IVork  in  tlie  Pliilippines. 

After  the  close  of  hostilities  with  Spain  it  became  neces- 
sary to  deal  with  the  ins<irrection  in  the  Philippine  Islands, 
which  continued  with  unvarying-  success  on  the  part  of  th(^ 
United  States  troops  until  the  Filipino  insurgents  dwindled 
into  mere  bands  i^f  guerillas,  who  finally  gave  up  their  arms 
and  surrendered  when,  on  March  21,  1901,  Aguinaldo  was  cap- 
tured. 

There  is  no  prouder  or  more  honorable  page  in  the  history 
of  our  army  than  that  covering-  the  period  of  its  suppression 
of  the  Filipino  insurrection.  Although  the  campaign  against 
the  org-anized  Filii)ino  troops  was  swift  and  short,  lasting-  only 
about  a  year,  the  g-uerilla  warfare  that  ensued  carried  on  by 
the  various  bodies  of  insurrectos  of  the  different  parts  of  the 
islands,  covering  an  extensive  area  of  operations,  required  a 
deg-ree  of  zeal  and  labor  on  the  part  of  our  army  seldom,  if 
ever  before,  experienced  by  any  militarj^  troops  in  the  civil- 
ized world.  Scattered  over  the  vast  expanse  of  territory  our 
seventy  thousand  soldiers  that  were  at  one  time  in  the  Philip- 
pine Islands  were  distributed  at  nearly  six  hundred  stations; 
larg-e  pursiiing-  columns  were  also  underg-oing-  untold  hardships, 
generals  and  private  soldiers  all  alike  wii^hout  regard  to  rank 
for  a  great  part  of  the  time  carrying  their  own  rations  and  pos- 
sessing no  other  camp  equipage  than  the  half  shelter  tent  or 
rubber  blanket  carried  on  the  person.  It  is  difficult  to  convey 
any  adequate  idea  of  the  extent  of  these  military  operations  in 
the  Philippines  or  the  strain  upon  the  physical  endurance  of  our 
soldiers,  who  for  the  first  time  in  the  army's  career  w^ere  ex- 
periencing- the  sickening  and  debilitating-  service  in  the  tropics, 
marching  over  flooded  rice  fields,  wading  through  dangerous 
swollen  streams,  crossing  angry  rivers  on  improvised'  rafts, 
often  under  hostile  fire — all  this  without  the  usual  place  of 
rest  in  camp,  without  shelter  from  rain  or  sun,  and  often 
without  cooked  food. 

Wherever  the  permanent  occupation  of  our  troops  was  ex- 
tended in  the  Philippine  Islands  civil  law  was  quickly  put  in 
force,  courts  were  organized,  and  the  most  learned  and  com- 
petent native  lawyers  appointed  to  preside  over  them.  A  sys- 
tem of  education  was  introduced  in  1899,  and  in  that  year  the 
Secretary  of  AVar  reported  to  Congress  that  a  greater  niimber 
of  good  schools,  offering  facilities  for  primary  instruction,  then 
existed  in  the  Philippines  than  at  any  previous  time  in  their 
history. 

Cliiua   Relief    Elxpedition. 

In  June,  1-900,  conditions  became  so  seriously  threatening 
in  China  that  the  United  States,  though  reluctant  to  take  any 
intrusive  part  in  the  affairs  of  that  vast  country,  was  com- 
pelled to  send  a  regiment  of  United  States  infantry  from  Manila, 
with  suitable  transportation,  medical  officers,  and  rapid  firing 
guns,  under  instriictions  to  the  commanding  officer  to  confer 
wi'tii  the  Admiral  commanding  the  American  fleet  at  Taku 
and    to    report    to    the    United    States    Minister    at   Pekin    for 


346  WAR  DEPARTMET^T. 

such  duty  as  mi^'-ht  be  tieemed  necessary  in  the  protection  of  the 
lives  of  Aniericiin  citi/ens  in  China.  iS'ot  only  had  the  United 
States  Leg-ation  at  Tekin  been  attacked,  together  with  the  Lega- 
tion building's  of  other  powers,  but  the  Unitetl  States  Legation, 
tog'ether  with  those  of  other  foreign  powers,  were  actually  be- 
sieged and  the  Gerihan  Ambassador  at  Pekin  was  reported  to 
have  been  murdered.  It  was  at  this  time  that  the  second  com- 
bined expeditionary  force  to  Pekin  became  necessary,  forming 
an  allied  army  of  all  the  gfreat  powers  and  including  our  own 
military  force  under  command  of  Major-General  ('haffee,  or- 
dered there  to  ])rotect  our  citizens  and  our  Legation  against 
the  murderous  assj'.ults  of  the  so-called  "JJoxers,"  whom  the 
Chinese  g-overnment  had  acknowledged  and  jjroved  itself  utterlv 
unable  to  control  or  siibdue.  The  splendid  results  that  followed 
this  display  of  American  force  and  the  assertion  of  the  right 
of  the  United  States  to  participate  with  the  great  powers  of 
the  world  in  Oriental  matters  have  all  become  a  ]jart  of  the 
history  of  the  country.  The  total  military  strength  of  the 
expedition  in  China  numbered  435  oflticers  and  15,018  enlisted 
men,  besides  2,()()0  marines. 


Tolegranh   and   Cable  I^iues   Constructed  by  tbe  Signal   Corps 
ill  Cuba  antl   tbe  I'biiiiipineM. 

Upon  entering-  the  Philippine  Islands  the  American  army 
found  practically  no  telegrapli  lines  in  existence.  The  few  land 
lines  that  had  been  constructed  in  the  Viscayan  Isiauds,  were 
early  destroyed  by  the  natives,  as  were  many  of  those  in  Luzon 
during  the  retreat  of  the  insurgents.  Immediately  flying 
lines  wei'e  laid  to  follow  the  advance  of  the  troops,  and 
these  were  succeeded  by  permanent  lines  built  and  repaired 
under  the  most  trying  circumstances  through  an  unknown 
country,  generally  devoid  of  roads,  and  where  the  trails 
through  the  jungle,  difficult  at  all  times,  were  almost  impassable 
during  the  prolonged  storms  of  the  rainy   season. 

Added  to  these  difficulties  were  the  incessant  efforts-of  the 
insurg-ents  to  interrupt  communications;  their  persistent  and 
annoying-  attacks,  and  frequent  ambuscades  of  small  parties 
which   cost  the   lives   of   many   valuable  men. 

In  addition  to  the  construction  of  over  5,000  miles  of  land 
lines  in  the  Philippine  Islands,  the  army  was  early  confronted 
with  the  problem  of  laying-  and  inaintaining  a  system  of  inter- 
island  cables,  which,  following  the  rapid  advance  of  American 
troops  and  the  extension  of  American  ideas,  could  alone  furnish 
the  means  by  which  military  operations  and  civil  control  could 
be  executed  amidst  the  islands  ceded  by  Spain  to  the  tJnited 
States.  As  a  consequence,  the  signal  corps  of  the  army  was 
called  upon  to  enter  a  new  field  of  endeavor.  It  was  com- 
pelled to  fit  up  for  sea  service  and  to  maintain  cable  ships  and 
smaller  boats;  to  have  manufactured  in  accordance  with  its 
own  specifications,  and  to  inspect,  hundreds  of  miles  of  deep 
sea  and  other  cables;  and  finally  to  lay  and  operate  these 
cables  in  the  then  almost  unknown  waters  of  the  Phili])pines. 
All  of  this  was  effectively  accomplished  and  there  is  hardly 
a  section  of  the  world  where  so  intricate  a  network  of  sub- 
marine telegraph  exists. 

The  lines  of  communication  embraced  5,108  miles  of  per- 
manent land  lines  and  1,326  miles  of  submarine  cables;  a  total 
of  6,434  miles  of  telegraph,  telephone,  and  cable  communication 
in  regions  where  for  the  most  part  the  telegraph  had  there- 
tofore never  been  seen.  The  extension  of  this  telegraph  system 
in  three  years  of  American  occupation  was  far  greater  than  it 
was  during  the  entire  previous  period  of  Spanish    occupation. 

Upon  the  occupation  of  Cuba  by  the  American  Army,  Janu- 
ary 1,  1899,  the  old  telegraph  system  was  found  to  have  almost 
disappeared.  It  therefore  became  one  of  the  most  important 
of  the  early  duties  of  the  army  of  occupation  to  build  or  restore 
the  lines,  so  that  the  first  duty  of  the  Signal  Corps  was  to 
provide  communication  between  division  headquarters  and  the 
various  posts,  garrisons,  camps,  and  important  cities.  After- 
wards the  task  of  constructing  this  system  from  one  end  of  Cuba 


WAR  DEPARTMENT.  347 

to  the  other  was  undertaken.  ]>y  April  1,  1899,  there 
was  completed  a  system  of  3,500  miles,  equipped  with 
modern  appliances  and  latest  methods  and  consisting  of 
nine  lines  which  crossed  the  island  from  north  to  south, 
and  one  trunk  line  running  through  the  center  of  the 
island  from  Pinar  del  Rio,  in  the  west,  via  Habana  and  Santiago, 
to  Baracoa,  in  the  east.  The  central  line  from  Habana  to  San- 
tiago, completed  in  about  three  months,  was  a  work  of  the 
greatest  importance  to  Cuba,  Avhich  the  Spaniards  had  appar- 
ently never  even  ventured  to  undertake.  The  Commanding 
General  in  Habana  had  communication  with  every  point  of  im- 
portance in  Cuba,  and  the  variovis  camps  and  garrisons  had 
been  provided  with  their  local  systems  of  communications.  At 
the  time  of  the  transfer  of  affairs  to  the  Cuban  Government, 
May  20,  1902,  this  stable  and  permjinent  system  had  been  ex- 
tended from  San  Juan  y  Martinez,  at  the  western  end  of  the 
island,  to  Cape  Maysi,  on  the  extreme  eastern  end,  embracing 
3,500  miles  of  wires  and  giving  communication  to  every  town, 
city,  or  seaport  of  importance  in  Cuba. 

Reduction  of  the  Army. 

Active  military  operations  on  the  part  of  the  United  States 
having  been  completed,  the  War  Department  proceeded  imme- 
diately to  the  reduction  of  the  military  'establishment.  The 
provisions  of  the  Acts  of  Congress  of  April  22nd  and  26tli, 
1898,  providing  for  the  increase  of  the  army  in  the  beginning 
of  the  war  with  Spain,  required  that  at  the  end  of  the  war  tlie 
entire  volunteer  force  should  be  discharged  from  further  mili- 
tary service  and  the  ar'my  reduced  to  a  peace  basis.  Thus  it 
became  necessary  four  months  after  its  mobilization  to  dis- 
charge the  entire  volunteer  force,  which  in  August,  1898,  con- 
sisted of  5,216  oflRcers  and  110.202  men,  leaving  for  all  the  duty 
which  the  army  had  then  to  perform  in  the  United  States,  Cuba, 
Porto  Rico,  and  the  Philippine  Islands,  only  2.324  officers  and 
61,444  enlisted  men  of  the  then  authorized  regular  army,  but 
this  number  was  by  Act?^  of  Congress  subsequently  increased  to 
65,000   regulars   and    35,000   volunteers. 

On  February  2,  1901,  an  act  was  passed  to  increase  the  effi- 
ciency of  the  permanent  military  establishment,  authorizing 
the  President  to  maintain  a  regular  army  according  to  the 
exigency  of  the  time,  from  a  minimum  of  59,131  to  a  maximum 
of  100,000. 

The  improvement  of  conditions  in  the  Philippine  Islands  in 
the  spring  and  summer  of  1901  made  it  unnecessary  to  main- 
tain the  maximum  strength  of  the  army  authorized  by  law, 
and  on  May  8th  of  tha.t  year  an  order  was  made  fixing  the 
reduced  strength  of  the  several  organizations  in  a  manner 
to  place  the  aggregate  enlisted  strength  of  the  army,  includ- 
ing all  staff  departments,  at  77,287. 

In  1903  the  army  was  reduced  to  the  minimum  allowed  by 
law,  and  even  that  minimum  number  was  further  reduced  on 
account  of  discharges  for  various  reasons,  which  left  the  army 
at  55,500  enlisted  men,  of  which  number  only  15,510  remained. in 
the  Philippine  Islands,  whereas  now  according  to  latest  offi- 
cial reports  the  total  garrison  strength  in  the  Philippine  Is- 
lands numbers  13,584   officers  and  men, 

A  cursory  statement  of  this  kind  cannot  give  any  intelligent 
idea  of  the  a.mount  of  work  that  devolved  upon  the  War  De- 
partment throughout  this  period.  The  United  States  was  re- 
quired practically  to  raise  and  disband  two  distinct  armies  be- 
tween April,  1898,  and  July  1,  1901, — one  army  for  the  Span- 
ish-American War,  "which  was  required  to  be  disbanded  immedi- 
ately after  the  signing  of  the  treaty  of  peace  with  Spain,  and 
the  other  army  to  put  down  the  insurrection  in  the  Philippine 
Islands,  which  under  the  law  was  disbanded  between  January  1, 
and  June  30,  1901. 

Control  of  Tropical  Diseases. 

In  June,  1900,  the  campaign  against  yellow  fever  on  the  Is- 
land of  Cuba  was  begun  by  the  medical  officers  of  the  army. 
The  disease,  which  was  known  by  authentic  records  to  have 


348  WAR  DEPARTMENT. 

t'xisted  without  a  year's  intermission  for  a  period  of  one 
hundred  and  fifty  years,  appeared  for  the  hist  time  in  IWOl, 
after  whieh  time  the  city  of  Habana  enjoyed  complete  immun- 
ity as  long-  as  the  precautions  begun  by  the  American  othcers 
were  eontinued.  When  the  army  reoccupied  Cuba,  however,  in 
tlie  fall  of  1901),  sanitary  conditions,  which  had  been  in  excel- 
lent shape  under  the  former  American  control,  were  found  to 
have  been  allowed  by  the  Cubans  to  lapse  into  a  state  ai)pi-oach- 
ingf  the  old  Spanish  regime.  But  again  the  Medical  Department 
went  vigorously  to  work  and  sanitation  has  been  again  organ- 
ized and  re-established  on  a  sound  basis  which  warrants  the 
conclusion  that  yellow  fever,  if  not  entirely  wiped  out  of  exist- 
ence there,  will  always  be  under  control  beyond  the  danger  ol 
epidemic. 

In  June,  1900,  a  commission  of  army  medical  officers  met  at 
Uabana  for  the  purpose  of  studying  the  causes  of  yellow  fever. 
Major  Reed,  the  master  mind  of  the  commission,  in  his  series 
of  most  perfectly  planned  experiments,  proved  beyond  doubt 
that  yellow  fever  is  transmitted  only  by  the  bite  of  a  particu- 
lar species  of  mosquito,  and  that  the  old  theory  that  filth, 
articles  of  clothing,  etc.,  could  carry  the  disease,  is  absolutely 
untenable.  The  Commissioners  exercised  great  scientific  abil- 
ity and  energy  in  their  investigations,  and  much  individual 
heroism  was  required  amongst  them  as  well  as  on  the  part 
of  the  enlisted  strength  of  the  army,  who  voluntarily  offered 
themselves  as  subjects  for  the  new  experiments  for  the  deter- 
mination of  the  exact  nature  of  the  disease.  It  was  at  that 
time  that  the  lamented  Dr.  Jesse  W.  Lazear,  contract  surgeon 
of  the  United  States  Army,  won  immortal  glory  and  distinc- 
tion by  voluntarily  permitting  himself  to  be  inoculated  with 
the  yellow  fever  germ,  in  order  to  furnish  a  necessary  addi- 
tional experimental  test  in  the  course  of  investigation,  and 
aiS  the  result  of  that  act  of  heroism  and  superb  devotion,  to 
professional  duty,  soon  afterwards  died  of  the  disease. 

In  the  Philippine  Islands,  it  became  the  duty  of  the  Army 
Medical  Department  to  protect  the  army  from  cholera  and 
plague.  The  United  States  troops  'stationed  at  Manila  and 
some  of  the  larger  seaport  towns  had  every  reason  to  expect 
the  worst;  but  the  troops  were  carried  successfully  through  an 
epidemic  of  bubonic  plague  with  only  one  or  two  cases  affecting 
our  soldiers,  while  smallpox  was  almost  completely  eradicated 
from  Manila  and  the  larger  towns.  During  the  year  1902  nearly 
half  of  the  mean  strength  of  the  United  States  army  was  serv- 
ing in  the  Philippine  Islands,  and  was  everywhere  exposed  to 
a  malignant  epidemic  of  cholera,  from  which  probably  150,000 
natives  had  suffered  with  a  death  rate  of  over  fifty  per  cent. 
Notwithstanding  this,  owing  to  the  strict  preventive  measures 
inaugurated  by  the  Medical  Department  of  the  army  and 
faithfully  carried  out  by  all  officers,  only  thirteen  cases  of 
cholera  per  one  thousand  of  strength  occurred  among  the 
troops,  with  a  death  rate  of  7.5  per  thousand.  When  these 
records  are  compared  with  the  cholera  statistics  of  the  United 
States  army  in  the  year  1866,  when  among  the  troops  exposed 
there  were  over  two  himdred  admissions  per  thousand  with 
ninety-four  deaths  resulting,  the  enormous  gain  in  sanitary 
knowledge  and  efficiency  may  be  easily  seen.  In  fact,  the 
control  and  final  extinction  of  the  Asiatic  cholera  in  the  Philip- 
pine Islands  seems  now  to  have  been  accomplished.  The  severe 
epidemic,  which  began  in  1902,  was  brought  to  a  close  in 
February,  1904,  through  the  skillful  and  determined  efforts  of 
the  medical  officers  of  the  army. 

In  the  Chinese  relief  expedition  of  1900-01  the  United  States 
army  came  into  comparison  with  the  forces  of  most  of  the 
great  nations  of  the  world,  and  as  the  result  of  that  comparison 
won  for  itself  highest  standing.  The  Medical  Department 
established  in  a  very  short  time  at  Tientsin  what  was  regarded 
by  far  as  the  best  military  hospital;  and  later  on  at  Pekin  many 
observers  declared  that  the  Medical  Department  of  the  United 
States  army  on  duty  there  was  by  far  the  best  and  most 
intelligently  equipped  of  any  medical  service  there  represented. 

One   of   the   most   important    duties   assigned   to   the   Medi- 


WAR  DEPARTMENT.  349 

cal  Department  was  that  of  establishing  sanitary  precautions 
at  Panama,  Hecognizing-  that  the  sanitary  problem  is  one  of 
the  most  important  in  connection  with  the  construction  of  the 
canal,  the  Panama  Canal  Commission  very  wisely  applied  for 
Col.  W.  C.  Gorgas,  a  notable  sanitary  expert  of  the  Medical 
Corps  of  the  army,  to  take  charge  of  the  sanitary  and  medical 
department  of  this  g-reat  work.  Col,  Gorg-as  inaugiirated  a  sys- 
tem of  sanitation  in  1901,  and  has  attained  results  that  have 
excited  the  adniii-ation  of  the  world.  Yellow  fever,  the  bane 
of  the  French  canal  commission,  that  lost  so  many  lives,  has 
disappeared,  and  malaria,  the  greatest  factor  in  the  sick 
rates  in  the  vicinity  of  the  canal,  is  being  rapidly  brought  under 
control. 

Another  very  interesting  point  in  favor  of  the  zealous 
devotion  to  duty  of  numbers  of  the  Medical  Department  might 
be  mentioned.  Captain  Ashford,  of  the  Medical  Departmeni?, 
having  proved  that  anaemia,  which  af¥ects  about  eighty  per 
cent  of  the  native  population  of  Porto  Eico,  was  due  to  infec- 
tion with  a  small  intestinal  worm  and  that  the  disease  is  both 
preventable  and  curable,  was  at  the  request  of  the  Governor 
of  Porto  Kico  detailed  as  the  senior  member  of  a  board  to  study 
that  disease.  Under  his  able  direction  thousands  of  cases  have 
been  cured,  and  the  proper  steps  taken  to  stamp  out  this 
disease. 

The  Bureau  of  Insular  Affairs. 

As  the  result  of  the  war  with  Spain,  the  United  States  in 
1898  became  suddenly  charged  with  the  affairs  of  Cuba,  Porto 
Ilico,  and  the  Philippines,  which  in  consequence  of  that  war 
passed  from  the  jurisdiction  of  Spain  to  that  of  the  United 
States,  It  was  a  bewilderingly  new  and  vitally  important  duty, 
demanding  careful  consideration  and  quick  attention.  Natu- 
rally, however,  all  of  those  islands  being  still  in  the  hands  of 
our  military,  and  all  more  or  less  unsettled  and  in  need  of  a 
strong,  competent  hand  to  control  and  tranquillize  them,  the 
Secretary  of  War,  under  the  immediate  direction  of  the  Presi- 
dent, was  regarded  as  the  logical  head  of  their  governments. 
There  was  at  that  time,  however,  no  organized  bureau  or  office 
in  the  War  Department  which  could  well  take  hold  of  and, 
manage  the  affairs  of  those  three  separate  and  distinct  insular 
people,  and  therefore,  as  no  time  was  allowed  for  delay,  it  be- 
came necessary  for  the  Secretary  of  War  to  establish  within 
his  own  office  a  small  division  of  insular  affairs  which  has  since 
been  enlarged  by   Congress  into  a  Bureau, 

To  describe  in  detail  the  multifarious  duties  that  devolved 
upon  this  section  of  the  War  Department  would  be  to  review 
over  again  the  accounts  of  all  insular  affairs  which  have  been 
set  forth  fully  in  the  chapters  devoted  respectively  to  the  Philip- 
pines, Cuba,  and  Porto  Rico.  Indeed,  all  of  the  achievements 
in  the  Philippine  Islands  owe  much  to  this  Bureau,  which, 
acting  as  the  American  agency  in  all  matters  between  the  Philip- 
pine Islands  and  the  United  States,  has  played  an  imjjortant 
part  and  exercised  inestimably  valuable  influence  for  the  bene- 
fit of  the  insidar  government. 

In  the  matter  of  education  alone  it  has  in  a  practical  way 
done  much  in  the  great  scheme  of  help  to  the  Filipinos,  and 
the  manner  in  which  it  has  supervised  the  education 
of  Filipino  yoiiths  brought  to  this  country  and  placed  in  vari- 
ous schools  and  colleges  has  merited  unmeasured  approval. 
From  the  very  hour  that  these  young  men  arrived  in 
the  United  States  from  the  Philippines  they  were  taken  in 
charge  by  agents  of  this  Bureau,  and  their  affairs  were  con- 
stantly and  most  carefully  looked  after.  There  are  now  nearly 
two  hundred  -of  these  selected  bright  and  intelligent  young 
Filipinos  undergoing  instruction  in  carefully  chosen  educational 
institutions  in  the  United  States, 

This  Bureau  has  also  rendered  conspicuous  service  in  devis- 
ing a  new  monetary  system,  banking-  system,  and  various 
other  innovations  calculated  to  benefit  the  people  and  increase 
the  material   prosperity   of   the   Philippine   Archipelago. 

Its  first  important  duty  was  with   respect  to   Cuba,  super- 


360  WAR  DEPARTMENT. 

vising-  and  controlling-  the  management  of  the  customs  and 
every  other  department  of  the  military  and  the  subsequent 
tentative    civil   g-i>vernment    conducted    by    the    United    States. 

One  of  its  first  most  successful  achievements  was  the  prep- 
aration and  supervision  of  the  insular  tariff  system,  and  it 
has  been  an  indispensable  auxiliary  in  the  furtherance  of  all 
of  the  schemes  for  the  improvement  of  conditions  in  all  the 
islands,  but  more  especially  in  the  Philippines,  where  its  chief 
efforts  seem  to  have  been  centered. 

To  the  Bureau  of  Insular  Affairs  are  assigned  all  matters 
pertaining  to  civil  government  in  the  island  possessions  of  the 
United  States  subject  to  the  jurisdiction  of  the  War  Depart- 
ment ;  also  the  transaction  of  all  business  in  this  country  in 
relation  to  the  temporary  administration  of  the  government 
of  the  Republic  of  Cuba,  established  imder  the  provisions 
of  the  Piatt _  Amendment  on  September  29,  1906,  which  is 
subject  to  the  supervision  of  the  Secretary  of  War,  as 
well  as  making  it  a  matter  of  official  record.  The  Bureau 
of  lns\ilar  Affairs  is  the  repository  of  all  the  civil  rec- 
ords of  the  Philippines  and  of  the  former  government 
or  occupation  of  Cuba  (which  terminated  May  20,  1902), 
as  well  as  the  records  of  Porto  Rico  during  the  period 
(ending  April  30,  1900)  in  which  the  War  Department  exer- 
cised jurisdiction  over  that  island.  It  is  required  to  furnish 
information  relative  to  these  subjects.  It  prepares,  compiles, 
and  arranges  for  publication  executive  documents  relating 
to  the  affairs  of  the  islands  under  it.  It  makes  a  comptroller's 
review  of  the  receipts  and  expenditures  of  tne  Philippine  gov- 
ernment, and  prepares  final  statements  for  presentation  to 
Congress  of  all  such  accounts.  It  makes  the  purchases  of  sup- 
plies in  the  United  States  for  the  Philippine  government,  makes 
paj^ment  therefor,  and  arranges  for  their  shipment  to  Manila. 
It  has  charge  of  appointments  in  the  United  States  to  the 
Philippine  civil  service,  including  arrangements  for  transporta- 
tion. It  gathers  statistics  of  insular  imports  and  exports, 
shipping  and  immigration,  and  quarterly  summaries  of  the 
same    are   issu<»,d   so    far   as    the    Philippines   are    concerned. 

WORK  OP  THE  ARMY  IN  ALASKA. 
Military    Telegpapli    System. 

An  extensive  system  of  military  telegraph  lines  in  Alaska, 
provided  for  in  Act  of  Congress  approved  May  26,  1900,  was 
the  first  step  toward  secAiring  for  the  enormous  territory  of 
the  north  the  means  of  commimicating  by  electricity  from  the 
isolated  camps  and  settlements  of  the  territory  to  the  outer 
world.  When  without  the  telegraph  for  many  months  of  the 
year  nearly  all  communication  would  cease  in  Alaska  and  the 
region  would  become  a  closed  world  to  the  rest  of  mankind. 
The  plan  to  wire  Alaska  was  stupendous  in  conception,  and  has 
been  broug-ht  to  its  present  state  of  completeness  through  the 
energetic  work  of  the  Signal  Corps,  assisted  by  the  line  of  the 
army. 

The  construction  began  in  the  late  summer  of  1900  at  Val- 
dez  and  Fort  Liscum,  and  the  system  proper,  land  lines,  cables 
and  wireless,  was  completed  October,  1904.  Including  extensions 
and  changes  made  in  the  route  since  then,  the  system  is  now 
composed  of  1,403  miles  of  land  lines,  107  miles  of  wireless, 
and  2,524  miles  of  submarine  cable.  The  land  lines  connect  with 
the  cable  system  at  Valdez  and  extend  from  that  point  to  Saint 
Michael  and  Eagle  City.  This  great  system  now  affords  an 
ail-American  line  of  telegraphic  communication  between  the 
United  States  and  the  important  military  ^nd  commercial 
points  in  Alaska,  and  was  accomplished  by  the  officers  and 
men  of  our  army  notwithstanding  the  almost  impossible  diffi 
culties  in  the  way  of  absolutely  unknown  country,  laborious 
means  of  inland  trans])ortation,  lim'ted  working  season,  in- 
tense  cold  in  Avinter   and  flood   in   sn-u-ner. 

As  a  piece  of  pioneering,  the  openir.g  of  the  trails,  which 
was  an  incident  of  the  construction  of  the  telegraph  system 
through   Alaska,   has  added   another   chapter  to   the    excellent 


WAR  DEPARTMENT.  361 

record  of  the  American  army  in  this  regard.  The  establish- 
ment of  a  chain  of  teleg-raph  offices  and  repair  stations  has 
made  possible  comparatiAely  easy  and  safe  travel  along-  these 
Arctic  trails,  npon  which  many  a  prospector  would  probably 
have  lost  his  life  had  it  not  been  for  the  refuge  houses  thus 
established. 

Road    Work. 

Since  the  spring  of  1905  a  board  of  army  officers  appointed 
by  the  Secretary  of  War  have  been  rendering  most  effective  ser- 
vice in  opening  up  and  developing  the  great  natural  resources 
of  Alaska  by  constructing  and  maintaining  wagon  roads,  bridges 
and  trails.  Lp  to  date  they  have  completed  about  200  miles 
of  wagon  road,  400  miles  o,f  winter  sled  road,  300  miles  of 
dog-team  and  pack  trail,  completed  three  river  bridges  and  in- 
stalled three  ferries. 

The  beneficial  effects  of  this  road  and  bridge  work  were  ap- 
parent at  once,  and  have -been  speedily  followed  by  an  appreci- 
able i-eduction  in  freight  rates  and  a  saving  of  time  in  trans- 
portation. 

PROFITING    BY    LESSOIVS    OF    THE    WAR    WITH    SPAIN. 

The  unprepared  condition  of  the  country  and  the  Govern- 
ment for  war,  disclosed  at  the  beginning  of  the  war  with  Spain 
and  painfully  apparent  as  the  weeks  and  months  of  j^reparation 
and  of  the  war  itself  passed,  led  the  administrations  of  Presi- 
dents McKinley  and  Koosevelt  to  enter  upon  and  carry  out  a 
deliberate  and  well  thought  out  plan  of  reorganizing  and 
strengthening  the  military  service  for  purposes  of  national 
defense  and  for  increasing  its  usefulness  to  the  country 
in  times  of  peace.  That  these  plans  have  resulted  in  great  im- 
provements in  all  these  lines  can  but  be  apparent  from  the 
facts  here  presented,  and  that  the  results  fully  justify  the  work 
undertaken  and  carried  out  is  equally  apparent. 

The  war  with  Spain  demonstrated: 

That  the  organization  of  the  Army,  inherited  with  few 
modifications  from  the  fathers  of  the  Kevolution,  was  inelastic, 
seriously  defective  in  some  details,  obsolete  in  others. 

That  the  United  States  was  absolutely  without  any  effective 
coast  defense  system,  especially  so  far  as  concerned  the  mining  of 
harbors. 

That  not  only  should  the  artillery  corps  be  enlarged,  but 
that  it  should  be  divided  so  as  to  make  the  mobile  and  immobile 
sections  of  it  complete  in  organization  unde,r  separate  and  dis- 
tinct heads.  Therefore  the  coast  artillery  proper  was  made  to 
consist  of  the  immobile  part  of  the  artillery,  while  the  field  ar- 
tillery, which  is  the  mobile  fighting  element,  was  organized  into 
regiments  wholly  separate  and  apart  from  the  coast  artillery. 

That  better  organization  in  the  manufacturing  and  supply 
departments  of  the  army  w^as  absolutely  necessary.  Tnere  was 
lack  of  mimitions  and  other  materials  of  war,  as  well  as  lack 
of  arms,  both  small  and  large. 

That  a  genei-al  staff  system  was  imperatively  needed  in  our 
arms  to  co-ordinate  and  supervise  the  military  operations  of 
the  various  branches  with  a  view  to  promoting  the  general 
efficiency  of  the  army  and  securing  a  condition  of  preparedness 
for  any  emergency  it  might  be  called  upon  to  meet. 

That  our  regular  army  should  be  enlarged  to  a  size  more 
nearly  corresponding  to  the  magnitude  of  the  country  and  its 
need  for  national  defense. 

That  our  militia  system  should  be  improved,  its  organi- 
zation and  discipline  assimilated  to  that  of  the  Regular  Army, 
with  which  its  members  should  be  brought  into  more  intimate 
contact  and  relationship. 

PRINCIPAL     ACHIEVEMENTS     IN      THE     WAR     DEPARTMENT 
UNDER    THE    PRESENT    NATIONAL,    ADMINISTRATION. 

War   Department   Administration. 

The  War  Department  has  been  entirely  reorganized  and  today 
its  administrative  methods  are  better  systematized  and  pro- 
duce quicker  and  more  satisfactory  results  than  ever  before  in 
the  history  of  the  War  Department. 


:{52  iVAR  DEPARTMENT. 

HeorKiMiixHtioii    <»lf  the  Army. 

The  Army  has  been  eiihirjj^ed  and  reorganized,  and  many  of 
its  obsolete  methods  liave  been  discarded  or  replaced  by  new 
ones. 

New  Military  E^diientiun   SyNteiii. 

Tl^e  military  educational  system  has  been  brought  to  a  higher 
plane  of  eiliciency  than  ^ever  before,  and  today  is  not  surpassed 
by  that  of  any  other  nation  on  earth. 

During  the  past  seven  years  the  subject  of  general  military 
education  has  received  more  attention  than  ever  before  in  the 
history  of  the  American  army.  There  lias  been  established  a 
progressive  educational  system  embracing  army  service  schools 
at  Fort  Leavenworth,  Kansas,  which  include  the  school  of  the 
line,  the  Staff  college,  and  the  Signal  School;  mounted  service 
schools  at  Fort  liiley,  Kansas,  including  the  training  school 
for  officers  and  non-conmiissioned  officers ;  the  training  school 
for  farriers  and  horseshoers,  and  the  training  school  for  bakers 
and  cooks ;  the  Coast  Artillery  School  and  the  School  of  Sub- 
marine Defense  at  Fort  Monroe,  Virginia ;  the  Engineer  School 
at  Washington  Barracks,  D.  C. ;  the  Army  Medical  School  and 
the  new  Army  War  College  at  Washington,  D.  C. 

The-  object  of  the  War  College  is  not  to  impart  academic 
instruction,  but  to  make  practical  application  of  military  knowl- 
edge already  acquired.  Its  work  includes  all  that  is  involved 
in  the  preparation  for  war  of  the  officers  of  the  army  in  stra- 
tegical and  tactical  problems,  and  embraces  all  the  general 
system  of  military  instruction  at  all  the  posts,  garrison 
and  service  schools,  as  well  as  at  the  Statf  College;  also  to 
supervise  and  classify'  the  civic  schools  and  colleges  at  which 
army  officers  are  detailed  as  instructors,  with  a  view  to  select- 
ing those  schools  from  which  graduates  may  be  appointed  as 
second  lieutenants  in  the  army.  The  students  are  selected 
by  the  Chief  of  Staff  and  detailed  by  orders  from  the  War  De- 
partment in  such  number  as  may  be  expedient  for  the  course 
of  instruction  beginning  November  1st  and  ending  October 
31st.  The  Army  War  College  goes  beyond  any  institution  of 
the  kind  ever  attempted  before  in  this  country.  It  opens  and 
controls  a  field  of  military  training  extending  beyond  the  army 
itself  and  even  to  the  organized  militia  of  the  States,  whose  offi- 
cers are  eligible  for  instruction  at  the  service  military  schools ; 
it  guarantees  facilities  and  all  possible  encouragement  and  help 
for  military  educa'tion;  and  beyond  this  it  goes  further  and 
extends  a  helping  hand  even  to  the  young  students  of  the 
various  civic  colleges  in  the  country.  All  in  all,  it  is  an 
institution  of  military  learning  and  for  the  general  direction 
of  military  instruction  unequaled  in  any  other  country. 

Iniproventeiit    of   Artillery    Service. 

The  artillery  branch  of  the  army  has  been  enlarged  and 
entirely  reorganized — divided  into  two  parts,  the  mobile  or  field 
artillery,  and  the  immobile  or  coast  artillery.  The  former  has 
taken  its  place  with  the  infantry  and  cavalry  and  other  ele- 
ments of  the  moving  army,  whereas  the  latter,  under  the  im- 
mediate direction  and  control  of  the  Chief  of  Coast  Artillery, 
is  charged  with  all  coast  defensive  duty. 

Seacoa»t  Defenses. 

The  Engineer  and  Ordnance  Departments,  which  are  charged 
with  the  construction  and  arming  of  seacoast  fortifications, 
and  the  Quartermaster's  Department,  the  Signal  Corps  and  the 
Artillery  Corps,  which  provide  auxiliary  defenses  and  accessories, 
are  all  working  with  more  effective  co-operation  than  ever  before, 
and  for  the  first  time  in  the  history  of  the  United  States  the 
seacoast  fortifications  are  now  in  position  to  defend  the  coast 
without  reliance  upon  the  navy.  Thus  the  navy  in  the  event 
of  war  would  be  set  loose  and  free  to  exercise  its  legitimate 
function  of  seeking  the  enemy's  fleet. 

The  "Taft  Board"  has  made  many  important  Cnatii^R  in 
the  national  system  of  coast  defenses  formulated  bv  the  "Eudi- 


WAR  DEPARTMENT.  363 

cott  Board,"  which  not  only  result  in  much  saving  of  money, 
but  contemplate  greater  protection  for  the  big  harbors  than 
ever  before  undertaken.  Great  reductions  have  been  accom- 
plished in  the  cost  of  emplacements,  while  the  efficiency  of  the 
guns  has  been  at  the  same  time  enormously  enhanced.  Heavy 
seacoast  guns  that  were  formerly  mounted  on  gun-lifts,  whereby 
the  gunners  were  protected  from  the  enemy  while  loading  and 
after  firing,  could  only  be  fired  once  in  eight  minutes,  and  the 
cost  of  the  gun-lift  was  $535,000.  Similar  guns  are  now  mounted 
on  disappearing  carriages  at  a  cost  of  $150,000,  being  a  reduction 
of  $375,000  in  the  cost  of  mounting,  with  equal  or  better  pro- 
tection to  guns  and  men,  and  the  guns  can  be  fired  ten  times 
in  eight  minutes,  or  ten  times  faster  than  a  few  years  ago. 

This  Board  brought  about  a  rearrangement  of  and  additions 
to  the  lists  of  ports  recommended  by  the  Endicott  Board  for 
fortification.  These  rearrangements  and  additions  embraced 
within  the  new  scheme  of  the  Taft  Board  were  due  to  the 
growth  of  the  country,  the  improvements  in  ordnance  and  the 
building  of  a  navy,  as  well  as  to  matters  of  naval  policy  de- 
veloped during  the  preceding  twenty  years,  and  to  recent  dis- 
coveries in  the  science  of  manufacture  of  ordnance  and  ma- 
terials of  war  which  could  not  be  evaded. 

The  Endicott  Board,  while  attaching  importance  to  defenses 
at  the  entrance  to  Chesapeake  Bay  for  the  protection  of  Hamp- 
ton Roads,  Norfolk,  Newport  News,  Washington,  and  Baltimore, 
and  at  the  eastern  entrance  to  Long  Island  Sound  for  the  pro- 
tection of  New  York,  confined  its  recommendations  respecting 
these  localities  to  so-called  floating  defenses  or  floating  bat- 
teries, as  outer  lines  of  defense.  The  Taft  Board,  however, 
regarded  Chesapeake  Bay  as  commercially  and  strategically 
of  the  very  first  importance,  and  regarded  the  completion  of 
fortifications  at  the  entrance  to  Long  Island  Sound  as  only 
second  to  the  consideration  due  to  Chesapeake  Bay.  It  wiil 
thus  be  seen  that  by  taking  all  necessary  action  looking  to  the 
complete  defense  of  the  entrances  to  Chesapeake  Bay,  which 
command  the  approaches  to  both  Washington  and  Baltimore, 
and  the  entrance  to  LoYig  Island  Sound,  which  constitutes  the 
first  line  of  defense  of  New  York  City  against  naval  attack 
from  that  direction,  the  Taft  Board  has  taken  the  precaution 
to  look  well  after  the  hitherto  neglected  national  metropolis 
as  well  as  the  national  Capital.  The  Taft  Board  also  took  up 
the  demands  of  Puget  Sound,  which  in  recent  years  has  become 
of  the  greatest  strategic  and  commercial  importance,  due 
to  the  completion  in  the  extreme  northwest  of  great  railway 
systems,  the  rapid  development  of  commercial,  agricultural  and 
manufacturing  interests,  and  the  establishment  of  a  navy  yard 
containing  the  only  dry  dock  on  the  Pacific  coast  with  a 
capacity  for  a  battleship.  In  addition  to  these  important  recom- 
mendations, the  Taft  Board  likewise  considered  and  devised 
a  scheme  for  fortifying  the  insular  possessions,  including 
Manila,  Honolulu,  and  San  Juan,  whose  military  importance  as 
naval  bases  and  coaling  stations,  aside  from  other  consider- 
ations, demanded  proper  attention,  and  furthermore  provided 
for  fortifying  the  Isthmian  Canal  ports  of  Colon  and  Panama, 
two  most  important  projects,  to  be  paid  for  out  of  the  Panama 
Canal  fund. 

Notwithstanding  all  the  important  changes  made  in  the  sys- 
tem of  national  defenses,  the  plan  of  the  Taft  Board  contem- 
plates that  adequate  defenses  may  be  secured  for  both  the 
Atlantic  and  Pacific  coasts  for  $277,239  less  than  that  esti- 
mated by  the  Endicott  Board,  and  that  the  defense  of  the 
twenty-two  ports  common  to  both  the  former  and  the  present 
systems  can  be  completed  for  $22,890,606,00  less  than  the  sum 
originally  proposed  by  the  Endicott  Board,  if  omission  be  made 
from  the  comparison  of  estimates  for  ammunition  and  sites. 

Small     Arms. 

New  models  of  rifles,  bayonets,  and  entrenching  tools  have 
been  adopted,  manufactured,  and  issued  since  1906.  not  only  to 
the  regular  army,  but  to  the  organized  militia  of  the  States  a^ 
well. 


354  "WAR  DEPARTMENT. 

Pri<or,ta  the  Civil  War  tJlie  national  workshops  of  the  Ord- 
nance l)cpartmt»nt  could  barely  complete  thirty  rifles  a  day.  In 
1897  their  eapacity  was  only  ;2()()  ^iins  per  day.  Now  the  two 
giant  ^iin  factories  at  the  Spring-field  and  llock  Island  Ai'senals 
are  callable  of  manufacturing-  between  650  and  700  complete  ritles 
every  working-  day  of  eig-ht  houi-s,  and  in  an  emergency  could 
|)roduce  1,500. 

The    New    MlUtla    System. 

The  National  Guard  or  the  organized  militia  of  tlje  States, 
under  the  supervision  of  the  War  Department,  has  been  brought 
to  a  very  high  state  of  pi-actical  efficiency.  The  old  militia  laws, 
which  for  more  than  a  hundred  years  defied  all  attempts  at 
change,  have  given  way  at  last,  and  State  and  Federal  troops  are 
to-day  in  closer  touch  than  ever  before  in  our  history.  Whatever 
may  have  been  the  reason  for  this  former  irfaction  in  regard 
to  an  important  feature  of  our  military  organization,  it  was 
reserved  for  the  present  National  Administration  to  present 
the  matter  to  Congress  in  a  way  which  finally  resulted  in  the 
Federal  militia  law  of  January  21,  1903,  which  has  rescued  the' 
militia  from  its  realm  of  obsoletism. 

Since  the  enactment  of  that  law  the  War  Department  has 
devoted  itself  to  improving  in  every  possible  way  the  organized 
militia  of  the  States,  now  commonly  known  as  tlie  National 
Guard.  From  time  to  time,  beginning  with  the  large  mobiliza- 
tion of  over  twenty-six  thousand  militiamen  at  Manassas  in  1904, 
there  have  been  joint  encampments  of  the  regular  army  and  the 
National  Giard,  and  a  system  has  been  adopted  by  which  the 
State  troops  are  more  or  less  constantly  under  the  surveillance 
and  instruction  of  the  regular  army. 

Acting  upon  the  theory  that  there  should  be  an  available 
military  reserve  to  act  as  supports  and  defenders  of  the  sea- 
coast  artillery  from  land  ."ittacks,  within  the  past  two  years 
a  system  of  instruction  has  been  inaugurated  for  such  organ- 
izations of  the  National  Guard  as  were  willing  to  assemble  at 
the  various  regular  army  artillerj'  posts.  In  this  way  an  in- 
ttn-cst  has  been  awakened,  which  jt  is  hoped  will  lead  to  the 
organization  of  coast  artillery  companies  in  many  of  the  cities 
of  the  States  adjacent  to  the  larger  artillery  defensive  points. 

Additional  miiitia  legislation  amending  the  militia  law  of  1903 
in  the  light  of  experience  of  its  actual  workings  during  the  past 
five  years  was  secured  at  the  last  session  of  Congress.  Under  the 
provisions  of  that  act,  approved  May  27,  1908,  the  value  of  the 
militia  to  the  Government  in  the  event  of  war  would  be  greater 
than  ever  before,  as  this  body  of  citizen  soldiery,  fully  armed, 
clothed,  and  equipped,  and  having  the  same  organization  and  sys- 
,tem  of  drill  and  tr-iininij-  as  the  re'ifular  arinv  would  be  immedi- 
ately available  at  the  first  outbreak  of  hostilities  to  supplement 
our  small  standing-  army  and  to  constitute  with  it  the  nucleus  of 
those  greater  volunteer  armies  upon  which  this  country  must  al- 
ways depend  in  time  of  war. 


SUPPLY  DEPARTMENTS. 
Practical    Demonstration    of    Improved    Conditions. 

The  sup])ly  departments  of  the  Army  are  better  organized, 
better  equipped,  and  more  resourcefid  than  ever  before. 

A  practical  illustration  of  the  increased  efficiency  and  re- 
sourcefulness of  the  (Quartermaster's  and  other  supply  depart- 
ments was  given  in  1906  in  connection  with  the  movement  of  the 
army  of  Ciilian  pacification.  As  if  to  demonstrate  the  improved 
conditions  that  were  prevailing  in  1906  over  those  unsatisfactory 
conditions  that  prevailed  in  1898,  within  five  minutes  after  re- 
ceipt of  the  telegram  from  the  President  directing  the  movement, 
the  necessary  orders  for  the  movement  of  the  selected  troops 
w^ere  in  the  hands  of  the  telegraph  operators,  and  a  camp  was 
quickly  established  at  Newport  News,  Virginia,  to  serve  as  a 
basis  of  operations.  The  stores  and  supplies  necessaiy  to  equip 
this  expedition  of  380  officers  and  5,220  men  were  promptly  set 
aside  at  designated  depots  of  the  Quartermaster's  Department, 
and  the  officers  in  charge  of  the  depots  were  instructed  to  be 


War  department.  355 

J)repared  to  ship  supplies  promptly  on  notification.  This  work 
was  so  well  handled,  that  within  twenty-four  hours  after  tele- 
gfraphic  instructions  for  forwarding*  these  supplies  were  received 
they  were  en  route  to  their  destination  by  fast  freight  and  ex- 
press from  Philadelphia,  New  York,  Boston,  Chicago,  Jefferson- 
ville  and  St.  Louis,  including  clothing,  camp  and  garrison  equi- 
page, and  all  the  various  articles  of  military  supplies  needed  for 
the  army  about  to  start  for  Cuba.  In  addition  to  these 
articles  other  shipments  were  made  from  time  to  time  as 
required,  and  the  War  Department  in  all  respects  had  reason 
to  congratulate  itself,  not  only  on  the  carefulness  with  which 
that  mobilization  of  troops  had  been  so  satisfactorily  effected, 
but  on  the  complete  and  expeditious  manner  in  which  the 
troops  had  been  amply  supplied  and  equipped  with  all  that  was 
needed  for  the  expedition  upon  which  they  were  about  to  start. 

The  army  is  better  fed  than  ever  before.  The  Subsistence 
Department  has  devoted  much  time,  not  only  to  the  selection  of 
proper  food  stuffs  for  the  Army  rations,  but  has  likewise  studied 
closely  the  methods  of  food  preparation,  and  has  established  a 
school  for  the  training  of  army  cooks.  It  has  also,  by  the  use  of 
the  newly  invented  so-called  "Fireless  Cooker,"  provided  for  fur- 
nishing warm  cooked  food  in  camp,  on  the  march,  on  the  battle- 
field; and  even  on  the  firing  line  if  necessary. 

The  Subsistence  Department,  aside  from  its  strictly  military 
duties,  has  won  the  admiration  of  the  people  generally  through- 
out the  countrj^  by  proving  itself  of  inestimable  help  to  stricken 
communities  in  times  of  emergency  and  catastrophe,  such  as 
earthquakes,  cyclones,  famines,  fires,  and  floods.  These  efforts 
have  called  forth  the  warmest  expressions  of  gratitude  from  the 
beneficiaries.  Among  the  most  notable  instances  which  have 
occurred  in  this  respect  are  those  on  the  occasion  of  the 
loss  of  life  and  property  during  the  flood  on  the  Mississippi 
Kiver  in  1897  ;  during  the  Santiago  campaign  of  1898,  when  the 
Spaniards  expelled  the  people  from  the  city  and  they  came 
to  the  American  Army  in  a  wretched  and  starving  condition 
and  were  fed  and  cared  for;  when  Porto  Rico  was  visited  by  the 
destructive  hurricane  in  1899,  which  left  death  and  starvation 
in  its  wake;  in  the  disaster  at  Galveston  in  1900,  when  the 
city  was  almost  swept  away  by  flood  and  thousands  of  lives 
were  lost;  when  the  volcanic  eruption  occurred  in  the  French 
West  Indies  in  1902,  in  which  nearly  40,000  human  beings  per- 
ished; and  when  the  people  of  Cuba  were  subjected  to  the 
horrors  of  the  "Keconcentrado"  order  and  were  starving.  It 
was  in  a  measure  a  race  against  death  when  the  steamship 
"Comal"  carried  succor  to  the  helpless  and  famished  peo]3le  of 
that  island,  who  were  perhaps  saved  from  partial  extinction  by 
the  timely  and  generous  efforts  in  their  behalf.  The  Sub- 
sistence Department  fed  the  helpless  and  starving  Filipinos 
by  purchasing  and  distributing  for  the  Insular  Government 
over  20,000,000  pounds  of  rice,  sugar,  and  salt  in  1902.  This, 
while  from  motives  of  humanity,  operated  in  the  end  as  a  vital 
war  measure.  In  the  appalling  calamity  which  overtook  San 
Francisco  and  neighboring  cities  in  the  spring  of  1906,  when 
earthquake  and  conflagration  rendered  thousands  homeless 
:and  hungry,  the  Subsistence  Department  was  charged  with  feed- 
ing the  destitute  and  the  unfortunate;  and  while  the  earthquake 
and  fire  had  destroyed  the  Commissary  Depot  in  San  Francisco 
at  that  time,  the  personnel  of  the  Commissary  Depot  remained 
intact  and  its  organization  was  enabled  to  render  invaluable 
service  in  the  distribution  of  the  needed  relief.  This  relief 
was  continiied  for  some  time  through  the  efforts  of  the  Na- 
tional Red  Cross  Association,  and  through  donations  from  other 
charitable   institutions   and   private    individuals. 

The  purchase  and  inspection  of  large  quantities  of  supplies 
needed  for  relief  of  the  starving  in  China  last  year  were  mostly 
made  by  the  Subsistence  Department.  Upon  request  of  the  Na- 
(t-ional  Red  Cross  Association  the  Department  purchased  relief 
supplies  at  .San  Francisco  for  that  orgnnization  in  connection 
-with  the  Chinese  Famine  Relief,  and  all  Subsistence  officers 
'who  were  requested  to  act  as  purchasing  agents  for  the  pur- 
pose promptly  expressed  their  willingness  to  serve  in  sv.ch 
capacity.     The  Christian   Herald    of  New  York  also  asked   the 


.  .>u  WAR  DEPARTMENT. 

Department  to  purchase  and  inspect  supplies  to  be  provided 
fr<un  the  fund  raised  by  that  paper  for  the  relief  of  the  famine- 
stricken  people  in  China.  IJoth  the  lied  Cross  Association  and 
the  Christian  Herald  expressed  the  highest  ^^.ppreciation  of  the 
services  rendered,  and  the  editor  of  the  Christian  Herald  said, 
among-  other  Ihinji^s,  that  the  services  which  the  Department 
rendered    "could   not   have   been    improved    upon." 

In  the  recent  cyclone  that  visited  the  Southern  States — in- 
volving' loss  of  life,  destitution,  and  destruction  of  j>ro])erty — 
tlie  Subsistence  Department  responded  prom])tly  and  effectively 
to   the   call   made    upon   it. 

'W^urk  of  the  Army  of  Paclflcutton  in  Cuba  in  190<i. 

On  account  of  the  insurrection  in  Cuba  in  1906  the  necessity 
arose  for  the  intervention  of  the  United  States,  and  on  Septem- 
ber 28,  1906,  an  expedition  of  United  States  troops  consisting  of 
380  officers  and  5,220  men  sailed  for  Habana.  Onr  ti'oops  forming 
the  army  of  pacification  are  still  in  Cuba  under  the  command  of 
a  major-general  of  the  United  States  army,  who  is  conducting 
military  administration  under  the  advice  artd  direction  of  the 
Civil  Governor  of  Cuba,  ai)pointed  by  the  President  of  the  United 
States,  and  the  good  results  of  that  military  aid  to  Cuba  are 
already  being  demonstrated  in  all  parts  of  the  island,  as  will  be 
shown  elsewhere  in  the  special  chapter  devoted  to  Culm.  From 
the  date  of  arrival  in  Cuba  of  the  troops  constituting  this  army 
it  had  been  what  its  name  implies — an  army  of  pacification — and 
no  cases  whatever  had  arisen, for  resort  to  force  of  any  kind.  1'lie 
moral  effect  of  the  pr;\sence  of  this  little  Army  of  Pacification 
has  nevertheless  shown  itself  everywhere,  so  that  the  remotest 
nooks  and  corners  of  Cuba  have  been  made  aware  of  the  fact  that 
United  States  soldiers  are  there  for  the  protection  of  the  people 
and  the  enforcement  of  the  law.  Details  of  the  work  performed 
in  Cuba  by  officers  and  men  of  the  War  Department  are  stated 
in  another  chapter.  . 

Medical    Department. 

In  modern  warfare  the  service  rendered  by  a  medical  corps 
consists  largely  in  enforcing  sanitary  precautions  and  health 
measures  that  will  reduce  disease  among  the  troops  to  a  mini- 
mmn  and  prevent  their  effective  fighting  strength  from  being 
unnecessarily  lessened  from  this  cause.  This  is  particularly  true 
in  onr  own  case,  because  in  any  war  in  which  the  United  States 
ma}'  ever  be  engaged  our  armies  will  always  consist  in  the  main 
of  volunteers,  who  naturally  do  not  fully  realize  the  immense 
importance  of  safe-guarding  their  health  and  taking  care  of 
their  physical  condition,  and  if  they  did  are  not  trained  in  the 
matters  essential  for  that  purpose. 

Adequate  provision  for  caring  for  the  health  and  comfort  of 
the  volunteer  forces  in  time  of  war  could  only  be  made  by  crea- 
ting a  sufficiently  large  body  of  competent  surgeons  with  military 
knowledge  and  training,  requiring  years  of  hard  and  conscien- 
tious work.  These  facts  were  pressed  upon  the  attention  of  Con- 
gress with  great  earnestness  by  the  War  Depai-tment,  and  on 
April  23,  1908,  a  measure  of  relief  was  passed.  Under  the  pro- 
visions of  this  law  the  Medical  Department  has  been  enlarged, 
and  for  the  first  time  is  now  in  position  to  prevent  the  needless 
loss  of  life  and  treasure  which  in  times  past  resulted  from  in- 
sufficient medical  attendance. 

River  and  Harbor  Improvements. 

In  no  department  of  government  activity  perhaps  has  there 
been  more  progress  during  the  past  twelve  years  than  in  the 
work  of  improving  rivers  and  harbors,  which  has  been  under 
the  direct  supervision  and  control  of  the  Corps  of  Engineers 
of  the  Army,  and  certainly  there  is  no  field  of  effort  more 
important  or  beneficial  to  the  people  at  large. 

At  no  period  has  this  development  been  greater  than  between 
the  years  1896-1908,  and  the  systematic  and  energetic  methods 
employed,  born  of  experience  and  intelligent  conception  on 
the  part  of  Congress  and  the  executive,  have  resulted  in  a 
maximum  of  benefit  to  the  agricultural,  commercial,  and  manu- 


WAR  DEPARTMENT.  357 

factiiring-  interests  of  the  country  at  a  minimum  of  cost.  Dur- 
ing- these  thirteen  years  Congress  has  appropriated  a  total  of 
$264,215,113  for  the  execution  of  definite  projects  carefully  and 
scientifically   formulated   by   experienced   eng-ineers. 

There  are  now  592  separate  works  being  carried  on  under 
the  charge  and  supervision  of  sixty-four  trained  and  educated 
officers  of  the  Corps  of  Engineers.  These  works  range  from 
the  bays  and  broad  armed  ports  wiaere  "rich  navies  ride,"  to 
the  small  streams,  creeks,  and  inlets  over  which  the  products 
of  the  farm  are  carried  to  market  in  rowboats  and  in  small 
schooners,  or  lumber  from  our  virgin  forests  is  floated  in 
rafts.  In  1896,  about  7^500  men  were  employed  on  river  and 
harbor  works,  'whereas  during  the  past  year  more  than  15,000 
have  been  given  regular  and  profitable  employment,  an  increase 
of  100  j)er  cent. 

To  convey  an  accurate  understanding  of  the  magnitude  of 
the  internal  commerce  using  our  waterways,  and  of  the  w6rk 
that  has  been  accomplished  for  its  convenience,  is  an  almost 
impossible  task.  The  constant  g-rowth  in  size,  draft,  and  carry- 
ing capacity  of  vessels  navigating  the  inland  waterways,  as  well 
as  those  emjJoyed  on  the  seaboard,  has  necessitated  increased 
depths  and  widths  of  channel.  Twenty-five  years  ago  harbor 
depths  of  from  12  to  25  feet  were  considered  ample,  but  depths 
of  30,  35  and  even  40  feet  are  now  required  in  our  imj)ortant 
harbors,  and  have  already  been  acquired  or  provided  for. 

Among  the  results  accomplished  up  to  the  present  time 
may  be  mentioned  the  increased  depths  and  widths  of  chan- 
nels in  the  great  harbors  of  the  country,  particularly  Charles- 
ton, where  the  depth  has  been  increased  from  10  to  26  feet; 
Anibrose  Channel^  New  York  Harbor,  where  the  original  avail- 
able depth  of  16  feet  has  been  increased  to  35  feet,  and  it  is 
estimated  will  be  still  further  increased  to  40  feet  by  the  year 
1910;  and  Galveston,  where  the  original  depth  of  9  feet  has 
been  increased  to  a  ruling  depth  varying  between  27 1/^  and  30 
feet;  the  improvement  of  the  ports  and  rivers  tributary  to  the 
Great  Lakes,  which  has  developed  a  marine  performing  a  ser- 
vice greater  than  that  done  by  one-quarter  the  entire  railway 
freight  equipment  of  the  nation,  and  forming  a  means  of  trans- 
portation costing  only  about  one-ninth  of  the  cost  of  the  same 
service  by  rail;  the  construction  of  canals,  and  thirty-two  differ- 
ent slack-water  systems  as  artificial  aids  to  the  navigation 
of  rivers,  such  as  the  St.  Mary's  Falls  Canal,  through  which 
there  passed  during  the  calendar  year  1907,  15,643  vessels, 
aggregating  32,001,110  registered  tons,  and  carrying  42,631,846 
tons  of  freight,  and  32,875  passengers.  The  corresponding- 
figures  for  the  Suez  Canal  for  the  same  period  are  as  follows: 
Number  of  vessels,  4,273  (of  which  64  were  men-of-war,  trans- 
ports, etc.) ;  gross  and  net  tonnage  respectively  of  merchant 
vessels,  20,307,880  and  14,596,478;  gross  and  net  tonnage, 
respectively,  of  men-of-war,  transports,  etc.,  245,361  and 
131,848 ;  total  gross  and  net  tonnage,  respectively,  20,533,241 
and  14,728,326;  total  number  of  passengers,  261,275  (of 
which  105,686  were  military  and  158,589  civil) ;  the  improvement 
of  the  Mississippi  river  and  its  tributaries,  aggregating  more 
than  16,000  miles  of  navigable  waterways,  reaching  the  very  cen- 
ter of  the  country  and  affording  a  cheap  and  ready  means  of 
transporting  the  vast  products  of  farm  and  mine;  the  im- 
provement of  various  important  harbors  and  waterways  on  the 
Pacific  Coast,  including  the  Columbia  Elver,  which  penetrates 
the  rich  forests  of  Washington  and  the  grain-bearing  regions 
of  Oregon,  and  into  which,  since  improvement,  the  largest 
vessels  can  now  enter  and  depart  without  difficulty — in  short, 
every  part  of  our  seacoast,  from  St.  John  to  the  Eio  Grande, 
from  San  Diego  to  Puget  Sound,  more  than  23,000  miles  in 
extent,  and  every  section  of  the  country  traversed  by  our 
inland  waterways  has  been  benefited  by  reason  of  the  increased 
facilities  and  lessened  cost  of  transportation. 

The  value  to  our  commercial  and  industrial  interests  of  the 
work  of  the  army  engineers  under  the  direction  of  the  War 
Department  in  the  improvement  of  rivers  and  harbors  is  in- 
calculable. Directly  or  indirectly  it  touches  beneficially  every 
home  in  the  land. 


358  WAR  DEPARTMENT. 


Relief   Work    of   the    Army    lii    Autiunul    E^iiierK't'iicleB. 

The  army,  aside  from  its  strictly  military  functions,  performs 
civic  duties  which,  besides  adding  to  the  g-eneral  welfare  of  the 
country,  tend  to  give  to  the  people  a  feeling-  of  greater  security 
and  confidence.  In  times  of  great  national  disaster  and  affliction 
or  even  State  catastrophes,  when  the  State  is  unable  to  meet 
the  situation  wholly,  the  army  becomes  the  quick  and  faith- 
ful agency  of  the  National  Government,  in  extending  relief 
to  ihe  afflicted.  In  numerous  instances  of  direful  exigency  the 
Quartermaster's  Department  has  furnished  to  the  people  shel- 
ter and  fuel;  the  Subsistence  Department  has  furnished  both 
cooked  and  uncooked  food;  and  the  Medical  Department  has 
furnished  medical  supplies  and  given  medical  attention  to  the 
sick  and  needy,  while  the  Signal  Corps  of  the  Army  has  been 
prompt  in  putting  iip  telegraph  wires  and  maintaining  unin- 
terrupted private  and  commercial  communications,  as  was 
notably  the  case  in  San  Francisco,  when  the  Signal  Corps 
men  were  stringing  wires  within  a  few  hours  after  they  were 
down,  over  the  still  smoldering  fire  district  of  that  stricken 
city. 

In  addition  to  this,  soldiers  of  all  arms  of  the  service,  when 
occasion  required  have  been  placed  on  duty  as  guards  and 
patrols  for  the  protection  of  life  and  property,  and  never 
yet  in  a  single  instance  has  the  War  Department  failed  to  re- 
spond to  a  call  for  help  from  any  section  of  the  United  States- 
even  now  afflicted  and  homeless  people  in  the  South  are  being 
cared  for  after  the  recent  cyclonic  storms  and  floods  in  Southern 
States. 

ExpeudltiireM    for    Support    of    the    Army. 

Before  the  war  with  Spain  expenditures  for  what  is  known 
as  the  Military  Establish. neut  av-M-a^cd  about  $?3. 000.000  annu- 
ally. In  1898  they  rose  to  $55,000,000,  and  in  1899  to  $235,000,000. 
The  annual  average  for  1900  and  1901  fell  to  $100,000,000.  In 
1901  the  increase  of  the  regular  army  took  place  \mder  the  law 
authorizing  the  President  to  fix  the  strength  of  the  army  at  a 
minimum  of  60.000  and  a  maximum  of  100,000.  Since  that  year 
the  numerical  strength  of  the  regular  army  has  been  approxi- 
mately two  and  one-half  times  its  numerical  strength  prior  to  the 
war,  and  allowing  for  the  increased  cost  of  materials  and  sup- 
plies, the  expenditures  that  have  been  made  for  its  support 
and  maintenance  have  increased  in  about  the  same  proportion, 
the  average  annual  expenditures  for  this  object  since  1901  being 
about  $73,000,000.  These  figures  do  not  include  expenditures  for 
Coast  Defenses. 

Elxpenditnres    for    Seacoast    Defeuses. 

Since  the  war  with  Spain  large  expenditures  have  been  made 
for  those  public  works  of  a  military  nature  which  constitute  a 
permanent  plant,  and  may  be  briefly  described  as  the  seacoast 
defenses  of  the  Nation.  Speaking  of  this  great  national  work  of 
coast  defense.  Secretary  Hoot  in  his  annual  report  for  1902 
stated  as  follows : 

"Before  the  war  with  Spain  it  proceeded  in  a  very  leisurely  way.  Since 
the  beginning  of  that  war  it  has  been  pressed  forward  with  great  activity.  The 
work  was  commenced  in  1888  ;  but  lor  the  eight  years  which  followed  prior 
to  1896  the  total  appropriations  for  the  construction  of  fortifications 
amounted  to  but  $3,521,000,  or  an  average  of  $440,000  a  year,  while  for  the 
last  seven  years,  beginning  with  1896,  the  appropriations  have  amounted 
to  $22,236,000,  or  an  average  of  $3,176,000  a  year,  an  annual  increase  of 
more  than  sevenfold.  The  appropriations  for  the  construction  of  guns  and 
carriages  for  seacoast  defense  for  the  eight  years  prior  to  1896  were  but 
$8,100,000  (not  Including  the  unsuccessful  dynamite  gun),  an  average 
annual  rate  of  $1,012,000,  while  the  appropriation-  for  the  same  purposes 
for  the  last  seven  years  were  $24,193,000.  o^  pn  annual  average  ""f  f'3.4.'i6.- 
000,  an  annual  increase  of  more  than  threefold.  Out  of  the  $58,000,000 
expended  for  both  classes  of  work,  over  $46,000,000  have  been  appropriated 
in  the  last  seven  years." 

Out  of  2.362  guns  and  mortars  contemplated  in  the  project  of 
the  Endicott  Board,  only  151  were  actually  in  position  and  i-eady 
for  immediate  use  April  1,  1898.  There  are  now  over  1,200  of 
th«m  completed  and  mounted. 


WAR  DEPARTMENT.  359 

The  Endicott  Board  plan  of  coast  defense  contemplated  the 
expenditure  of  over  $100,000,000.  Before  1896  we  were  progress- 
ino-  at  a  rate  which  would  have  required  seventy  years  to  com- 
plete the  defenses  according  to  the  plan.  Since  1896  we  have 
been  progressing  at  a  rate  which  will  finish  the  defenses  ac- 
cording to  the  plan  in  fifteen  years, 

Tlie   Worlc    in    tlie    Islands    and    Panama. 

Details  of  the  work  of  the  past  four  years  in  the  Philippines, 
Hawaii,  Panama,  Cuba,  and  Porto  Rico  will  be  found  in  the 
separate    chapters   devoted   to   those    subjects. 

The   NcTV  Militia    Law. 

One  of  the  important  acts  passed  by  the  first  session  of  the 
Sixtieth  Congress  was  the  Dick-Stevenson  bill  amending  the 
militia  law. 

The  new  law  provides  that  the  National  Guard  of  the  various 
States  shall  be  first  called  into  service  after  the  regular  army  in 
case  of  war,  and  the  regimental  organizations  shall  be  taken  in- 
tact. The  provision  in  the  old  law  limiting  to  nine  months 
their  term  of  service  when  called  out  by  the  President  was  re- 
pealed, and  National  Guardsmen  hereafter  mustered  into  the  fed- 
eral service  will  serve  out  their  terms  of  National  Guard  enlist- 
ment. The  old  limitation  that  they  could  not  be  ordered  outside 
the  limits  of  the  United  States  was  also  abolished,  and  the  Na- 
tional Guard  can  now  in  time  of  war  be  ordered  by  the  President 
any  place  that  he  can  send  the  regular  army.  The  new  act  also 
provides  an  annual  allowance  of  $2,000,000  for  arms,  clothing 
and  other  equipment,  and  makes  provision  also  for  an  annual 
clothing  allowance. 

This  legislation  will  in  time  make  the  organized  militia  of  the 
[United  States  what  it  has  long  desired  to  be — a  real  National 
Guard  and  the  second  line  of  defense  in  case  of  war.  The  Guard 
will  in  time,  under  the  new  law,  be  armed,  clothed  and  equipped 
as  the  regular  army.  It  will  do  more  for  the  efficiency  of  the 
National  Guard  than  any  legislation  yet  enacted,  and  will  pro- 
duce a  well  trained  and  well  equipped  force  ready  on  a  moment's 
notice  to  answer  a  call  for  national  service,  and  constitute  an  effi- 
cient and  homogeneous  force  capable  of  immediate  and  splendid 
military  work. 

The  law  does  not  provide  for  any  conscription  on  forced  mil- 
itary service,  all  service  -in  the  Guard  being  voluntary,  but  gives 
the  National  Guard  what  it  never  had  before,  a  fixed  status  in 
reference  to  the  national  defense  in  case  of  war.  The  bill  was 
supported  heartily  by  the  National  Guard  of  the  entire  country 
and  by  the  military  establishment  of  every  State.  The  measure 
will  prove  of  great  value  to  the  Guard  and  to  the  entire  country, 
and  make  us  better  prepared  for  war  at  a  minimum  of  expense 
than  ever  before  in  our  nation's  history. 


Our  policT  is  oi^e  of  fair  and  e<|nal  Jnstiee  to  all  men,  pay- 
ing no  lieed  to  wl»etl»er  lie  is  ricli  or  i)oor  nor  heeding?  his 
raee,  his  creed  or  his  birthplace. — From  President  Roosevelt's 
speech   of  acceptance. 

The  Repuhlflr»an  party  stands  noTr  as  ever,  for  honest 
money  and  a  chmce  to  earn  It  hy  honest  toil. — From  an  ad- 
dress hy  Hon.  "Wm,  McKinley  hefore  the  Maraw^tte  Club, 
Chicago,    Feh.    12,    18J)«. 

Those  vrho  tlenonnce  the  ftold  standard  and  assail  Its 
supporters  must  have  read  to  no  protit  the  splendid  and  in- 
comparable history  of  their  country. — Hon.  C.  W.  Fairbanks, 
in    U.    S.    Senate,    March    ,">,    lOOO. 

The    contention    that    we    are    not  a    nation    with    pow^er   to 

govern     a    conquered     or     purchased  territory    robs     us     of    a 

faculty   most    important   for  sood  to  every  sovereignty.— Hon. 
Wm.    H.    Taft.    at    Cleveland,   Ohio. 

i)ne  vital,  dominating  fact  confronts  the  Democratio 
party  which  i»o  oratory,  ^vhich  no  eloquence,  -which  no 
rhetoric  eau  obscure:  BRYAN'S  NOMINATION  MEJANS  TAPT'9 
i:i.ECTION.--New     York    World. 


THE  NAVY  DEPARTMENT. 


As  wars  between  nations  come  suddenly,  just  as  do  personal 
•  )nfticts  between  men,  our  Navy  must  be  maintained  upon  that 
basis  of  possible  eonting-ency.  Examination  of  our  national  his- 
tory shows  that  wars  have  sprung-  suddenly  into  existence  while 
wise  men  were  proclaiming-  that  war  could  not  occur,  and  that 
there  are  many  instances  where  the  most  unexpected  occurrences 
have  brought  us  to  the  very  verge  of  battle.  This  fact  was 
clearly  and  imi3ressively,  set  forth  by  President  Roosevelt  in  a 
special  message  to  Congress  in  April  last,  when  he  said : 

Bxtract  from  Spc^clal  Memuage  of  tlie  President  of  tlie  United 
States,   April    14,    1908. 

To  the   Senate  and  House  of  Representatives: 

I  advocate  that  the  United  States  build  a  navy  commensurate  with 
its  powers  and  its  needs,  because  I  feel  that  such  a  navy  will  be  the  surest 
guaranty    and    safeguard   of   peace. 

We  are  not  a  military  nation,  yet  we  are  a  rich  nation,  and  unde- 
fended wealth  Invites  aggression.  The  very  liberty  of  Individual  speech 
and  action,  which  we  so  prize  and  guard,  renders  it  possible  that  at  times 
Ufiexpected  causes  of  friction  with  foreign  powers  may  suddenly  develop. 
A.t  this  moment  we  are  negotiating  arbitration  treaties  with  all  the  other 
ireat  powers  that  are  willing  to  enter  into  them.  These  arbitration 
treaties  have  a  special  usefulness  because  in  the  event  of  some  sudden 
tUsagreement  they  render  it  morally  incumbent  upon  both  nations  to  seek 
first  to  reach  an  agreement  through  arbitration,  and  at  least  secure  a 
breathing  space  during  which  the  cool  judgment  of  the  two  nations  in- 
volved may  get  the  upper  hand  over  any  momentary  burst  of  anger.  These 
arbitration  treaties  are  entered  into  not  only  with  the  hope  of  preventing 
wrong-doing  by  others  against  us,  but  also  as  a  proof  that  we  have  no  In- 
tention   of   doing   wrong   ourselves. 

Yet  it  Is  idle  to  assume,  and  from  the  standpoint  of  national  inter- 
est and  honor  it  is  mlscWevotis  folly  for  any  staJt^sman  to  assume,  that 
4his  world  has  yet  reached  the  stage,  or  has  come  within  measurable  dis- 
tance of  the  stage,  when  a  proud  nation.  Jealous  of  its  hojior  and  conscious 
of  its  great  mission  in  the  world,  can  be  content  to  rely  for  peace  upon 
the  forbearance  of  other  powers.  It  would  be  equallv  foolish  to  rely  upon 
each  of  them  possessing  at  all  times  and  under  all  circumstances  and  pro- 
vocations an  altruistic  regard  for  the   rights  of  others. 

It  is  our  province  to  decide  which  side  has  been  right  and  which  has 
been  wrong  in  all  or  any  of  these  controversies.  I  am  merely  referring 
to  the  loss  of  life.  It  is  probably  a  conservative  statement  to  say  that 
within  the  last  twelve  years,  at  periods  of  profound  peace,  and  not  as  the 
r*8urt  of  war.  massacres  p.nd  butcheries  have  occurred  lin  which  onare  lives 
of  men,  women,  and  children  have  been  lost  than  in  any  single  great  war 
since  the  close  of  the  Napoleonic  struggles.  To  any  public  man  who  knows 
of  the  complaints  continually  made  to  the  State  Department  there  is  an 
element  of  grim  tragedy  in  the  claim  that  the  time  has  gone  by  when  weak 
Aations  or  peoi)les  can  be  oppressed  by  those  that  are  stronger  without 
arousing  effective  protest  from  other  strong  interests.  Events  still  fresh 
in  the  mind  of  every  thinking  man  show  that  neither  arbitration  nor  any 
other  device  can  as  yet  be  invoked  to  prevent  the  gravest  and  most  terrible 
wrongdoing  to  peoples  who  are  either  few  in  number  or  who,  if  numerous, 
have  lost  the  first  and  moat  important  of  national  virtues— the  capacity 
of    self-defense. 

The  United  States  can  hope  for  a  permanent  career  of  peace  on  only 
one  condition,  and  that  is,  on  condition  of  building  and  maintaining  a  flrst- 
claRK  navy. 

The  United  States  ought  not  to  indulge  a  persuasion  that,  contrary 
to  the  order  of  human  events,  they  will  forever  keep  at  a  distance  those 
painful  appeals  to  arms  with  which  the  history  of  ifrery  other  nation 
abounds.  There  is  a  rank  due  to  the  United  States  among  nations  which 
will  be  withheld,  if  not  absolutely  lost,  by  the  reputation  of  weakness.  If 
we  desire  to  avoid  insult,  we  must  be  able  to  repel  it ;  if  we  desire  to  aecure 
peace,  one  of  the  most  powerful  instruments  of  our  rising  prosperity,  it  must 
be  known  that  we  are  at  all  times  ready  for  war. 

Personnel    of   the   Navy. 

The  present  administration  has  continued  the  development 
and  perfecting  of  all  parts  of  our  Navy.  Our  ships,  built  by 
American  hands,  are  sailed  by  men  and  officers  of  American 
birth.  The  enlisted  men  now  come  into  the  Navy  from  every 
State  and  Territory  and  from  nearly  every  city  and  town,  to  the 
^eat  advantage  of  the  Nation  and  the  Navy.  These  young  men, 
a.  large  prpportion  of  whom  ai'e  from  the  States  of  the  West 
and  Middle  West,  are  splendid  examples  of  American  manhood, 

360 


NAV7  DEPARTMENT.  361 

and  form  a  class  described  by  Admiral  Dewey  as  "the  best  en- 
listed men  in  the  world."  Of  this  enlisted  force  95  jDcr  cent  are 
citizens  of  the  United  States  and  85  per  cent  are  native  born. 
The  last  session  of  Congress  provided  for  an  increase  of  6,000 
seamen,  making  the  total  authorized  force  44,500.  The  Marine 
Corps  has  been  increased  by  750  men  and  52  officers,  making  the 
total  authorized  force  9,521  men  and  333  officers.  The  Marine 
Corps  occupies  38  shore  stations,  and  marines  are  stationed  on 
every  large  naval  vessel.  The  shore  stations  include  the  U.  S, 
Legation  at  Pekin,  stations  in  Panama,  Cuba,  Alaska,  Yoko- 
hama, Guam,  Pliilippine  Islands,  Honolulu,  and  each  regular  naval 
station. 

The  naval  officers  of  the  line,  those  officers  who  have  the 
duty  of  navigating  and  fighting  our  ships,  form  the  most  numer- 
ous part  of  our  commissioned  naval  personnel.  They  are,  for 
the  most  part,  graduates  of  the  U.  S.  Naval  Academy.  They 
enter  the  Naval  Academy  upon  nomination  by  Senators  and 
Members  of  Congress,  from  every  State  and  Territory  and  from 
every  Congressional  district.  There  is  thus  no  aristocracy  in  the 
Navy,  as  it  is  constantly  recruited  from  every  part  of  our  great 
nation.  The  son  of  a  laborer  and  of  the  millionaire  are  treated 
alike  at  the  Naval  Academy  and  they  succeed  or  fail  by  the 
same  standard  regarding  individual  merit,  ability,  and  charac- 
ter. They  are  trained  in  character.  They  are  trained  in  the 
duties  of  the  landsman,  the  seaman,  and  the  officer,  acquiring  a 
knowledge  and  skill  in  navigation,  gunnery,  engineering,  and  all 
things  that  enter  into  the  construction,  handling,  movement,  and 
operation  of  vessels  of  war  and  the  offensive  and  defensive  weap- 
ons of  war  placed  upon  them.  It  is  fair  to  say  that  our  naval 
officers  are  the  best  in  the  world,  and  fairly  representative  of 
the  people  whom  they  serve,  and  to  their  high  personal  character 
and  devotion  to  the  naval  service  we  owe  the  great  efficiency  and 
preparedness  of  our  Navy,  built,  officered,  and  manned  by  Ameri- 
cans, a  navy  of  the  people,  governed  by  the  people  and  for  the 
people. 

The  training  of  the  officers  and  men  of  the  Navy  is  continu- 
ous, based  upon  the  experience  in  naval  warfare  of  maritime  na- 
tions. Officers  begin  their  study  and  training  for  battle  at  the 
Naval  Academy,  and  continue  it  throughout  their  active  service, 
in  actual  battle  tactics  and  drills  and  in  the  study  of  plans,  pro- 
jects and  history  of  warfare  at  the  Naval  War  College.  The 
General  Board,  whose  president  is  Admiral  Dewey,  prepares 
plans  for  all  possible  contingencies,  and  in  time  of  war,  or  when 
active  service  on  a  considerable  scale  is  required  of  the  Navy,  it 
is  prepared  to  advise  regarding  naval  operations.  The  Torpedo 
School  at  Newport,  R.  I.,  furnishes  practical  and  theoretical  in- 
struction to  officers  and  men  regarding  submarine  operations, 
torpedoes,  mines,  explosives,  and  submarine  torpedo  boats. 

The  present  system  of  training  in  g-unnery  has  been  continu- 
ously successful  since  1903.  The  records  for  the  year  show  that 
both  rapidity  of  fire  and  percentage  of  hits  are  greater  than  in 
any  preceding  year,  though  the  conditions  of  the  tests  w^ere 
more  difficult  than  heretofore.  This  increase  in  efficiency  is  due 
to  the  skill  and  energy  of  officers  and  men  and  the  spirit  of 
competition  which  is  fostered  between  individual  ships  and  indi- 
vidual guns.  In  battle  practice  at  sea  and  at  ranges  of  from 
6,000  to  9,000  yards  the  heavy  guns  made  over  30  per  cent  of  hits 
against  targets  30  feet  high  and  60  feet  long,  on  unmarked  ranges 
and  under  the  conditions  of  firing  in  action.  Our  Navy  is  second 
to  none  in  this  regard.  In  small-arm  target  practice  also  a  very 
marked  improvement  has  been  shown. 

Recent  experiments,  under  actual  battle  conditions,  have  been 
made  by  firing  the  heaviest  projectiles  and  torpedoes  at  the  ar- 
mored monitor  "Florida,"  and  these  practical  tests  are  carefully 
studied  by  our  officers  and  other  experts. 

Tlie  Dry  Dock  Dewey. 

The  giant  steel  floating  dry  dock  "Dewey,"  completed  in  1905, 
is  capable  of  rai'sing  an  injured  vessel  of  16,000  tons,  whosp  bot- 
tom is  37  feet  below  the  water  surface.  To  have  in  our  Philip- 
pine possessions  this  American-built  dry  dock,  adapted  to  raise 


368  NAVY  DEPARTMENT. 

for  repairs  our  largfest  ships,  the  unique  experiment  of  towing  it 
half  way  around  the  world  was  made  by  the  Navy  Departnient. 

In  tow  of  three  vessels  the  "Dewey"  departed  from  Chesa- 
peake Bay  December  28,  1905,  and  passing-  through  tlie  Sue/ 
Canal  arrived  safely  at  OlongafH),  P.  I.,  July  10,  1906,  having- 
traversed  13,089  miles  in  150  days  9l^  hours  of  steaming,  an 
achievement  without  a  parallel  in  maritime  history. 

IN'nval    Review. 

The  Atlantic  fleet  was  reviewed  at  anchor  off  Oyster  Bay  by 
the  President  September  3,  1906,  and  again  at  the  Jamestown 
Exposition,  in  Hampton  Roads,  April  36  and  June  10,  1907. 

The  Secretary  of  the  Nav^?^  reviewed  the  two  fleets,  Atlantic 
and  Pacific,  at  San  Francisco,  on  May  8,  1908,  the  grandest  naval 
review  in  the  history  of  the  country,  comprising  forty-five  fight- 
ing ships  and  twenty  thousand  fighting  men. 

Naval    ExpendltureH    AntliorlsKed    by    Sixtieth    Conj^ress. 

The  Sixtieth  Congress  at  its  first  session,  just  ended,  made 
provision  for :  Completing  the  Naval  Training  Station,  Great 
Lakes,  near  Chicago,  where  2,000  seamen  may  be  recruited  from 
the  sturdy  men  of  the  West. 

For  a  naval  station  at  Pearl  Harbor,  Hawaii. 

For  improving  the  naval  stations  at  Olongapo,  Guam,  Cavite, 
Culebra  and  Tutuila,  and  various  naval  stations  in  the  continen- 
tal limits  of  the  United  States. 

For  two  20,000-ton  battleships. 

For  ten  torpedo-boat  destroyers. 

For  two  fleet  colliers. 

For  eight  submarine  torpedo  boats. 

The     Navy     as    Insurance. 

The  Navy  of  the  United  States  is  an  instrument  of  peace. 
Regarded  as  an  insurance  against  war  and  the  consequent  enor- 
mous losses  incident  to  war,  it  is  the  cheapest  insui-ance  in 
which  our  nation  can  invest.  Great  Britain,  whose  total  valua- 
tion is  fifty-nine  billion  dollars,  expends  annually  on  her  Navy 
2%  (two  per  cent)  of  tMs  value.  France,  with  a  valuation  of 
forty-eight  billion  dollars,  expends  1  3-10%  (one  and  three-tenths 
per  cent)  on  her  navy.  Germany,  with  forty ;  Italy,  with  fif- 
teen, and  Russia,  with  thirty-two  billion  dollars  total  valuation, 
likewise  expends  for  naval  purposes  a  considerable  portion  of 
their  national  wealth  each  year. 

The  United  States,  with  a  total  wealth  of  107  billions  of  dol- 
lars, expends  one-tenth  of  one  per  cent  annually  for  naval  pur- 
poses, an  expenditure  not  only  le?s,  but  tremendously  smaller, 
than  the  expenditure  of  any  oth'^r  naval  power  in  the  world, 
compared  with  our  I'esources.  With  this  comparatively  small 
expenditure,  we  are  building  one  of  the  most  efficient  navies  of 
the  world  as  an  economical  proposition,  as  an  insurance  against 
war,  as  a  preventive  of  war,  to  guard,  uphold,  and  defend  the 
wealth  and  peace  and  honor  of  this  nation,  a  modern  nation  with 
a  modern  navy. 

WireletJH    Telegraphy. 

Wireless  telegraphy  is  of  paramount  importance  to  the  Navy, 
necessary  for  the  efficient  and  economical  management  of  the 
fleets  of  the  United  States  in  time  of  p?ace,  and  their  efficient 
manoeuvering  in  time  of  war.  A  supervisory  control  ^over  the 
wireless  telegraph  work  and  stations  of  the  United  States  is  ex- 
ercised by  the  Navy  Department  as  being  the  executive  depart- 
ment most  in  interest.  An  Inter-Departmental  Board  on  Wireless 
Telegraphy,  including  representatives  of  the  Departments  of  the 
Navy,  War.  Commerce  and  Labor,  and  Agriculture,  has  provided 
for  harmonious  and  efficient  ccop  'ration  of  all  facilities  of  this 
kind,  both  in  peace  and  war,  at  all  stations  of  the  United  States 
both  ashore  and  afloat.  Our  largest  naval  vessels  are  supplied 
with  the  best  apparatus  and  skilled  op:^rators.  Two  years  ago, 
when  the  President  was  aboard  the  '"'Louisiana"  in  the  Gulf  of 
Mexico,  it  was  considered  a  remai'kable  achievement  when  that 


NAVY  DEPARTMENT.  363 

vessel  communicated  by  wireless  telegraph  with  the  Navy  Yard 
station  at  Washing-ton,  D.  C.  The  battleship  fleet,  under  Hear 
Admiral  Evans,  on  March  6,  1908,  then  in  position  lat.  9°. 00'  N., 
long-.  96^  45'  West,  off  the  west  coast  of  Guatemala,  picked  up 
communication  by  wireless  teiegra])hy  with  Point  Loma,  Cali- 
fornia; Pensacola  and  Key  West,  Florida,  and  New  York,  the 
g-reatest  distance  being  about  2,200  miles.  From  this  time  on 
the  fleet  was  in  constant  communication  with  the  Navy  Depart- 
ment through  the  naval  wireless  telegraph  stations. 

Description   of  the    Modern    Battleship. 

The  modern  first-class  battleship  is  a  fighting  machine  of 
huge  proportions  and  enormous  power,  offensive  and  defensive. 
A  statement  of  its  details  will  show  some  of  the  reasons  for  its 
great  cost. 

Battleships  like  the  '^Connecticut,"  the  flagship  of  the  Atlantic 
fleet,  and  her  sisters,  the  "Louisiana,"  "Vermont,"  "Minnesota," 
and  "Kansas"  are  450  feet  long,  77  feet  in  breadth,  of  25  feet 
draft,  16,000  tons  normal  displacement  and  18  knots  (or  21  miles) 
speed.  The  larger  ships  authorized  and  now  being  rapidly  con- 
structed are  of  20,000  tons  displacement.  They  are  510  feet  long, 
85  feet  in  breadth,  of  27  feet  draft,  21  knots  (24  miles)  speed, 
with  ten  12-inch  rifles,  fourteen  5-inch  rifles,  two  submarine  tor- 
pedo tubes,  and  numerous  rapid-fire  and  machine  guns.  A  crew 
of  55  officers  and  878  men  is  required  to  operate  the  guns,  en- 
gines and  machinery  of  such  a  battleship,  of  25,000  horse  power, 
of  railroad  speed,  fitted  to  burn  both  coal  and  oil  under  her  boil- 
ers, carrying  2,500  tons  of  coal  supply,  and  nearly  400  tons  of 
fuel  oil.  These  vessels  will  be  able  to  steam  from  our  Pacific 
coast  to  Manila  without  recoaling. 

The  main  armor  belt — the  heaviest  armor  of  the  ship — of 
strongest  steel  plates,  with  specially  hardened  faces,  protects 
engines,  boilers  and  magazines.  A  projectile  passing  through 
this  armor  belt  would  probably  inflict  greater  damage  than  at 
any  point  above.  Its  position  in  our  vessels  is  such  as  to  pro- 
vide the  greatest  protection  to  the  most  vital  parts  of  the  ship. 
The  secondary  armor  belt,  above  this  main  armor  belt,  furnishes 
protection  as  far  as  possible  to  the  hull  structure,  the  lighter 
battery,  and  its  gunners.  The  heav3'^  12-inch  guns,  their  turrets, 
ammunition  hoists,  etc.,  are  specially  protected  by  armor  practi- 
cally equal  to  the  main  belt.  A  projectile  piercing  the  armor 
above  the  main  armor  belt  would  inflict  much  less  injury  than 
one  piercing  at  or  below  the  water  line ;  therefore,  the  thickest 
armor  is  placed  at  and  more  below  than  above  the  water  line.  In 
our  newer  battleships  a  load  of  60  to  70  tons  sinks  the  ship  about 
one  inch  in  the  water.  The  capacity  of  the  "Louisiana's"  coal 
bunkers  is  2,400  long-  tons,  corresponding  to  about  three  feet  of 
immersion  of  the  ship.  The  location  of  the  main  armor  belt  of 
our  battleship  is  such  as  to  secure  the  best  possible  protection 
to  vital  parts  of  the  ship  under  average,  or  normal,  conditions 
of  load,  and  consequently  of  immersion. 

The  opinions  of  our  own  and  foreign  designers  and  officers 
of  greatest  experience  and  distinction  are  in  substantial  agree- 
ment as  to  the  location  of  the  main  armor  belt  on  our  ships. 
Indeed,  if  greater  weight  of  armor  could  be  added,  the  lower 
edge  of  the  main  armor  belt  w^ould  be  placed  lower  rather  than 
higher.  It  is  the  general  opinion  of  those  qualified  to  know  that 
in  personnel  and  material  the  Navy  of  the  United  States  is  not 
inferior  to  that  of  any  foreign  naval  power,  ship  for  shifJ  of  like 
age  and  tonnage. 

PoTver    of    a    Modern    12-Inoli    Gun. 

It  is  forty-six  years  since  the  strictly  American  battle  of  the 
"Monitor"  and  "Merrimac"  at  Hampton  Eoads  gave  birth  to 
modern  navies.  Since  that  battle,  armor  and  guns  have  been 
constantly  improved  in  quality  and  strength  and  power.  Our 
naval  12-ineh  rifle,  weighing  over  60  tons,  fires  a  steel  projectile 
weighing  850  pounds,  with  a  muzzle  velocity  of  nearly  3,000  feet 
per  second,  and  an  energy  of  about  48,000  foot-tons.  The  work 
stored  up  in  this  single  projectile,  as  it  leaves  the  muzzle  of  the 


364  NAVY  DEPARTMENT. 

priin,  is  twice  as  grreat  as  the  total  energy  in  all  the  projectiles 
tired  from  our  most  powerful  war  vessels  forty-six  years  ag-o. 
Forty-eig-ht  thoiis-and  fcot  tons  represents  the  work  required  to 
raise  three  16,000-ton  battleships  one  foot  in  one  minute,  or  it  is 
equal  to  the  energ-y  exerted  by  48,000  tons  falling-  one  foot,  or 
one  ton  fallings  48.000  feet— nine  miles.  Its  destructive  effect  is 
enormous,  and  it  is  to  g-uard  against  this  teri-ible  projectile  that 
the  heaviest  and  most  improved  armor  is  employenl. 

It  is  the  opinion  of  some  of  the  most  distinguished  foreign 
authorities  that  onr  most  recent  designs  of  battleships  now 
nnder  construction  are  distinctly  superior  to  the  famous  British 
"Dreadnought,"  the  most  recent  British  type,  and  the  latest  re- 
ports indicate  that  Great  Britain  is  considering  the  development 
of  new  designs  to  surpass  the  "Dreaduo-ight"  and  its  successors 
of  the  same  type. 

The  History  of  our  New  Navy — T^venty-Flve  Years  of  Develoji- 
nient    and    tlie    Results— the    Cost.  / 

The  history  of  the  new  navy  was  clearly  and  tersely  told  by 
Hon.  George  Edward  Foss  in  an  address  on  the  naval  appropria- 
tion bill  on  April  lOj  1908,  as  follows : 

We  have  recommended  the  building  of  two  battleships  of  20,030  tons 
each.  They  will  cost  in  the  neighborhood  of  $10,000,000  each.  In  addition 
to  that  we  have  recommended  the  construction  of  ten  torpedo-boat  destroyers, 
each  to  cost  about  $800,000,  and  eight  submarines — a  naval  programme 
which  will  cost  in  the  neighborhood  of  $30,000,000,  a  little  less  than  one- 
half  of  that  which  is  recommended  by  the  Secretary  of  the  Navy  and  the 
General  Board. 

Mr.  Chairman,  I  desire  now  to  speak  a  little  upon  the  cost  of  our 
navy.  .This  is  a  great  year  in  the  history  of  the  new  navy.  It  was  twenty- 
five  years  ago  that  we  started  in  to  build  up  the  new  navy  under  the  ad- 
ministration of  President  Arthur.  March  3,  1883,  was  the  birthday  of  the 
new  navy.  That  year,  at  that  time,  we  authorized  the  Atlanta,  the  Bos- 
ton, the  Chicago,  and  the  Dolphin,  sometimes  called  the  A,  B,  C,  and  D  of 
the  new  navy.  Since  that  time  we  bave  been  going  on,  year  after  year, 
building  cruisers,  battleships,  and  destroyers,  until  today  we  have  a  good 
navy.  Now,  it  may  interest  some  of  the  members  of  this  House  to  know 
how  much  this  navy  has  cost,  how  much  we  have  expended  in  the  con- 
struction ol  these  ships.  The  cost  o4  all  these  battle3h:i;)s  which  we  have 
authorized  amounts  to  $309,000,000.  We  have  appropriated  for  the  navy 
during  the  last  twenty-five  years  $1,244,6.57,000.  Of  this,  as  I  say,  $309,- 
000,000  have  gone  into  the  construction  of  the  new  ships,  leaving  a 
hfilance  of  $935,000,000,  which  have  gone  to  the  maintenance  of  the  naval 
establishment  during  the  last  twenty-five  years.  This  has  been  an  average 
per  year  of  $37,000,000  for  maintenance.  This  is  what  the  new  navy  has 
cost  us. 

March  3.  as  I  said,  1883,  was  the  birthday  of  the  new  navy.  We 
started  in  then  to  build  our  first  new  .ships,  which  were  cruisers,  but  it  was 
not  until  1890  that  we  authorized  the  first  battleship,  which  was  the 
Indiana.  That  battleship  had  a  tonnage  of  10,228  tons.  Its  freeboard  was 
about  11  feet  and  6  Inches.  It  has  armor  plate  upon  its  sides  18  inches 
thick.  Its  speed  was  less  than  16  knots.  That  was  the  first  battleship 
that  Congress  authorized,  and  it  cost  In  the  neighborhood  of  about 
$6,000,000. 

Today  we  are  building  greater  battleships — two  of  them,  the  Dela- 
ware and  the  North  Dakota.  They  have  each  a  tonnage  of  20,000  tons. 
The  armor  plate  upon  their  sides  is  only  9  inches  thick,  but  better  armor, 
and  their  freeboards  are  much  higher— »-twice  as  high  as  those  of  the  In- 
diana— all  of  which  goes  to  show  that  during  the  last  eighteen  years  there 
has  been  a  mighty  and  tremendous  development  in  the  construction  of  the 
American  battleship.  The  guns  upon  the  Indiana  were  built  to  fire  only 
once  every  five  minutes,  but  upon  the  new  battleship.s  the  large  guns,  the 
12-inch  guns,  will  each  fire  twice  every  minute  if  neces.sary.  In  fact,  there 
Is  hardly  anything  which  the  hand  of  man  has  contrived  during  the  last 
twenty-five  years  which  has  undergone  such  a  tremendous  revolution  and 
change  as  the  great  battleship,  the  ins.trument  of  warfare,  th^r  instrument 
ol  the  nation's  defense.  li  you  look  at  the  character  of  our  battleships 
first  authorized  by  Congress  and  as  we  authorize  them  today,  you  will  be 
struck  by  the  fact  that  they  illustrate  the  policy  of  Congress.  The  Indi- 
ana has  a  low  freeboard  of  about  11  feet  and  6  inches.  What  was  the 
idea  of  the  navy  back  at  the  time  when  the  Indiana  was  built?  Then  we 
were  building  up  this  navy,  but  not  with  the  idea  of  an  aggressfVe  navy. 
It  was  a  navy  of  defense,  and  up  to  the  time  of  the  Spanish-American  war 
— yes,  up  to  the  time  of  the  naval  appropriation  bill  of  1900 — every  author- 
ization lor  an  American  battleship  carried  these  words,  "coast-line  battle- 
.ship."  The  policy  of  Congress  had  been,  up  to  1900,  to  build  up  what? 
A  navy  for  defense,  a  navy  tio  hug  the  shore  line,  a  navy  to  defend  the  coast 
line.  Biit  the  Spanish  American  war  came  on  and  it  opened  up  a  larger 
door  of  greater  opportunity  to  this  country.  Then  the  policy  of  the  Am- 
erican N^vy  and  of  Congress  changed.  What  has  it  been  from  that  time 
on?  To  build  up  a  navy  for  defense;  yes,  but  in  recognition  of  another 
principle,  that  the  best  defense  is  the  ability  to  make  an  aggressive  of- 
fen.se  ;  and  so,  from  1900,  in  every  appropriation  bill  authorizing  the  build- 
ing of  an  American  battleshfp  you  will  find  those  words  "coast  line"  stricken 
out,  and  the  authorization  reads,  "a  seagoing  battleship"— a  battleship 
capable  of  fighting  the  enemy  out  on  the  high  seas  and  not  simply  defend- 
ing the  coast  line.  So  we  have  been  building  up  this  navy  upon  that  theory 
since  1900 — a  navy  for  defense  ;  yes,   and  a  navy   for  offense   if  necessary. 


NAVY  DEPARTMENT. 


365 


The   Trip    to    the    Paciftc    and    its    Value. 

Now,  Mr.  Chairman,  a  few  months  ago,  when  the  President  of  the 
United  States  gave  the  order  that  sent  the  fleet  around  the  Horn  out  into 
the  Pacific,  we  heard  a  great  deal  of  criticism  from  the  public  press, 
particularly  in  the  vicinity  of  New  York.  The  fleet  has  passed  around 
the  Horn  out  into  the  Pacific  and  we  hear  no  criticism  now.  A  fleet  of 
sixteen  battleships,  aggregating  223,000  tons,  commanded  and  ofBcered  by 
14,000  men,  the  greatest  fleet  of  recent  years,  which  could  be  duplicated 
only  by  England  herself,  has  passed  safely  from  the  Atlantic  around  into 
the  Pacific.  We  had  criticism  a  few  month  ago ;  we  have  none  now 
because  everybody  recognizes  that  it  was  a  good  order  which  the  President 
made.  What  use  is  it  to  build  up  ships  unless  we  have  them  in  fleet 
formation?  What  use  is  it  to  build  up  a  navy  unless  we  send  that  navy 
out  on  long  cruises  where  the  men  can  be  properly  disciplined  and  trained? 
What  do  you  think  Rodjestvensky  would  have  given  if  he  could  have  made 
the  cruise  from  Cronstadt  to  Tsushima  in  time  of  peace  before  he  was 
compelled  to  d«  so  in  time  of  war?  Do  you  not  think  his  fleet  would 
have  been  in  better  condition  to  meet  the  enemy  in  the  Sea  of  Japan  if 
be  had  made  the  cruise  at  least  once  before  in  time  of  peace.  This  cruise 
of  the  American  fleet  around  the  Horn  has  been  very  profitable  to  the 
American  Navy,  because  it  has  disciplined  and  trained  our  personnel  and 
our  officers.  They  have  been  able  to  find  out  the  weaknesses  in  our  per- 
sonnel, if  any  exist,  and  not  only  that,  but  it  has  been  of  great  benefit 
also  to  the  material  of  the  American  navy.  They  have  learned  whether 
cur  ships  were  good  for  anything  or  not,  and  the  word  just  coming  back 
to  us  from  Magdalena  Bay  has  been  that  our  ships  were  even  better  than 
when  they  started  on  the  cruise  and  the  personnel  more  highly  trained 
and  better  disciplined   than   when   they   first  .set   sail    from   Hampton  Roads. 

Another  thing  which  this  cruise  has  called  to  the  attention  of  the 
American  people  is  that  the  American  Navy  is  a  national  institution  ; 
that  we  are  building  up  a  navy  for  the  protection  of  the  Pacific  as  well 
as  the  Atlantic;  that  we  are  a  two-oceans  country;  and  necessarily,  if  the 
American  Navy  is  to  be  the  instrument  of  our  national  defense,  we  must 
have  a  two-ocean  navy — a  fleet  upon  the  Pacific  as  well  as  a  fleet  upon  the 
Atlantic.      [Applause.] 

This  cruise  of  the  Navy  into  the  Pacific  has  called  the  attention  of 
the  country  to  another  important  thing.  Wherever  that  fleet  has  gone 
it  has  been  met  at  every  port  with  the  hospitality  and  the  cordiality  for 
which  the  people  of  the  South  American  countries  are  famous.  It  has 
tended  to  cement  in  closer  bonds  the  relations  between  our  country  and 
the  South  American  Republics.  It  has  given  force  and  efficacy  to  the 
words  of  our  able  Secretary  of  State,  who  made  a  visit  to  the  leading 
Republics  of  South  America  a  few  months  ago,  and  it  has  bound  those 
Republics  to  us  by  closer  ties  than  any  single  thing  which  could  have 
happened. 

The  people  of  South  America  recognize  that  we  are  bound  together 
in  one  common  destiny,  and  that  the  American  Navy  and  the  American 
people  propose  to  maintain  and  uphold  the  Monroe  Doctrine  and  have  the 
ability  to  do  so.  Not  only  has  the  cruise  been  beneficial  in  that  respect, 
but,  Mr.  Chairman,  it  has  called  the  attention  of  the  country  also  to  the 
fact  that  we  are  moving  westward  in  our  national  development.  All  our 
history  has  been  along  the  shores  of  the  Atlantic.  Our.  war  for  national 
independence  and  our  war  for  the  freedom  of  the  seas  have  been  largely 
along  the  shores  of  the  Atlantic.  But  we  are  passing  now  in  our  national 
development  from  the  Atlantic  westward  to  the  Pacific.  We  are  beginning 
to  realize  what  William  H.  Seward  said  on  the  floor  of  the  American 
Senate  fifty  years  ago,  that  the  Pacific  Ocean,  its  islands  and  its  shores 
and  the  great  region  beyond  would  some  day  be  the  chief  theatre  of 
events  in  the  world's  great  hereafter. 


Naval   Strengtli. 

The  naval  strength  of  Great  Britian  is  58  battleships  and  38  cruisers, 
her  battleships  averaging  14,900  tons.  The  United  States  has  29  battle- 
ships and  15  cruisers,  our  battleships  averaging  14,000  tons.  France,  with 
27  battleships  and  23  cruisers,  has  battleships  averaging  13,6o7  tons. 
Germany's  28  battleships  average  12,820  tons.  .Japan's  15  battleships  aver- 
age 15,467  tons,  nearly  1,100  tons  heavier  vessels,  on  an  average,  than 
our  heaviest  15  battleships  now  in  the  Pacific.  The  relative  naval  strength 
of  the  United  States  in  battleships  and  armored  cruisers  is  second  only  to 
Great  Britian.  The  total  tonnage  of  battleships  and  armored  cruisers 
as  compiled  by  Mr.  Pitman  Pulsifer  in  the  Navy  Year  Book,  1907,  is  as 
follows : 


Battleships. 

Or 

No. 

ulsers. 

Totals 

No. 

Tonnage. 

Tonnage. 

No 

Tonnage. 

Great  Britain  

United  States 

France     

58 
29 
27 
28 
15 
16 
12 
6 

867,200 
406,146 
369,233 
359,566 
232,844 
210,899 
152,846 
73,800 

38 
15 
23 
10 
14 

6 
10 

3 

468,350 
186,545 
220,982 
113,528 
156,311 
63,166 
78,513 
19,020 

96 
44 
50 
38 
29 
22 
22 
"9 

1,335,550 

592,691 
590,215 
473,094 
389,155 
274,065 
,231,359 
•92.820 

Russia   r 

Italy .-- 

Austria   

The  addition  of  the  larger  battleships,  for  two  of  which  the  preceding 
Congress  has  appropriated,  will  rapidly  increase  our  average  tonnage  per 
battleship. 


366 


*  NAVY  hEPARTMENT. 


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NAVY  DEPARTMENT. 


367 


Relative  order  of  war  ship  toimage. 


At  present. 


Nation. 


Great  Britain 
United  States 

Prance 

Germany 

Japan 

Russia 

Italy 

Austria 


Tonnage. 


1,655,075 

670,596 
614, 45S 
523,053 
368,665 
240,943 
220,308 


As  would  be  the  case  were  vessels 
building  now  complete. 


Nation. 


Great  Britain. 

France 

United  States. 

Germany 

Japan 

Russia 

Italy. 


114,2501  Austria. 


Tonnage. 


148,350 
284,778 
320,040 
444,903 
685,619 
766,488 
796,283 
1,859,174 


Appropriations  for  the  naval  establishment  since  the  beginning 
of  the  new  Navy. 


Year  and  Congress. 

Annual. 

Additional. 

Total. 

IS83  (47-2) 

$14,819,976.80 
15,894,434.23 
14,980,472.59 
15,070,837.95 
10,489,907.20 
25,767,348.19 
19,942,835.35 
21,692,510.27 
24,136,035.53 
31,5il,05K78 
23,513,;^5.00 
22,104,061.38 
25,327,126.72 
29,416,215.31 
30,562,660.95 
33,003,234.19 
56,098,783.68 
48,099,969.58 
65,140,916.67 
78,101,791.00 
81,876,791.43 
97,505,110.94 

100,336,679.94 

102,091,670.37 
98,95^07.50 

122.662,485.47 

$14,819,976.80 
16,782,695.02 

ISai  (48-1) 

$888,860.79 

1,272,447.42 

981,812,93 

1885  (48-2) . 

16,252,920.01 

1886  (19-1) 

16,052,650.88 

1887  (49-2) 

16,489,907.20 

1888  (50-1) 

496,306.57 
2,208,152.03 

573,553.35 

1,193,886.47 

•    123,195.92 

67,872.99 

290,063.61 

148,235.8.5 
1,199,469.12 

658.233.62 
92,298,741.59 
6,449,009.38 
5,482,801.32 
4,375,858.78 
6,280,760.80 
2,795,2.57.30 
6,127,974.46 
15,084,317.81 
2,417,019.56 

734,790.82 
7,333,521.60 

26,263,654.76 
22,150,987.38 
22,206,063.62 
25,329,922.00 
31,661,850.70 
23,611,257.99 
22,. 39 1,124.99 
25,475,362.57 
30,615,714.43 
31,220  8»4.57 

1889  (50-2) 

1890  (51-1) 

1891  (51-2)  

18i>2  (52-1) 

1893  (52-2) 

1894  (53-2) 

1895  (53-3) 

18:>6  (54-1) 

1897  (55-1)..     

1898  (55-2) 

125,301,975.78 
62,547,793.06 
53,582,770.90 
69,-516,775.45 
84,382,551.80 
84,672,018.73 
103,633,115.40 
115,420,997.75 
104,508,719.93 
99,693,298.32 
129,996,007.07 

1899  (5r)-3) 

1900  (56-1) 

1901  (56-2) 

1902  (57-1) 

1!)03  (57-2) . 

190 1  (5S-2) . 

1905  (58-3) 

1906  (59-1)  _ 

1907  (59-2) 

1908  (60-1).     . 

Total 

1,215,165,462.92 

159,481,580.09 

1.374,647,037.01 

The  "additional"  appropriation  for  1896  was  appropriated  in  two  sessions  of 
Congress~(5t-l)  and  (51-2). 

The  "additional"  api)ropriation  for  1898  includes  $50,000,000,  which  was  appro- 
priated for  "national  defense." 


Tlie  Ui»ite«l  States  lias  not  tlie  sli^litest  i;vlsli  to  establish  a 
universal  protectorate  over  other  American  States,  or  t%t  he- 
come  resi»onsil»le  for  their  misdeeds. — From  President  Roose- 
velt's   The   Monroe   Doctrine,    American    Ideals,    i».    248. 

Nothing  strikes  a  deadlier  hlo-*v  at  liherty  than  the  in- 
sidious Jii>i>eals  made  in  her  name  in  times  of  puhlic  excite- 
ment.— Postmaster-General  Cortelyou  on  Lincoln's  Influence 
on    American    Life. 

We  ask  for  a  y^reat  navy,  \%e  ask  for  an  arntament  fit  for 
the  nation's  needs,  not  primarily  to  figrht,  hut  to  avert  flgrht- 
ing.  Preivaredness  deters  the  foe  and  maintains  right  hy  the 
.-.how  of  ready  miglit  without  the  use  of  A-iolence. — From 
President  Roosevelt's  "IVashinston's  forgotten  maxim," 
American   Ideals,  p.   288. 

Protection  saves  to  the  T^'orld  the  useless  expense  and 
lahor  of  shipping  products  from  one  country  to  another  and 
turns  these  into  productive  sources  of  wealth. — Judge  Wil- 
liam   La^vrence,    of    Ohio,    in    the    Amei-ican    Fconomlst. 


Plans  have  been  suggested  foi*  the  migration  of  the  ne- 
groes to  some  othei*  country,  where  tl»ey  Mould  live  by  them- 
selves and  gro^v  up  l»y  themselves,  and  liave  a  .society  by 
♦hemselAes,  and  create  a  nation  by  themserves.  Such  a  sug- 
gestion is  chimerical.  The  negro  Jiat*  no  desire  to  go,  and 
the  ]>eople  of  tlie  South  ^-ould  seriously  ob.{ect  to  his  going. 
—Hon.   W^m.   H.   Taft,    at    Plymouth   Church,   Brooklyn. 


368 


NAVY  DEPARTMENT. 


Summary  of  vessels  in  the  United  States  Navy  June  SO,  1908. 


Type. 

Fit  for 
service, 
Including 
those  un- 
der repair. 

Under 
con- 
struc- 
tion. 

Author- 
ized. 

I'nflt 
for  sea 
service. 

Total. 

First-class  battleships 

Second-class  ba'ttleships 

25 
1 
12 

1 

4 
6 
22 
3 
3 
9 

4 

2 

31 
1 

Armored    cruisers 

12 

Armored  ram ..    _.    

1 

Single  -  turret     harbor  -  defense 
monitors   _.    - 

4 

Double-turret  monitors 

6 

Protected    cruisers _ 

"" 

22 

Unprotected  cruisers.. „ 

8 

Scout  cruisers - 

8 

Gunboats    _-.  _      __        _.  _ 

" 

9 

Gunboat  for  Great  Lakes  (not 
begun)    

1 

1 

Light-draft  gunboats 

3 

8 

1 

" 

t 

Composite    gunboats^    . 



-...-..... 

g 

Training     ship     (Naval     Acad"-, 
emy),    sheathed 

1 

Training   ships 

2 

1 

2 

12 

16 

35 

1 

12 

3 

5 

5 

42 

5 

22 

15 

10 

1 

5 

2 

2 

Training   brigantine    

1 

Special     class     (Dolphin,      Ve- 
suvius)  

2 

Gunboats  under  500  tons. 

12 

Torpedo-boat   destroy<H-s 

5 

10 

31 

Steel  torpedo  boats 

35 

Wooden   torpedo   boats 

1 

Submarine  torpedo  boats 

7 

8 

27 

Iron  cruising  vessels,  steam    .. 

3 

Wooden  cruising  vessels,  ste!?m. 

4 
2 

9 

Wooden    sailing    vessels 

7 

Tugs 

2 

44 

Auxiliary  cruisers _ 

5 

Converted  yachts 

22 

Colliers  .. 

2 

5 



22 

Transports  and  supply  ships... 

10 

Hospital  ship 

1 

Receiving    ships 

5 
1 

10 

Prison  ships 

3 

- 

Total _ 

294 

20 

26 

12 

352 

Expenditures  on  vessels  under  construction  to  March  SI,  1908. 


Michigan .. 

South  Carolina . 

f 2, 768, 430. 65 

3,098,597.62 

1,443,470.31 

1,383,937.09 

4,386,178.3 

925,090.08 

373,098.12 

112,241.61 

102,620.07 

201,924.16 

101,  4(i 

1,568,620.03 
1,433,977.08 
1,433,327.32 

34,500.71 

Torpedo-boat  destroyer 
No.  18 

$5,375.74 

Torpedo-boat  destroyer 
No.  19 

Torpedo-boat  destroyer 
No.  20 

North  Dakota 

38,013.33 

Montana 

Vestal 

95,286.52 

Prometheus 

Torpedo-boat  destroyer 
No.  21 

Patapsco ._.._: 

95,169.00 

Patuxent 

Submarine  torpedo  boats 
Cuttle  Fish             

337,262.31 

Octopus 

150,908.18 

Viper 

<^''hcster.  . 

Tarantula 

Cumberland 

177, 216. »; 
452,217  69 

Birmingham ._ 

403,930.31 

iSalen) 

Total 

Torpedo-boat  destroyer 
No.  17 . 

21,214,886.50 

Amount  expended  under  increase  of  the  Navy  appropriations  on  all  vessels 
other  than  those  above  named  (including  $2,500,000,  approximate  cost  of 
equipage  of  monitors  and  torpedo  boats),  $45,500,721.20. 


Tlie  present  1>nsine8s  system  of  tlie  country  rests  on  tlie 
l>rotective  tarift'  and  any  attempt  to  clianjjfe  it  to  a  free 
trade  liasis  will  certainly  lead  to  disaster.— Hon.  \Vm  H.  Taft, 
at  Colnmbus,  Ohio. 


The  representative  government  tliat  lias  served  ns  ivell 
for  130  years  has  not  been  for  Mr.  Bryan  sntficiently  ex- 
pressive of  tlie  Tiill  of  the  people.  We  mnst  call  upon  four- 
teen million  electors  to  legrislate  directly.  Could  any  more 
burdensome  or  inetflcient  method  be  devised  than  this?  1 
believe  that  the  referendum  under  certain  conilitions  and 
limitations  in  the  sul>divisions  of  a  State  on  certain  issues 
may  be  healthful  and  useful,  Imt  as  applied  to  our  nuti«Mial 
government  it  is  entirely  impracticable.— Hon.  Wm.  H.  Taft, 
at   Columbus,  Ohio. 


NAVY  DEPARTMENT. 


369 


Cost  of  all  vessels  of  the  new  Navy. 

STATEMENT  SHOWING  COST  OF  EACH  COMPLETED  BATTLESHIP, 
ARMORED  CRUISER,  PROTECTED  CRUISER.  AND  UNPROTECTED 
CRUISER  BUILT  UNDBR  APPROPRIATIONS  FOR  INCREASE  OF  THE 
NAVY   TO   MARCH   31.    1908. 


Hull  and  ma- 
chinery, 
In  ludlng 
armor. 

Equipage  In- 
cluding 
armament. 

Total 

BATTLESHIPS  (26). 

Texas                                             

$3,638,284.99 
5,333,703.05 
5,401,844.97 
5,914,021.90 
5,162,587.12 
4,429,890.69 
4,418,091.99 
4,077,010.09 
4,162,617  ..53 
4,073,429.26 
4,566,642.69 
4,438,925.08 
4,475,180.32 
6,369,244.20 
6,163,380.69 
6,052.624.16 
0,127.092.63 
0,135,763.15 
5,538,776.57 
5,606,027.94 
5,366,355.21 
5,313,450.55 
5,483,089.56 
5,140,130.42 
4,351,092.64 
4,438,778.19 

$563,836.50 

649,663.93 

645,272.98 

661,010.86 

708,619.20 

613,700.99 

580,921.44 

588,810.13 

561,276.75 

547,979.56 

814,439.09 

819,335.47 

790,129.39 

1,323,875.12 

1,184,748.68 

-    1,282,962.33 

1,089,451.46 

1,299,984.88 

985,731.30 

1,040,468.56 

1,072,922.98 

1,092,023.88 

1,051,993.05 

31,250,000.00 

al, 000,000.00 

al, 000, 000. 00 

$4,202,121.49 

Indiana 

Massachusetts 

Oresron                                  --    

5,983,371.98 
6,047,117.95 
6,575,032.78 

Iowa                                  - 

5,871,206.32 

5,043,.591.68 
4,998,119.43 
4,665,820.22 
4,723,894.28 
4.621,408.82 
5,381,081  78 

Kentucky 

Illinois 

Maine 

5,258,260.55 
5,265,309.71 
7,693,119.38 
7,347,129.37 

Ohio - 

7,335,586.49 

Minnesota 

7,216,544.09 
7,435,748.03 

Georgia .. — 

Nebraska 1 

New  Jersey 

Rliode  Island 

6,524,507.87 
6,646,496.50 
6,439,278.19 
6,453,474.43 
6,535,082.61 
6,390,130.42 
5,351,092.64 
5,438, 778.W 

Virginia 

New  Hampshire 

Idaho           _              — - 

Mississippi 

TotaL - 

132,207,543.65 

28,218,201.53 

155,425,805.18 

ARMORED  CRUISERS  (U). 

Brooklyn 

New  York—            - 

3,944,820.73 
3,897,840.32 
4,831,408.00 
4,855,881.02 
4,874,500.11 
4,885,072.48 
5,193,678.07 
5,190,650.60 
4,678,083.32 
4,434,459.80 
4,647,311.24 

478,969.36 

448,802.07 

860,201.59 

850,493.65 

808,019.89 

843,840.85 

950,7.55.36 

955,519.36 

a950,000.00 

a950,000.00 

a850,000.00 

4,423,790.00 
4,346,642.39 

Colorado 

Pennsylvania 

Maryland 

West  Virginia      

5, 691, 60-.).  59 
5,706,374.67 
5,682,520.00 
5,728,913.33 

Tennessee 

6,144,433.48 

Washington 

California 

6,018,625.90 
5,528,483.32 

North  Carolina 

5,384,45».80 

South  Dakota       .. 

5,497,314.24 

Total 

51,433,708.69 

8,846.602.13 

80.280,310.82 

PROTECTED  CRTTISERS  (18). 

Newark 

Baltimore 

1,439,382.20 
1,554,483.94 
1,561,392.47 
1,738,257.82 
2,484,027.54 
2,023,326.91 
1,867,934.32 
3,461,960.26 
3,403,707.07 
1,113,395.45 
1,098,320.33 
1,135,853.66 
1,156,256.68 
1,378,445.75 
3,117,234.16 
1,426,850.73 
3,171,668.53 
3,173,324.35 

390,735.00 
422,245.41 
397,267.91 
397,045.49 
495,255.84 
348,577.61 
331,795.48 
447,051.00 
446,280.37 
285,386.30 
276,488.77 
278,914.08 
269,994.74 
308,148.45 
664,176.84 
309,923.-50 
660,831.33 
644,408.09 

1,830,117.20 
1,976,729.35 

Philadelphia -^- 

"  1,958,660.3* 
2,135,303.31 

Olympia 

2,979,283.38 

Cincinnati    - 

2,371,904.52 

Raleigh- 

2,199,729.80 
3,909,011.26 

3,849,996.44 

1,398,781.75 

Cleveland _ 

1,374,809.10 

Denver 

Des  Moines 

1,414,767.74 
1,426,101.42 

1,686,594.20 

Charleston 

8,781,411.00 
1,736,774.23 

3,832,502.86 

St    Louis 

3,817,732.44 

Total    __    _ 

36,305,822.17 

7,374,388.21 

43,680,210.38 

UNPROTECTED  CRUISERS  (8). 

Marblehead __  _    _ 

1,061,426.30 
1,050,933.54 
1,004,711.65 

229,736.63 
216,176.17 
228,328.25 

1,291,162.93 

1,267,100.71 

Detroit 

1,233,039.90 

Total 

3,117,071.49 

674,241.05 

3,f91,312.54 

a  Estimated. 


WORK  OF  THE  POST  OFFICE  DEPART- 
MENT 


The  biisineiSB  of  the  Post  Office  Department  is  a  reliable  index 
to  the  gK'nerul  condition  of  the  country  and  the  postal  receipt- 
for  the  last  fifteen  years  show  conclusively  that  our  people  ha\  c 
been  prosi^ei'ous  and  oui*  business  more  active  since  the  return 
of  the  Kepublican  party  to  power  than  ever  before  in  the  his- 
tory of  the  country.  The  following"  table  gives  the  figures  of 
receipts  for  the  years  indicated: 

(Dem.)      1893 $75,896,933.16 

(Deni.)      1894      75,080,-179.04 

(Dem.)      1895 • 70,983,128.19 

.(Dem.)      1896 82,499,208.40 

(Dem.)      1897 82,665,462.73 

1898 89,012,618.55 

1899 95,021,384.17 

1900 102,354,379.29 

1901 111,631,193.39 

1902 121,848,047.26 

1903 134,224,443.24 

1904.  .' 143,582,624.34 

1905 :  152,826,585.10 

1906 167,932,782.95 

1907 183,585,005.57 

1;  The  increase  of  nearly  $108,000,000.00  in  fifteen  years  shows 
a  truly  marvelous  development. 

Rural   Delivery. 

The  responsibility  for  the  permanent  introduction  of  the 
wonderful  system  of  delivery  of  mail  to  rural  communities  in 
the  United  States  belongs  to  the  administration  of  President 
McKinley  and  its  continuation  and  remarkable  development  to 
the  administration  of  Koosevelt.  The  service  is  now  in  opera- 
tion on  39,270  routes,  serving   16,000,000  people. 

In  804  counties  the  service  is  so  complete  that  all  of  the 
people  outside  of  cities  can  receive  their  mail  by  rural  letter 
carriers. 

During  the  fiscal  year  beginning  July  1,  1908,  the  cost  of  the 
service  will  exceed  $35,500,000. 

The  material  benefits  which  it  has  brought  to '  rural  com- 
munities are  incalculable.  Subscriptions  to  newspapers,  both 
local  and  metropolitan,  have  increased  enormously,  and  farm- 
ers are  able  to  keep  advised  of  the  daijy  market  quotations  and 
to  sell  their  products  to  the  best  advantage.  The  increased  cir- 
culation of  newspapers  and  periodicals  has  made  the  service  of 
great  educational  vali:e,  broadening  the  minds  of  the  people 
through  a  better  knowledge  of  the  affairs  of  the  outside  world 
and  engendering  a  desire  for  intellectual  development.  As  a 
further  result  of  the  installation  of  the  rural  delivery  service 
thousands  of  miles  of  roads  have  been  improved,  thus  increasing 
farm  values  in  some  cases  twenty-five  per  cent.  No  other  agency 
has  contributed  so  largely  to  making  farm  life  more  attractive. 

The  InveHtlKatlons  and  Tlielr  Result. 

None  of  the  reforms  following  the  investigation  of  1903  was 
more  important  or  resulted  in  greater  benefit  to  the  general 
public  than  that  which  was  effected  in  the  office  of  the  Assistant 
Attorney  General,  in  pursuance  of  which  many  hundreds  of 
fraudulent  schemes  and  lottery  enterprises  have  been  suppressed. 
Most  of  these  schemes  had  grown  up  and  flourished  in  conse- 
quence 'Of  the  failure  to  enforce  the  statutes  authorizing  their 
suppression,  and  through  their  oi:)eration  losses  aggregating 
many  millions  of  dollars  were  annually  suffered  by  jjeople  of 
small  or  moderate  means  and  to  whom  such  losses  meant  pe- 
culiar hardship.     The  strict  and  systematic  enforcement  of  the 

370 


POST  OFFICE  DEPARTMENT.  371 

statutes  empowering  the  Postmaster  General  to  exehide  from 
the  mails  matter  of  every  kind  relating-  to  fraudulent  schemes 
and  lotteries  and  to  withhold  from  delivery  mail  addressed  to 
persons  or  concerns  carrying  on  such  enterprises,  has  reduced 
the  number  of  such  schemes  to  the  minimum  and  protected  the 
public  from  enormous  losses. 

Millionei    Saved  in   Mail   Transportation. 

The  pay  for  railroad  mail  service  is  fixed  by  statute  and 
based  upon  the   average  daily  weight  of  mails. 

Since  1873  it  had  been  the  uniform  practice  to  use  the  number 
of  week  days  in  the  weighing  period  as  the  divisor  for  dete^'min- 
ing  the  average  daily  weight  in  accordance  with  the  construc- 
tion put  upon  the  words  "working  days."  Postmaster  General 
Meyer  issued  an  order  on  June  7,  1907,  following  one  issued 
in  March,  1907,  by  Postmaster-General  Cortelyou,  having  the 
same  object  in  view,  which  provided  that  the  whole  number  of 
days  included  in  the  weighing  period  should  be  used  as  a  divisor 
for  obtaining  the  average  weight  per  day.  It  is  estimated  that 
the  saving  will  approximate  $4,619,285  annually. 

From  October  1,  1908,  the  letter  postage  between  this  country 
and  England,  Ireland,  Scotland,  and  Wales  is  two  cents  an  ounce 
instead  of  5  cents  an  ounce.  This  reduction  is  expected  t6  re- 
sult ultimately  in  an  increase  of  receipts  because  it  has  always 
been  found  that  a  reduction  of  the  letter  rate  resulted  finally 
in  increasing  the  revenue.  The  lower  postage  will  lead  also  to 
freer  commercial  intercourse.  Our  manufacturers  are  increasing 
their  sales  in  the  United  Kingdom  and  must  rely  to  a  gieat 
extent  upon  the  mails  for  orders  and  additional  trade.  Furt:  er, 
it  will  be  a  great  boon  to  our  adopted  Engiish-speaking  c'.ti/ens 
and  their  connections  in  this  country,  particularly  those  of 
limited  means,  as  it  will  enable  them  to  keep  up  correspondence 
with  their  relations  and  friends  in  the  old  countries  at  do- 
mestic  rates. 

Postal     Savings     Banks. 

The  leading  governments  of  the  world  have  postal  savings 
banks,  with  the  exception  of  the  United  States  and  Germany,  the, 
latter  country,  however,  having  a  splendid  system  of  municipal 
savings  banks.  Since  1872  the  introduction  of  such  a  service  has 
been  discussed  in  the  United  States,  and  the  measure  now  before 
Congress  which  was  favorably  reported  on  by  the  Senate  Commit- 
tee on  Post  Offices  and  Post  Roads  will  become  a  law  at  the  next 
session.  Its  enactment  is  desired  in  order  to  encourage  economy 
and  thrift  among  the  wage-earners  and  people  of  moderate 
means,  and  to  afford  a  place  of  deposit,  free  from  any  possibility 
of  doubt  or  suspicion,  for  small  savings,  which  in  the  aggregate 
amount  to  vast  sums  of  money  and  which  are  otherwise  hoarded 
and  kept  out  of  circulation  through  ignorance  or  lack  of  confi- 
dence. ^ 

More  than  seven  million  immigrants  landed  in  this  country 
during  the  last  ten  years,  and  nearly  a  hundred  million  dollars 
were  sent  out  of  the  country  last  year  by  these  people.  In  many 
instances  it  has  been  found  that,  for  want  of  postal  savings 
banks,  money  orders  are  being  bought  payable  to  the  purchaser, 
good  for  one  year. 

Improved    Conditions. 

It  has  been  the  aim  of  the  Post  Office  Department  to  improve 
the  conditions  under  which  its  employees  work,  namely : 

By  shortening  the  hours  of  labor. 

By  basing  promotions  entirely  on  merit  rather  than  favorit- 
ism, and  by  securing  legislation  that  provides  for  annual  increases 
in  salaries  as  the  employees  prove  their  worth. 

The  postal  service  itself  has  been  further  improved  by  the  in- 
troduction of  better  business  methods.  Without  materially  in- 
'^reasing  the  expense,  the  Department  has  secured  more  commodi- 
ous and  better  equipped  post  office  quarters  throughout  the  coun- 
try, to  the  greater  convenience  of  the  people  and  advantage  to 
the  service. 

Aopointment     of     Postmasters. 

The  policy  of  retaining  in  office  postmasters  who  are  perform- 
ing their  duties  satisfactorily  has  resulted  in  improving  the  effi- 
ciency of  the  service. 


POST  OFFICE  DEPARTMENT. 


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DEPARTMENT  OF  THE  INTERIOR. 


It  is  now  fifty-nine  years  since  the  Department  of  the  In- 
terior was  established,  being  called  in  the  enacting-  clause  of 
the  Act  the  "Home  Department."  Since  its  organization  there 
have  been  added  some  very  important  Bureaus,  notably  the 
Geological  Survey,  the  Reclamation  Service  and  the  Bureau 
of  Education.  Many  other  minor  duties  have  also  been  added 
until  it  is  now  one  of  the  larg-est  of  the  Executive  Departments. 

During  this  period  of  more  than  half  a  century  of  gradual 
growth  the  procedure  crystallized  into  many  hard  and  fast  rules 
and  some  years  ago  the  time  came  for  definite  action  toward  a 
better  adaptation  to  modern  methods. 

This  has  been  one  of  the  most  important  duties  of  the  Secre- 
taries during  this  Administration,  and  the  present  Secretary 
has  given  this  phase  of  departmental  work  very  earnest  and 
thorough  attention,  with  the  result  that  there  has  been  a 
remarkable  improvement  in  methods  in  all  the  bureaus. 

Plans  have  been  adopted  greatly  facilitating  the  work  of 
the  Department,  which  is  now  practically  up  to  date  in  all  its 
branches.  It  may  be  truthfully  said  that  the  Department  is 
to-day  a  practical  business  organization,  daily  improving  in 
efficiency.  The  vast  volume  of  business  handled  by  this  Dep'art- 
ment  is  now  disposed  of  without  unnecessary  delay  and  the 
enormous  interests  intrusted  to  its  various  biireaus  are  ad- 
justed with  the   same   care   as  heretofore. 

This  Department  was  fittingly  designated  in  the  original 
Act  as  the  Home  Department,  because  in  many  ways  its  oper- 
ations aft'ect  more  "closely  the  individual  citizen  than  those  of 
any  other  Department. 

Through  the  Land  Office  it  has  provided  homes  for  millions 
of  people  and  this  great  work  is  still  going  on. 

Through  the  Geological  Survey  it  is  studying  the  public 
domain,   classifying    the    land    and    investigating   its   resources. 

Through  the  Reclamation  Service  it  is  making  still  more 
effective  the  operations  of  the  public  land  laws  for  establishing 
homes  for  the  citizens  of  our  country. 

Through  the  Indian  Office  it  is  not  only  caring  for  these 
wards  of  the  nation,  but  is  also  providing  for  the  use  of  large 
areas  of  waste  land  which  the  Indians  can  not  profitably  use. 

Through  the  Patent  Office  it  is  affording  opportunity  for  the 
development  of  the  natural  inventive  genius  of  our  people  to 
advance  the  manufacturing  interests  and  the  comfort  of  home 
life. 

Through  the  Pension  Office  it  is  giving  proper  care  and 
assistance  to  the  brave  men  who  fought  the  battles  of  our 
country  and  to  their  widows  and  dependent  heirs. 

Through  the  Bureau  of  Education  it  is  reaching  down  to 
the  very  foundation  of  our  Nation's  prosperity  and  promoting 
greater  efficiency  in  our  public  school  system  and  other  educa- 
tional  institutions. 

Truly  it  is  a  Home  Department,  and  its  influence  is  felt 
from  many  sides  in  every  home  in  the  land. 

General   Liand    Ofllee. 

The  admrnistrative  policy  of  the  General  Land  Office  for 
the  past  eight  years  has  been  to  preserve  the  public  lands 
in  such  a  manner  that  as  many  citizens  as  possible  may  obtain 
homes,  farms,  and  mines  thereupon.  The  utmost  vigilance  has 
been  maintained  to  prevent  their  unlawful  acquirement,  either 
by  corporations  or  individuals.  Suspensions  made  years  ago 
which  were   not  justified  or  wliich  have   served  their   purpose 

373 


374  INTERIOR  DEPARTMENT. 

have  been  revoked  and  during  the  past  year  some  2,000,000  acres 
of  such  lands  have  been  restored  to  the  public  domain.  Every 
effort  has  been  made  to  br>ng-  up  arrearages  of  work  to  the  end 
that  bona  fide  homestead  and  other  claimants  may  secure  their 
title  as  soon  as  possible,  while  at  the  same  time  unlawful  en- 
tries and  claims  have  been  vigorously  proceeded  against.  Dur- 
ing the  past  five  years  fences  unlawfully  inclosing  public  lands 
have  been  removed  from  3,518,583  acres,  and  suits  have  been  re- 
commended or  other  action  taken  to  remove  such  inclosures 
from  an  additional  3,763,186  acres.  During  the  past  eight  years 
$516,501.53  have  been  collected  by  the  Department  for  timber 
trespasses  upon  the  public  lands  and  cases  have  been  re- 
ferred to  the  De])artment  of  Justice  for  legal  proceedings 
involving  trespasses  of  $3,007,621.94,  of  which  amount  there 
has  been  collected  through  judgment  and  compromise  $510,681. 
During  the  past  eight  years  there  have  been  secured  in  public 
land  cases  involving  perjury,  subornation  of  perjury,  con- 
spiracy, forgery,  false  affidavits,  timber*  trespasses,  and  un- 
lawful inclosures:  3^096  indictments;  871  convictions;  251  prison 
sentences  ;  $182,737  in  fines,  and  there  have  been  577  acquittals  ; 
the  remainijig  indictments  are  awaiting  trial. 

During  the  same  period  7,874  fraudulent  land  entries  have 
been  canceled,  thereby  restoring  to  the  public  domain  and  to 
entry  by  citizens  over  1,259,840  acres.  From  July  1,  1902, 
to  May,  1908,  there  have  been  approved  and  patented  275,333 
homestead  entries,  covering  about  44,053,280  acres. 

The  interest  manifested  by  the  people  in  securing  homes 
on  the  public  domain  is  shown  by  the  fact  that  since  July  1, 
1906  (1%  years),  171,047  original  homesteads  and  desert  land 
entries  have  been  made  covering  more  than  28,375,400  acres. 
Coal  and  timber  lands  have  been  disposed  of,  so  far  as  existing 
laws  permit,  in  such  a  way  as  to  place  them  in  the  hands  of 
citizens  who  will  in  good  faith  use  and  develop  them  in  such 
a  way  as  to  avoid  monopoly  and  tend  to  the  general   good. 

What  was  known  as  the  Forest  Keserve  Lieu  Act  was  passed 
for  the  relief  of  settlers  whose  claims  were  found  to  be  within 
forest  reservations,  but  it  was  found  that*  instead  of  benefit- 
ing the  settlers  the  law  was  being  used  by  speculators  to 
acquire  large  tracts  of  valuable  public  lands  containing  timber, 
springs  and  other  resources  of  the  public  domain,  which  should 
l;e  reserved  for  honn  ffdc  settlers;  accordingly  in  1905  the  Re- 
publican  Administration   repealed   the  law. 

Manjr  homestead  settlers  were  from  various  reasons  unable 
to  prove  up  on  their  claims  and  complete  title  thereto  and 
under  the  existing  laws  the  making  of  an  entry  exhausted  their 
right  and  prevented  their  obtaining  other  homes  on  the  public 
domain;  accordingly  in  190 ^  and  in  February,  1908,  acts  were 
recommended  by  the  Department  and  passed  by  Congress  giv- 
ing to  those  who  had  lost,  forfeited,  or  abandoned  their  homes 
the  right  to  make  second  homestead  entries  in  all  cases  where 
the  original  entries  were  not  canceled  for  fraud  or  relinquish- 
ments sold.  This  will  enable  a  great  many  citizens  to  find  new- 
homes  upon  the  public  land  and  large  numbers  are  taking  ad- 
vantage of  t]*s  beneficial  legislation. 

Within  the  next  two  years  between  4,000.000  and  5,000,000 
acres  of  public  lands  will  be  ooened  to  settlement.  Under  the 
new  plan  adopted  by  the  Land  Office  the  drawings  will  be  con- 
ducted in  such  a  manner  that  every  one  who  is  eligible  to  take 
a  homestead  can  register  his  or  her  name  and  stand  an  equal 
chance  ,of  securinqr  the  best  clp.im  in  the  reservation.  This 
plan  has  been  found  to  work  admirably  in  the  recent  opening 
of  several  Indian  reservations. 

Lender  regulations  adopted  a  number  of  years  ago  persons 
desiring  to  cut  timber  from  public  lands  for  their  own  use 
Vere  required  to  file  appVicatioris  and  secure  permission  from 
the  Secretary  of  the  Interior  before  they  could  cut  the  t"mber, 
no  matter  how  urgent  the  need.  Last  year  the  Department 
adopted  new  rules  whereby  such  persons  can  file  their  appli- 
cations directly  with  a  local  field  officer.  The  apolication  is  mndf^ 
special,  and  the  field  officer,  if  the  application  is  found  to  be  in 
good  faith,  can  immediately  permit  cutting. 


INTERIOR  DEPARTMENT.  375 

Guarding-   the   Ntition'M   Coal. 

For  the  past  few  years  there  has  been  a  widesprea!  belief 
that  the  public  coal  lands  were  being-  improvideativ  ds posed  of 
and  were  falling-  into  the  hands  of  corporations  and  otaers  who 
were  able  to  control  the  output  of  the  mines  and  fix  their  own 
prices  on  the  coal.  It  was  also  found  that  lar^e  tract  >  were 
V being  obtained  unlawfully  under  other  thaa  coal  laws,  in  1907 
the  existing-  laws  were  examined,  and  regulations  were  adopted 
to  more  fully  carry  out  the  intent  of  thi  law  tiiat  coal  lands 
should  pass  in  limited  quantities  to  good  faith  claimants,  \.  ,  , 
had  a  personal  interest  in  the  lands  and  the  developraeut  of  coal. 
In  order  that  coal  areas  might  be  d^finei  anl  thi-  ki  d  and 
value  of  the  coal  more  accurately  known  by  the  De^iartjient  and 
by  the  people  the  Secretary  of  the  Interior  directed  the  Geo- 
logical Survey  to  begin  the  work  of  classifyi  i^  and  valuing 
the  public  coal  lands.  The  Administration  is  fully  convinced 
that  the  present  acreage,  160  acres,  which  may  be  entered  under 
the  coal  land  laws  is  too  small  to  warrant  a  citizen  in  expending 
the  money  necessary  for  the  equipment  and  operat  oi  of  larger 
mines.  The  Department  has  therefore  reconiiiiended,  and  Con- 
gress now  has  under  consideration,  legislation  designed  to  pei*- 
mit  citizens  to  enter  a  larger  area  of  coal  land,  the  entries  How- 
ever to  be  safeguarded  -so  that  the  land  cannot  be  made  tlie 
subject  of  any  combination  in  the  form  of  an  unlauful  trust 
or  conspiracy  or  in  restraint  of  trade  in  the  mining  or  sale  of 
the  coal. 

This  method  of  preventing  monopoly  has  already  been  adopted 
in  the  Hepburn  law  passed  by  Congress  this  year,  and  recit- 
ing to  Alaska.  The  Alaska  pioneers  had  discovered  large 
bodies  of  valuable  coal  in  the  interior  of  Alaska  and  had  under 
existing  laws  located  and  opened  mines  thereon,  b  it  were  under 
those  laws  limited  to  such  a  small  area  that  th'i  mines  could 
not  be  worked  at  a  profit  nor  could  the  locators,  in  vie  a-  of  the 
remoteness  of  the  lands,  the  price  of  supplies  and  labor,  afford 
to  install  the  necessary  machinery  for  the  mining  from  such  a 
small  claim.  The  Interior  Department  recomn.ended  early  in 
1908  that  good-faith  claimants  owning  adjoining  claims  in 
Alaska  should  be  allowed  to  form  partnerships  or  a-sociations 
and  combine  sixteen  of  the  small  claims  into  one  en:ry  and 
'patent.  This  enables  them  to  obtain  title  and  work  their  mines 
to  furnish  coal  for  local  consumption  and  for  the  Pacific  Coast 
States.  The  United  States  has  under  the  law  the  right  to  pur- 
chase as  much  coal  as  may  be  needed  from  the  mlne>  for  its 
Army  and  Navy  at  reasonable  prices,  and  every  safeguard  pos- 
sible has  been  placed  in  the  law  to  prevent  monopolies,  unlawful 
trusts  or  combinations  designed  to  restrain  sale  or  mining  of 
the  coal.  This  legislation  is  of  the  utmost  importance  to  the 
people,  and  the  Administration  deserves  great  credit  for  pro- 
viding reasonable  laws  and  regulations  whereby  honest  citizens 
may  obtain  coal  mines  and  where  at  the  same  time  the  rights 
of  the  public  are  safeguarded  with  respect  to  such  a  vital 
necessity  as  the  coal  suppl^^ 

Indian  Allotments. 

Since  the  30th  of  June,  1904,  more  than  15,000  Indians  have 
received  allotments  of  lands  in  severalty,  covering  approxi- 
mately 2,500,000  acres  of  land. 

These  allotments  have  been  made,  generally,  either  under 
what  is  known  as  the  "Dawes  Act,"  or  acts  containing  similar 
provisions.  The  object  of  the  law  is  to  break  up  the  tribal  sys- 
tem and  community  property  by  substituting  individual  owner- 
ship and  citizenship. 

Under  the  Dawes  Act  the  allottee  was  secured  in  the  posses- 
sion of  his  allotment  for  a  period  of  twentj'^-five  years,  as  the 
Act  provided  that  the  land  should  be  held  in  trust  by  the  United 
States  for  that  period  and  at  the  end  conveyed  to  the  allottee 
or  his  heirs  in  fee. 

He  was,  however,  compelled  to  assume  the  burdens  of  citi- 
zenship upon  the  approval  of  his  allotment,  and  thus  many 
Indians  have  become  full-fledged  citizens  without  any  compre- 
hension of  the  privileges  or  responsibilities  of  citizenship. 


;h7G  interior  DEPARTMENT. 

The  conditions  arising-  under  this  provision  of  the  Uiw  made 
plain  the  need  of  some  modification  -which  would  enable  the 
Indian  Office  to  manage  the  ailairs  of  the  helpless  class  with 
undisputed  authority,  but,  on  the  other  hand,  to  remove  from 
the  roll  of  wards  and  dependants  the  larg-e  and  incroasiut; 
number  of  Indians  who  no  longer  need  supervision  by  that 
Hureau. 

The  Act  of  May  8,  1906  (known  as  the  "lUirke  Act"),  meets 
the  requirements  by  postponing  the  acquisition  of  citizenship 
until  the  termination  of  the  trust  period  and  declariug  that 
imtil  the  allottees  acquire  citizenship  they  shall  be  subject  to 
the  exclusive  jurisdiction  of  the  United  States.  It  ])rovides 
for  those  who  are  competent  to  manage  their  own  affairs  by 
conferring  authority  on  the  Secretary  of  the  Interior  to  ter- 
minate the  trust  period  and  issue  a  fee  simple  patent  whenever 
he  is  satisfied  of  such  competency. 

Under  this  Act  2,206  patents  in  fee  have  been  issued. 

During  this  period  23,308  leases  of  allotted  lauds  for  farm- 
ing, grazing,  and  business  purposes  have  been  entered  into  and 
approved. 

By  these  leases  temporary  homes  have  been  provided  for 
thousands  of  white  citizens  and  large  areas,  which  otherwise 
would  have  lain  idle  and  unproductive,  have  been  put  in  culti 
vation. 

Tribal    Lands— Permits    for   Grazing    Stoclc. 

434  permits  for  grazing  stock  upon  Indian  tribal  lands  have 
bq^n  issued  from  which  a  revenue  of  $984,422.80  has  been  re- 
ceived. 

Tribal  grazing  leases  covering  5,379,177.51  acres  have  been 
approved,  the  annual  rental  amounting  to  $619,180.19. 

These  tribal  funds  are  deposited  in  the  Treasury  to  the  credit 
of  the  respective  tribes,  and  expended  for  their  benefit  or  paid 
per  capita  to  the  members,  in  the  discretion  of  the  Secretary. 

Sng^ar  Beet  Farming. 

A  paragraph  in  the  Indian  Appropriation  Act  of  March  1, 
1907,  permits  the  Indians  of  the  Fort  Belknap  Reservation  in 
Montana  to  lease  their  lands,  both  allotted  and  tribal,  but  not 
to  exceed  20,000  acres,  for  the  culture  of  sugar  beels  and  other 
crops  in  rotation,  upon  such  terras,  regulations,  and  conditions 
as  shall  be  prescribed  by  the  Secretary  of  the  Interior,  for  a 
term  not  exceeding  ten  years. 

Under  this  authority  a  contract  has  been  executed  with  three 
responsible  persons  for  a  lease  to  them  of  19,000  acres.  By  the 
terms  of  the  lease  the  Indians  are  to  plow  and  put  under  culti- 
vation 5,000  acres,  which  has  to  be  carefully  worked  over  the 
fii-st  year  to  put  in  beets  the  next  year.  The  Indians  are  to  re- 
ceive $4,50  per  ton  for  the  beets.  The  lessees  are  to  erect  a 
factory  for  the  manufacture  of  the  beets  into  sugar,  and  take 
the  product  of  the  5,000  acres  each  year.  TJiis  will  afford  em- 
ployment for  the  Indians  and  if  they  are  able  to  cultivate 
all  of  the  5,000  acres  will  yield  them  a  reveniie  of  at  least 
$270,000  per  annum. 

The  Geological   Survey. 

The  United  States  Geological  Survey,  when  organized  in 
1879,  under  a  Republican  administratioH,  became  a  pioneer 
agency  in  the  internal  development  of  the  country.  The  field 
covered  in  the  varied  work  of  this  bureau  is  that  of  the  min- 
eral wealth  of  the  nation.  Its  geologists  have  investigated  the 
economic  possibilities  of  the  utmost  corners  of  the  land  and 
by  exhaustive  studies  of  the  larger  mining  districts  have  con- 
tributed directly  to  the  working  knowledge  of  the  mine  en- 
gineers and  operators.  Even  in  distant  Alaska  the  work  of  the 
CJeological  Survey  is  recognized  as  of  very  great  practical  im- 
portance to  the  development  of  that  young  giant  territory. 
The  survey  maps  are  not  only  eagerly  sought  by  prospectors 
and  miners,  but  they  are  in  continual  demand  in  all  the  great 
engineering  enterprises.     Here  the  Federal  service  has  made  its 


INTERIOR  DEPARTMENT.  37  r 

best  record,  for  its  investigations  and  reports  on  Alaska  ai"e 
widely  credited  with  being-  an  important  factor  in  the  develop- 
ment of  the  larg-e  and  increasing-  production  of  the  precious 
and  useful  metals  of  the  Territory. 

The  statistical  work  of  the  Surve^^  in  its  reports  on  the  pro- 
duction of  the  precious  and  useful  minerals  of  the  country  is 
recognized  as  of  the  g-reatcst  value  to  the  mining-  industry. 
No  siich  comprehensive  treatment  of  the  subject  of  produc- 
tion and  distribution  of  the  mineral  wealth  of  a  country  is 
found  in  the  world  as  that  of  the  United  States  Geologica] 
Survey. 

Among-  other  thing-s,  the  Survey  is  constructing-,  at  the 
rate  of  about  250  square  miles  a  step,  a  great  topographic 
msCp  of  the  United  States — a  "mother  map"  of  the  coimtry — 
and  it  is  making  one  of  these  steps  every  third  day.  That  is, 
it  is  issuing  that  often  a  topographic  sheet  which  thus  becomes 
a  part  of  the  big  map.  Over  1,700  of  these  sheets  have  already 
been  engraved  «nd  about  one-third  of  the  United  States  has 
been  covered.  When  completed  this  will  be  the  greatest  map 
in  the  world.  Our  topograi^hic  maps  have  become  the  models 
for  the  map-making  bureaus  of  many  foreign  nations. 

With  one  of  these  maps  spread  before  hinj^  a  man  may  trace 
the  course  of  every  stream,  or  accurately  locate  every  moun- 
tain and  hill,  with  the  exact  knowledge  of  their  steepness  and 
altitudes.  The  map  is  in  efPect  a  physical  reproduction  of  the 
surface  of  the  country,  on  a  small  scale.  It  is  easy  to  see, 
then,  its  use  not  only  to  the  engineer  who  may  want  to  plan 
great  irrigation  or  drainage  systems  or  to  determine  the  best 
route  for  100  or  1,000  miles  of  railroad  lines,  but  as  well  to  the 
farmer  or  ranchman  who  wishes  to  drain  the  swampy  corner 
of  his  farm  "or  to  la.>  out  a  wagon  road  between  his  ranch 
and  that  of  his  neighbor.  The  topographic  survey,  then,  in- 
cludes all  the  surface  features,  while  the  geologic  survey  adds 
information  concerning  not  only  the  rocks  and  soils  exposed 
to  the  surface,  but  indicates  what  is  beneath  and  foretells 
with  remarkable  accuracy  what  excavations  may  encounter, 
to  a  depth  of  hundreds  and  even  thousands  of  feet. 

Hydrosrapiilc  Surveys. 

One  of  the  important  works  of  the  Geological  Survey  is  its 
study  of  the  water  resources  of  the  coimtry.  Records  of 
daily  flow  of  streams  have  been  collected  at  over  1,500  points 
throughout  the  United  States  for  a  period  of  years,  in  order 
to  determine  the  average  flow  of  the  rivers.  During  the 
past  year  about  500  such  stations  have  been  maintained. 
Knowledge  of  floods,  low  stages  and  average  discharge  of  rivers 
is  essential  if  streams  are  to  be  utilized  in  power  development, 
in  irrigation  and  drainage  and  as  contributing  to  inland  navi- 
gation. These  investigations  of  the  Survey  show  conclusively 
that  tens  of  millions  of  now  wasted  horsepower  can  be  con- 
served and  cheaply  developed  through  the  use  of  natural 
mountain  reservoirs  at  the  head  waters,  for  flood  storage.  They 
show  further  that  the  use  of  these  same  flood-control  reser- 
voirs will  save  tens  of  millions  of  dollars  annually  through 
flood  prevention,  and  still  further  that  they  will  be  of  enormous 
aid  to  irrigation  in  the  West  and  to  navigation  in  the  East 
through  the  letting  down  into  the  river  channels  the  stored 
floods,   during  the   low-water   or   irrigation   periods. 

The  value  of  the  topographic  and  hydrographic  surveys  in 
the  development  of  the  country  in  general  has  been  very  great; 
but  a  single  striking  example  of  their  use  from  a  government 
standpoint  is  seen  in  the  successful  work  of  the  Reclamation 
Service.  Taking  as  a  basis  these  surveys,  the  Reclamation  Ser- 
vice, immediately  upon  its  organization,  was  able  to  pick  out 
feasible  projects  and  begin,  not  surveys  and  investigations,  but 
actual  construction  work.  The  integrity  of  these  great  irri- 
gation works  rest  upon  the  records  of  stream  flows  which  the 
Geological  Survey,  thanks  to  the  Republican  legislative  fore- 
sight, had  collected  for  years  previous  to  the  passage  of  the 
irrig-ation  act,  and  the  brilliant  and  rapid  achievement  of  that 


378  INTERIOR  DEPARTMENT. 

stM-vice   is  due    to   tiie   extent  uiul    thoroughness   of   these    pre- 
liminai'v  basic  investigfations. 

And  so  with  the  drainage  ])roblem;  should  ^'ongress  enact 
a  national  drainag-e  law  to-day,  the  wisely  provided  prcliiTiinary 
work  of  the  (Jeolog-ical  vSurvey  could  be  used  as  a  basis  for  the 
immediate  construction  of  a  number  of  great  swanij)  reclnnia- 
tion  projects  and  the  creation  of  many  homes. 

For    Prevention    of    Mine    AccidentH. 

The  recent  great  mining  disasters  and  the  increasing  num- 
ber of  coal  jnine  explosions  throughout  the  country,  and  other 
mine  accidents,  resulting  in  an  appalling  loss  of  human  life, 
have  aroused  the  country  to  the  need  for  action  to  prevent- or 
diminish,  if  possible,  these  horrors.  In  response  to  the  urgent 
demand  of  both  labor  and  capital,  Congress  at  its  last  session 
appropriated  $150,000  to  be  expended  by  the  Geological  Survey 
in  investigating  this  subject.  A  Division  of  Mine  Accidents' 
has  been  established  and  good  results  are  expected,  since  state- 
ments already  issued  by  the  Survey  show  that  mine  accidents 
and  the  consequent  loss  of  life  have  been  greatly  reduced  in 
foreign  countries,  due  to  governmental  investigations  and  study 
of  the  conditions  affecting  mining  operations.  ,  j  ^ 

At  an  experimental  station  of  the  Survey  being  estap^ 
lished  at  Pittsburgh  under  this  appropriation,  tests  of  the 
various  dynamites  and  powders  used  in  blasting  coal  will  be 
made,  in  order  to  determine  the  safest  explosives  in  the  pres- 
ence of  fire  damp,  coal  dust,  etc.  In  connection  with  the  sta- 
tion there  will  be  an  experimental  mine,  with  drifts,  headings, 
rooms,  ladders,  etc.,  which  can.be  filled  with  smoke  or  gas  and 
practical  experiments  made  with  life-saving  a.ppai:atu.s.  Miners 
will  be  taught  how  to  wear  this  ap])aratus  and  how  to  rescue 
their  comrades  from  the  vapors  should  they  become  uncon- 
scious following  an  explosion.  The  results  of  the  investigations, 
will  be  published  for  the  benefit  of  the  State  mine  bureaus, 
operators  and  miners.  Simple  instructions  will  be  printed,  from 
time  to  time,  in  half  a  dozen  languages. 

Coal    Liftnd    Values    Fixed. 

The  development  of  internal  resources  has  been  the  aim  and 
the  accomplishment  of  the  present  administration;  but  no 
more  than  has  been  prevention  of  wasteful  and  fraiidulent 
exploitation  of  such  resources.  In  no  field  of  Republican  g\iar- 
dianship  of  the  people's  rights  does  the  wise  statesmanship 
ot  the  administration  shine  more  brightly  than  in  the  man- 
agement of  the  nation's  coal  suppl^^  The  government  still 
owns  between  seventy  and  eighty  million  acres  of  known  coal 
fields  in  the  West.  The  common  knowledge  of  the  waste  in 
the  operation  of  the  older  coal  fields  as  well  as  the  monopoliza- 
tion of  great  coal-producing  areas  by  corporations  and  syndi- 
cates desiring  to  hold  without  developing  them  or  allowing 
others  to  devolop  them  for  the  needs  of  the  public,  suggested  to 
the  administration  an  investigation  of  the  Western  fields  where 
the  government  is  still  the  major  owner.  This  investigation 
quickly  brought  to  light  the  fact  that  large  areas  of  valuable 
coal  lands  had  been  acquired  by  corporations  through  gross 
fraud,  jx^rjury,  and  briber}^  under  agricultiiral  land  laws.  A 
fearless  interpretation  of  the  coal  land  law  itself  recog- 
nized that  the  price  which  the  Government  had  always  charged 
for  coal  land,  namely,  $10  and  $20  an  acre  (according  to 
whether  the  coal  lands  lie  within  or  without  the  15-mile  rail- 
road limit)  Avas  only  the  minimum  price.  In  spite  of  a  verit- 
able storm  of  protest,  the  President  immediately  withdrew 
from  all  entry  (57,000,000  acres  of  Western  public  coal  lands 
and  the  Geological  Survey  began  at  once  the  classification  and 
valuation  of  this  land,  under  regiilations  fixing  the  price  at 
from  the  minimum  of  $10  to  $20,  to  $100  an  acre.  The  effect 
of  the  President's  withdrawal  was^not  only  to  stop  immediately 
the  sale  of  public  coal  lands  at  an  undervaluation,  but  it 
checked  the  gigantic  frauds  in  acquiring  such  lands,  under 
Mie  homestead,  desert,  and  other  land  laws. 


INTERIOR  DEPARTMENT.  379 

In  order,  however,  that  leg-itimate  operations  mig-ht  not 
be  hampered  unduly  the  work  of  classification  has  been  prose- 
cuted with  great  vigor  and  already  over  50,000,000  acres  of 
this  withdrawn  land  have  been  classified  and  valued  by  the 
Survey  and  restored  to  piiblic  purchase.  Valuations  have  been 
fixed  from  $10  up  to  $75  an  acre.  These  valuations  made  by 
the  coal  geologists  of  the  Survey  are  not  the  result  of  mere 
classification  made  in  the  Washington  office,  but  of  actual  geo- 
log-ic  field  investigations,  in  the  course  of  which  the  geologist 
examined  each  40  acres,  upon  which  he  put  a  valuation  as  coal 
land.  This  economic  work  of  the  acbninistration  is  not  only 
securing  to  the  government  a  more  nearly  adequate  return 
for  property  of  great  value,  but  is  preventing  the  monopolisa- 
tion of  great  areas  of  coal. 

Of  course,  bitter  opposition  has  developed  in  many  instances 
where  individuals  and  corporations  were  acquiring  lands  of 
great  value  at  the  low  price  of  $10  or  $20  an  acre,  or  through 
fraud  and  perjury  at  $1,25  per  acre.  The  correction  of  the 
evil,  however,  has  met  generally  with  the  hearty  approval  of 
the  people  of  the  Qountry,  An  idea  of  the  extent  of  the  losses 
suffered  by  the  Government  may  be  deduced  from  the  results 
of  coal  land  classifications  by  the  Geological  Survey,  in  which 
the  fact  was  developed  that  one  coal  company  in  a  single  coal 
field  in  a  Western  State  had  legally  purchased  i:},128  acres  at 
the  $10  to  $20  an  acre  rate,  while  it  had  acquired  15,800  acres 
as  "agricultural  land,"  and  of  this  last,  13,280  acres  had  abso- 
lutely no  value  for  agriculture. 

Fuel  and   Structural   Material   Tests.  ♦ 

A  governmental  activity  for  which  Republicans  may  justly 
take  great  credit — one  of  the  many  results  of  the  wise  states- 
manship and  legislative  foresight  of  the  party — is  the  practical 
testing  and  experimental  work  of  the  Geological  Survey.  Con- 
gress first  provided  for  these  economic  investigations  of  the 
natural  products  of  the  United  States  in  1905  and  has  a])pro- 
priated  a  total  amount  of  over  a  million  and  a  quarter  dollars; 
but  the  bertfeficial  results  from  the  work  have  been  so  great 
and  far-reaching  that  had  the  appropriation  been  quadruple 
or  even  ten  times  this  amount,  the  nation  would  have  been  reim- 
bursed by  the  values  saved.  To  cite  one  or  two  instances:  An 
important  result  attained  in  fuel  investigations  is  the  estab- 
lishment of  the  fact  that  the  low-grade  bituminous  coals  and 
lignites  of  the  country,  of  which  there  are  tens  of  millions  of 
acres  heretofore  considered  of  but  slight  industrial  valvie,  can 
be  converted  into  gas  and  used  in  the  gas  engine  with  more 
than  double  the  efliciency  attainable  under  the  steam  boiler. 
In  other  words,  the  discover.y  has  doubled  the  value  of  these 
coals.  This  applies  also  to  millions  of  tons  of  inferior  coal 
which  in  mining  operations  is  annually  left  underground  and 
permanently  lost. 

The  investigations  also  show  that  some  of  the  peats,  found 
in  great  abundance  in  the  New  England,  North  Central  and 
Atlantic  States,  but  heretofore  considered  of  little  value,  may 
be  used  to  advantage  as  a  source  of  power  in  the  gas  ])ro- 
ducer,  either  for  .local  farm  purposes  or  for  large  power  plants, 
and  also  that  it  is  practicable  and  economical  to  make  briquets, 
a  superior  and  smokeless  fuel,  out  of  the  millions  of  tons  of 
slack  and  coal  dust  now  wasted  annually. 

In  the  tests  of  structural  materials^  most  important  results 
have  been  attained.  The  increasing  use  of  reenforced  con- 
crete has  shown  the  great  need  of  scientific  information.  These 
investigations  have  all  been  made  for  the  benefit  of  the  Govern- 
ment— Federal  buildings  and  other  engineering  works,  such 
as  the  great  irrigation  structures  in  the  W^est,  the  Panama 
Canal  construction,  etc.^ — but  here,  as  in  the  case  of  the  fuel 
investigation,  the  general  public  is  the  greatest  gainer  from  the 
results. 

All   of  these   scientific-economic  investigations,   experiments 
and  tests  of  the  Government,  fostered,  encouraged,  and  provided 
for  by  Republican  legislation,  should  be  continued  and  extend e'' 
Upon  the  economical  development  of  our  natural  resources  de- 


i80  INTERIOR  DEfARTM EXT— RECLAMATION. 

pends  in  very  larg-e  meusure  the  contimiance  of  our  national 
sii|)reni(;('.v  and  tho  prosjierity  of  our  people,  and  these  evidences 
of  wise  statesniansliip  and  forelianded  legishition  show  that 
the  party  of  pro^i^ress  can  l)e  relied  upon,  in  the  future  as 
in  the  past,  to  carry  o\it  such  ])olicies,  whicli,  while  under  the 
strict  wording-  of  the  appropriation  acts  are  for  the  uses  of 
the  government,  are  in  reality  for  the  benclit  of  all  the  people 
of  the  country. 

The   Reclmnajtion    Service. 

The  Keclamation  Act;  which  was  signed  on  June  17,  1902,  by 
President  Roosevelt,  is  to-day  generally  recognized  as  one  of 
the  wisest  laws  ever  enacted  by  Congress,  as  beneficent  as  it  was 
necessary.  It  inaugurated  a  step  exactly  in  line-  with  the  ad- 
ministration's broad  policy  of  the  conservatio"n  and  develop- 
ment of  the  natural  resources  of  the  country,  and  is  regarded 
as  second  only  in  importance  to  that  other  great  Republican 
enactment — the  Homestead  law. 

Under  the  provisions  of  the  law%  national  irrigation  already 
has  become  a  most  important  factor  in  Western  development, 
in  the  building  up  of  commonwealths  and  prosperous  agricul- 
tural communities.  The  economic  value  of  the  work  cannot 
be  measured  in  dollars  and  cents.  Our  unoccupied  piiblic  lands, 
which  belong  to  all  of  the  people,  are  largely  desert.  To  make 
them  habitable  is  a  national  duty  too  obvious  to  be  questioned. 
The  future  prosperity  and  growth  of  sixteen  Western  States 
and  territories  are  linked  inseparably  with  the  development  of 
irrigation.  The  desert  reclaimed  will  sufjport  millions  in  com- 
fort in  homes  of  their  own,  thus  providing  a  safet}^  valve 
against  the  impending  dangers  of  congestion  of  population  in 
the  older  settled  portions  of  the  country.  Conservative  en- 
gineers estimate  that  at  least  twenty-five  million  acres  of 
land  now  desert  and  uninhabited  will  be  converted  into  small 
farms  under  the  provisions  of  the  reclamation  law.  This  vast 
area,  capable  of  supporting  millions  of  people,  will  be  brought 
into  cultivation  without  entailing  the  loss  of  a  single  dollar 
to  the  national  treasury,  as  the  land  reclaimed  is* assessed  for 
the  benefits  received  and  the  landowner  must  return  to  the 
Treasury  the  cost  of  reclamation. 

The'  Reclamation  Service,  now  a  separate  bureau  of  the  De- 
jpartment  of  the  Interior,  has  had  charge  of  the  engineering 
work  from  its  inception.  Notwithstanding  the  enormous  area 
of  country  embraced  in  the  arid  States — two-fifths  of  the  United 
States — the  Service  lias  already  completed  surveys  and  per- 
fected estimates  for  twenty-six  irrigation  projects,  and  is  en- 
gaged upon  the  construction  of  twenty-five  of  these.  On  a 
number  construction  work  has  progressed  sufficiently  to  irri- 
gate large  areas  which  have  been  settled  upon,  and  are  now 
producing  crops.  No  better  evidence  of  the  wisdom  of  the 
law,  and  the  business-like  and  the  practical  methods  of  its 
administration  could  be  submitted  than  the  fact  that  homes 
are  actually  being  made  in  large  numbers  on  the  land  reclaimed, 
and  the  cost  of  the  work  is  being  returned  by  the   settlers. 

A  summation  of  the  work  of  the  Reclamation  Service  to 
January  1,  1908,  shows  that  it  has  dug  1,881  miles  of  canals, 
or  nearly  the  distance  from  New  York  to  Idaho.  Some  of  these 
canals  carry  whole  rivers,  like  the  Truckee  river  in  Nevada, 
and  the  North  Platte  in  Wyoming.  The  tunnels  excavated  are 
56  in  number,  and  have  an  aggregate  length  of  l^l4  niiles.  The 
Service  has  erected  281  large  structures,  including  the  great 
dams  in  Nevada  and  the  Minidoka  dam  in  Idaho,  80  feet  high 
»and  6.50  feet  long.  It  has  completed  1,000  headworks,  flumes, 
etc.  It  has  built  611  miles  of  wagon  road  in  mountainous  coun- 
•;.try  and  into  heretofore  inaccessible  regions.  It  has  erected 
r^and  in  operation  830  miles  of  telephones.  Its  own  cement  mill 
has  manufactured  80,000  barrels  of  cement,  and  the  amount 
purchased  in  addition  is  401,000  barrels.  Its  own  sawmills  have 
cut  3.036,000  feet  B.  M,  of  lumber,  and  23,685,000  feet  have  been 
purchased.  *  The  surveying  parties  of  the  Service  have  com- 
pleted topographic  surveys  covering  10,970  square  miles,  an 
area  greater  than   the   combined  areas   of  Massachusetts  and 


INTERIOR  DEPARTMENT— PENSIONS.  381 

Rhode  Island.  The  transit  lines  had  a  length  of  18,900  linear 
-miles,  while  the  level  lines  run  amount  to  24,218  miles,  or  nearly 
suiHcient  to  go  around  the  earth. 

The  diamond  drillings  for  dam  sites  and  canals  amount  to 
60,749  feet,  or  more  than  12  miles.  To-day  the  Service  owns 
and  has  at  work  1,500  horses  and  mules.  It  operates  9  loco- 
motives, 611  cars,  and  23  miles  of  railroad,  84  gasoline  engines 
and  70  steam  engines.  It  has  constructed  and  is  operating 
5  electric  light  plants.  There  have  been  excavated  42,447,000 
cubic  yards  of  earth  and  rock.  The  equipment  now  operated 
by  the  Service  on  force  account  work  represent  an  investment 
of  a  million  dollars. 

This  work  has  been  carried  on  with  the  following  force: 
Classified  and  registered  service,  including  Washington  office, 
1,126;  laborers  employed  directly  by  the  Government,  4,448; 
laborers  employed  by  contractors,  10,789,  or  a  total  of  all  forces 
of  16,363.  The  expenditures  now  total  nearly  $1,000,000  per 
month.  As  a  result  of  the  operations  of  the  Reclamation  Serv- 
ice, eight  new  towns  have  been  established,  100  miles  of  branch 
railroads  have  been  constructed,  and  14,000  people  have  taken 
up  their  residence  in  the  desert. 

Pension   Lej^islation    of  tlie   Republican   Party. 

During  the  last  four  years  of  this  administration  the  work 
in  the  Pension  Bureau  has  been  brought  up  to  date.  A  claim 
for  pension  is  now  taken  up  for  action  as  soon  as  it  reaches 
the  files  of  the  Bureau.  Its  early  adjudication  depends  entirely 
upon  the  promptness  with  which  the  claimant  furnishes  the 
evidence  called  for  by  the  office.  If  sufficient  evidence  be  filed 
with  the  application  for  pension  it  is  possible  that  a  certificate 
may  be  issued  to  the  pensioner  within  two  weeRs  from  the  date 
the  application   is  filed. 

There  has  been  a  decrease  of  nearly  $700,000  in  the  expenses 
of  conducting  the  affairs  of  the  Bureau  during  the  last  four 
years,  the  expenses  during  the  last  year  being  the  smallest  since 
1886.  At  one  time  the  number  of  employees  in  the  Pension 
Bureau  was  over  2,000.  There  has  been  a  gradual  reduction 
in  the  number  of  such  employees,  until  at  the  present  time 
there  are  less  than  1,400.  This  reduction  has  been  accomplished 
mainly  by  allowing-  the  vacancies  which  occur  through  death, 
resignation,  etc.,  to  accumulate  instead  of  filling  them  as  they 
take  place,  thus  avoiding  the  necessity  for  dismissals  on  this 
account. 

Notwithstanding  this  reduction  the  number  of  certificates 
issued  during  the  last  twelve  months  is  greater  than  during 
any  previous  twelve  months  since  the  establishment  of  the 
Pension  Bureau,  nearly  400,000  certificates  being  issued  during 
the   past  year. 

The  Act  of  June  27,  1890,  passed  by  a  Republican  Congress 
and  signed  by  a  Republican  President,  was  the  first  disability 
pension  law  in  the  history  of  the  world,  granting  to  soldiers 
and  sailors  pensions  for  disability  not  proven  to  have  been  in- 
curred in  the  service  and  line  of  dut5\  This  was  the  most 
far-reaching  pension  legislation  enacted  after  the  close  of  the 
Civil  War  and  recognized  a  higher  obligation  of  the  people  to 
their  disabled  veterans  than  was  ever  before  formulated  into 
law.  Previous  to  1890  pensions  for  service  in  the  Civil  War 
were  granted  only  to  those  who  were  wounded  in  the  service 
or  who  had  contracted  some  disability  therein,  and  likewise 
pensions  were  granted  only  to  widows,  minor  children,  and  de- 
pendent parents  of  those  who  died  from  injuries  received  or  dis- 
abilities contracted  in  the  service.  The  Act  of  June  27,  1890, 
granted  pensions  to  all  persons  who  served  ninety  days  or  more 
during  the  Civil  War  and  who  were  disabled  from  earning  a 
support  by  manual  labor,  without  requiring  the  applicant  to 
prove  that  the  disability  or  disabilities  were  incurred  in  the 
service.  The  Act  also  granted  pensions  to  dependent  widows  of 
all  such  persons  withoiit  requiring  them  to  prove  that  their 
husbands  died  of  wounds  received  or  disabilities  contracted  in 
the  service.  The  rate  of  pension  under  the  Act  of  June  27, 
1890,  was  from   $6.00   to   $12.00   per  month   to   the   survivors  of 


,S2  INTERIOR  DEPARTMENT— PENSIONS. 

the  ('ivil  War  in  uccordaiice  with  the  degree  of  disability,  and 
$8.00  piT  month  t(j  all  widows. 

The  most  important  pension  legislation  enacted  since  the  pas- 
sage of  the  Act  of  June  27,  1890,  was  the  Act  of  February  6,  1907, 
also  passed  by  a  liepublican  Congress  and  signed  by  a  Kepublicau 
President,  granting  pensions  to  certain  enlisted  men,  soldiers 
and  officers,  who  served  in  the  Civil  War  and  the  War  with 
Mexico.  Under  this  Act  any  pei'son  who  served  90  days  or  more 
in  the  military  or  naval  service  of  the  United  States  during 
the  late  Civil  War  or  60  days  in  the  War  with  Mexico  and 
who  was  honorably  discharged  is  entitled  to  a  pension  of  $13.00 
I-er  month  on  reaching  the  age  of  62  years,  $15.00  per  month 
on  reaching  the  age  of  70  years  and  $20.00  per  month  on  reach- 
ing the  age  of  75  years.  While  the  rates  to  survivors  under 
the  Act  of  June  27,  1890,  were  from  $6.00  to  $12.00  per  month, 
the  rates  provided  by  the  Act  of  February  6,  1907,  are  from 
$12.00  to  $20.00  per  rnonth.  Nearly  400,000  applications  for  the 
benefit  of  this  Act  have  been  filed  in  the  Bureau  and  more  than 
350,000  certificates  have  been  issued  thereunder,  making  an  aver- 
age increase  to  each  pensioner  of  about  $53.00  per  annum. 

The  legislation  next  in  importance  is  the  Act  of  April  19, 
1908,  to  increase  the  pensions  of  widows,  minor  children,  etc., 
of  deceased  soldiers  and  sailors  of  the  late  Civil  War,  the  War 
with  Mexico,  the  various  Indian  wars,  etc.,  and  to  grant  a 
pension  to  certain  widows  of  the  deceased  soldiers  and  sailors 
of  the  late  Civil  War.  Under  this  Act  all  widows,  minors,  and 
helpless  children  on  the  rolls  at  a  less  I'ate  were  increased  to 
$12.00  per  month,  and  the  widows  of  those  who  served  ninety 
days  during  the  Civil  War  and  who  received  an  honorable  dis- 
charge therefrom,  are  entitled  to  pension  under  this  Act,  provided 
they  were  married  prior  to  June  27,  1890,  dependence  not  being 
considered.  This  Act  granted  an  increase  of  pension  to  some 
200,000  widows  and  children  of  deceased  soldiers  and  sailors  of 
the  Civil  War  and  the  War  with  Mexico  and  the  various  Indian 
wars.  Pensioners  were  not  required  to  file  an  application  in 
the  Bureau  of  Pensions  to  secure  the  increased  rate  provided  by 
tke  Act  of  April  19,  1908,  as  the  Pension  Agents  were  instructed 
to  pay  all  pensioners  on  the  roll  affected  by  this  Act  at  the 
increased  rate  at  the  first  quarterly  payment  occurring  after 
the  passage  of  said  Act.  More  than  60,000  pensioners  received 
])ayment  at  the  increased  rate  at  the  quarterly  payment  which 
occurred  on  May  4,  1908 — onlj^  fifteen  days  after  the  passage 
of  the  Act,  and  the  entire  nimiber  of  pensioners  entitled  to 
the  benefits  of  this  Act  receive  payment  at  the  increased  rate 
within  three  months  after  the  passage  of  the  Act.  The  appli- 
cations for  original  pension  received  under  the  Act  of  April 
19,  1908,  were  given  immediate  attention,  and  in  about  thirty 
days  after  the  approval  of  the  Act  the  Bureau  was  issuing  more 
than  100  certificates  per  day  thereunder  to  widows  whose  names 
were  not  previously  on  the  pension  rolls. 

The  number  of  pensioners  on  the  rolls  is  now  slightly  in 
excess  of  950,000  and  the  average  amount  paid  out  in  pensions 
each  month  is  nearly  $13,000,000.  There  are  abont  625,000  sur- 
vivors of  the  Civil  War  on  the  pension  roll  at  the  present 
time.  As  more  than  2,500  of  these  survivors  are  dropped  from 
the  rolls  each  month  on  account  of  death,  the  importance  of 
having  their  claims  promptly  adjudicated  will  be  readily  ap- 
preciated. The  work*  in  the  Bureau  of  Pensions  is  now  in  such 
a  condition  that  an  application  for  increase  of  pension  will  be 
settled  and  the  pensioner,  if  entitled  to  the  increase,  w^ill  re- 
ceive such  increase  at  the  first  qiiarterly  payment  falling  di.*e 
after  the  filing  of  the  claim.  Notwithstanding  the  fact  that 
the  work  of  the  Bureaii  during  the  past  year  was  the  greatest 
in  amount  during  its  history,  a  balance  of  nearly  $400,000  which 
had  been  appropriated  by  Congress  for  the  running  expenses 
of  the  Pension  Bureau  remained  unexpended  at  the  close  of  the 
last  fiscal  year  and  was  turned  back  into  the  Treasury. 

TTie  amount  of  money  paid  in  pensions  by  the  Government  each 
month  was  a  very  great  factor  in  relieving  the  money  stringency 
during  the  few  months  following  October,  1907.  In  order  that  this 
money  might  be  distributed  as  widely  as  possible  and  benefit 
the  neighborhoods  in  which  the  pensioners  were  located,  the  ad- 


INTERIOR  DEPARTMENT— PENSIONS. 


383 


ministration  directed  that  all  Postmasters  who  haa  funds  avail- 
able should  accept  pension  checks  from  pensioners  and  pay  cash 
therefor.  The  Postmasters  by  this  means  were  able  to  forward 
the  pension  checks  to  their  depositories  and  obtain  credit  there- 
for, instead  of  forwarding  the  actual  cash.  Thik,  increased  the  cir- 
culating- medium  in  each  neighborhood  throughout  the  country 
in  which  pensioners  Were  located  to  the  full  extent  of  the 
pension  paid,  thus  greatly  benefiting  not  only  the  pensioners  but 
the  banks  and  the  entire  business  community  as  well. 

The  number  of  pensioners  upon  the  rolls  July  1,  1907,  and  for 
three  preceding  years,  respectively.   Is  as  follows: 


1904. 

1905. 

1906. 

1907. 

Revolutionary  war: 

Widows 

1 
2 

1 
918 

2,367 
3,519 

5,214 
7,821 

240,785 

77,414 

1,765 

875 

7,895 

192 

459 

450,007 

161,067 

4,067 

226 

1 
4 

1 
3 

Daughters 

3 

War  ot  1812: 

Widows 

776 

2,269 
3,461 

4,510 
7,653 

219,384 

77,620 

1,410 

769 

6,643 

195 

472 

465,224 

169,036 

4,177 

250 

600 

2,173 
3,367 

3,984 

7.488 

205,375 

76,810 

1,097 

662 

5,519 

205 

479 

461,078 

175,237 

4,167 

274 

558 

Indian    wars: 

2,007 
3.201 

3,485 
7.214 

178,816 

75.629 

873 

Widows   - 

War  with  Mexico: 

Wi(.o.vs   

Civil  war: 

General   law— 

W  idows  

Fathe/s   - 

599 

4,578 
221 

489 

Act  of  June  27,   18 JO 

349,283 

180,539 

4,032 

292 

Widows     

Helpless  children 

Act  February  6,  1907 

116.239 
542 

Army  nurses 

606 

12,440 

1,012 

224 

2,715 

430 

8 

603 

15,711 

1,068 

272 

2,957 

473 

9 

1 

10,030 

2,453 

115 

714 

108 

6 

7 

579 

17,616 
1,091 

298 
3,031 

512 

? 

10,648 

2,498 

120 

783 

130 

5 

8 

War  with  Spain: 

19,031 

Widows  

1,100 

Minor  children   

316 

Mothers    :. 

3,0)0 

Fathers 

527 

Brothers   and   sisters 

11 

Helpless  children 

2 

Regular  establishment: 
Invalids 

9,501 

2,381 

111 

633 

93 

8 

5 

11,076 

Widows 

2,526 

Minor   children 

122 

Mothers    _-    _ 

821 

Fathers       ._      .      _ 

133 

Brothers  and  sisters 

5 

Helpless  children 

8 

Total 

994,762 

998,441 

985,971 

967,371 

On  July  31,  1902,  there  were  1.001,494  pensioners  on  the  rolls. 
The  following  table  shows  the  annual  decrease  in  the  roll  since 
that  date  and  the  loss  by  death  for  each  year : 


Number  of 

pensioners  on 

the  rolls. 

Number  of 

pensioners 

dro'^pedby 

death. 

.Tune   80,    1903    __ 

996,545 
994,762 
998,441 
985,971 
967,371 
954,613 

40,907 
43,820 
43,883 
43,300 
45,76S 
3),  122 

June    30,    ]90t 

June   30,    1905 

June   30,    IfKW 

June   30,    1907 ..          _    _.      .       . 

March    31,    1908..^ .. 

Total 

262,800 

Assuredly  it  Is  iiu^visie  to  cliaiijre  tlie  policies  -«'liicli  have 
worked  so  well  and  wliicli  are  nnw  Tvorklnj?  so  well.— Presi- 
dent   Roosevelt's    syeech    accepting-    1904    nomination. 


:<84 


INTERIOR  DEPARTMENT— PENSIONS. 


The  cost  of  the  pension   system  per  capita  of   population'^ 
shown  for  certain  years  as  follows:  '* 


Year. 

■ 
Number 
of  pen- 
sioners. 

Tbtalcost '  "      Total 

of  pension           popula- 

system.                tlon. 

Cost 
per  capita 

of 
population. 

■ 
1S<)8 __ >._ 

966,012 
993,714 
996,545 
967,371 

$161,774,372.36 
148,765,971.26 
141,752,870.50 
139.108,087.48 

66,349,000 
72,947,000 
80,847,000 
85,817,239 

$2.44 
2.04 

1838 .... 

um 

1.75 

1.62 

Uishursements   for   pensions   and   for    maintenance  ^of   pension 
system,  1866  to  1907. 


Year. 

Paid  as 
pensions. 

Cost,  mainte- 
nance, ana 
expenses. 

Total. 

Number 
of  peu- 
slouers. 

1879          '.  . 

$33,664,428.92 
56,683,229.08 
,  60,583,405.35 
,  ,    51,313,172.05 
60,427,573.81 
57,912,387.47 
65,171,937.12 
64,091,142.90 
73,752,997.08 
78,950,501.67 
88,812,720.58 
106,093,850.39 
117,312,690.50 
139,394,147.11 
158,906,637.94 
139,986,726.17 
139,812,294.30 
138,220,704.46 
139,949,717.35 
144,651,879.80 
1.38,355,052.95 
138,462,130.65 
138,531,483.84 
137,504,267.99 
137,759,653.71 
141,093,571.49 
141,142,861.33 
139,000,288.25 
138,155,412.46 

$837,734.14 
935,027.28 
1,072,0)9.64 
1,466,236.01 
2,591,618.29 
2,835,181.00 
3,392,576.31 
3,215,016.61 
3,753,400.91 
3,515,057.27 
3,466,968.40 
3,526,382.13 
4,700,636.44 
4,898,665.80 
4,867,731.42 
3,963,976.31 
4,338,020.21 
3,991,375.61 
3,987,783.07 
4,114,091.46 
4,117,517.73 
3,841,706.74 
3,868,795.41 
3,831,378.96 
3,993,216.79 
3,819, 366;25 
3,721,832.82 
3,523,269.51 
3,309,110.44 

$34,502,163.06 
57,624,256.36 
51,655,461.99 
55,779,408.06 
63,019,222.10 
60,747,568.47 
68,564,513.46 
67,336,159.51 
77.506,397.99 
82,465,558.94 
92,309,688.98 
109,620,232.52 
122,013,326.94 
144,292,812.91 
161,774,372.36 
113,950,702.48 
144,150,314.51 
142,212,080.07 
143,9.37,500.42 
148,765,971.26 
142,502,570.68 
142,303,887.39 
142,400,279.28 
141,335,616.95 
141,752,870.50 
144,942,937.74 
114,831,694.15 
112,523,557.76 
141,461,522.90 

242,755 
250,802 

1880          .     _ 

1881 

1882 : 

1883 

268,830 
285,697 
303,658 

1884 •. 

322,7)6 

1885 

1886 

345,125 
365,783 

1887 

406,007 

1888 

1883 

4.52,5)7 

489,72) 

1890        -.    __     . 

537,944 

1891 r 

676  160 

1892 

876,068 
966,012 

1893 

1894 

969  514 

1805 

970  524 

1896 

970,678 

1897 

976,014 

1898 

933  711 

1899 

991,519 

l.WO 

993,529 

1901    

997,735 

1902 

999,446 

1903 

996,515 

1901 

994,762 

1905 

938,441 

190) 

985,071 

1907 

937,371 

Total.-^ 

8,501,570,279.46 

110,051,513.73 

3,611,621,793.19 



AN  ACT 

(Iranting  pensions  to  certain  enlisted  men,  soldiers,  and  officers 
who  served  in  the  Civil  War  and  the  War  with  Mexico. 
Be  it  enacted  by  the  Senate  and  House  of  Reprmoifntivcs  of  the 
United  States  of  America  in  Congress  assembled.  That  any 
person  who  served  ninety  days  or  more  in  the  military  or 
naval  service  of  the  United  States  during  the  late  Civil  War, 
or  sixty  days  in  the  war  with  Mexico,  and  who  has  been 
honorably  discharged  therefrom,  and  who  has  reached  the 
age  of  sixty-two  years  or  over,. shall,  upon  making  proof  of  such 
facts  according  to  such  rules  and  regulations  as  the  Secretary 
of  the  Interior  may  provide,  be  placed  upon  the  pension  roll, 
and  be  entitled  to  receive  a  pension  as  follows :  In  case  such 
person  has  reached  the  age  of  sixty-two  years,  twelve  dollars 
per  month ;  seventy  years,  fifteen  dollars  per  month ;  seventy- 
five  years  or  over,  twenty  dollars  per  month;  and  such  pensions 
shall  commence  from  the  date  of  the  filing  of  the  application 
in  the  Bureau  of  Pensions  after  the  passage  and  approval  of 
this  Act :  Provided,  that  pensioners  who  are  sixty-two  years  of 
age  or  over,  and  who  are  now  receiving  pensions  under  existing 
laws,  or  whose  claims  are  pending  in  the  Bureau  of  Pensions, 
may,  by  application  to  the  Commissioner  of  Pensions,  in  such 
form  as  he  may  prescribe,  receive  the  benefits  of  this  Act ;  and 
nothing  herein  contained  shall  prevent  any  pensioner  or  person 
entitled  to  a  pension  from  prosecuting  his  claim  and  receiving 
a  ])ension  under  any  other  general  or  special  Act :  Provided, 
that  no  person  shall  receive  a  pension  under  any  other  law  at 


INTERIOR  DEPARTMENT— PENSIONS,  38ft 

the  same  time  or  for  the  same  period  that  he  is  receiving  a  pen- 
sion under  the  provisions  of  this  Act :  Provided,  further,  that 
no  person  who  is  now  receiving-  or  shall  hereafter  receive  a 
greater  pension  under  any  other  general  or  special  law  than 
he  would  be  entitled  to  receive  under  the  provisions  herein  shall 
be  pensionable  under  this  Act. 

Sec.  2.  That  rank  in  service  shall  not  be  considered  in  appli- 
cations filed  hereunder. 

Sec.  3.  That  no  pension  attorney,  claim  agent,  or  other  per- 
son shall  be  entitled  to  receive  any  compensation  for  services 
rendered  in  presenting  any  claim  to  the  Bureau  of  Pensions,  or 
securing  any  pension   under  this  Act. 

Approved,  February  6,  1907. 

AN  ACT 

To  increase  the  pensions  of  widows,  minor  children,  and  so  forth 
of  deceased  soldiers  and  sailors  of  the  late  Civil  War,  the  War 
with  Mexico,  the  various  Indian  wars,  and  so  forth,  and  to 
grant  a  pension  to  certain  widows  of  the  deceased  soldiers  and 
sailors    of    the   late    Civil    War. 

Be  it  enacted  hy  the  Senate  and  House  of  Representatives  of 
the  United  States  of  America,  in  Congress  assembled.  That 
from  and  after  the  passage  of  this  Act  the  rate  of  pen- 
sions for  widows,  minor  children  under  the  age  of  sixteen 
years,  and  helpless  minors  as  defined  by  existing  laws,  now  on 
the  roll  or  hereafter  to  be  placed  on  the  pension  roll  and  entitled 
to  receive  a  less  rate  than  hereinafter* provided,  shall  be  twelve 
dollars  per  month;  and  nothing  herein  shall  be  construed  to 
affect  the  existing  allowance  of  two  dollars  per  month  for  each 
child  under  the  age  of  sixteen  years  and  for  each  helpless 
child ;  and  all  Act  or  parts  of  Acts  inconsistent  with  the  pro- 
visions of  this  Act  are  hereby  re]jealed :  Provided,  however,  That 
this  Act  shall  not  be  so  construed  as  to  reduce  any  pension  under 
any  Act,  public  or  private. 

Sec.  2.  That  if  any  officer  or  enlisted  man  who  served  ninety 
days  or  more  in  the  Army  or  Navy  of  the  United  States  during 
the  late  Civil  War,  and  who  has  been  honoi-ably  discharged 
therefrom,  has  died,  or  shall  hereafter  die.  leaving  a  widow, 
such  widow  shall,  upon  due  proof  of  her  husband's  death,  with- 
out proving  his  death  to  be  the  result  of  his  army  or  navy 
service,  be  placed  on  the  pension  roll  from  the  date  of  the  filing 
of  her  application  therefor  under  this  Act  at  the  rate  of  twelve 
dollars  per  month  during  her  widowhood,  provided  that  said 
widow  shall  have  married  said  soldier  or  sailor  prior  to  June 
twenty-seventh,  eighteen  hundred  and  ninety ;  and  the  benefits 
of  this  section  shall  include  those  widows  whose  husbands,  if 
living,  would  have  a  pensionable  status  xmder  the  Joint  Keso- 
lutions  of  February  fifteenth,  eighteen  hundred  and  ninety-five ; 
July  first,  nineteen  hundred  and  two,  and  June  twenty-eighth, 
nineteen   hundred   and   six. 

Sec.  3.  That  no  claim  agent  or  attorney  shall  be  recognized 
in  the  adjudication  of  claims  under  the  first  section  of  this 
Act,  and  that  no  agent,  attorney,  or  other  person  engaged  in 
preparing,  presenting,  or  prosecuting  any  claim  under  the  pro- 
visions of  the  second  section  of  this  Act  shall,  directly  or  in- 
directly, contract  for,  demand,  receive,  or  retain  for  such  ser- 
vices in  preparing,  presenting,  or  prosecuting  such  claim,  a  sum 
greater  than  ten  dollars,  which  simi  shall  be  payable  only  upon 
the  order  of  the  Commissioner  of  Pensions,  by  the  pension  agent 
making  payment  of  the  pensions  allowed;  and  any  person  who 
shall  violate  any  of  the  provisions  of  this  section,  or  \\iho  shall 
wrongfully  withhold  from  the  pensioner  or  claimant 
or  any  part  of  a  pension  or  claim  allowed  or  due  such  pen- 
sioner or  claimant  under  this  Act  shall  be  deemed  guilty  of 
a  misdemeanor,  and  upon  conviction  thereof  shall,  for  each  and 
every  such  offense,  be  fined  not  exceeding  five  hundred  dollars  or 
be  imprisoned  at  hard  labor  not  exceeding  two  years,  or  both, 
in  the  discretion  of  the  court. 
Approred,  April  19,  1908. 


DEPARTMENT  OF  AGRICULTURE. 


"WorlE    of   tlie    McKinley-Roosevelt    Administration    in    Behalf 
of    tlie    Fanner. 

Dui;ing  the  last  eleven  years  Presidents  McKinley  and  Roose- 
velt have  aimed  to  briii*i^  the  Department  of  Ag-riculture  to  the 
help  of  our  farmers  in  all  sections  of  the  country  and  have  in- 
structed the  Secretary  of  Agriculture  to  use  all  endeavors  to  help 
the  tiller  of  the  soil  toward  greater  efficiency  and  more  economic 
production;  to  make  the  American  acre  more  potent  in  growing 
crops.  The  Congress  during  the  last  eleven  years  has  quadrupled 
the  amount  of  money  invested  in  agricultural  research  and  dem- 
onstration, to  give  the  American  farmers  help  in  their  opera- 
tions on  the  farm,  to  feed  our  people  well  and  cheaply,  and  en- 
able them  to  compete  with  the  outside  world.  It  has  provided 
for  over  two  thousand  scientists,  specialists  in  their  respective 
lines,  who  are  in  touch  with  our  farmers  in  all  sections  of  the 
country,  gathering  information  and  pi-eparing  it  for  issue  in 
departmental  publications,  of  which  nearly  seventeen  million 
pieces  were  given  out  in  1907  to  go  into  our  country  homes,  deal- 
ing directly  with  what  is  uppermost  in  the  minds  of  our  growers 
of  plants  and  animals  at  the   time  of  publication. 

Science    Apiilletl    to   Development   of   Agricnlture. 

The  education  of  specialists  in  applied  science  to  meet  the 
demand  for  research  under  the  Federal  Government  and  under 
State  institutions  has  become  a  prominent  feature  of  depart- 
mental work.  Graduates  of  our  agricultural  and  other  colleges 
are  drafted  into  the  Department  of  Agriculture  and  prepared  for 
scientific  research  along  the  lines  demanded  by  the  producers 
of  our  country  under  all  our  varied  conditions.  Within  the  last 
eleven  years  nearly  sixteen  hundred  young  men  have  had  post- 
graduate instruction  in  the  sciences  of  agriculture.  The  De- 
partment of  Agriculture  and  the  State  experiment  stations  are 
actively  cooperating  with  regard  to  unsolved  problems  that  affect 
the  farmer  throughout  our  States  and  Territories  and  in  the 
islands  of  the  sea  that  have  lately  come  into  our  possession. 

New  markets  for  our  surplus  pi'oduction  are  being  sought  in 
foreign  countries,  and  scientific  inquiry  is  being  made  into  the 
preparation  of  our  exports  for  foreign  markets.  Uncertainty 
with  regard  to  the  magnitude  of  our  crops  at  home  is  being 
removed  by  careful  statistical  inquiry,  to  the  end  that  more 
accurate  knowledge  with  regard  to  production  may  mitigate  the 
evils  of  speculation.  Inquiry  is  also  being  made  into  the  pro- 
ductions of  competing  countries,  in  order  that  the  American 
farmer  may  know  what  he  has  to  meet  in  foreign  markets. 

New  Products  for  American  Farms. 

Strenuous  efforts  are  being  made  to  encourage  the  home  pio- 
duction  of  articles  we  have  been  importing  from  foreign  coun- 
tries. During  the  last  eleven  years  there  has  been  an  increase 
in  the  production  of  sugar  from  beets  which  makes  the  product 
of  1907,  amounting  to  500,000  tons,  over  thirteen  times  that  of 
1896  and  its  value  fifteen  times.  Eleven  years  ago  we  produced 
only  one-fourth  of  the  rice  consumed  in  the  United  States.  The 
fostering  work  of  the  Federal  Government  has  enabled  the  rice 
growers  to  produce  more  than  the  equivalent  of  our  home  con- 
sumption and  foreign  markets  are  being  sought  for  the  s\irplus. 
There  was  an  increase  in  the  production  of  rice  from  97,000,000 
pounds  in  1896  to  an  average  of  716,000,000  pounds  during  the  j 
last  four  years.  I 

Scientific  research  by  the  Bureau  of  Soils  demonstrates  the  ! 
fact  that  we  can  produce  at  home  the  fine  tobaccos  for  which  we 
have  been  paying  over  twenty  million  dollars  a  year  to  foreign 

380 


DEPARTMENT  OF  AGRICULTURE.  387 

countries.  Our  explorers  have  searched  foreign  lands  for  grains, 
Ipgunies,  fiber  plants,  teas,  etc.,  for  introduction  into  sections  of 
the  United  States  suitable  to  their  production.  The  producing 
area  for  grains  has  been  extended  westward  into  the  dry  re- 
gions of  our  country  through  the  introduction  of  plants  that 
are  at  home  where  the  rainfall  is  light.  Nearly  fifty  millions  of 
bushels  of  wheat  are  being  grown  in  regions  that  have  hereto- 
fore  been   unproductive. 

£^raclication   of  Diseases   of  Farut   Aniuials  and   Products. 

The  Federal  Government  is  studying  the  diseases  of  domestic 
animals  with  a  view  to  their  complete  eradication.  Our  animals 
and  their  products  go  to  foreign  countries  with  bills  of  health- 
fulness.  The  American  meats  are  the  most  wholesome  in  the 
world,  as,  the  world  now  knows.  An  imported  disease  of  do- 
mestic animals  was  promptly  stamped  out  within  a  year  at  an 
expenditure  of  $300,000,  to  prevent  it  from  spreading  throughout 
the  counti-y  among  our  herds  and  flocks.  Rigid  inspection 
against  foreign  covintries  having  animal  diseases  is  maintained 
at  our  ports  of  entry,  in  order  to  protect  the  health  of  our  do- 
mestic animals. 

Within  the  last  eleven  yearS  the  Government  has  become 
thoroiighly  equipped  to  deal  with  plant  diseases.  The  loss  of 
half  a  million  dollars  annually  was  stopped  by  pathological  ex- 
amination of  our  sea-island  cottons.  New  varieties  of  fruits, 
cereals,  cottons,  etc.,  are  being  created  by  hybridizing  to  meet 
the  demands  of  producers  of  these  crops  in  the  North  and 
in  the  South. 

Our  forests  have  been  mostly  destroyed  and  our  mountains, 
the  natural  reservoirs  for  water,  have  iDeen  rendered  incapable 
of  retaining  moisture.  Efforts  are  being  made  to  reforest  the 
country,  to  prevent  fires,  to  regulate  grazing  in  our  forests,  and  to 
study  lumbering  and  forest  products. 

The  Federal  Government  is  making  inquiry  into  road  material 
and  a  beginning  has  been  made  in  the  education  of  young  men 
toward  road  building.  A  laboratory  has  been  established  in  the 
Department  of  Agriculture  for  the  study  of  materials  with  which 
to  construct  roads ;  and  rocks,  gravels,  clays,  tiling,  cement,  con- 
crete pavements,  stone,  brick,  wood,  and  asphaltum  are  being 
studied. 

The  Central  American  boll  weevil,  now  the  greatest  menace 
to  the  cotton  crop  of  the  United  States,  is  being  actively  studied 
as  it  increases  its  range,  and  means  of  control  have  been  devised 
which  make  the  growth  of  cotton  nearly  as  profitable  as  ever. 
The  insect  enemies  of  other  great  staple  crops  are  being  investi- 
gated throughout  the  country,  and  the  gypsy  and  brown-tail 
moths,  which  are  threatening  the  forest  areas  of  New  England, 
are  being  checked  and  broug'ht  into  measurable  control  by  the 
agenc}^  of  the  Federal  Government  in  cooperation  with  State 
authorities.  The  losses  occasioned  by  insect  pests  in  general 
amount  to  hundreds  of  millions  annually,  and  much  of  this  loss 
may  gradually  be  prevented  by  the  kind  of  work  done  by  the 
Department  of  Agriculture. 

The  practicability  of  growing  tea  in  the  United  States  is 
being  demonstrated,  and  extensive  experimentation  is  being 
made  in  the  production  of  silk. 

The  atmosphere  in  its  relations  to  agriculture  and  commerce 
is  being  carefully  studied  and  trained  meteorologists  for  the 
first  time  in  our  history  are  being  detailed  from  the  Department 
of  Agriculture  to  give  lectures  in  institutions  of  learning,  in 
order  that  we  may  have  scholars  in  the  land  along  this  line  of 
inquiry,  to  the  end  that  the  farmer  and  the  mariner  may  have 
all  the  protection  that  intelligent  forecasting  can  give  them. 

The  Meat  Inspection  and  Pare  Food  Laws. 

On  June  30.  1906,  by  the  approval  of  President  Roosevelt,  the 
Meat  Inspection  Amendment  became  a  law.  Under  the  provisions 
of  this  amendment  the  Federal  Government  guarantees  to  the 
people  of  the  United  States  that  the  meat  shipped  in  interstate 
commerce  is  derived  from  animals  which  are  free  from  disease 
at  the  time  of  slaughter  and  that  meat  food  products  from  these 


388  DEPARTMENT  OF  AGRICULTURE. 

animals  are  prepartxl  in  clean  packing-  houses,  under  sanitary 
conditions,  and  without  the  addition  of  any  injurions  or  dele-, 
terious  druj^-s,  chemicals,  or  preservatives.  The  United  States 
now  has  the  most  string-ent  and  the  best  enforced  meat  inspection 
law  of  any  country  in  the  world,  and  it  is  a  great  protection  to 
the  health  and  lives  of  the  people.  Over  2,500  employees  are  di- 
rectly eni>aged  each  working  day  in  the  year  in  the  enforcement 
of  the  law. 

On  the  same  day,  June  30,  1906,  President  Roosevelt  approved 
the  Pure  Food  Lair.  This  law  covers  all  foods,  with  the  excep- 
tion of  meats,  including  beverages,  and  also  drugs  which  enter 
interstate  or  foreign  commerce.  By  its  terms,  articles  of  food 
or  drink  must  not  contain  any  injurious  or  deleterious  drug, 
chemical,  or  preservative,  and  the  label  upon  each  package  of 
food,  drugs,  or  drink  must  state  the  exact  fact,  and  must  not  be 
false  or  misleading  in  any  particular.  While  this  law  does  not 
cover  foods,  beverages,  and  drugs  which  are  pr<jdiiccd  and  con- 
sumed entirely  within  the  limits  of  one  State,  yet  its  enactment 
has  incited  the  legislatures  of  the  different  States  to  enact  laws 
covering  domestic  products  of  a  like  nature.  These  laws  very 
generally  follow  the  national  act  as  to  form  and  detail,  the  only 
difference  being  that  one  affects  interstate  and  foreign  com- 
merce, while  the  other  affects  the  internal  commerce  of  the 
State.  Inspectors  are  continually  traveling  throughout  the 
United  States  to  discover  whether  the  terms  of  the  law  are 
being  observed,  and  they  have  found,  upon  the  part  of  manu- 
facturers and  dealers,  a  very  general  compliance  with  the  law. 
When  violations  of  the  law  are  observed,  they  are  at  once  prose- 
cuted by  the  Department  of  Justice  and  the  guilty  parties  are 
punished. 

The    Farmer   and   the    Balance    of    Tra<li*. 

During  the  eighteen  years,  1890-1907,  the  average  annual  ex- 
cess of  domestic  exports  over  imports  amoimted  to  $337,000,000 
and  during  the  same  time  the  annual  average  in  favor  of  farm 
products  was  $362,000,000,  from  which  it  is  apparent  that  there 
was  an  average  annual  adverse  balance  of  trade  in  products  other 
than  those  of  the  farm  amoiinting  to  $25,000,000,  which  the  farm- 
ers offset  and  had  left  $337,000,000  to  the  credit  of  themselves  and 
the  country. 

Taking  the  business  of  1907,  the  comparison  is  much  more 
favorable  to  the  farmers  than  during  the  eighteen-year  period, 
since  the  vahie  of  domestic  exports  of  farm  products  over  im- 
ports was  $444,000,000. 

During  the  last  eighteen ^years  there  was  a  balance  of  trade 
in  favor  of  farm  products,  without  excepting  any  year,  that 
amounted  to  $6,512,000,000.  Against  this  was  an  adverse  bal- 
ance of  trade  in  products  other  than  those  of  the  farm  of 
$456,000,000,  and  the  farmers  not  qnly  canceled  this  immense 
obligation,  but  had  enough  left  to  place  $6,056,000,000  to  the 
credit  of  the  nation  when  the  books  of  international  exchange 
were  balanced. 

These  figures  terselj'  express  the  immense  national  reserve 
sustaining  power  of  the  farmers  of  the  country  under  present 
quantities  of  production. 

The  health  of  our  people  is  being  safeguarded  by  inquiry  into 
importations  of  food  from  foreign  countries  that  contain  sub- 
stances deleterious  to  health.  The  United  States  is  no  longer 
the  dumping  ground  for  food  stuffs  that  are  forbidden  sale  in  the 
countries  where  they  originate. 

An  aim  of  the  Department  is  to  make  the  American  indepen- 
dent with  regard  to  everything  that  can  be  produced  in  our 
latitudes.  Corps  of  scientists  have  been  placed  in  each  of  the  new 
island  groups  that  have  lately  come  under  our  jurisdiction  for 
the  purpose  of  helping  them  to  produce  what  can  not  be  grown 
in  the  continental  TTnited  States. 

The  Department  of  Agriculture  is  furnishing  information  re- 
garding the  requirements  and  possibilities  of  irrigation,  both  in 
the  arid  regions  of  the  United  States  and  as  an  aid  to  agriculture 
in  the  hmnid  East.  This  inquiry  determines  the  amount  of 
water  needed  to  give  the  best  results,  the  time  when  it  should  be 


DEPARTMENT  OF  AGRICULTURE.  389 

applied,  and  the  methods  of  application  best  suited  to  different 
localities  and  different  crops.  The  evils  of  too  much  water,  re- 
sulting in  the  ruin  of  large  areas  which  were  highly  productive 
a  few  years  ago,  are  being  investigated,  with  a  view  to  prevent- 
ing not  only  the  ruining  of  crops  which  get  too  much  water,  but 
of  those  on  equally  fertile  soil  which  are  deprived  of  the  nec- 
essary water  supply.  The  economic  use  of  water  and  the  in- 
troduction of  plants  from  foreign  countries  where  the  rainfall 
is  light  are  extending  crop  growing  over  large  areas  that  have 
been  unproductive. 

See  "Agricultural  Prosperity,"  and  "Value  of  the  Factory  to 
the  Farmer." 


We  knovi'  -»vhat  we  mean  vrlien  Tve  speak  of  an  lione»'t 
and  .stable  cnrrency.  We  mean  the  same  tliinjir  from  year 
to  year.— President  Roosevelt's  speecli  accepting  1904  nom- 
ination. 

The  greatness  of  our  Nation,  as  sho-wn  in  the  strnjar^le 
of  the  Civil  War,  is  now  everyvirhere  recognized,  and  In 
the  perspective  of  forty  years  there  is  none  to  decry  or 
belittle   it.— Hon.   Wm.   H.    Taft,  at  Riverside   Parle,   New   York. 

Class  appeals  are  dishonest  ♦  *  *  .  they  calculate  to 
separate  those  -who  should  be  united,  for  our  economic  in- 
terests are  common  and  indivisible.— Maj.  McKinley  to  Com- 
mercial Traveling  Men's  Republican  Club,  September  '2G, 
1896. 

A  currency  "tvorth  less  than  it  purports  to  be  -fvorth 
>vill  in  the  end  defraud  not  only  creditors,  but  all  those 
wlxo  are  engaged  in  legitimate  business,  and  none  more 
surely  than  those  -ivho  are  dependent  upon  their  daily  labor 
for  their  daily  bread. — Hayes. 

The  enormous  effort  of  the  Tvhole  people  as  a  Nation, 
and  the  burdens  they  gladly  assume  to  maintain  the  national 
integrity,  and  to  cut  out  the  cancer  of  slavery  that  was 
eating  aivay  our  national  life,  do  not  grow  any  less,  from 
an  historical  standpoint,  as  the  decades  pass.— Hon  Wnlv  H. 
Taft,   at    Riverside   Park,   New   York. 

Fate  has  decreed,  and  her  decrees  are  forever  irrevers- 
ible, that  we  shall  dw^ell  in  perpetual  unison.  Political  dema- 
gogues, for  selfish  ends,  and  senseless  agitators  cannot  dis- 
turb the  ties  >vhich  bind  us  together  Tvith  more  than  a  Ti- 
tan's poTV'er. — Hon.  C.  "W.  Fairbanks,  at  Lancaster,  Mass.,  June 
;iO,  1903. 

The  only  substantial  steps  which  have  been  really  taken 
to  stop  the  abuses  and  oppression  attempted  by  the  irre- 
sponsible holders  of  great  vrealth  and  corporate  p6Tver, 
have  been  by  the  Republican  party.— Hon.  "Wm.  H.  Taft,  at 
Greensboro,  North  Carolina. 

The  menace  of  16  to  1  still  hangs  over  us  with  all  its  dire 
consequences  to  credit,  confidence,  business,  and  activity; 
the  enemies  of  sound  money  are  rallying  their  scattered 
forces.  The  people  must  once  more  unite  and  overcome  the 
advocates  of  repudiation.- President  McKinley  to  the  Noti- 
fication  Committee,  July  12,   1900. 

In  spite  of  the  general  comfort,  there  have  been  made 
manifest  by  signs  not  to  be  misunderstood,  a  anickening 
of  the  public  conscience  and  a  demand  for  the  remedy  of 
abuses,  the  outgrowth  of  this  prosperity,  and  for  a  higher 
standard  of  business  integrity.  Every  lover  of  his  country 
should  have  a  feeling  of  pride  and  exaltation  in  this  evi- 
dence that  our  society  is  still  sound  at  the  core. — Hon.  "Wm. 
H.   Taft,  at   Columbus,   Ohio. 

Money  indebtedness  is  not  the  only  obligation  -we  in- 
curred and  assumed  in  the  great  civil  war.  There  Tras  a 
still  greater  debt,  an  everlasting  obligation  that  could  never 
be  paid  in  full.  But  in  the  years  that  have  followed,  the 
Republican  party  has  inaugurated  and  developed  pension 
la"»vs  under  which  over  three  and  one-half  billion  dollars 
have  been  paid  to  disabled  veterans  or  to  the  survivors 
of  those  who  gave  their  lives  for  their  country  and  their 
flag.  This  pension  system,  a  product  of  the  policy  of  the 
Republican  party,  has  no  precedent  in  history  and  no  equal 
in  justice  and  generosity  among  the  nations  of  the  earth. 
—Hon.    James    S.     i^herman. 

One  vital,  dominating  fact  confronts  the  Democratic 
rarty  -tvhicli  no  oratory,  which  no  eloquence,  "vvhich  no 
r^ietoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAi^T'S 
ELECTION.— New    York    World. 


THE  DEPARTMENT  OF  COMMERCE 
AND  LABOR. 


This  newest  of  the  nine  executive  departments  of  the  gov- 
ernment has  been  developed  under  the  McKinley-Eoosevelt  ad- 
ministration. It  was  created  by  the  Act  of  February  14,  1903, 
which  makes  it  the  province  and  duty  of  the  depai-tment  "to 
foster,  promote,  and  develop  the  foreign  and  domestic  commerce, 
the  mining,  manufacturing,  shipping,  and  fisheries  industries, 
the  labor  interests,  and  the  transi^ortation  facilities  of  the  United 
States."  The  department  was  organized  by  Hon.  George  B. 
C  ortelyou  as  the  first  Secretary  of  Commerce  and  Labor.  On 
his  appointment  as  Postmaster-General  he  was  succeeded  by  Hon. 
X'ietor  H.  Metcalf,  of  California,  who  in  turn  was  succeeded 
ill  December,  1906,  by  Hon.  Oscar  S.  Straus,  of  New  York.  Sec- 
retary Straus  has  had  a  varied  experience  in  both  business  and 
public  life,  peculiarly  qualifying  him  to  discharge  the  duties  of 
his  position.  He  has  stated  his  policy  as  head  of  the  depart- 
ment to  be  "to  do  for  labor  everything  that  the  law  permits 
the  department  to  do,  and  to  give  to  manufacturers  all  the 
knowledge  the  department  can  secure ;  in  short,  to  conduct  the 
(ie.})artment  for  the  best  interests  of  the  industrial  classes,  em- 
ployers and  employees  alike." 

'J'he  Bureau  of  Immigration  and  Naturalization  has  entered 
upon- an  important  new  phase  of  work  in  preventing  fraudulent 
and  careless  practices  in  conferring  citizenship  upon  foreigners. 
Another  piece  of  constructive  work  undertaken  by  this  Bu- 
reau is  the  collection  and  dissemination  of  information  regard- 
ing opportunities  for  immigrants  in  different  sections  of  the 
country.  The  Bureau  of  Corporations  is  a  bureau  of  publicity 
with  reference  to  industrial  combinations,  and  its  reports  have 
served  to  terminate  or  prevent  serious  evils,  quite  aside  from 
the  value  of  its  investigations  in  prosecuting  wrong-doers.  The 
work  of  these  two  bureaus  is  more  fully  described  elsewhere 
In  this  volume. 

Bureau  of  tlie  Census. 

Of  the  Government's  statistical  burea\is  the  largest  is  the 
permanent  Census  Office,  created  in  1903  and  attached  to  the 
Department  of  Commerce  and  Labor  on  its  organization.  "  In 
the  intervals  between  the  decennial  counts  of  population  the 
Census  Bureau  is  occupied  in  preparing  reports  on  a  large 
number  of  special  subjects,  including  a  manufacturing  census 
taken  midway  between  the  censuses  of  population  and  jjublished 
in  the  form  of  bulletins.  The  Bureau  publishes  annual  sta- 
tistics of  cities  of  thirty  thousand  or  more  population,  of  births 
and  deaths,  and  of  the  supply  and  distribution  of  cotton.  The 
Census  Bureau  issues  cotton-ginning  reports  semi-monthly,  and 
arrangements  have  been  made  with  the  statistical  bureau  of  the 
Department  of  Agriculture  by  which  the  reports  of  the  two 
biireaus  on  cotton  production  are  brought  into  harmony  with 
each  other,  and  made  public  so  far  as  possible  on  the  same 
dates  and  in  such  a  manner  as  to  reduce  to  a  minimum  any 
possible  disturbing  effect  upon  the  mark^s. 

The  establishment  of  the  permanent  Census  Bureau  has  made 
possible  a  much  needed  work  for  the  local  registration  of  births 
and  deaths,  resulting  in  a  rapid  improvement  of  American  vital 
statistics.  I'he  municipal  statistics  compiled  by  this  bureau  have 
resulted  in  checking  undue  extravagance  and  correcting  unwise 
parsimony,  and  are  thus  among  the  most  important  agencies 
for  improving  municipal  government. 

390 


I 


DEPARTMENT  OF  COMMERCE  AND  LABOR.  301 

The  Bureau  of  Labor. 

The  Bureau  of  Labor  was  originally  organized  at  the  be> 
ginning  of  1885  under  the  Department  of  the  Interior.  In 
1888  it  was  made  an  independent  department  (though  under 
a  commissioner  and  not  a  secretary),  but  on  the  establishment 
of  the  Department  of  Commerce  and  Labor  it  naturally  became 
a  bureau  in  the  new  department.  Its  inclusion  in  this  de- 
partment was  opposed  by  some  labor  interests,  ambitious  to 
have  a  Secretary  of  Labor  with  a  seat  in  the  Cabinet,  but  labor 
organizations  now  express  themselves  as  satisfied  with  imme- 
diate representation  in  the  Cabinet  through  the  Secretary  of 
Commerce   and  Labor. 

The  purpose  of  the  Bureau  of  Labor  is  "to  acquire  and  diffuse 
among  the  people  of  the  United  States  useful  information  on 
subjects  connected  with  labor,  in  the  most  general  and  com- 
prehensive sense  of  that  word,  and  especially  upon  its  relation 
to  capital,  the  hours  of  labor,  the  earnings  of  laboring  men  and 
women,  and  the  means  of  promoting  their  material,  social,  in- 
tellectual and  moral  prosperity "  The  publications  of  the  bu- 
reau consist  of  annual  statistical  reports  on  various  subjects 
affecting  the  interests  of  labor,  a  series  of  additional  special 
reports,  and  a  bi-monthly  bulletin  containing  articles  of  timely 
interest,  and  also,  in  each  issue,  digests  of  state  labor  reports 
and  of  foreign  labor  and  statistical  documents,  current  labor 
legislation,  and  court  decisions  affecting  labor.  At  present 
the  bureau  is  engaged  mainly  upon  an  exhaustive  investigation 
of  all  the  conditions  surrounding  woman  and  child  labor  in  this 
country,  from  which  important  results,  both  scientific  and  leg- 
islative, are  expected. 

The  Erdman  Act  of  1898  provides  that  whenever  a  contro- 
versy arises  between  an  interstate  railroad  and  its  employes  seri- 
ously interrupting  or  theatening  to  interrupt  the  business  of  the 
railroad,  the  Chairman  of  the  Interstate  Commerce  Commission 
and  the  Commissioner  of  Labor,  at  the  request  of  either  party  to 
the  controversy,  are  required  to  use  their  best  efforts  to  settle 
the  same  by  mediation  and  conciliation,  or,  failing  such  ami- 
cable settlement,  by  arbitration,  and  in  recent  years  it  has  been 
successfully  employed  in  a  number  of  cases.  A  detailed  statement 
regarding  the  work  of  this  important  Bureau  is  published  on  an- 
other page. 

The  interest  of  the  present  Administration  in  the  welfare  of 
the  wag-e-earners  of  the  country  has  reflected  itself  particularly 
in  the  activities  of  the  Bureau  of  Labor. 

As  a  result  of  the  exposure  of  the  labor  conditions  in  the 
packing-houses  of  Chicago,  in  which  work  the  Bureau  of  Labor 
cooperated,  the  working  conditions  of  thousands  of  men  and 
women  wage-earners   have  been  greatlj'^  improved. 

Through  the  investigations  made  by  this  Bureau  and  the  co- 
operation of  the  Department  of  Justice,  prosecutions  have  been 
instituted  for  violations  of  the  eight-hour  law  on  Federal  work 
and  a  more  effective  enforcement  of  this  important  law  has  been 
secured. 

It  was  largely  through  the  investigations  and  reports  of  the 
Bureau  of  Labor  on  the  subject  that  the  interest  was  aroused 
which  secured  the  passage  of  the  compensation  act  for  Govern- 
ment employees,  which  rex^resents  the  fir^t  large  recognition  on 
American  statute  books  of  a  principle  vitally  important  to 
wage-earners,  and  one  of  the  most  notable  steps  that  has  yet 
been  taken  in  comprehensive  social  legislation. 

One  of  the  most  important  developments  in  recent  j^ears 
touching  the  relations  of  wage-earners  and  employers  has  un- 
doubtedly been  the  appearance  of  Government  representatives  in 
industrial  disputes.  Under  a  lavv  passed  by 'a  Republican  Con- 
gress the  chairman  of  the  Interstate  Commerce  Commission  and 
the  Commissioner  of  Labor  are  constituted  a  board  of  mediation 
in  any  industrial  dispute  affecting  railways  engaged  in  inter- 
state commerce  and  their  employees  engaged  in  train  operation. 

The  services  of  this  board  are  available  in  any  such  dispute. 
upon  the  application  of  either  side.  In  the  past  two  j'^ears  over 
twenty  appeals  have  been  made  to  this  board  for  mediation  in 
large  and  important  disputes,  and  in  some  instances  in  the  larg; 


392  DEPARTMENT  OF  COMMERCE  AND  LABOR. 

est  and  most  important  disputes  that  have  ever  threatened  in 
the  railroad  world.  In  no  case  in  which  the  services  of  the  medi- 
ators have  been  invoked  before  the  strike  occurred  has  it  failed 
to  bring-  iiboiit  a  peaceful  adjustment  of  existing  difficulties,  and 
one  that  was  accepted  as  satisfactory  by  both  sides.  The  enact- 
ment and  the  administration  of  this  law  would  probably  be 
pronounced  by  those  who  have  had  experience  of  its  advantages 
as  one  of  the  most  important  services  that  the  Government  could 
render  to  the  interests  of  wage-earners. 


The  Bureau   of  Manufacture*. 

It  is  the  special  province  of  the  Bureau  of  Manufactures 
to  foster,  promote,  and  develop  the  manufacturing  industries 
of  the  United  States  and  markets  for  the  same  at  home  and 
abroad.  This  it  does  mainly  by  gathering  and  publishing  infor- 
mation concerning  industries,  trade  conditions,  and  trade  markets, 
Consular  reports  of  commercial  interest  are  transmitted  from 
the  State  Department  to  the  Department  of  Commerce  and 
Labor  and  issued  by  the  Bureau  of  Manufactures  in  its  Daily 
Consular  and  Trade  Reports,  together  with  occasional  reports 
from  special  agents  of  the  Department  engaged  in  collecting 
information  abroad  for  the  benefit  of  American  manufacturers. 
When  information  is  received  which  is  believed  to  be  of  special 
importance  to  particular  industries,  as,  for  example,  by  pointing 
out  particular  points  for  the  sale  of  their  product,  it  is  com- 
municated directly  to  those  most  concerned,  a  plan  much  ap- 
preciated by  the  manufacturers.  Samples  and  photographs  of 
all  kinds  of  cotton  goods  sold  in  China,  for  example,  have  been 
obtained  and  distributed  to  commercial  bodies  and  textile  schools, 
and  the  agent  who  studied  British  cotton  matiufactures  after- 
wards conferred  with  manufacturers  in  the  South,  explaining 
British  methods  and  showing  samples.  Thus  the  information  ob- 
tained is  made  of  the  utmost  possible  practical  value  to  Ameri- 
can industries.  The  Bureau  of  Manufactures  collates  and  ar- 
ranges the  tariffs  of  foreign  countries  in  convenient  form  for 
the  information  of  exporters,  and  also  publishes  an  annual 
volume  on  "Commercial  lielations  of  the  tFnited  States." 


A  National    Council    of   Commerce. 

With  a  view  to  bringing  the  Bureau  of  Manufactures  and 
the  Department  generally  into  closer  touch  with  commercial 
bodies,  such  as  manufacturers'  associations,  chambers  of  com- 
merce, and  boards  of  trade,  a  National  Council  of  Commerce 
has  been  organized  on  the  initiative  of  Secretary  Straus,  with 
an  advisory  board  as  the  direct  means  of  communication.  It  is 
hoped  that  all  the  commercial  bodies  in  the  country  will  join 
the  Council  of  Commerce,  and  that  it  will  prove  of  much  value 
as  a  practical  guide  to  the  work  of  the  Department  in  pro- 
moting commerce,  and  especially  as  a  medium  for  the  exchange 
of  commercial  information. 


Tlie  Bureau  of  Navigration. 

The  Commissioner  of  Navigation  has  general  superintendence 
of  the  merchant  marine  of  the  United  States  His  reports  are  a 
veritable  mine  of  information  relative  to  the  shipping  indus- 
tries, and  also  contain  suggestions  regarding  desirable  amend- 
ments to  the  navigation  laws.  Under  the  Bureau  of  Navigation 
are  shipping  commissioners  .stationed  at  all  the  principal  ocean 
ports.  Their  functions  are  to  superintend  the  engagement  an\l 
discharge  of  seamen,  to  see  that  the  men  engaged  go  on  board 
at  the  proper  time,  to  facilitate  the  making  of  apprenticeships 
to  the  sea  service,  and  to  keep  registers  of  the  names  and  charac- 
ters of  seamen,  thus  serving  as  employment  agents  with  jjower 
to  enforce  the  provisions  of  law  for  the  protection  of  the  interests 
i;f  seamen.  Through  their  efForts  "shanghaiing"  and  "crimping," 
the  chief  evils  connected  with  the  sea  service,  are  being  system- 
aticalh-  and  eft'ectually  stam])ed  out. 


Secrei 


DEPARTMENT  OF  COMMERCE  AND  LABOR.  393 


The    Steamboat    Inspection     Service. 


Secretary  Straus  has  actively  interested  himself  in  the  im- 
provement of  the  Steamboat  Inspection  Service,  with  important 
results  in  greater  safety  of  travel  by  water.  The  annual  in- 
spections required  by  law  having  proved  an  insufficient  guaranty 
of  safety,  he  has  ordered  that  all  excursion  and  ferry  boal^s, 
and  so  far  as  possible  other  passenger  vessels,  shall  be  inspected 
four  times  a  year.  All  new  life-preservers  are  examined,  with 
the  result  that  very  few  defective  ones  are  now  manufactured, 
and  none  are  allowed  to  be  used.  Explosions  are  guarded  against 
by  testing  boiler  plates  at  the  mills.  During  1907  the  number 
of  fatal  accidents  to  steamboats  showed  a  marked  diminution. 


Aids  to  Navigation. 

No  less  important  are  the  steps  which  have  been  taken  for 
the  improvement  of  the  Lighthouse  Service.  Standard  models 
have  been  adopted  for  Lighthouse  tenders  and  light-vessels, 
which  will  be  more  economical  and  at  the  same  time  more 
efficient  than  the  old  models.  The  experimental  introduction 
of  incandescent  oil  vapor  as  an  illuminant  has  proved  so  suc- 
cessful in  increased  candle  power  and  diminished  consumption 
of  oil  that  the  new  sytem  is  being  installed  as  rapidly  as  the 
available  funds  permit.  The  work  of  the  Coast  and  Geodetic 
Survey  in  publishing  tide  tables,  detailed  instructions  to  pilots, 
and  other  practical  information,  is  also  of  much  value  to  navi- 
gators. 

Tlie  Bureau  ol  Standards. 

The  Bureau  of  Standards,  created  in  1901,  has  been  developed 
in  the  few  years  of  its  existence  into  an  important  source  of 
precise  scientific  authority  of  great  value  both  to  scientific  in- 
vestigators and  to  commercial  interests  and  consumers.  Its 
work  is  of  great  assistance  both  to  industrial  establishments 
and  to  other  scientific  laboratories ;  and  it  cooperates  with  mxmi- 
cipal  authorities  in  the  establishment  of  their  testing  plants  by 
verifying  their  standards  and  otherwise.  Conferences  of  state 
and  local  officials  on  the  weights  and  measures  of  the  United 
States  are  held  annually,  under  the  auspices  of  the  Bureau,  and 
together  with  the  published  proceedings  are  serving  to  awaken 
interest  in  the  use  of  accurate  commercial  weights  and  meas- 
ures, and  promoting  uniformity  in  their  inspection. 

The    Bureau   of   Fisheries. 

The  Fish  Connnission,  formerly  an  independent  establishment, 
was  transformed  into  a  bureau  of  the  Department  of  Commerce 
and  Labor  on  its  organization.  The  Bureau  of  Fisheries  is 
doing  an  important  work  in  the  introduction  and  propagation  of 
useful  fishes  and  shellfish.  Many  millions  of  fish  eggs  and 
young-  fishes  are  supplied  every  year  to  state  fish  commissions, 
and  eggs  are  also  exchanged  with  foreign  countries.  The 
bureau  also  gives  expert  advice  to  state  officials  and  to  indi- 
viduals on  matters  connected  with  fish  culture,  capture,  and 
markets.  Promising  experiments  are  being  made  in  the  arti- 
ficial fattening  of  oysters,  and  experimental  sponge  plantations 
have  been  established  in  Florida  in  order  to  develop  a  commer- 
cial system  of  sponge  culture. 

Bureau  of   Statistics. 

The  Bureau  of  Statistics,  which  receives,  analyzes  and  pub- 
lishes the  statistics  of  the  foreign  commerce  of  the  United 
States,  has  enlarged  its  scope  of  operations  to  include  records  of 
the  internal  commerce  on  the  great  lakes  and  at  interior  trade 
centers,  and  a  statistical  abstract  of  the  trade  of  the  principal 
countries  of  the  world.  Its  statistical  abstract  of  the  United 
States  contains  much  miscellaneous  information,  in  condensed 
form,  regarding  population,  industries,  commerce,  and  business 
conditions  in  the  United  States  at  the  latest  available  date,  com- 
pared with  that  of  earlier  years. 


394  DEPARTMENT  OF  COMMERCE  AND  LABOR. 

W'orU  of  the  Bnreau   of  Immigration  and  Naturalization 

The  past  four  years  have  constituted  a  period  of  importance 
unprecedented  in  the  history  of  immigration  of  foreigners  into 
the  United  States.  Not  only  is  this  true  as  to  the  numbers  that 
have  come  to  us  in  that  time,  but  even  to  a  more  marked  extent 
with  respect  to  the  supervision  that  has  been  exercised  and  the 
lunv  and  important  steps  taken  and  advanced  methods  adopted 
to  solve  a  very  interesting-  and  vitally  important  economical 
j)roblem. 

On  March  3,  1903,  an  immigration  act,  more  comprehensive 
and  far  reaching  than  any  theretofore  passed  by  Congress,  v^^as 
approved  by  the  President.  On  the  first  of  the  following  July, 
the  Biireaii  of  Immigration  was  transferred  to  the  then  recently 
organized  Department  of  Commerce  and  Laljor,  and  regulations 
were  promulgated  and  detailed  plans  arranged  for  carrying  out 
tlie  will  of  the  people,  as  expressed  by  Congress,  with  reepect 
to  a  restriction  along  certain  lines  of  the  influx  of  aliens.  As 
new  experience  was  added  to  that  gained  in  enforcing  prior 
legislation,  ?ind  more  adequate  revenues  secured  under  the  in- 
crease of  the  head  tax  on  aliens  to  $2  per  capita,  it  was  possible 
to  bring  about  more  and  more  effective  measures  to  attain  the 
■  A'O  objects  of  the  law.  It  is  worth  while  to  note  what  those 
wo  objects  are,  for  they  are  a  true  indication  of  what  the  de- 
lared  policy  of  the  United  States  is  with  respect  to  immigration, 
in  the  fi.rst  place,  then,  the  law  (or  certain  features  of  it)  is 
iutended  to  protect  the  American  laborer,  skilled  or  unskilled, 
from  an  unfair,  and  possibly  eventually  disastrous,  competition 
with  the  laborers  of  foreign  countries,  and  thereby  maintain  the 
high  standards  of  living  Avhich  have  for  so  long  been  the  pride, 
not  only  of  the  laboring  classes,  but  of  all  true  and  right-think- 
ing citizens  of  this  country.  And,  secondly,  the  law  contemplates 
the  object  of  preventing  the  entry  of  foreigners  who,  by  reason 
of  some  individual  defect — moral,  mental  or  physical — are  not 
thought  to  be  desirable  additions  to  our  body  politic ;  not  of 
foreigners  generally,  nor  of  any  particular  race  or  class  of 
foreigners,  but  of  those  who  are  individually  unfit. 

The  energies  of  the  Bureau  of  Immigration  have  been  directed 
to  the  accomplishment  of  these  two  objects,  and  such  efforts 
have,  particularly  in  the  past  four  years,  been  rewarded  with 
remarkable  success ;  for  by  the  beginning  of  that  period  the 
rules  and  regulations  for  the  application  of  the  terms  of  the 
statute  to  the  existing  practical  situation  had  become  thoroughly 
()l)erative  at  all  points. 

In  February,  1907,  the  Congress  again  took  an  advanced  posi- 
tion with  respect  to  immigration,  passing  the  new  Immigration 
Act  which  was  approved  by  the  President  on  the  20th  of  that 
month.  While  this  act  added  to  prior  law  in  no  radical  or  even 
marked  respect  (with  two  exceptions  hereinafter  mentioned)  it 
contained  a  number  of  minor  changes,  suggested  by  the  ex- 
periences of  four  years'  enforcement  of  the  Act  of  1903,  removing 
difficulties  of  administration  and  strengthening  clauses  designed, 
by  the  attachment  of  penalties  to  certain  kinds  of  violations,  to 
prod  lice  discouragement  of  evasions  and  violations  of  the  law's 
spirit ;  so  that  it  constitutes  a  distinct  advance  in  the  right  di- 
rection on  the  question  of  the  exclusion  of  xindesirable  aliens. 

Thus,  throughout  the  period  under  consideration,  it  has  been 
possible  to  proceed  with  ever  increasing  effectiveness  in  the  rejec- 
tion at  the  ports  of  this  country  of  aliens  whose  moral  standards 
render  them  undesirable,  or  who  are  insane,  idiotic,  feeble- 
minded, or  otherwise  mentally  deficient,  or  who  are  aiflicted  with 
tuberculosis  or  loathsome  or  dangerous  contagious  diseases,  or 
who  aj-e  paupers  or  likely  to  become  charges  upon  the  public, 
or  who  are  seeking  to  enter  in  pursuance  of  prearranged  em- 
ployment and  therefore  to  the  detriment  of  domestic  labor  with- 
in the  meaning  of  the  law;  and  to  also  proceed  with  the  removal 
from  the  country  of  those  found,  wnthin  three  years  after  entry, 
to  be  unlawfully  here  for  reasons  of  like  character.  In  this 
latter  respect  special  efforts  have  been  made  to  bring  about 
ihe  removal  from  the  United  States  of  anarchists  and  other 
'  "iminals,  by  making  the  best  use  of  the  machinery  furnished  by 
th'j  law  and  in  addition  securing  the  cooperation  of  the  local 
police •TiivtJiprities  throughout " the  country. 


DEPARTMENT  OF  COMMERCE  AND  LABOR.  395 

Contract  Ijal»or  £}xcladed. 

lu  no  respect  has  this  strengthening-  of  the  law  been  more 
marked  and  eiTectual  than  in  the  clauses  relating  to  contract 
labor;  and  as  the  enforcement  of  the  new  statute  is  proceeded 
with,  it  is  auticipated,  in  the  light  of  results  already  accom- 
plished, that  it  will  be  of  almost  incalculable  benefit  to  American 
laboring-  men.  By  making  the  terms  of  these  particular  clauses 
more  comprehensi\e,  and  at  the  same  time  more  specific,  Con- 
gress has  furnished  the  Government  with  an  instrument  with 
which  to  more  effectually  than  ever  before  prevent  the  importa- 
tion of  foreign  laborers  by  the  apprehension  of  such  laborers  at 
the  ports,  and  by  the  still  better  method  of  convicting  and  pun- 
ishing parties  who  attempt  to  make  importations.  Thus,  in  sec- 
tion 2  of  the  Act,  an  alien  conti-act  laborer  is  declared  to  be  a 
person  who  has  been  "induced  or  solicited  to  migrate  to  this 
country  by  offers  oi*  promises  of  employment,  or  in  consequence 
of  agreements,  oral,  written,  or  printed,  express  or  implied,  to 
perform  labor  in  this  country  of  any  kind,  skilled  or  unskilled ;" 
and  in  section  4  it  is  declared  to  be  a  "misdemeanor  for  any  per- 
son, company,  partnership,  or  corporation,  i7i  any  manner  what- 
soever, to  prei)ay  the  transportation  or  in  any  way  to  assist  or 
encourage  the  importation  or  migration  of  any  contract  laborer 
or  contract  laborers  into  the  United  States,"  so  that,  as  has  re- 
cently been  held  by  one  of  the  District  Courts,  it  is  still  possible, 
as  it  was  under  the  old  law,  to  proceed  civilly  under  section  5, 
for  a  penalty  of  one  thousand  dollars  for  each  offense,  and  also 
possible,  as  was  not  ihe  case  before,  to  proceed  criminally  in  cer- 
tain violations  for  the  imprisonment  of  the  offender  under  sec- 
tion 4  of  said  act  taken  in  conjunction  with  section  5440  of  the 
Revised  Statutes.  The  advantages  of  the  new  law  on  contract 
labor  are,  therefore,  obvious,  and  the  laboring  men  of  the  United 
States  are  to  be  congratulated  on  the  strengthening  of  their  bul- 
wark of  defense  against  foreign  competition. 

Fraudulent  Xatnralization  Clieclced. 

The  act  of  June  29,  1906,  changed  the  designation  of  the 
Bureau  of  Immigration  to  the  "Bureau  of  Immigration  and 
Naturalization,"  and  placed  under  that  Bureau  all  matters  con- 
cerning the  naturalization  of  aliens.  The  centralization  in  this 
Executive  Department  of  the  supervision  over  the  process  of 
naturalization  renders  it  practicable  to  greatly  diminish,  if  not 
entirely  to  eliminate,  fraud  by  preventing  illegal  naturalization 
based  on  falser  testimonj^  It  also  enables  the  Government  to 
more  readily  detect  irregular  and  fraudulent  naturalization  and 
to  cancel  certificates  of  naturalization  hitherto  illegally  obtained. 
These  results  are  accomplished  by  means  of  investigations  by 
the  naturalization  examiners,  and  in  the  short  period  which  ha? 
intervened  since  the  act  became  operative  rapid  progress  has 
been  made  in  the  enforcement  of  this  distinctly  reformatory 
measure.  No  piece  of  legislation  enacted  in  recent  years  trans- 
cends this  act  in  importance  or  promises  more  for  the  uplift  and 
moral  improvement  of  our  alien  population.  The  "inestimable- 
heritage  of  citizenship"  was  daily  being  cheapened  and  degraded. 
when  the  President  appointed,  in  the  spring  of  1905,  an  execu- 
tive commission  to  investigate  and  report  to  him  on  the  subject 
of  naturalization  in  the  United  States,  the  report  of  which  com- 
mission w^as  referred  to  Congress  and  formed  the  basis  of  the 
reform  measure  above  mentioned.  While  qiiite  likely,  as  the 
administration  of  the  law  is  proceeded  with,  some  changes  in 
detail  may  be  found  necessary  or  expedient,  it  can  be  confidently 
stated  that  this  piece  of  legislation,  as  it  has  been  and  is  now 
being  applied  by  the  Naturalization  Division  of  the  Bureau,  worl<- 
ing  in  harmony  with  the  Department  of  Justice,  constitutes"  a^i 
enormous  stride  to^vards  the  attainment  of  ideal  conditions  \vW^ 
respect  to  conferring  citizetlship  upon  foreign  born  resident-- 
of  this  country.  From  being  in  many  respects  a  purely  per- 
functory procedure,  naturalization  has  been  changed  into  a  dig- 
nified and  even  impressive  ceremony,  and  the  methods  of  making- 
application  and  preparing  therefor  have  been  improved  from 
an  almost  chaotic  condition  into  a  carefully  safeguarded  system. 


396  niJI'ARTMENT  OF  COMMERCE  AND  LABOR. 

Certiftcutes  of  citizenship  are  no  longer  miscellaneous  illy  printed 
slips  of  connuon  paptM-,  l>ut  are  engraved  documents  of  beauty 
and  value.  i)rt>])ared  in  such  a  nuinner  as  to  be  practically  in- 
capable of  i)eing  counterfeited.  And  the  foreigner  is  rapidly 
being  taught  that  citizenship  of  this  great  Kepublic^  is  not  a 
boon  to  be  lightly  and  carelessly  conferred  or  to  \ye  accepted  in 
a  spirit  of  thoii^htJcssneKs  or  levity;  but  is  a  privileged  state 
into  which  he  can  gain  entrance  only  by  a  display  of  his  fitness 
therefor,  luul  the  ol)servance  of  set  and  absolute  requirements. 
In  the  short  })eriod  this  division  has  existed,  nearly  .')0,000  peti- 
tions for  naturalization  have  been  filed;  about  half  of  which 
have  been  grantetl  and  certificates  of  naturalization  issued  there- 
under, and  about  1,200  denied,  the  balance  remaining  pending. 

Finding:     Emploj'nient     for     ImmigrrantH     anil     Worlcnien     for 
E^mi>loye(*H. 

By  section  40  of  the  Act  of  February  20,  1907,  Congress  made 
provision  for  the  establishment  in  the  Bureau  of  Immigration 
and  Naturalization  of  a  Division  of  Information,  which  might, 
under  the  terms  of  the  law  and  in  view  of  the  evident  intent 
thereof,  be  more  accurately  designated  as  a  "Division  of  Infor- 
mation and  Distribution."  This  in  many  respects  is  the  most 
important  piece  of  legislation  on  immigration  ever  enacted.  The 
main  objection  to  the  greatly  increased  immigration  of  the  past 
decade  is  because  of  the  congestion '  and  the  evils  consequent 
thereupon  in  our  larger  Atlantic  seaport  cities.  While  some  such 
cities  have  been  complaining  of  the  enormous  increase  of  their 
foreign  population,  other  and  less  densely  populated  sections  of 
the  country  have  been  svilfering  to  an  infinite  degree  for  lack  of 
the  labor  necessary  to  a  development  of  their  resources.  By  this 
pi-ovi|;ion  at  least  the  nucleus  has  been  formed  for  the  building 
up  of  a  system  of  distribution  that  will  not  only  relieve  the  con- 
gested and  sparsely  settled  sections,  respectively,  by  more  nearly 
balancing  them,  but  at  the  same  time  will  so  place  the  aliens 
latiding  on  our  shores  that  they  can  with  the  greatest  readiness 
be  assimilated  into  our  permanent  population  and  eventually  into 
the  body  of  our  citizenship.  While  the  law  is  of  very  recent 
enactment,  the  Bureau  has  not  been  slow  to  seize  upon  its  pro- 
visions for  the  amelioration  of  existing  conditions,  and  notable 
and  encouraging  progress  has  even  already  been  made  in  effectii- 
ating  its  purposes.  The  Division  has  been  systematically  organ- 
ized under  a  competent  chief  in  the  Bureau  at  Washington  ;  a 
branch  office  established  and  equipped  in  New  York  City ;  ar- 
rangements inaiigurated  for  the  procu^;ement  of  reliable  infor- 
mation from  all  sections  of  the  country  for  distribution  to  aliens 
landing  at  the  large  ports ;  and  active  operations  for  the  actual 
locating  of  settlers  begun,  nearly  500  having  already  at  the  very 
start  been  placed  in  desirable  positions  where  their  services  are 
urgently  needed. 

In  one  other  respect  the  new  law  contains  a  departure — one 
made  particularly  in  deference  to  the  wishes  and  needs  of  Ameri- 
can labor.  By  a  clause  attached  to  section  1  thereof,  provision 
was  made  "That  whenever  the  President  shall  be  satisfied  that 
passports  issued  by  any  foreign  government  to  its  citizens  to  go 
to  any  country  other  than  the  United  States  or  to  any  insular 
possession  of  the  United  States  or  to  the  Canal  Zone  are  being 
used  for  the  purpose  of  enabling  the  holders  to  come  to  the  con- 
tinental territory  of  the  United  States,  to  the  detriment  of  labor 
conditions  therein,  the  President  may  refuse  to  permit  such  citi- 
zens of  the  country  issuing  such  passports  to  enter  the  conti- 
nental territory  of  the  United  States  from  such  other  coimtry  or 
from  such  insidar  posse.ssion  or  from  the  Canal  Zone."  And  in 
pursuance  thereof  the  President,  on  March  14,  1907,  issued  a  proc- 
lamation ordering  that  "Japanese  or  Korean  laborers,  skilled  or 
unskilled,  who  have  received  passports  to  go  to  Mexico.  Canada, 
or  Hawaii,  and  come  therefrom,  be  refused  permission  to  enter 
the  continental  territory  of  the  United  States."  Under  this  law 
and  proclamation  it  has  been  possible  even  in  the  short  period 
intervening  to  gradually  bring  about  a  fairly  effective  control  of 
the  influx  of  Japanese  laborers  at  which  the  laboring  men,  par- 
ticularly thosse  of  the  West,  were  becoming  somewhat  alarmed. 


DEPARTMENT  OF  COMMEUCE  A\D  LABOR.  397 

For  instance,  the  statistical  records  of  the  Bureau  show  that  m 
the  month  of  January,  1907,  1,359  aliens  of  the  Japanese  race 
were  admitted '  to  continental  United  States,  as  against  495  in 
January,  1908;  that  the  admissions  in  February,  1907,  and  1908, 
were  813  ag-aiiist  468;  and  that  the  fig-iires  for  March  of  the  two 
years  were  1,033  against  491.  As  the  reg-iUations  and  machinery 
for  the  enforcement  of  the  law  and  prociajnation  are  perfected 
even  a  far  greater  decrease  may  be  expected  with  certainty. 

Eiiforciiis-    tlie    Cliiiiese    Exclusion    liatVN. 

The  statute  books  probably  do  not  contain  any  legislation 
more  difficult  of  exact  enforcement  than  the  Chinese  exclusion 
laws.  The  fact  that  they  differ  so  Radically  from  other  laws, 
added  to  the  fact  that  In  many  sections  of  the  country  there  is 
but  little  sympathy  with  the  more  severe  portions  thereof,  op- 
erates against  an  efficient  application  of  "their  provisions  to 
peculiarly  difficnlt  conditions.  Despite  these  circumstances  and 
the  fact  that  much  criticism  of  a  rather  serious  nature  arose  in 
certain  quarters  during  the  mainteiiance  of  the  Chinese  boycott 
against  American  products,  commencing  early  in  1905,  the  en- 
deavors to  make  said  laws  effective  of  their  object.  \  i ',.  the  ex- 
clusion of  Chinese  coolies,  have  been  constant,  and  have  been  by 
no  means  im|n'oductive  of  results.  'i2ie  most  serious  difficulty, 
perhaps,  of  all  those  encountered  in  tne  administration  of  these 
laws,  has  been  brought  about  by  the  apparently  concerted  eit'orts 
of  smugglers  and  promoters  residing  in  the  United  States  and  of 
persons  in  Chiiia  interested  in  exploiting  the  Chinese  laborer. 
Having  this  fact  in  view,  as  well  as  the  mischief  likely  to  result 
from  the  boycott,  the  claimed  basis  of  which  was  the  assertion 
that  Chinese  of  the  exempt  classes,  although  in  possession  of  the 
legal  evidence  of  their  status,  were  subjected  to  strict,  time- 
consuming,  and  "humiliating"  examinations  upon  arrival  at  ports 
of  this  country,  the  Pi-esident.  in  the  spring  of  1905,  adopted  a 
course  which  has  resulted  in  a  great  improvement  of  conditions 
in  both  China  and  this  country;  so  that  instances  of  the  use  of 
fraudulent  certificates  in  securing  the  admission  of  Chinese 
coolies,  and  complaints  of  unduly  exacting  examinations  of 
hona  fide  members  of  the  exempt  classes  at  ports  of  this  country, 
have  been  reduced  to  a  minimvim  ;  the  boycott  is  a  thing  of  the 
past,  and  the  alarm  it  created  is  almost  if  not  quite  forgotten. 

The  enforcement  of  the  Chinese  exclusion  laws  along  our 
land  borders,  which  until  a  few  years  ago  was  almost  impossible, 
has  gradually  been  placed  upon  a  workable  basis.  This  is  par- 
ticularly true  of  the  Canadian  boundary,  where  conditions,  com- 
paratively, approach  the  ideal,  and  even  on  the  ^lexican  border 
much  improvement  has  been  accomplished  by  the  most  strenuoiis 
exertions. 

The  policy  has  been  to  secure  just  so  far  as  possible  such  an 
enforcement  of  the  law  as  would  protect  the  country  from  the 
entry  of  the  coolie  classes,  and  at  the  same  time  would  give  no 
offense  to  the  Chinese  nation  or  to  those  classes  the  exclusion  of 
which  is  not  intended  and  an  encouragement  of  intercourse  with 
which  is  apparently  essential  to  the  maintenance  and  advance- 
ment of  our  commercial  relations  with  the  great  Eastern  Em- 
pire. That  these  are  the  correct  principles  upon  which  to  pro- 
ceed is  too  obvious  to  call  for  any  extended  explicat'ton.  That 
they  have  been  pursued  and  are  being  pursued  to  the  marked 
advantage  of  this  country,  commercially  and  otherwise,  is  readily 
capable  of  demonstration. 

BLREAU   OF   CORPORATIONS. 

The  work  of  the  Bureau  of  Corporations,  a  part  of  the  De- 
partment of  Commerce  and  Labor,  is  detailed  in  the  chapter  en- 
titled "Conti:ol  of  Corporations." 


There  lias  been  considerable  debate  as  to  wbetlier  tbe 
Constitntion  follo^vs  tbe  flajf.  No  matter  bow  diverse  and 
eonHietinK'  our  oniuions  may  be  on  tbis  siil»jeet,  tbere  is 
one  opinion  tbat  >ve  all  eiitei'tain,  and  tbat  is  tbat  tbe 
American  scbool-bonse  follows  tbe  flaK.— Hon.  C.  W.  Fair- 
banks, in   V.  S.  Senate,   February  33,    1903. 


TREASURY  DEPARTMENT. 


The  work  of  the  Treasury  Department  is  so  iuthuately  re- 
lated to  the  questions  of  currency,  revenue,  coimnerce  and  current 
business  conditions  that  it  has  been  found  necessary  to  include 
under  the  chaj^ters  on  the  Money  Panic  of  1907,  the  Currency  Law 
of  1908,  Prosperity,  Commerce  and  the  Merchant  jNlarine  many  of 
the  statements  regarding  the  work  of  this  department  The 
reader  is  referred  to  those  chapters  and  to  the  index  which  occu- 
pies the  opening  pages  of  this  boolt  for  those  features  of  the 
work  of  the  Treasury  Department  which  do  not  appear  in  this 
chapter. 

CUSTOMS. 

Drawbaclc. 

Under  section  30  of  the  tarilf  act  of  1897,  providing  for  a  re- 
fund of  99%  of  the  duties^aid  on  imported  materials  used  in  the 
manufacture  of  exported  articles,  nearly  live  and  one-half  million 
dollars  were  paid  to  the  manufacturers  of  this  country  during 
the  year  1907.  In  1900  the  duties  refunded  amounted  to  a  little 
over  three  and  one-half  million  dollars,  an  increase  in  1907  of 
nearly  two  million  dollars. 

Applications  by  manufacturers  for  the  establishment  of  rates 
for  the  allowance  of  drawback  on  their  products  have  increased 
more  than  125%  since  1900,  which  shows  that  the  drawback  plays 
an  important  part  in  the  establishment  -and  maintenance  of  for- 
eign trade.  In  many  instances  this  rebate  of  duties  has  been  the 
factor  that  enabled  our  manufacturers  to  successfully  compete 
with  foreign  producers  in  the  markets  of  the  world. 

Efforts  have  been  directed  towards  relieving  the  regulations 
under  which  drawback  is  paid  of  all  requirements  involving  difii- 
culty  on  the  part  of  the  manufacturer  in  complying  therewith, 
and  to  amending  and  simplifying  the  same  to  meet  new  condition.'^ 
that  arise,  the  object  being  to  give  to  manufacturers  the  benefit 
of  the  drawback  act,  without  disturbing  their  business  methods  or 
imposing  upon  them  burdensome  requirements.  At  the  same 
time  the  revenue  has  been  properly  safeguarded. 

Transportation    of    Foreign     Merchandise    Under    Bond. 

To  facilitate  imj^ortations  to  interior  ports,  the  privileges  of 
the  act  of  June  10,  1880,  known  as  the  immediate  transportation 
act,  have  been  extended  to  both  ports  of  entry  and  delivery. 

The  transportation  of  imported  merchandise  has  been  greatly 
simplified  by  the  adoption  of  one  form  of  bond  for  carriers  for 
the  various  kinds  of  merchandise  and  a  form  of  carriers'  special 
manifest  of  a  distinctive  color  for  goods  moving  under  transpor- 
tation entries. 

To  facilitate  further  the  transportation  of  merchandise  des- 
tined from  one  foreign  country  to  another  across  our  territory, 
the  individual  bond  of  the  shipper  has  been  discontinued,  such 
shipments  now  being  charged  against  the  general  bond  of  the 
carrier.  •  , 

Also  a  uniform  system  of  bonding  has  been  adopted  whereby 
the  common  carrier  is  required  to  execute  but  one  bond  in  the 
sum  of  $100,000.  and  the  penalties  are  fixed  for  failure  to  comply 
with  the  conditions  of  the  bond. 

These  methods  are  better  adapted  to  present  business  con- 
ditions. 

Mercliandisc   Imported   l>y   Mail. 

During  the  past  ten  years  many  postal  and  parcels  post  con- 
ventions have  been  concluded  between  the  United  States  and  for- 
eign countries  under  the  terms  of  which  dutiable  merchandise 
may  be  imported.  The  growth  of  these  conventions  made  neces- 
sar}^  the  preparation  of  elaborate  regulations,  in  order,  first,  that 

398 


TREASURY  DEPARTMENT.  399 

parcels  might  be  promptly  delivered  to  the  addressees,  and,  sec- 
ond, that  the  revenue  should  be  properly  protected.  After  careful 
investigation  by  the  Treasury  and  Post  Office  Departments  joint 
regulations  were  issued  which  have  greatly  increased  the  effi- 
ciency of  the  service. 

Ba^gragre. 

For  many  years  complaints  were  lodged  with  the  Treasury 
Department  regarding  delays  incident  to  the  passing  through  the 
customs  of  passengers  and  baggage  from  foreign  countries.  The 
practice  was  to  assemble  the  passengers  in  a  room  on  board  the 
vessel  on  which  they  arrived  and  there  have  them  prepare  and 
subscribe  to  their  baggage  declarations.  When  this  was  done  the 
baggage,  upon  arrival  of  the  vessel  at  the  doclc,  was  unladen 
and  examined.  A  careful  investigation  was  set  afoot  in  order  to 
determine  what  relief,  if  any,  might  be  granted  in  such  cases. 
This  investigation  disclosed  the  fact  that  needless  confusion,  de- 
lay and  inconvenience  were  due  to  the  existing  practice.  There- 
upon regulations  w^ere  promulgated  whereby  the  declarations  of 
passsngers  are  prepared  aboard  ship  en  route  to  the  United 
States,  delivered  to  an  officer  of  the  ship,  and  by  him  turned  over 
to  the  customs  officers  upon  reaching  the  United  States.  These 
declarations  bear  a  coupon  which  is  detached  by  the  passenger  at 
the  moment  of  preparing  his  declaration  and  by  him  handed  to 
the  proper  customs  officer  for  identification  upon  arrival  at  the 
dock.  By  this  method  passengers  do  not  come  in  contact  with 
the  customs  officers  until  the  vessel  docks. 

That  the  existing  regulations  on  the  subject  have  given  gen- 
eral satisfaction  is  evidenced  by  the  Ifacts  that  complaints  have 
ceased  and  many  letters  of  commendation  have  been  received. 

• 

liife-Saving-    Service. 

The  Life-Saving  Service  has  been  extended  during  the  last  four 
years  by  the  addition  of  eight  stations,  making  the  entire  number 
of  stations  now  upon  the  sea  and  lake  coasts  of  the  United  States 
281.  Many  improvements  have  been  made  in  the  methods  and  a,j- 
paratus  employed  in  efl'ecting  rescues,  the  most  notable  being  the 
successful  application  of  motive  power  to  the  large  self-righting 
and  self-bailing  lifeboats. 

It  having  become  necessary  to  increase  the  inducements  for  re- 
taining trained  men  in  the  service  and '  securing  competent  re- 
cruits, the  President,  upon  the  recommendation  of  the  Secretary 
of  the  Treasury,  urged  the  matter  upon  the  attention  of  Congress, 
with  the  result  that  an  act  was  passed  at  the  last  session  inci'eas- 
ing  the  compensation  of  the  field  force  as  follows :  District  super- 
intendents, $200  per  annum;  keepers  of  stations,  $100;  surfniaa 
No.  1  in  each  crew,  $5.00  per  month;  also  a  ration  or  conmrata- 
tion  therefor  at  the  rate  of  30  cents  per  day  for  each  keeper  and 
surfman,  equivalent  to  an  increase  for  each  man  of  $9.12  per 
month.  This  legislation  gives  substantial  recognition  to  i  most 
worthy  and  deserving  class  of  Government  employees  who  pur- 
sue a  dangerous  calling,  and  who  annually  save  hundreds  of  lives 
and  many  million  dollars'  worth  of  property. 

Upon  the  reconunehdation  of  the  Secretary  of  the  Treasury, 
also,  an  act  granting  authority  for  the  transfer  from  the  Treas- 
ury Department  Library  to  the  life-saving  stations  of  such 
books  as  may  be  no  longer  needed  in  that  library,  passed  both 
houses  of  Congress  at  its  late  session,  but  not  in  time  tor  en- 
rollment and  approval  by  the  President  before  adjournment. 

Revenne    Cutter    Service. 

The  act  of  April  16,  1908,  "To  increase  the  efficiency  of  the 
lievenue  Cutter  Service,"  is  the  most  important  piece  of  legisla- 
tion in  recent  years  for  the  improvement  of  the  Revenue  Cutter 
Service.  It  brought  about  a  general  reorganization  in  the  upper 
grades  in  the  interest  of  efficiency  and  good  administration. 
Legislation  of  this  character  was  recommended  to  Congress  by 
Secretary  Cortelyou.  and  the  measure  received  his  earnast  sup- 
port. Under  this  act  two  additional  grades  each  in  the  line  and 
Engineer  Corps  were  established,  thereby  affording  greater  op- 


400  TREASURY  DEPARTMENT. 

j»()rtuiiity  to  officers  for  advancement,  with  a  corresponding-  in- 
crease in  the  life  and  strength  of  the  corps.  Twenty  additional 
junior  officers  were  authorized  for  duty  as  watcli  officers  on  the 
cruising-  cutters,  which  will  enable  the  Department  to  properly 
officer  the  ships.  The  pay  of  the  enlisted  men  was  increased  and 
provision  nuide  for  placing  them  on  waiting  orders  at  three- 
fourths  pay  after  thirty  years  of  faithful  service.  This  act  has 
In  en  followed  by  a  marked  decrease  in  the  number  of  desertions 
and  by  an  increase  in  contentment  among  the  crews  of  the  V3S- 
s.^ls. 

An  increase  in  the  pay  of  commissioned  officers  was  brought 
about  by  the  Army  Appropriation  Bill,  approved  May  11,  1908,  30 
that  officers  of  the  lie  venue  Cutter  Service  receive  the  same  pay 
and  allowances  as  officers  of  corresponding  rank  in  the  army. 

During  the  past  four  years  eleven  vessels  of  all  classes  have 
been  completed  or  aaithorized  for  the  Revenue  Cutter  Service. 

The  Service  has  been  making  every  effort  toward  rendering 
assistance  to  distressed  vessels,  and  its  success  along  these  lines  is 
attested  by  the  fact  that  during  the  fiscal  year  ending  June  30, 
1907.  the  value  of  vessels  assisted  and  their  cargoes  amounted  to 
$9,196,097. 

Bureau   of   Eni^ravin^   and    Printing. 

For  some  years  past  the  quarters  of  this  important  branch  of 
the  Government  service  have  been  inadequate  for  the.  immense 
volume  of  business  transacted,  and  extreme  difficulty  /has  been 
experienced  owing  to  the  necessity  of  crowding  large  numbers  of 
employees  into  confined  spaces.  This  condition  of  affairs  will 
soon  be  remedied,  however,  for  Congress,  at  its  last  session,, 
upon  the  recommendation  of  the  Secretary  of  the  Treasury,  au- 
thorized the  purchase  "of  a  site  and  the  erection  of  a  building,, 
and  appropriated  over  two  million  dollars  towards  this  purpose. 
The  new  building  will  embody  the  latest  and  most  improved- 
methods  of  construction,  and  will  contain  every  provision  for  the 
health,  safety,  and  comfort  of  the  nearly  four  thousand  employees 
that  modern  building  and  sanitary  science  can  suggest. 

In  the  past  four  years  there  has  been  an  increase  in  the  ouV 
put  of  the  Bureau  in  paper  money  and  securities  for  general  use 
of  nearly  thirty -two  per  cent,  and  an  increase  in  the  number  of 
employees  on  the  rolls  for  labor  of  twenty-two  per  cent.  The 
five  hundred  million  dollars  ($500,000,000)  national  currency 
authorized  to  be  issued  under  act  of  May  30.  1908,  is  being  pro- 
duced at  the  rate  of  four  million  dollars  ($4,000,000)  per  day, 
po  that  in  case  an  emergency  should  ever  arise  the  currenc}'  can 
be  distributed  to  relieve  the  situation  without  any  delay. 

Nevi'    Golfl     Coinaj^e. 

For  many  years  the  inartistic  designs  of  the  coins  of  the 
United  States  have  been  the  subject  of  criticism,  no  chan!~-e  ex- 
cept in  minor  details  having  been  made  in  any  of  the  coins  for  a 
number  of  years. 

In  1904  President  Boosevelt  took  up  the  question  of  securing 
more  artistic  designs  for  the  coins  of  the  United  States,  and 
through  his  efforts  Augustus  St,  Gaudens,  the  greatest  of  Ameri- 
can sculptors,  was  induced  to  undertake  the  preparation  of  de- 
signs of  the  double  eagle  and  the  eagle  now  being  coined  and 
placed  in  circulation. 

It  can  be  truthfully  said  that,  without  exception,  the  gold 
coins  of  the  United  States  of  the  new  design  are  the  most  artistic 
of  those  of  any  coimtry  in  the  world  the  credit  for  which  is  due 
to  the  active  interest  taken  by  President  Tvoosevelt  successfully 
to  Mccomplish  this  purpose. 

Pnl»lIo    Health    and    Marine    HoNitltal    Service. 

A  National  Bureau  of  Health  was  established  imder  the  Treas- 
ury De])artment  by  an  act  ap])r«ved  July  1,  1903,  which  reorgan- 
ized and  added  new  public  health  duties  to  the  United  States 
Mui'ine  Uospit'^^l  Service.  An  advisory  board  consisting  of  sanita- 
rians of  iestnblished  national  reputations  in  iheir  varioiis  lines  of 
work  was  a])pointed  for  consultation  with  the  S'lrgoon-Gencral  of 


TREA^URy  DEi'ARTMEXT.  401 

the  Public  Health  and  Alariue  Hospital  Service  relative  to  the 
work,  and  investig-atious  to  be  carried  on  in  the  Hygienic  Labora- 
tory then  in  course  of  construction.  This  laboratory  was  founded 
for  the  investigation  of  infectious  and  contagious  dlsea>;es  and 
matters  pertaining  to  the  public  health.  Under  this  auspicious 
airanoenient  n'lich  vahuible  public  healtli  worlc  ha.=i  been  done  by 
the  ^vublh.  hcaltlj  service,  including  impor:uvit  investigations  on 
th'3  JolloTMng  siibjects:  1.  The  presence  and  distribution  of  hook- 
v^^orm  disease  in  the  United  States.  This  is  a  subject  of  great 
sanitary  and  economic  importance  to  a  large  number  of  our 
Southern  States.  2.  The  cause  of  the  prevalence  of  typhoid 
fever  in  cities.  Typhoid  fever  has  for  some  time  been  unusually 
prevalent  in  many  cities,  and  few  sanitary  subjects  are  of  greater 
impoj'tance.  3.  The  relation  of  milk  to  the  public  health.  This 
work  has  placed  in  the  hands  of  health  officers  and  physi- 
cians a  report  containing  all  available  knowledge  on  the  sub- 
ject. Few  questions  are  causing  as  much  agitation  and  interest 
on  the  part  of  health  officers  and  physicians  as  is  that  of  milk, 
and  ]30ssibly  none  are  more  important.  The  work  done  by  the 
Service  on  the  milk  problem  has  been  therefore  of  general  utility. 
4.  The  practical  uses  and  application  of  disinfectants. 

The  Public  Health  Service  inspects  annually  all  establishm^iils 
manufacturing  and  selling  in  interstate  commerce  serums,  anti- 
toxirfes  and  similar  products  used  in  the  treatment  of  disease. 

Tn  the  summer  of  1905  yellow  fever  became  epidemic  in  New 
Orleans,  and  spread  with  such  rapidity  that  it  was  soon  oeyond 
the  control  of  the  local  sanitary  authorities,  who  then  requested 
the  Federal  Government  to  take  charge  of  its  siippression.  The 
Public  Health  Service  immediately  sent  a  corps  of  officers  into 
the  aflFected  territory,  who  tof)k  charge  of  the  w^ork.  The  confi- 
dence shown  on  the  part  of  the  people  living  in  the  invaded  ter- 
ritory and  the  lack  of  the  usual  dread  and  fear  customary  in  yel- 
low fever  epidemics  w^ere  commendatory  of  the  efficiency  of  the 
work  done. 

Tn  the  summer  of  1907  plague  broke  out  in  San  Francisco.  As 
in  the  previous  epidemic  of  1900.  the  local  authorities  again 
sought  the  aid  of  the  National  Public  Health  Service,  who  since 
that  time  have  had  charge  of  the  eradication  of  the  disease  in 
San  Francisco. 

This  Bureau  has  charge  of  the  national  maritime  ouarantine, 
which  prevents  the  introduction  of  epidemic  diseases.  Tt  has  also 
conducted  the  medical  inspection  of  the  millions  of  immigrants 
who  have  come  to  this  country. 

Work  of  tlie  Treasury  Department  in  Connection  witli  Public 
Buildingrs  from  Jnly  1.  1J)0 4,  to  March  1,   lOOS. 

On  July  1,  1904,  there  were  375  building,  exclusive  of  Marine 
Hospitals  and  Quarantine  Stations,  completed  ai^l  occupied,  the 
cost  of  which,  including  the  amounts  spent  for  the  sit^s.  exten- 
sions, additions,  and  remodeling  when  required,  $135,871,726.31. 

Since  that  date  120  buildings  have  been  completed  at  an 
aggregate  cost  of  $33,886,245.40,  and  four  have  been  added  by 
legislation  and  executive  orders.  This  makes  a  total  of  499  pub- 
lic buildings,  exclusive  of  the  43  Marine  Hospitals  and  Quar- 
antine  Stations,   completed  and   occupied. 

In  addition  to  the  above,  30  buildings  have  been  extended 
or  remodeled,  at  a  total  expense  of  $3,509,397.20. 

The  following  is  a  summary  of  the  cost  of  the  public  build- 
ings : 

499   completed  and  occupied    $169,757,971.71 

Extending  or  remodeling  30  buildings         3,509,397.20 

Tj^^lal 173.267.368.91 


Mncli  money  Itas  been  spent  on  sea  harbors  ««rt  ,*J|e 
mouths  of  our  rivers  at  the  sea,  but  «o>"l»*ra"^«l>„  .'*VJ^ 
upon  the  internal  waterways  which  nature  has  furnished 
to  the  country,  and  which  form  hisrhways  ot  travel  from 
one  border  of  it  to  the  other.  The  call  from  the  country  for 
"he  develonment  of  a  well-tho««ht^out  plan  for  the  improve- 
ment of  all  these  waterways  is  so  emphatic  that  it  cannot 
longer  be   resisted.-Hon.  Wm.  H.   Taft,  at   Kansas   City,   M#. 

N 


THE  CONSERVATION  POLICY, 


The  policy  of  the  conservation  is  a  development  of  the  pres- 
ent administration  of  President  Jtoosevelt.  Its  beginnings  are 
to  be  found  in  parts  of  his  annnal  message  of  1906,  dealing 
with  public  land  questions.  The  first  step  in  definite  action  to 
make  ready  a  program  was  the  appointment  by  the  President 
of  the  Inland  Waterways  Commission  ;  and  in  his  letter  notifj'- 
ing  the  members  of  their  appointment,  the  President  formulated 
the  fundamental  priiK'i])les  of  the  policy.  The  tindings  and 
recommendations  of  that  Commission,  transmitted  to  Congress 
by  the  President  on  February  26,  1908,  with  the  special  mes- 
sage which  accompanied  it.  was  the  next  step  forward ;  and 
the  White  House  Conference  of  May  13,  14,  and  15,  1908,  which 
was  presided  over  by  the  President  and  attended  by  the  Gov- 
ernors of  the  States  and  Territories,  including  Alaska,  Port<j 
Rico,  and  Hawaii,  fairly  launched  the  movement  before  the 
country  at  large. 

In  his  address  before  the  National  Editorial  Association  at 
Jamestown,  Va.,  June  10,  1907,  President  Koosevelt  said  : 

"The  conservation  of  our  natural  resources  and  their  proper  use 
constitute  the  fundamental  problem  which  underlies  almost  every  other 
problem  of  our  national  life.  Unless  we  maintain  an  adequate  material 
basis  for  our  civilization  we  can  not  maintain  the  institutions  in  which 
w©  take  8o  great  and  so  just  pride  ;  and  to  waste  and  destroy  our  natural 
resources   means    to    undermine    this   material    basis." 

In  his  message  to  the  60th  Congress,  which  assembled  De- 
cember 2,   1907,   President  Roosevelt  said  : 

"The  conservation  of  our  natural  resources  and  their  proper  use 
constitute  the  fundamental  problem  which  underlies  almost  every  other 
problem  of  our  national  life.  We  must  maintain  for  our  civilization  the 
adequate  material  basis  without  which  that  civilization  can  not  exist.  We 
must  show  foresight,  we  must  look  ahead.  As  a  nation  we  do  not  only 
enjoy  a  wonderful  measure  of  present  prosperity,  but  if  this  prosperity  is 
used  aright  it  is  an  earnest  of  future  success  such  as  no  other  nation 
will  have.  The  reward  of  foresight  for  this  nation  is  great  and  easily 
foretold.  But  there  must  be  the  look  ahead,  there  must  be  a  realization 
of  the  fact  that  to  waste,  to  destroy,  our  natural  resources,  to  skin  and 
exhaust  the  land  instead  of  using  it  so  as  to  increase  its  usefulness,  will 
result  in  undermining  in  the  days  of  our  children  the  very  prosperity  which 
we  ought  by  right  to  hand  down  to  them  amplified  and  developed." 

In  his  letter  inviting  the  Governors  of  all  the  States  and 
Territories  to  meet  wifli  him  at  the  White  House,  May  13,  14,  and 
15,  1908,  to  discuss  the  question  of  the  Conservation  of  the  Na- 
tion's Natural  Resources  the  President  said,  in  part : 

"It  seems  to  me  time  for  the  country  to  take  account  of  its  natural 
resources,  and  to  inquire  how  long  they  are  likely  to  last.  We  are  pros- 
perous now ;  we  should  not  forget  that  it  will  be  just  as  important  to 
our  descendants   to  be   prosperous   in   their    time. 

"Recently  I  declared  there  is  no  other  question  before  the  nation  of 
equal  gravity  with  the  question  of  the  conservation  of  our  natural  re- 
sources, and  I  added  that  it  is  the  plain  duty  of  us  who,  for  the  moment, 
are  responsible  to  take  Inventory  of  the  natural  resources  which  have  been 
handed  down  to  us,  to  forecast  the  needs  of  the  future  and  so  handle 
the  great  -s'ources  of  our  prosperity  as  not  to  de.stroy  in  advance  all 
hope  of  the  prosperity  of  our  descendants. 

"It  is  evident  the  abundant  natural  resources  on  which  the  welfare 
of  the  nation  rests  are  becoming  depleted,  and.  In  not  a  few  cases,  are 
already  exhausted.  This  is  true  of  all  portions  of  the  United  States ;  it 
is  especially  true  of  the  longer  settled  communities  of  the  East. 

"Facts,  which  I  cannot  gainsay,  force  mo  to  believe  that  the  con- 
servation of  our  natural  resources  is  the  most  weighty  question  now  before 
the  people  of  the  United  States.  If  this  is  so  the  proposed  conference, 
•which  is  the  first  of  its  kind,  will  be  among  the  most  important  gatherings 
In  our  history  in  Its  effect  upon  the  welfare  of  all  our  people." 

The  Governors  of  the  States  and  Territories  at  the  White 
House  assembled,  after  having  discussed  the  conservation  of 
the  country's  natural  resources  for  three  days,  united  in  tlio 
adoption   of  the  following  "Declaration  of  Principles:" 

"We.  the  Governors  of  the  States  and  Territories  of  the 
United  States  of  America,  in  conference  assembled,  do  hereby 
declare  the  conviction  that  the  great  prosperity  of  our  country 

408 


THE  COXSEKVATION  POLICY.  403 

rests  upon  the  abundant  resources  of  the  land  chosen  by  our 
forefathers  for  their  homes,  and  where  they  laid  the  foundation 
of  this  great  nation. 

"We  look  upon  these  resources  as  a  heritage  to  be  made  use 
of  in  establishing  and  promoting  the  comfort,  prosperity,  and 
happiness  of  the  American  people,  but  not  to  be  wasted,  de- 
teriorated,  or   needlesslx'   destroyed. 

"We  agree  that  our  country's  f  utui-e  is  involved  in  this ; 
that  the  great  natural  resources  supply  the  material  basis  upon 
which  our  civilization  must  continue  to  depend,  and  upon  which 
the  perpetuity  of  the  nation  itself  rests. 

"We  agree,  in  the  light  of  the  facts  brought  to  our  knowledge 
and  from  information  received  from  sources  which  we  cannot 
doubt,  that  this  material  basis  is  threatened  with  exhaustion. 
Even  as  each  succeeding  generation  from  the  bii"th  of  the  nation 
has  performed  its  part  in  promoting*  the  progress  and  develop- 
ment of  the  Republic,  so  do  we  in  this  generation  recognize 
it  as  a  high  duty  to  perform  our  part ;  and  this  duty  in  large 
degree  lies  in  the  adoption  of  measures  for  the  conservation  of 
the  natural  wealth  of  the  country. 

"We  declare  our  firm  conviction  that  this  conservation  of 
our  natui-al  I'esources  is  a  subject  of  transcendent  importance, 
which  should  engage  unremittingly  the  attention  of  the  Nation, 
the  States,  and  the  people  in  earnest  cooperation.  These  natural 
resources  include  the  land  on  which  we  live  and  which  yields 
o!ir  food;  the  living  waters  which  fertilize  the  soil,  supply* 
power,  and  form  great  avenxies  of  commerce  :  the  forests  which 
yield  the  material  for  our  homes,  prevent  erosion  of  the  soil, 
and  conserve  the  navi^tion  and  other  uses  of  the  streams; 
and  the  minerals  which  form  the  basis  of  our  industrial  life, 
and   supply  us  with  heat,   light,  and   power. 

"We  agree  that  the  land  should  be  so  used  that  erosion  and 
soil-wash  shall  cease;  and  that  there  should  be  reclamation  of 
arid  and  semi-arid  regions  by  means  of  irrigation,  and  of  swamp 
and  overflowed  regions  by  means  of  drainage ;  that  the  waters 
should  be  so  conserved  and  used  as  to  promote  navigation,  to 
enable  the  arid  regions  to  be  reclaimed  by  irrigation,  and  to 
develo])  power  in  the  Interests  of  the  people ;  that  the  forests 
which  regulate  our  rivers,  support  our  industries,  and  promote 
the  fertility  and  productiveness  of  the  soil  should  be  preserved 
and  per])etuated  ;  that  the  minerals  found  so  abundant  beneatii 
the  surface  should  be  so  used  as  to  prolong  their  utility ;  that  the 
beaut}^  healthfulness,  and  habitability  of  our  country  should  be 
])reserved  and  increased;  that  sources  of  national  wealth  exist  for 
the  benefit  of  the  people,  and  that  monopoly  thereof  should  not 
be   tolerated. 

"We  commend  the  wise  forethought  of  the'  President  in  sound- 
ing the  note  of  warning  as  to  the  waste  and  exhaustion  of 
the  natural  resources  of  the  coimtry,  and  signify  our  high  ap- 
preciation of  his  action  in  calling  this  conference  to  consider 
the  same  and  to  seek  remedies  therefor  throiigh  cooperation 
of  the  Nation  and  the  States. 

"We  agree  that  this  cooperation  should  find  expression  in 
suitable  action  by  the  Congi'ess  within  the  limits  of  and  co- 
extensive with  the  national  jurisdiction  of  the  subject,  and. 
complementary  thereto,  by  the  legislatures  of  the  several  States 
within  the  limits  of  and  co-extensive  with  their  jurisdiction. 

"We  declare  the  conviction  that  in  the  use  of  the  national 
resources  oiir  independent  States  are  interdependent  and  bound 
together  by  ties  of  mutual  benefits,  responsibilities,  and  duties. 

"We  agree  in  the  wisdom  of  future  conferences  between" 
the  Pi-esident,  Members  of  Congress,  aud  the  Governors  of  States 
on  the  conservation  of  our  natural  resoiirces  with  a  view  of 
continued  cooperation  and  action  on  the  lines  siiggested ;  and 
to  this  end  \ve  advise  that  from  time  to  tiiue.  as  in  his  judg- 
ment may  seem  wise,  the  President  call  the  Governors  of  States 
and  Mend)ers  of  Congi-ess  and  others  into  conference. 

"We  agree  that  further  action  is  advisable  to  ascertain  the 
present  condition  of  our  natural  resources  and  to  promote  the 
conservation  of  the  same;  and  to  that  end  we  recommend  the 
ai  pointment  by  each  State  of  a  Commission  on  the  Conserva- 


404  THE  COlfSERVA  TION  POLICY. 

tion  of  Natural  Resources,  to  cooperate  with  each  other  and 
with  any  similar  commission  of  the  Federal  Government. 

"We  urge  the  continuation  and  extension  of  forest  policies 
adopted  to  secure  the  husbanding  and  renewal  of  our  diminish- 
ing timber  supply,  the  prevention  of  soil  erosion,  the  protection 
of  headwaters  and  the  maintenance  of  the  purity  and  navig- 
ability of  our  streams.  We  recognize  that  the  private  owner- 
ship of  forest  lands  entails  responsibilities  in  the  interests  of 
all  the  people,  and  we  favor  the  enactment  of  laws  looking 
to  the  protection  and  replacement  of  privately  owned  forests. 

"We  recognize  in  our  waters  a  most  valuable  asset  of  the 
people  of  the  United  States,  and  we  recommend  the  enactment 
of  laws  looking  to  the  conservation  of  water  resources  for 
irrigation,  water  supply,  power,  and  navigation,  to  the  end  that 
navigable  and  source  streams  may  be  brought  under  complete 
control  and  fully  utilized  for  every  purpose.  We  especially 
urge  on  the  Federal  Congress  the  immediate  adoption  of  a  wise, 
active,  and  thorough  waterway  policy,  providing  for  the  prompt 
improvement  of  our  streams  and  the  conservation  of  their  wafer- 
sheds  required  for  the  uses  of  commerce  and  the  protection  of 
the  interests  of  our  people. 

"We  recommend  the  enactment  of  laws  looking  to  the  pre- 
vention of  waste  in  the  mining  and  extraction  of  coal,  oil,  gas, 
and  other  minerals  with  a  view  to  their  wise  conservation  for 
the  use  of  the  people,  and  to  the  protection  of  human  life  in 
the  mines." 

Tlie    Forest    Policy. 

The  Forest  policy  of  the  Government  is  not  a  party  issue,  for 
it  has  had  the  support  of  both  the  Republican  and  the  Democratic 
parties,  but  it  has  been  developed  mainly  under  Republican 
leadership.  President  Roosevelt  has  done  more  than  any  other 
President  to  establish  and  extend  it,  through  his  messages  to 
Congress  and  through  executive  action  in  creating  National 
Forests  (or  "reserves").  These  Forests,  preserved  for  the  use 
of  the  people  as  unfailing  supports  of  industry  and  sources  of 
present  and  future  prosperity,  will  be  for  all  time  a  national 
monument  to  his  foresight. 

The  law  authorizing  the  creation  of  National  Forests  was 
passed  by  a  Republican  Congress  (the  Fifty-first)  and  action 
under  that  law  was  begun  by  a  Republican  President  (Harrison). 
The  law  authorizing  the  administration  of  these  Forests  along 
the  present  lines  was  passed  by  another  Republican  Congress 
(the  Fifty-iifth).  The  law  transferring  the  control  of  the 
Forests  from  the  Department  of  the  Interior  to  the  Department 
of  Agriculture  was  passed  by  the  Republican  Fifty-eighth  Con- 
gress. The  ajipropriations  for  the  Government's  forest  work 
have  from  1898  to  the  present  time  been  increased  by  successive 
Republican  Congresses.  It  may  justly  be  claimed  that  the  Re- 
publican party,  the  party  of  action,  has  contrived  and  put  into 
effect  this  great  and  now  accepted  policy,  though  the  Demo- 
rcatlc  party,  the  party  of  opposition,  has  never  disputed  its 
wisdom. 

Under  these  laws,  there  have  been  set  aside  and  placed  imder 
the  administration  of  the  Forest  Service  over  166,000,000  acres 
of  the  public  domain.  This  land  is  kept  in  public  ownership  for 
the  public  benefit.  The  National  Forests  embrace  the  more 
mountainous  parts  of  the  West.  They  maintain  the  flow  of 
streams,  conserving  water  s\ipply  for  irrigation  and  power,  as 
well  as  maintaining  a  steady  supply  of  timber  for  the  West. 
They  also  permit  the  best  use  of  the  forage  crop  without  injury 
to  other  interests.  They  do  not  close  the  land  to  prospecting 
aud  mining  development,  nor  to  agriculture  where  the  land  is 
more  valuable  for  agriculture  than  for  forest  growth,  but  they 
protect  the  general  welfare  by  preventing  the  evils  which  follow 
forest  destruction.  They  are  administered  by  the  Forest  Service, 
which  opens  them  to  every  use  consistent  with  the  permanent 
good  of  the  West.  Mature  timber  is  sold,  or  is  given  away  to 
settlers  and  communities  for  whom  it  would  be  a  hardship  to 
buy,  under  regulations  which  insure  the  perpetuation  of  the  for- 
ests through  new  growth.  Each  National  Forest  is  in  charge  of 
a  Supervisor,  who  is  a  local  agent  to  conduct  business  with  forest 


THE  CONf^EKYATION  POLICY.  405 

nsei\s  and  to  look  after  the  protcctioii  of  the  forest.  Under  him 
are  forest  rangers  and  g-uards.  These  local  officers  are  Western 
men,  in  tonch  with  local  conditions,  but  controlled  by  the  For- 
es^ter,  who  administers  the  policy  embodied  in  existing  law  by  the 
Acts  of  Congress. 

The  fimdamental  principle  of  this  policy  is  development.  Be- 
fore the  administration  of  these  Forests  was  provided  for  their 
resources  were  closed  ag^ainst  the  public.  Now  they  are  for  all 
the  use  that  can  be  'got  out  of  them — the  more  the  better  so 
long  as  it  is  real  use,  not  spendthrift  waste.  They  are  for  all 
kinds  of  use,  not  for  one  kind  merely ;  for  the  benefit  of  the 
public,  not  for  the  personal  benefit  of  the  first  man  who  might 
be  able  to  get  hold  of  them,  regardless  of  the  injury  he  might 
do  the  public. 

Development  of  these  Forests  is  taking  place  through  heavy 
expenditures  by  the  Government,  but  these  expenditures  are 
wise  because  they  will  greatly  increase  the  usefulness  of  the 
Forests.  In  the  last  two  years  Congress  has  appropriated  $1,100,- 
000  for  such  permanent  improvements  as  roads,  bridges,  trails, 
telephone  lines,  fire-fighting  equipment,  and  rangers'  quarters. 
These  are  investments  of  capital  for  the  public  benefit.  Set- 
tlers, stockmen,  miners,  lumbermen,  all  who  use  the  Forests, 
will  profit  by  them.  They  will  also  aid  in  the  protection  of  the 
Forests.  To  prj^mote  use  the  Forest  must  be  opened  up.  All 
that  they  have  in  them  must  be  made  accessible. 

This  development  of  the  Forests  is  for  the  sake  of  the  develop- 
ment and  permanent  welfare  of  the  country,  not  for  the  sake  of 
the  Government  as  their  owner.  The  Government  is  not  in  the 
position  of  a  landlord.  If  private  interests  owned  and  developed 
them  it  would  be  for  the  sake  of  the  return  they  could  be  made 
to  yield  in  money  profits.  The  Government  is  developing  them 
for  the  sake  of  the  return  they  can  be  made  to  yield  in  sustained 
prosperity.  The  standing  timber  is  cut  as  it  is  needed  by  the 
people  without  decreasing  the  flow  of  water — ^Iso  needed  by  the 
people — without  causing  rivers  and  harbors  to  fill  up  with  mud  as 
they  are  all  the  time  filling  up  in  the  East,  and  without  loss  of 
the  power  of  the  land  to  grow  more  forests  for  future  use.  The 
preservation  and  fullest  development  of  the  water  of  the  United 
States,  for  use  in  irrigation,  as  a  means  of  transportation,  and 
as  a  source  of  power,  is  vital  to  our  future  welfare. 

Forest  preservation  concerns  every  great  Western  interest. 
The  interests  of  the  farmer,  the  stockman,  the  miner,  the  lumber- 
man, the  merchant,  and  the  transportation  company,  with  that 
of  the  labor  which  they  employ,  demand  and  will  demand  con- 
tinued supplies  of  water  or  wood  from  the  National  Forests.  It 
is  true  that  what  is  sometimes  called  development  could  be 
brought  about  faster  by  giving  these  Forests  away.  If  Con- 
gress should  open  the  National  Forests  to  homestead  entry 
without  restrictions,  some  ^f  the  States  with  large  National 
Forests  in  them  would  develop  very  rapidly — for  a  time.  The 
'National  Forests  are  now  open  to  homestead  entry  wherever 
the  land  is  chiefiy  valuable  for  agriculture.  Some  of  the  "home- 
steads" applied  for  have  from  $10,000  to  $15,000  worth  of  timber 
on  them.  If  all  timberland  were  open  to  entry,  every  man  who 
will  stop  to  think  twice  knows  what  would  be  the  result.  There 
would  be  a  big  boom  Avhile  the  timber  lasted,  followed  by  a  col- 
lapse. It  would  be  good  for  the  people  who  would  pocket  the 
proceeds  and  move  away,  but  bad  for  the  country.  It  would  be 
good  for  the  lumber  business  while  the  forests  were  being  cut, 
but  the  death  of  the  lumber  business  when  they  were  gone.  It 
would  for  a  few  years  make  plenty  of  work,  put  money  in  circula- 
tion, and  stimulate  trade,  but  it  would  in  the  long  run  mean  the 
decline  and  ruin  of  many  communities  and  the  impoverishment 
of  the  State. 

But  it  may  be  asked :  If  the  Fore&t  policy  is  to  develop  the 
Forests  for  the  benefit  of  the  people,  not  for  the  benefit  of  the 
Government  as  landlord,  why  does  it  lay  a  tax  on  those  who  use 
them?  The  Government  no  more  lays  a  tax  on  users  of  the  For- 
ests when  it  charges  them  for  value  received  than  it  lays  a  tax 
on  other  citizens  when  it  receives  money  for  postage  siamps  sold 
or  for  laud  taken  up.  In  the  last  ten  years  it  has  spent,  to  de- 
velop and  protect  the  Forests  for  the  benefit  of  the  people,  who 


406 


THE    CONSERVATION   POLICY. 


own  tluMM.  ;ind  to  carry  on  the  busines.s  incidental  to  their  use, 
about  $7, 000. 000.  It  has  received  from  them  in  these  ten  years 
about  $4,t)00.0(>0.  Tlie  receipts  from  the  J'"'orests  are  now  in- 
creasing rapidly,  but  so  are  the  expenditures  necessary  to  develop 
their  usefulness.  The  cost  of  keeping-  them  from  burning-  *ip, 
of  seeing-  to  it  that  they  are  so  used  that  the  rig-hts  of  everybody 
are  i)rotected,  of  .seeing-  that  the  Forests  are  made  to  yield  right 
along-,  year  after  year,  as  much  wood,  as  much  water,  and  as 
much  forage  as  possible  for  the  support  of  the  Western  people 
and  their  industries,  added  to  the  cost  of  permanent  improve- 
ments, is  bound  to  be  heavy.  Therefore  the  consumers  of  the 
wood  and  forage  which  the  forests  grow,  and  those  who  sell  for 
their  own  profits  the  power  which  streams  within  the  Forests 
supply-,  are  called  on  to  make  a  rea^sonable  contribution  toward 
the  maintenance  and  development  of  th^se  sources  of  their  in- 
dividual gain.  No  other  arrangement  would  be  either  fair  or 
possible.  Congress  could  not  .justl3^  take  from  the  National 
treasury  the  gieat  sums  which  must  be  spent  yearly  upon  these 
Forests  while  making  a  free  gift  to  a  comparatively  few  indi- 
viduals of  wood,  forage,  and  land  for  power  development,  that 
they  may  enrich  themselves  at  public  expense.  'J  he  States  in 
which  the  National  Forests  lie  are  still  debtors  to  the  Nation  for 
expenditures  on  their  behalf,  and  will  probably  remain  so  for  a 
good  while  to  come. 

Though  the  Government  has  steadily  increased  the  expendi- 
tures for  carrying  out  its  forest  policy,  the  net,  cost  to  the  peo- 
ple for  this  work  was  less  in  the  fiscal  year  1907  than  in  any 
))revious  year  since  1899.  the  very  first  year  in  which  anything 
at  all  was  spent  on  the  reserves.  Yet  in  1899  there  were  only 
-l(). 000.000  acres  of  National  Forests,  while  in  1907  there  were 
150.000,000  acn^s.  The  following  statement  shows  what  all  the 
forest  work  of  the  (lovernment  has  cost  each  fiscal  year,  begin- 
ning with  1899,  what  the  forests  have  yielded  to  the  Government, 
and  what  the  total  area  of  the  National  Forests  has  been  at  the 
end  of  each  year: 

Statement  of  expenditures  on  account  of  Forestry  and  receipts 

from  National  Forests. 

[Expenditures  for  1908  based  on  allotments;   receipts  estimated.] 


Appropriations 
(Includes  amounts  ex- 
pended from  receipts  fund 

1900-1908). 

Receipts 

fiom  sale  of 

timber, 

grazing, 

etc. 

Fiscal  year. 

Division  of 

Forestry, 

Bureau  of 

Forestry 

( Forest 

Service), 

Department 

of 
Agriculture. 

General 

Land  Office, 

Department 

bf  the 

Interior.  , 

Total  area 

of 
National 
Forests. 

1809 

$28,-520.00 

18,520.00 

88,520.00 

185,440.00 

291,860.00 

,350,000.00 

a632,232.36 

1,190,419.78 

1,790,678.79 

$175,000.00 
210,000.00 
.325,000.00 

;ioo,ooo.oo 

.301,135.00 

375,q00.00 

a217,907.64 

$7,534.83 
.36,751.02 
29,250.88 
25,431.87 
45,838.08 
.58,436.19 
73,276.15 
767,219.96 
1,. 571, 059. 44 

46,021,88i} 

1900 

46,772,1:^9 

1901 

46,410,209 

1902. 

1903 

60,175,765 
62,351,965 

1901 - 

62,763,491 

1905. ... 

1906 

85,627,472 
106,999,423 

1907 

150,831  665 

a  Administration  of  National  Forests  transferred  to  Forest  Service,  February 
1.  1905. 


The  Forest  policy  of  the  Government  is  not  confined  to  the 
care  and  development  of  the  forests  which  the  National  Gov- 
ernment owns  and  holds  as  triustee  for  the  people.  It  includes 
also  the  effort  to  bring  about  the  best  use  of  all  timber  lands  and 
all  forest  products  in  the  United  States,  in  the  interest  of  the 
general  welfare,  which  is  so  clearly  dependent  on  continuing  sup- 
plies of  wood  and  water.  The  Forest  Service  studies  to  find  out 
l)oth  how  to  make  the  best  use  of  what  we  now  have  on  hand 
and  how  to  get  more  as  cheaply,  abundantl3',  and  rapidly  as  pos- 
sible. 


TBE  CONi^ERVATION  POLICY.  407 

If  the  cost  of  these  studies  and  of  the  educational  work  car- 
ried on  by  the  Service  were  deducted  from  the  total  expendi- 
tures for  the  fiscal  year  1907,  the  remainder  would  be  less  than 
the  income  to  the  Government  from  the  National  Forests.  In 
other  words,  these  Forests  in  that  year  carried  themselveb.  Be- 
cause of  their  growing-  economic  importance,  Congress  author- 
ized the  policy  of  making-  expenditures  to  develop  their  im- 
portance still  further,  so  that  now  the  Government  is  again 
spending  more  money  on  the  National  Forests  than  it  is  re- 
ceiving from  them.  In  so  doing  it  is  simply  investing  the  monej' 
for  the  present  and  future  benefit  of  the  people,  and  protecting 
a  great  public  property  from  burning-  vip. 

In  holding  and  developing  these  great  resources,  conserving 
timber  and  water,  regulating  grazing,  and  controlling  those  who 
use  the  Forests  for  the  development  of  power,  the  Government  is 
fundamentally  helping  the  home  builder.  At  every  point  it  is 
working  to  increase  the  number  of  those  who  own  their  own 
homes,  the  typical  American  as  contrasted  with  the  typical 
European,  who  is  a  tenant  paying  tribute  to  a  landlord.  The 
National  Forest  policy  makes  oppressive  monopoly  of  the  best 
resources  of  the  West  impossible.  To  the  extent  that  the  ordi- 
nary citizen  has  to  turn  to  one  man  or  one  set  of  men  for  any- 
thing which  he  can  not  do  without  and  which  he  can  not  get 
elsewhere — whether  it  is  land,  or  water,  or  coal,  or  means  of 
transportation,  or  opportunity  to  labor,  or  permission  to  en- 
gage in  business — just  to  that  extent  he  is  in  the  grip  of  a  mo- 
nopoly. Just  to  the  extent  that  this  monopoly  seeks  to  take  ad- 
vantage of  his  necessity  is  the  monopoly  oppressive.  The  only 
trustworthy  guaranty  that  the  ordinary  citizen  can  have  that 
a  monopoly  will  not  be  used  to  oppress  him  is  Government  con- 
trol of  it.  For  the  Government  of  this  country  is  itself  con- 
trolled by  the  citizens  of  the  country. 

Goverimient  control  of  the  resources  of  the  Forests  prevents 
the  control  of  those  resources  by  private  monopolies.  These 
are  things  which  some  one  must  own.  Is  it  better  for  the  ordi- 
nary citizen  that  this  some  one  should  be  the  nati(in,  or  private 
individuals,  or  corporations?  Is  it  better  for  him  to  buy  timber 
from  an  agent  of  the  Government,  who  holds  his  jjlace  as  a 
servant  of  the  public,  or  from  the  local  representative  of  a  tim- 
ber monopoly  which  cai-es  nothing  whatever  about  the  public? 
Is  it  belter  that  use  of  the  range  in  National  Forests  shoidd  be 
allotted  on  the  basis  of  past  use  and  residence,  or  on  the  basis 
of  the  highest  price?  Is  it  better  that  the  development  of  hy- 
draulic power — a  matter  capable  of  complete  monopoly  in  the 
West — should  fall  absolutely  into  the  hands  of  corporations  free 
to  collect  from  the  public  whatever  they  choose  to  ask,  with  no 
return  to  the  public  for  the  use  of  its  own  resources,  or  that  the 
Government  should  control  the  monopolists  in  the  interest  of 
eqiiitable  exercise  of  their  power  over  the  industrial  life  of  the 
communities   dependent  on   them? 

Yet  with  all  this,  if  the  effect  of  Government  control- were  to 
prevent  the  everyday  citizen  from  making  a  home  for  himself, 
there  would  be  good  ground  for  criticism.  But  pist  the  reverse 
is  true.  The  number  of  permanent  homes  which  can  be  main- 
tained in  the  West  is,  through  control  of  the  Forests  by  the 
Government,  greatly  increased.  For  the  peritianent  means  of 
livelihood   are   increased. 


American  was-e-^ivorkers  work  T*'itli  their  lieails  an  v.el!  as 
tlieir  liands.  Moreover,  tliey  talve  a  Ueen  pride  in  w^liat  tliey 
are  doing-;  so  that,  independent  of  tlie  reT»'ard.  tliey  wisli  to 
turn  out  a  perfect  .1ol».  Tliis  i«  tlie  g^reat  secret  of  onr  suc- 
cess in  competition  Tvith  tlie  Jul>or  of  foreijyn  countries. — 
President   Roosevelt,    in    message   to    Congi-ess,   Dec.   3,    1901. 

Tlie  administration  of  exact  justice  l»y  courts  Avithout 
fear  or  favor,  unmoved  by  the  influence  of  tlie  wealiliy  or 
by  the  threats  of  the  demagogue,  is  the  highest  ideal  that 
a  government  of  the  people  can  strive  for,  and  any  means 
by  which  a  suitor,  however  unpopular  or  po«r,  is  deprived 
of  enjoying  this  is  to  be  condemned.  It  is  important,  lio^v- 
ever,  that  appeals  to  judicial  remedies  should  l»e  limited  in 
such  a  T»ay  that  parties  will  not  use  them  mei'ely  to  <lela> 
and  so  clog  efliclent  and  just  executive  or  legislative  action. 
—Hon.  Wm.  H.   Taft,  at  Columbus,    Ohio. 


THE  CIVIL  SERVICE. 


The  cliieJ  oriticiisins  of  the  Civil  Service  of  the  United  States 
indulg-ed  in  by  the  opponents  of  the  Kepublican  party  are  based 
either  upon  a  total  misapprehension  or  a  willful  misstatement  of 
facts. 

The  Civil  Service  law  was  enacted  in  1893  for  the  purpose  of 
stopping"  the  flagrant  abuses  which  had  developed  under  the  old 
patronage  system  of  ai^pointnients.  Under  that  system  the  gov- 
ernment service  in  the  Departments  at  Washington  had  become 
inefficient  and  extravagant.  Public'  office  was  considered  a  per- 
quisite of  the  party  in  power,  not  a  public  trust. 

It  was  to  remedy  such  evils  that  the  Civil  Service  law  was  en- 
acted, and  during  the  twenty-five  years  of  its  enforcement  there 
has  been  developed  a  high  order  of  industry,  integrity,  and  ef- 
ficiency in  the  public  service.  This  development  has,  of  course, 
not  been  free  from  difficulties.  Mistakes  have  been  made,  but 
year  by  year  the  merit  system  has  been  improved  and  extended 
until  now  the  competitive  classified  service  covers  about  197,000 
Federal  officials  and  is  recognized  as  necessary  for  good  ad- 
ministration. 

The  conclusive  answers  to  the  criticisms  are  the  following 
plain  statements  of  existing  conditions  and  the  course  of  the 
llepublican  party  during  the  twelve  years,  in  which  it  has  had 
control  of  the  administration  : 

First. — Entrance  to  the  Federal  classified  service  is  not  de- 
pendent upon  personal  or  political  influence;  hence  the  service 
is  now  composed  of  self-respecting,  independent  men  and  women 
who  appreciate  that  advancement  will  depend  upon  individiial 
industry  and  ability.  They  do  not  constitute  a  body  of  per- 
manent officeholders  who  are  protected  from  removal  even  though 
inefficient  and  incapacitated,  as  charged.  The  power  of  removal 
is  absolute  in  the  head  of  every  Department.  The  only  limita- 
tions upon  causes  of  removal  are  that  employees  must  be  treated 
with  justice,  that  like  penalties  must  be  imposed  for  like  of- 
fenses, and  that  no  person  shall  be  removed  from  a  competitive 
position  except  for  such  cause  as  will  promote  the  efficiency  of 
the  service.  The  only  limitation  involved  in  the  procedure  pre- 
scribed by  the  Civil  Service  rules  for  removal  is  that  the  cause 
of  removal  shall  be  stated  in  writing  and  filed,  and  when  mis- 
conduct is  committed  in  the  view  and  presence  of  the  President 
or  head  of  an  Executive  Department  removal  may  be  made  sum- 
marily and  not  even  a  statement  of  reasons  is  required  to  be 
filed.  No  notice  is  required  to  the  employee;  no  trial  and  no 
opportunity  for  a  hearing  need  be  given  him  under  the  rules. 
The  only  limitation  is,  as  stated,  that  the  cause  of  removal  must 
be  one  which  will  promote  the  efficiency  of  the  service ;  that  is, 
must  be,  for  instance,  for  miscondiict  or  negligence  or  laziness, 
or  some  such  cause ;  and  that  one  employee  shall  not  be  punished 
in  a  different  manner  from  what  another  is  punished. 

The  Civil  Service  Commission  strictly  enforces  the  prohibition 
against  making  rem*ovals  for  political  reasons;  but  its  authority 
is  limited  to  the  enforcement  of  that  prohibition. 

The  merit  system  does  not  result  in  an  imdue  permanency  of 
tenure.  48.2  per  cent,  of  the  employees  in  the  classified  service 
of  the  country  have  served  less  than  five  years,  and  72.5  per 
cent,  have  served  less  than  ten  years.  In  the  District  of  Cohnn- 
bia  naturally  the  service  is  more  stable,  and  in  the  department;- 
at  Washington  30.8  per  cent,  have  served  less  than  five  years  and 
56.1  per  cent  less  than  ten  years.  The  appointments  made  as  a 
result  of  the  examinations  in  the  entire  service  are  at  the  ratf 
of  3,600  per  month ;  about  22  per  cent,  of  the  entire  service  and 
about  15  per  cent,   of  the  departmental   service  in  Washington 

408 


TEE  CIVIL  SERVICE.  409 

changes  each  year.  The  inefficient  employee  gives  way  to  the 
efficient,  or  the  efficient  employee  finds  private  work  more  profit- 
able or  more  congenial. 

The  charge  that  the  service  is  filled  with  superannuated 
clerks  is  imfounded.  60.7  per  cent,  of  the  employees  are  less 
than  forty  years  old,  and  91  per  cent,  less  than  sixty  years  old. 
In  Washington  less  than  53,1  per  cent,  are  less  than  forty,  and 
87  per  cent,  less  than  sixty  years  old. 

Second. — It  is  not  claimed  that  a  competitive  examination  is 
an  absolutely  correct  means  of  determining  the  qualifications  of 
applicants,  but  it  is  the  best  means  yet  devised.  The  Civil  Ser- 
vice Commission  is  constantly  changing  the  character  of  the 
examinations  to  meet  the  special  requirements  of  particular 
places.  The  experience  of  twenty-five  years  has  shown  definitely 
that  the  average  examination  can  be  passed .  by  any  intelligent 
person  who  has  had  a  common  school  education,  and  does  afford 
a  remarkably  accurate  basis  for  the  determination  of  the  relative 
ability  of  applicants. " 

As  a  result  of  the  examination  for  scientific  and  technical 
positions,  there  have  been  built  up  various  corps  of  thoroughly 
trained  men  who  have  placed  the  scientific  work  of  this  Govern- 
ment in  the  forefront  among  the  nations  of  the  world.  This 
has  been  particularly  true,  and  the  results  obtained  have  been 
of  great  practical  value,  in  the  Departments  of  the  Interior, 
Agriculture,  and  Commerce  and  Labor. 

Third. — It  is  a  mistake  to  suppose  that  the  Civil  Service  Com- 
mission exists  simply  for  the  purpose  of  enforcing  the  law  and 
rules.  Its  purpose  is  to  provide  the  most  efficient  eligibles  possible 
for  every  branch  of  the  service.  It  looks  to  the  good  of  the  ser- 
vice, not  to  the  mere  enforcement  of  a  rule.  It  is  the  barrier 
against  the  spoils  system,  but  it  does  not  protect  the  inefficient  or 
dishonest  employee. 

The  ideal  Civil  Service  law  should  close  the  door  to  entrance 
into  the  public  service  except  throiigh  a  method  which  can  be 
followed  by  any  qualified  person  without  political  influence  or 
favor,  but  leaves  to  the  executive  authorities  the  power  to  re- 
move for  any  cause,  other  than  political  or  religious.  It  is  to- 
ward this  ideal  that  the  present  Administration  is  working. 

The  business  of  the  Government  has  grown  in  proportions  not 
appreciated  by  the  people  at  large.  The  executive  departments 
are  made  responsible  for  the  expenditure  of  about  $600,000,000 
annually.  Such  expenditures  can  be  wisely  and  honestly  made 
only  by  exercising  the  highest  degree  of  business  ability  and 
selecting  efficient,  capable  employees  who  will  make  good  service 
to  the  Government  their  ambition.  The  Eepublican  party  has 
proved  that  under  its  administration  the  business  of  government 
is  so  conducted.  President  Roosevelt,  the  party's  present  repre- 
sentative, has  appointed  men  of  recognized  ability  and  judgment 
to  carry  on  executive  work.  He  has  made  no  promises  impos- 
sible of  fulfillment.  By  precept  and  example  he  has  inspired 
public  officers  to  a  higher  sense  of  duty.  In  this  administration 
neither  personal  nor  political  influence  has  availed  to  save  the 
corrupt  official  from  punishment.  American  citizens  should  re- 
member and  take  to  heart  these  words  of  the  President : 

"The  most  successful  governments  are  those  in  which  the  average 
public  servant  possesses  that  variant  of  loyalty  which  we  call  patriotism, 
together  with  common  sense  and  honesty.  We  can  as  little  afford  to 
tolerate  a  dishonest  man  in  the  public  service  as  a  coward  in  the  army. 
The  murderer  takes  a  single  life  ;  the  corruptionist  in  public  life,  whether 
he  be  bribe  giver  or  bribe  taker,  strikes  at  the  heart  of  the  commonwealth. 
In  every  public  service,  as  in  every  army,  there  will  be  wrongdoers,  there 
will  occur  misdeeds.  This  can  not  be  avoided  ;  but  vigilant  watch  must  be 
kept,  and  as  soon  as  discovered  the  wrongdoing  must  be  stopped  and  tbo 
wrongdoers   punished." 

^^r,  Taft  has,  during  his  entire  political  career,  been  a  steady 
and  efficient  supporter  of  the  improvement  of  the  Civil  Service. 
He  introduced  the  merit  system  into  the  government  of  the 
Philippines ;  he  has  had  charge  of  one  of  the  great  Departments 
of  the  Government  under  the  administration  of  President  Roose- 
velt, and  whatever  commendation  is  due  to  President  Roosevelt 
in  his  course  in  the  handling  and  the  improvement  of  adminis- 
tration is  shared  by  the  present  candidate  of  the  party,  who  has 
loyally  and  consistently  supported  the  reforms  which  President 
Roosevelt  has  introduced. 


410  THE  CIVIL  SERVICE. 

Brlttfib    Mniinfiii'tnrcrs   Advoeute   Tariff   Reform. 

London,  April  27,  1908. 

The  proiBfvess  of  taritt  reform  in  Eaglaiul  is  well  illustrated  by 
the  action  of  the  Associated  Chambers  of  Commerce  at  their 
rectMit  meeting-  in  J^ondou.  This  is  the  most  important  com- 
mercial bod\'  in  iiritain,  and  it  represents  the  business  life  of 
the  country.  The  question  before  it  for  decision  was  "That  this 
Association,  while  approving  of  the  principle  of  free  exchaiige, 
recognizes  the  grave  danger  to  which  our  industrial  population 
is  exposed  by  the  action  of  scientifically  imposed  foreign  tariffs, 
and  is  of  opinion  that  steps  should  be  taken. to  mitigate  the  evil 
i)y  the   reform  of  our  tariff." 

In  a  vote  this  resolution  was  adopted  by  40  to  30.  there  being 
31  neutral.  As  showing  the  advance  of  the  movement. a  similar 
motion  was  rejected  by  69  to  27  when  made  three  years  ago. 


AVe  are  iMit  a  nation  of  elasseH,  but  of  wtnrdy,  free,  imle- 
l>eii«leiit  and  honorable  people,  deNplNinja;  fbe  demapfogrne  and 
never  eai>itnIatinK-  to  dishonor.— MoKinley's  letter  of  accept- 
anee,    1>?9«>. 

The  present  pbeii»inenal  prosperity  has  been  ^von  under 
a  tariff  made  in  aeeordnnee  ^vitli  eertnln  ii.ved  prineiples,  the 
most  important  of  ^vhteh  is  an  nvoTied  determination  to  pro- 
teet  the  interests  of  the  American  protlueer,  liusiiness  man, 
wufte-M'orker,    and     farmer    alike. — Presltlent     Roosevelt. 

We  have  had  srreat  problems  before  and  have  solved 
them  riuhtly — that  is  the  American  v»'ay  of  solvinsr  problems. 
We  mnst  api»roaeh  these  ne^v  ones  In  the  same  spirit  ^vith 
whieh  -we  approached  and  successfully  solved  those  "»vhlch 
have  jffone  into  history. — Hon.  Georn^e  B.  Cortelyou,  at  Lr- 
bana,    Illinois,    June    7,    1905. 

They  tell  us  that  a  protective  tariff  was  only  designed 
for  infant  industries,  that  ^ve  have  outgrown  that  infancy 
and  are  no  lons'e«*  in  need  of  the  duties  tliat  enabled  us 
t<»  pret  them  started.  We  have  ftro^vn.  It  is  true.  Our  ^reat 
industrial  concerns  are  monsters  uoav,  but  let  me  tell  you. 
as  the  boy  said  ivho  Avaitcd  till  he  had  jairown  up  before 
tackliniiV  a  youthful  opponent,  the  other  fello^v  has  ji^rown 
up    too. — Hon.    James    S.    Sherman. 

In  the  grreat  battle  of  1S96  the  Republican  party  attain 
stood  for  the  maintenance  of  the  iuteftrity  of  the  nation. 
The  flK-ht  wan  against  odds  produced  by  a  ju;^reat  industrial 
depression,  and  auainst  the  most  sophistical  iirftumen  ts.  The 
Hepnblican  party  maintained  a  campaign  of  education 
amouK'  the  ^vn^e-earners  and  the  farmers,  -which  ultimately 
led  to  tKe  complete  defeat  of  this  second  financial  heresy 
•»vliich  has  threatened  the  intcKrity  of  our  business  structurt-. 
—Hon.    Wm.    H.    Taft,    at    Kansas    City,   Mo. 

I'nder  the  system  of  protection  every  hour  of  honest  toil 
purchases  more  of  material  comfort  for  the  toiler  than  is  at- 
tainable under  any  other  system,  the  degree  of  such  advan- 
laiJTe  beinft-  contingrent  upon  the  completeness  anil  accuracy 
of  the  apiilication  of  the  protective  system.  This  advantage 
comes  directly  or  fndireetly  to  all  classes  of  toilers,  be  they 
^veavers,  spinners,  carpenters,  painters,  machinists,  farmers, 
doctors,  editors,  or  teachers. — Hon.  H.  B.  Metcalf,  Pawtucket, 
R.    I.,    in    the    American    IDconomist. 

M.r.  Bryan's  whole  system  of  remedies  for  the  evils  that 
both  Mr.  Roosevelt  and  he  and  many  others  recosnizie,  is 
based  on  his  distrust  of  the  honesty,  couragre  and  impar- 
tiality of  the  IndiA-idual  as  an  agrent  on  behalf  of  the  people 
to  carry  on  any  part  of  grovernment  and  rests  on  the  propo- 
sition that  our  present  system  of  representative  grovern- 
ment  is  a  failure.  He  would  have  lafovernment  OT\'nerslilp 
of  rail^vays  because  he  does  not  believe  It  is  possible  to 
secure  an  interstate  commerce  commission  tliat  the  "money 
po^wer"  cannot  and  will  not  nltimately  ov»'n.  He  ^voultl  have 
the  initiative  and  referendum  because  he  distrusts  repre- 
sentative jufovernment  and  has  no  confidence  in  the  ability 
of  the  people  to  find  men  -tvlio  ^vill  conscientiously,  and 
free  from  the  influence  of  the  '*njoney  j>ower,'*  /-epresent  them 
in  preparing  and  A'OtiuR-  legislation.  He  would  take  away 
from  courts,  because  he  distrusts  the  ability  of  judgres  t«> 
resist  the  malign  influence  of  the  "money  po^ver,"  the  iiower 
to  enforce  their  o^vn  or«lers  until  a  jury  fs  called  to  tell 
the  court  %vliether  tlie  order  has  l>eeii  disobey4'«l.  and  thus, 
in  practice,  tliougrh  not  in  theory,  the  jury  ^vould  <*oiiie  tc» 
liass  on  the  correctness  and  justice  of  the  court's  order. 
—Hon.   Wm.   H.  Taft,   at   Columbus,  Ohio. 


THE  NON-CONTIGUOUS  TERRITORY 
OF  THE  UNITED  STATES. 


The  last  decade  has  developed  a  new  quality  in  the  American, 
the  power  to  successfully  g-overn  noncontiguous  territory  occu- 
pied by  people  of  nationalities,  customs,  and  civilization  differing 
widely  from  our  own,  and  living-  under  climatic  and  other  con- 
ditions also  widely  different  from  those  to  which  we  have  been 
accustomed.  This  new  work  has  required  the  American  soldier, 
sailor,  and  citizen  to  study  the  characteristics  of  and  devise 
means  of  g-overmnent  for  the  millions  in  the  Philippine  Islands, 
and  with  them,  large  numbers  of  Chinese  and  not  a  few  other 
Orientals  ;  tne  thousands  of  Chinese  and  Japanese  of  the  Hawaiian 
Islands,  the  mixed  Spanish  and  native  population  of  Porto  Rico^ 
Cuba,  and  Panama ;  and,  passing-  from  the  tropics  to  the  Arctic, 
the  Eskimo  and  Indian  of  Alaska.  In  all  of  these  cases  the  ad- 
vent of  American  influence  has  brought  civilization,  education, 
improvement  of  imblic  health,  better  transportation  facilities, 
diversification  of  industries,  increased  commerce,  increased  earn- 
ings, and  with  all  of  these  a  growing  share  in  domestic  govern- 
ment, and  produced  prosperity,  peace  and  contentment.  The 
establishment  of  peace  has  been  in  every  case  the  first  purpose, 
and  following  this  the  introduction  of  educational  facilities,  the 
development  of  transportation,  and  with  this  the  development 
of  commerce.  Schoolhnuses,  roads,  railroads,  canals  have  fol- 
lowed the  American  flag,  and  the  American  soldier,  sailor,  or 
civil  administrator  in  all  of  these  various  and  widely  sepa- 
rated sections  of  the  world,  and  these  in  turn  have  been  followed 
by  closer  relations  between  the  United  States  and  the  12  million 
people  occupying  these  scattered  sections,  now  known  as  the  non- 
contiguous territories  of  the  United  States,  omitting  from  this 
category,  of  course,  Cuba,  which  is  but  temporarily  under  Ameri- 
can control,  and  will  within  a  few  months  be  again  established 
as  an  independent  American  Ilepublic.  In  chapters  which  follow 
the  conditions  now  prevailing  in  these  various  sections  of  the 
world,  and  commonly  designated  as  the  noncontiguous  territories 
of  the  United  States  are  set  forth  in  detail.  It  is  not  improper 
to  say,  befoi-e  entering-  upon  a  discussion  of  these  conditions, 
that  the  trade  of  the  United  States  with  this  noncontigiious 
area — the  Philippines,  Hawaii.  Alaska,  Porto  Rico,  and  the  Pan- 
ama Canal  strip— has  grown  from  35  million  dollars  in  1897  to 
160  millions  in  1907.  The  imports  from  these  various  territories 
have  grown  from  24  milliions  in  1897  to  77  millions  in  1907,  and 
the  exports  to  them  from  11  millions  in  1897  to  83  millions  in 
1907.  In  this  important  work  no  citizen  or  official  of  the  United 
States  has  performed  a  greater  or  more  varied  and  difficult  work 
than  has  ISlr.  Taft.  in  his  services  in  the  Philippines,  in  Cuba, 
and  in  l*anama. 


THE      PHILIPPINE     ISLANDS. 

The  assumption  of  sovereignty  over  the  Philippine  Islands 
on  the  part  of  the  United  States  was  not  a  matter  of  voluntary 
action,  but  was  developed  suddenly  and  unexpected  as  the 
result  of  a  victorious  war.  The  burden  of  its  unavoidable  oo- 
ligations  had  to  be  promptly  met.  A  government  had  to  be 
built  from  the  ground  \ip — a  government  involving  all  the  phases 
of  law  and  conditions  of  a  people  numerically  greater  than 
the  size  of  the  United  States  at  the  time  the  Fedei^al  Consti- 
tution was  adopted,  3^et  on  account  of  the  conditions  under 
which  they  had  so  long  lived  they  were  for'the  time  being  at 
least  incapable  of  self-government.  They  ^vere  scattered  oxer 
a  territory  whose  extent  north  and  south,  measured  by  the  time 
required  to'  travel,  was  equal  to  the  great  coast  line  of  the 
United  States  between  Eastport,  Maine,  and  the  Florida  Straits, 

411 


412         N0N-C0NTIQU0V8  TEWY—THE  PHILIPPI2^E8. 

or,  more  plainly  stated,  whose  territorial  length  from  Bashi 
Channel  to  Sibuto  Island  is  not  less  than  the  length  of  a  ship- 
pathwa}'  between  Canada  and  the  Gulf  of  Mexico — a  people  with 
IK)  language  of  their  own,  divided  into  about  twenty  separate 
and  distinct  classes  or  clans,  each  with  a  dialect  or  Spanish 
patois  not  always  understood  beyond  the  immediate  locality  in 
which  it  was  spoken — a  people  such  as  no  other  nation  on  eurtli 
before  had  ever  been  called  upon  to  tranquillize,  control  and 
govern,  and,  in  a  measure,  to  civilize  as  well  as  to  train  and  edu- 
cate in  the  duties  of  modern  citizenship.  Such  a  jjeople  as  they, 
in  a  tropical  country  thousands  of  miles  from  our  own  shores,  on 
the  opposite  side  of  the  globe,  in  fact,  fell  suddenly  under  the 
care  and  protection  of  the  United  States,  a  country  without  ex- 
perience in  governing  or  developing  a  tropical  or  oriental  people. 

The   First    Steps    In    Government   of   tlie   Island. 

Necessarily,  of  course,  the  first  steps  taken  with  respect 
to  the  establishment  of  American  dominion  over  the  Philip- 
pine Islands  were  war  measures.  Spain  had  suddenly  lost 
both  prestige  and  dominion  over  the  Philippines,  and  the  Ameri- 
can Army  as  an  unavoidable  act  of  war  naturally  had  to  exer- 
cise its '  functions  in  martial  government.  But  from  the  Very 
start  care  was  exercised  to  do  away  as  much  and  as  speedily 
as  possible  with  the  austerity  and  rigor  of  martial  law  and 
almost  from  the  beginning  the  military  government  was  dual- 
ized by  delegating  certain  powers  to  a  Civil  Commission,  which 
at  first  shared  authority  with  the  military  government  and 
finally  supplanted  it. 

Civil  government  in  the  Philippine  Islands,  however,  as  dis- 
tinguished from  military  administration,  dated  from  the  ap- 
pointment in  March,  1900,  by  President  McKinley,  of  what  is 
now  generally  known  as  the  "Taft  Philippines  Commission."  In 
creating  this  commission  and  authorizing  it  to  assume  and 
discharge  the  functions  of  government,  the  President  still  ex- 
ercised the  war  power  of  the  nation,  for  the  commission  thus 
created  was  an  instrumentality  for  the  exercise  of  authority 
by  the  President,  as  Commander-in-Chief  of  the  Army  and 
Navy  of  the  United  States,  to  administer  the  affairs  of  civil 
government  in  territories  subject  to  military  occupation. 
The  Commission  thus  established,  however  anomalous  it  may 
have  seemed,  was  a  civic  agency  for  ther  exercise  of  the  powers 
of  military  government,  and,  being  without  precedent,  it  may 
be  regarded  now  as  one  of  those  beneficent,  wise,  and  valued 
achievements  in  our  national  history  which  seems  to  have  been 
inspired  by  a  power  beyond  the  ordinary  human  comprehen- 
sion. 

It  is  now  more  than  seven  years  since  President  McKinley 
committed  the  government  of  the  Philippine  Islands  to  the  con- 
trol of  the  Philiiipine  Commissi oi;i  with  William  H.  Taft  at 
its  head,  subject  to  the  supervision  of  the  Secretary  of  War; 
and .  meanwhile,  during  all  those  j'^ears  of  gradual  betterment 
of  the  conditions  prevailing  on  these  Islands,  there  have  been 
no  discoveries  of  any  radical  error  in  the  original  form  of 
government  or  anything  to  lessen  the  faith  of  the  Filipino  or 
American  people  in  the  promises  of  the  United  States  Govern- 
ment. On  the  contrary  there  were  so  few  points  to  be  changed 
when  the  matter  of  the  Philippine  Government  came  before 
Congress  for  revision  and  enactment  in  detail  that  Congi-ess, 
after  full  deliberation  and  careful  consideration,  continued  the 
whole  question  of  the  Philippine  Government  and  its  administra- 
tion in  the  hands  of  the  Chief  Executive  of  the  United  States?, 
whose  original  instructions  arid  decrees  as  well  as  other  amenda- 
tory and  incidental  acts  found  necessary  subsequently  were  not 
only  approved  in  the  main  but  continued  in  force  with  all  the  au- 
thority which  combined  governmental  action  could  give  them. 

Purpose    of   the   Taft    Commission. 

The  general  pirrpose  of  the  Taft  Commission  as  announced 
by  President  McKinley  was  "to  continue  and  perfect  the  work 
of  organizing  and  establishing  civil  government  already  com- 
menced by  the  military  authorities"  in  the  Philippines,  subject 
in   all   respects    to   any    laws   which    Congress   might   thereafter 


NON-CONTIGUOUS  TEW Y— THE  PHILIPPINES.         413 

enact.  And  as  a  fundamental  step  in  g'iving  civil  g-overiunent 
to  the  people  of  the  Philippines,  it  was  determined  that  there 
should  be  a  separation  of  the  execiitive,  the  legislative,  and  the 
judicial  branches,  and  that  the  powers  of  these  several  brandies 
should  be  exercised  by  different  persons.  Accordingly,  the  leg- 
islative powers  were  conferred  upon  the  Commission,  the  judicial 
powers  were  to  be  exercised  by  the  courts,  which  themselves  were 
to  be  established  through  legislative  action  of  the  Commission, 
and  the  authority  to  exercise  the  executive  powers  was  con- 
tinued in  the  commander  of  the  military  forces  of  the  United 
States,  where  in  the  beginning  it  had  been  placed  in  main- 
taining the  occupancy  of  the  Islands. 

The  year  following  this  arrangement  of  governmental  power, 
in  June,  1901,  the  President  of  the  United  States  appointed  lion. 
William  H.  Taft  Civil  Governor  of  "the  Philippine  Islands,  and 
transferred  from  the  JNIilitary  Governor  to  him  as  President  of 
the^Philippine  Commission  the  authority  to  exercise  the  powers 
of  the  executive  branch  of  the  government  in  all  the  pacified 
provinces  of  the  Islands,  but  continuing  the  authority  of  the 
Military  Governor  to  exercise  authority  in  those  districts  in 
which  the  insurrection  continued  to  exist. 

On  the  1st  of  September,  1901,  a  further  step  toward  civil 
executive  organization  was  made  by  the  establishment  of  sep- 
arate executive  departments  to  which  members  of  the  Commis- 
sion were  assigned. 

The  administrative  affairs  of  the  government  through  these 
newly  instituted  executive  departments  were  ax)portioned  among 
several  newly  organized  Bureaus  or  officers  in  each  Department, 
embracing  all  administrative  duties  pertaining  to  the  various 
affairs  of  the  Islands,  such  for  example  as  Health,  Quarantine 
and  Marine  Hospital  Service,  Forestry,  Mining,  Agriculture, 
Fisheries,  Weather,  Ethnology,  Public  Lands,  Patents  and  Copy- 
rights, Post  Offices,  Telegraphs,  Coast  and  Geodetic  Surveys,  Pub- 
lic Works  and  Public  Buildings,  Insular  Constabulary,  Prisons, 
Corporations,  Immigration,  Internal  Revenue,  Banks  and  Bank- 
ing, Coinage  and  Currency,  Justice,  Public  Instruction,  Public 
Charities,  Public  Libraries,  Museums,  Public'  Records,  Official 
Statistics,  Public  Printing,  Architecture,  etc.,  including  in  fact 
every  detail  of  administrative  government  known  in  a  civilized 
and   self-governing  community. 

It  was  in  the  same  year  that  the  President  appointed  three 
distinguished  Filipinos  as  additional  members  of  the  Commis- 
sion; and  on  October  29,  1901,  in  order  to  relieve  somewhat  the 
great  pressure  of  official  duties  devolving  upon  Civil  Governor 
Taft,  the  President  created  the  office  of  Vice-Governor  and  ap- 
pointed Hon.  Luke  E.  AVright  to  that  position.  Mr.  Wright  sub-, 
seqviently  became  President  of  the  Commission  in  1903,  suc- 
ceeding Mr.  Taft,  who  had  resigned  to  accept  the  position  of 
Secretary   of  War. 

Self-Government  in  Mniiicipalities. 

Pursuant  to  the  instructions  of  the  President  of  the  United 
States,  the  Commission  by  proper  legislation  made  provisions 
for  municipal  government  to  be  established  throughout  the 
Islands  as  quickly  as  conditions  permitted.  They  also  passed 
a  general  act  for  the  organization  of  provincial  governments  in 
the  Philippine  Islands,  A  judicial  system  was  created  under 
which  the  several  newly  established  courts  assumed  the  exercise 
of  judicial  powers,  and  the  insular  constabulary  and  municipal, 
police  were  created  and  installed.  A  system  of  civil  service  was 
provided  for  and  put  into  operation  by  due  enactments,  tog-ether 
with  a  system  of  account  and  audit,  which  were  adopted  and 
rigorously  enforced.  A  system  of  education,  too,  was  installed 
and  forestry  laws  providing  for  the  preservation  and  utilization 
of  the  public  forests  were  adopted  and  enforced.  In  addition  to 
all  these  careful  provisions  of  good  government,  a  wise  and  ex- 
tensive system  of  public  improvements  and  repairs  was  adopted, 
and  adequate  means  of  securing  revenue  by  the  levy  of  duties 
and  taxes  were  duly  devised  and  put  in  force. 

So  careful,  thorough  and  complete  were  the  various  features 
of  government  formulated  by  the  Philippine  Commissioners, 
with    due    regard    to    the    principles    of    Liberty,    Equality    and 


414         NON-CVXTiaUOl'Si  TEirY—THK   I'll  I IJ  I'l'l  \  HS. 

.lustioe  i)rt'\ainnj>  in  the  Inited  States,  that  Congress  in  19():i. 
aller  eurefiil  investif>-ation  of  all  tliat  had  been  done  for  the 
government  of  the  lMuli|)|)ine  Ishmds,  pUiced  the  seal  of  oHi- 
cial  h><iislative  apj)i()\al  npon  tlie  {governmental  organization 
in  those  Islands,  ratifving,  approving  and  eontirrning  each  and 
every  one  of  the  acts  theretoioi-e  done  and  performed  in"  eon- 
neetion  thei-evvith,  and  besides  conferred  npon  tJie  said  Pliili])- 
pine  Government  additional  anthority  and  discretionary  rights 
which  not  even  the  President  of  the  United  States  had  previonsly 
had  anthority  to   bestow. 

Pnrsiiant  to  this  legisUition  of  the  Fifty-seventh  Congress, 
there  was  soon  afterwards  established  in  the  Philippines  and 
extended  throng'hout  the  civilized  i)ortif)ns  of  those  Islands,  a 
civil  government  which  in  certain  respects  is  more  extensive 
in  its  local  and  independent  character  than  that  which  exists 
in  any  of  the  States  or  Territories  of  this  Union.  Indeed,  not 
being  limited  by  the  Constitution  in  its  legislation  on  this 
snbject,  as  in  matters  relating  to  the  United  States,  Congress 
was  able  to  delegate  to  local  government  of  the  Philipi)ines 
certain  valuable  powers  which  cannot  under  onr  Federal  Con- 
stitution he  given  to  the  States  of  the  Union,  It  might  there- 
fore be  asserted  that  no  integral  or  segregated  portion  of  the 
territory  of  the  United  States  subject  to  Federal  soxereignty 
is  to-day  exercising  by  itself  and  for  itself  so  many  of  the  powers 
of  governmental  sovereignty  as  are  exercised  in  the  Philippine 
Archipelago. 

Temporarily   Wltl»lield   Privileges. 

While  all  this  is  so,  however,  there  are  two  rights  or  privi- 
leges guaranteed  to  the  citizens  of  the  United  States  by.  the 
Federal  Constitution  which  are  not  yet  granted  to  the  Filipinos, 
namely,  the  right  to  bear  arms  and  to  trial  by  jury.  On  this 
point  Secretary  Taft,  in  a  report  to  the  President,  said : 

"The  right  to  bear  arms  is  one  that  cannot  safely  yet  be  extended 
to  the  people  of  the  Philippines,  because  there  are  among  those  people 
men  given  to  violence,  who  with  the  use  of  arms  would  at  once  resort 
to  ladronism  as  a  means  of  livelihood.  The  temptation  would  be  too 
great  and  ought  not  to  be  encouraged.  Nor  are  the  people  fit  for  the 
Introduction  of  a  jury  system  ;  nit  yet  has  any  considerable  part  of 
the  community  become  sufficiently  imbued  with  the  sense  of  responsibility 
for  the  government  and  with  its  identification  with  the  government.  This 
responsibility  and  identification  are  necessary  before  jurors  can  sit  im- 
partially between  .society  and  the  prisoner  at  the  bar.  Without  it  they 
are  certain  always  to  release  the  prisoner  and  to  sympathize  with  him 
In  the  prosecution  against  him.  The  fair  treatment  of  the  prisoner  is 
sufficiently  secured  in  a  country  never  having  had  a  jury  trial  by  tha 
absolute  right  of  appeal  from  the  decision  of  a  single  judge  to  the  decision 
of  seven  judges,  with  a  writ  of  error  thence  to  the  Supreme  Court  of  the 
United  States.  It  may  be  that  in  the  future  it  will  seem  wise  gradually 
to  provide  for  a  jury  in  various  classes  of  cases,  but  at  present  it  would 
be  premature. 

'The  civil  rights  conferred  by  Mr.  McKinley's  instructions  were  ex- 
pressly confirmed  by  the  organic  act  of  July  1,  1902.  It  has  been  the 
purpose  of  the  Philippine  government  to  make  the  extension  of  these 
rights  a  real  thing  and  a  benefit  for  the  poorer  Filipino,  and  progress 
is  being  made  in  this  direction.  The  great  obstacle  to  it  arises  from^the 
ignorance  of  the  people  themselves  as  to  what  their  rights  are  and 
their   lack  of  knowledge  as  to   how   these   rights  may   be  asserted. 

"The  work  of  impressing  a  knowledge  of  these  things  upon  the 
people  goes,  however,  rapidly  on,  and  with  the  education  in  English  ot 
a  new  generation  and  their  succession  to  the  electorate,  we  can  be  cer- 
tain that  the  spread  .of  education  as  to  popular  rights  and  the  means 
of  maintaining  them  will  be  wider  and  wider,  until  we  can  have  a 
whole "  community  who  know  their  rights,  and  knowing,  dare  maintain 
them. 

"Charges  have  been  made  ihat  the  existing  Philippine  government 
has  not  properly  preserved  these  guaranties  of  civil  rights.  It  is  true 
that  the  Commission  has,  in  effect  suspended  these  guaranties  in  a 
condition  equivalent  to  one  of  war  in  some  of  the  provinces,  and  has 
been  sustained  in  so  doing  by  the  Supreme  Court  of  the  Islands  and  of 
the  United  States.  It  is  also  true  that  during  a  condition  equivalent 
to  war,  the  Commission  provided  that  no  one  should  advocate  independence, 
even  by  peaceable  means,  becau.se  agents  of  insurrection  were  inciting 
actual  violence  under  the  guise  of  such  peaceable  propaganda.  With  the 
coming  of  peace,  the  statute  ceased  to  have  effect.  To-day,  however, 
the  writ  of  habeas  corpus  runs  without  obstruction.  The  liberty  of  the 
press  and  of  free  .speech  is  real.  There  is  no  censorship  of  the  press 
and  no  more  limitation  upon  it-  editors  than  there  is  in  the  City  of 
Washington.  The  publication  of  criminal  libel  or  seditious  language  cal- 
culated and  intended  to  cause  public  riot  and  disturbance  is  punishable 
in  Manila  and  the  Philippine^  as  it  is  in  many  of  the  States  of  the 
Union.  This  freedom  of  discussion  and  this  opportunity  to  criticise  tht 
governmpnt,  educate  the  people  in  a  political  way  and  enable  them  more 
Intelligently   to   exerci.se   their  -polilical    rights." 


NON-CDNTIGUOUS  TER'T—THE  PHILIPPINES.         415 

General  Policy  of  the  United   States  Towards  the  Philippines. 

In  his  recent  special  report  to  the  President  on  Philippine 
affairs  after  his  visit  to  the  Philippine  Islands,  in  October  last, 
Secretary  Taft  said  as  follows : 

"The  policy  of  the  United  States  toward  the  Philippines  is,  of 
course,  ultimately  for  Congress  to  determine,  and  it  is  difficult  to  see  how 
one  Congress  could  bind  another  Congress,  should  the  second  conclude 
to  change  the  policy  declared  by  the.  first.  But  we  may  properly  assume 
that  after  one  Congress  has  announced  a  policy  upon  the  faith  of  which 
a  whole  people  has  for  some  years  acted  and  counted,  good  conscience 
would  restrain  subsequent  Congresses  from  lightly  changing  it.  For  four 
years  Congress  in  silence  permitted  Mr.  McKinley  and  yourself,  as  Com- 
manders-in-Chief of  the  Army,  to  adopt  and  carry  out  a  policy  in  the 
Philippines,  and  then  expressly  ratified  everything  which  you  had  done, 
and  confirmed  and  made  part  of  the  statute  certain  instructions  which 
Mr.  McKinley  issued  for  the  guidance  of  the  Philippine  Commission  in 
making  civil  government  in  the  Islands.  Not  only  this,  but  Congress 
closely  followed,  in  the  so-called  organic  act,  your  recommendations  as 
■  to  provisions  for  a  future  change  in  the  Philippine  Government.  The 
national  policy  may,  therefore,  be  found  in  the  course  pursued  and  de- 
clarations made  by  the  Chief  Executives  in  Congressional  messages  and 
other   state   papers    which   have   met    the    approval    of    Congress. 

"Shortly  stated,  the  national  policy  is  to  govern  the  Philippine 
Islands  for  the  benefit  and  welfare  and  uplifting  of  the  people  of  the 
Islands  and  gradually  to  extend  to  them,  as  they  shall  show  themselves 
fit  to  exercise  it,  a  greater  and  greater  measure  of  popular  self-govern- 
ment. One  of  the  corollaries  to  this  proposition  is  that  the  United 
States  in  its  government  of  the  Islands  will  use  every  effort  to  increase 
the  capacity  of  the  Filipinos  to  exercise  political  power,  both  by  general 
education  of  the  densely  ignorant  masses  and  by  actual  practice,  in 
partial  self-government,  of  those  whose  political  capacity  is  such  that ' 
practice  can  benefit  it  without  great  injury  to  the  efficiency  of  govern- 
ment. What  should  be  emphasized  in  the  statement  of  our  national  policy 
is  that  we  wish  to  prepare  the  Filipinos  for  popular  self-government.  This 
is  plain  from  Mr.  McKinley's  letter  of  instructions  and  all  of  his  utter- 
ances. It  was  not  at  all  within  his  purpose  or  that  of  the  Congre  s 
which  made  his  letter  part  of  the  law  of  the  land  that  we  were  merely 
to  await  the  organization  of  a  Philippine  oligarchy  or  aristocracy  com- 
petent to  administer  government  and  then  turn  the  Islands  over  to  it. 
On  the  contrary,  it  is  plain,  from  all  of  Mr.  McKinley's  utterances  and 
your  own,  in  interpretation  of  our  national  purpose,  that  we  are  the 
trustees  and  guardians  of  the  whole  Filipino  people,  and  peculiarly  of  the 
ignorant  masses,  and  that  our  trust  is  not  discharged  until  those  masses 
are  given  education  sufficient  to  know  their  civil  rights  and  maintain 
them  against  a  more  powerful  class  and  safely  to  exercise  the  political 
franchise.  This  is  important,  in  view  of  the  claim,  to  which  I  shall 
hereafter  refer,  made  by  certain  Filipino  advocates  of  immediate  inde- 
pendence under  the  auspices  of  the  Boston  anti-imperiali -ts,  that  a  satis- 
factory independent  Philippine  government  could  be  established  under  a 
governing  class  of  10  per  cent  and  a  serving  and  obedient  class  of  90 
per  cent. 

"Another  logical  deduction  from  the  main  proposition  is  that  when 
the  Filipino  people  as  a  whole  show  themselves  reasonably  fit  to  conduct 
a  popular  self-government  maintaining  law  and  order  and  offering  equal 
protection  of  the  laws  and  civil  rights  to  rich  and  poor,  and  desire  com- 
plete independence  of  the  United  States,  they  shall  be  given  it.  Thb 
standard  set,  of  course,  is  not  that  of  perfection  or  such  a  governmental 
capacity  as  that  of  an  Anglo-Saxon  people,  but  it  certainly  ought  to  be 
one  of  such  popular  political  capacity  that  complete  independence  in 
its  exercise  will  result  in  progress  rather  than  retrogression  to  chaos  or 
tyranny.  It  should  be  noted,  too,  that  the  tribunal  to  decide  whether 
the  proper  political  capacity  exists  to  justify  independence  is  Congre-s 
and  not  the  Philippine  electorate..  Aspiration  for  independence  may  well 
be  one  of  the  elements  in  the  makeup  of  a  people  to  show  their  capacity 
for  it,  but  there  are  other  qualifications  quite  as  indispensable.  The 
judgment  of  a  people  as  to  their  own  political  capacity  is  an  unerring 
guide. 

"The  national  Philippine  policy  contemplates  a  gradual  extension 
of  popular  control,  i.  e.,  by  steps.  This  was  the  plan  indicated  in  Mr. 
McKinley's  instructions.  This  was  the  method  indicated  in  your  recom- 
mendation that  a  popular  assembly  be  made  part  of  the  legislature.  This 
was  evidently  the  view  of  Congress  in  adopting  your  recommendation, 
for  the  title  of  the  act  is  'For  the  temporary  government  of  the  Philip- 
pine Islands'  and  is  significant  of  a  purpo-e  or  policy  that  the  govern- 
ment then  being  established  was  not  in  permanent  form,  but  that  changes 
in  it  from  time  to  time  would  be  necessary." 

General    Review. 

No  better  review  of  the  g-overnmental  policy  adhered  to  in 
the  Philippines  and  the  splendid  results  achieved  under  it  could 
be  found  than  this  recent  interesting-  special  report  of  Hon. 
William  H.  Tatt,  Secretary  of  War,  made  to  I'residcnt  Koosevelt 
after  the  former's  return  from  his  last  visit  to  Manila,  where  in 
October  last  he  personally  as  the  representative  of  the  Presi- 
dent of  the  United  States  opened  the  General  Assembly  of  the 
Philippine  Islands.  To  attempt  either  to  dissect  or  to  condense 
or  in  any  way  to  minimize  that  report  would  be  imjust  both  to  its 
author  and  to  the  important  subjects  with  which   it  deals.     It- 


416         N0N-€ft)NTIGU0V8  TER'Y—THE  PHILIPPINES. 

self  full  and  complete  in  its  satisfying  explanations,  that  report 
need  in  this  connection  only  be  referred  to  in  a  general  way, 
iiuisniueh  as  it  is  available  to  all  persons  who  may  be  interested 
in  the  Philippine  question.  Copies  can  be  obtained  by  appli- 
cation to  the  War  Department. 

In  this  immediate  connection,  however,  reference  must  b^ 
made  undoubtedly  to  at  least  one  feature  of  that  report  which 
concerns  the  crowning  act  of  the  United  States  Government's 
generous  and  wise  policy  of  help  to  the  Filipiru)  people. 

It  will  be  remembered  that  in  the  very  beginning  when  the 
military  government  was  established,  care  was  taken  to  dualize 
that  government  by  injecting  into  it  the  anomalous  feature  of 
civic  authority,  which  in  time  was  made  to  grow  as  the  Filipino 
people  seemed  less  to  demand  the  rigors  of  military  control. 
As  the  people  became  obedient  to  the  laws  of  the  land 
and  showed  an  inclination  to  avail  themselves  of  the  splendid, 
opportunities  of  peaceful  help  offered  by  the  United  States  Gov- 
ernment, the  powers  of  the  military  were  lessened  and  those  of 
the  civic  government  were  enlarged.  Finally,  as  we  have  seen 
before  in  the  course  of  this  cursory  account  of  Philippine 
affairs,  in  the  quickest  possible  time  provision  was  made  fc»r 
municipal  and  provincial  government  by  the  Filipinos  them- 
selves, and  meanwhile  some  of  the  more  eminent  Filipinos  were 
placed  upon  the  judiciary  and  others  made  a  part  of  the  Philip- 
pine Legislature.  In  other  words,  their  own  selected  repre- 
sentatives were  placed  in  control  of  the  government  of  their 
towns  and  provinces,  their  own  people  were  selected  to  enforce 
the  police  authority  of  the  Islands,  their  o\;^n  comrades  were 
placed  upon  the  court  benches,  and  their  best-known  and  most 
distinguished  representatives  were  made  members  of  the  highest 
legislative  tribunal,  and  latterly  a  Congressional  delegation  has 
been  provided  for  at  Washington — all  this  in  fulfillment  of  the 
pledge  given  in  the  beginning  by  President  IMcKinley  and  stead- 
fastly and  faithfully  adhered  to  by  President  Eoosevelt,  his 
Secretary  of  War,  and  their  duly  authorized  agents  in  control. 

But  there  is  one  thing  more  even  than  all  this  which  the 
Government  of  the  United  States  could  do  and  which  it  had 
promised  in  the  beginning  that  it  would  do,  namely,  the  estab- 
lishment of  the  General  Assembly  of  representative  Filipinos 
to  be  selected  by  the  Filipino  people  themselves  whenever,  in 
the  language  of  the  enacting  law,  "the  existing  insurrections  in 
the  Philippine  Islands  shall  have  ceased  and  a  condition  of  gen- 
eral an(^  complete  peace  shall  have  been  established  therein  and 
the  fact  shall  have  been  certified  to  the  President  by  the  Philip- 
pine Commission." 

To  execute  this  crowning  act  of  good  faith  it  was  provided 
that  when  the  above-named  condition  of  "general  and  complete 
peace."  was  attained  the  President  upon  being  satisfied  thereof 
should  order  a  census  of  the  Philippine  Islands  to  be  taken  by 
the  Philippine  Commission,  and  that  two  years  after  the  com- 
pletion and  publication  of  the  census,  in  case  such  condition  of 
general  and  complete  peace  with  recognition  of  the  authority  of 
the  United  States  had  meanwhile  continued  in  the  said  Isiands 
not  inhabited  by  Moros  and  other  non-Christian  tribes,  the  Presi- 
dent upon  being  satisfied  thereof  was  required  to  direct  the 
Philippine  Commission  to  call  a  general  election  for  the  choice 
of  delegates  to  the  popular  Assembly  of  the  people  of  said  terri- 
tory in  the  Philippine  Islands,  which  should  be  known  as  the 
Philippine  Assembly.  It  was  further  provided  that  after  said 
Assembly  was  convened  and  organized  all  the  legislative  powers 
previously  conferred  on  the  Philippine  Commission  in  all  that 
part  of  said  Islands  not  inhabited  by  Moros  or  other  non- 
Christian  tribes  should  be  vested  in  a  Legislature  consisting 
of  two  Houses,  the  Philippine  Commission  and  the  Philippine 
Assembly.  Said  Assembly  it  was  enacted  should  consist  of  not 
less  than  fifty  nor  more  than  one  hundred  members,  to  be  ap- 
portioned by  the  said  Philippine  Commission  among  the  prov- 
inces as  nearly  as  practicable  according  to  the  population,  in- 
suring to  each  province  at  least  one   member. 

On  September  11,  1902,  the  Philippine  Commission  certified 
to  the  President  that  the  insurrection  in  the  Philippine  Islands 
had  ceased  and  a  condition  of  general  and  complete  peace  ha(i 


NON-CONTIGUOUS  TER'Y—THE  PHILIPPINES.         417 

been  established  there ;  and  a  fortnight  thereafter  the  President 
ordered  that  the  census  of  the  Philippine  Islands  be  taken.  Ac- 
cording-ly  the  census  was  taken  at  a  cost  of  nearly  seven  millions 
of  dollars,  and  it  was  the  first  census  which  had  ever  been  taken 
of  the  Philippine  Islands  since  the  American  occupation. 

The  rest  of  this  story  of  •fulfillment  of  good  faith  on  the  part 
of  the  United  States  relates  to  facts  too  recent  to  require  much 
review  in  this  connection.  As  is  well  known,  the  necessary  ac- 
tion was  taken  by  the  President  of  the  Philippine  government 
to  insure  an  election  of  members  of  the  Philippine  Assembly. 
And  on  the  day  set  for  the  meeting  of  the  Assembly,  Secretary 
Taft,  to  whom  more  than  to  any  other  man  connected 
with  Philippine  affairs  was  due  the  steady  growth  and  develop- 
ment of  the  Filipino  people,  traveled  from  Washington  to 
Manila  to  be  present  at  and  himself  open  the  first  session  of  the 
first   General   Assembly   of   the    Philippine   government. 

The  establishment  of  this  legislative  Assembly  for  the  Fili- 
pino people  was  practically  the  climax  of  all  that  had  been 
done  looking  to  their  enfranchisement,  by  allowing  them  to 
exercise  for  the  first  time  in  their  lives  the  right  to  vote  for 
their  municipal,  provincial,  and  legislative  representatives  in 
governmental  affairs.  This  legislative  Assembly  was  indeed  the 
very  epitome  of  generous  concessions  to  the  Filipino  peoj)le ; 
and  as  will  be  seen  by  an  examination  of  Secretary  Taft's  spe- 
cial report  above  referred  to,  the  criticism  called  forth  by  this 
generous  treatment  of  the  Filipino  people  had  spurred  him  on 
to  a  defense  of  the  system  and  the  denial  that  the  United 
States  had  gone  too  fast  in  the  fulfillment  of  its  promises  to 
grant  self-government  to  the  Filipino  people.  The  Secretary's 
observations  on  this  point  are  as  follows : 

"In  recommending  to  Congress  the  provision  for  a  national  assembly 
contained  in  the  organic  act  of  the  Philippine  government,  Secretary  Root 
and  the  Commission  were  moved  by  the  hope  and  belief  that  the  promise 
of  the  act,  conditioned,  as  its  fulfillment  was,  on  the  existence  of  peace 
in  the  Islands,  would  stimulate  activity  on  the  part  of  all  Filipinos  having 
political  ambition  to  bring'  about  tranquility.  In  this  respect,  as  already 
pointed  out,  the  result  has  abundantly  vindicated  their  judgment.  They 
were  further  moved  by  the  conviction  that  this  step  toward  greater  pop- 
ular self-government  would  strengthen  the  hands^  of  the  Government  by 
securing  from  the  people  readier  acquiescence  in  and  greater  obedience 
to  measures  which  their  representatives  had  joined  in  passing  than  when 
they  were  the  decrees  of  an  alien  government.  They  further  believed  that 
by  means  of  the  assembly  much  more  exact  and  practical  knowledge  of 
the  country  would  be  brought  to  the  law-making  power  than  in  any  other 
way.  Finally,  tkey  thoiight  that  the  inauguration  of  such  an  assembly 
would  be  a  most  important  step  in  the  main  plan  or  policy  of  educating 
Filipinos  in  the  science  and  practice  of  popular  representative  govern- 
ment. They  were  aware  of  the  possible  danger  that  this  was  a  step 
too  far  in  advance.  '  They  did  not  deny  that  on  the  part  of  a  number 
elected  there  would  be  a  strong  inclination  to  obstruct  the  smooth  working 
of  existing  government  on  lines  of  political  and  material  progress.  They 
anticipated  the  probability  that  in  the  first  assembly  elected  the  majority 
would  be  in  favor  of  immediate  independence ;  but  in  spite  of  all  this 
they  were  clear  in  their  forecast  that  the  responsibilities  of  power  would 
have  both  a  sobering  and  educational  effect  that  would  lead  ultimately  to 
conservatism  of  action  and  to  strengthening  the  existing  government." 

In  the  beginning  no  man  was  kept  busier  than  Mr.  Taft 
in  discussing  and  explaining  the  various  necessary  actions  taken 
by  the  United  States  for  the  gradual  improvement  of  the  Fili- 
pino people  ;  and  now  when  the  policy  which  he  advocated  and, 
under  the  instructions  of  the  President,  executed,  has  developed 
into  a  magnificent  success,  fulfilling  all  the  pledges  that  had 
been  in  the  beginning  made  concerning  it,  new  criticisms  arise — 
new  complaints  that  the  government  has  gone  too  far — that  the 
United  States  had  done  too  much  for  the  people  of  the  Islands  ; 
and  again  Mr.  Taft,  from  his  intimate  knowledge  of  and  prac- 
tical participation  in  Philippine  affairs,  is  required  to  make 
explanations  to  show  that  the  government  has  really  not  gone 
too  fast  or  already  yielded  too  much  in  the  fulfillrnent  of  its 
promises. 

Improved   Conditions  in   tlie   Pliilippines. 

Much  more  might  be  said  on  this  subject,  b\it  in  view  of 
the  well-known  facts  regarding  the  improved  moral,  business, 
and  sanitary  conditions  now  prevailing  in  the  Philippine  Islands 
another  brief  extract  might  here  be  quoted  from  the  above 
Referred   to   recent   report   of    Secretarj"^   Taft   to   the    President 


4J8         NON-CONTIGUOUS  TEWY~THE  PRIIAPPINES. 

on   the    present   conditions    in    the    Philippine    islands,    wherein 
lie   said  : 

"Peace  prevails  throughout  the  Islands  today  in  a  greater  degree 
than  ever  in  the  history  of  the  Islands  either  under  Spanish  or  American 
rule,  and  agriculture  is  nowhere  now  infpeded  by  the  fear  on  the  part 
of  the  farmer  of  the  incursion  of  predatory  bands.  Under  the  policy  already 
stated,  inaugurated  by  the  instructions  .of  President  McKinley  to  Secre- 
tary Root,  in  reference  to  the  establishment  of  a  temporary  government 
in  the  Philippines,  a  community  consisting  of  7,000,000  people,  inhabiting 
300  different  islands,  many  of  whom  were  in  open  rebellion  against  the 
Government  of  the-  United  States  for  four  years,  with  all  the  disturbances 
following  from  robber  and  predatory  bands  which  broke  out  from  time 
to  time,  due  to  local  causes,  has  been  brought  to  a  state  of  profound 
pf!ioo  and  tranquility  in-  which  the  people  as  a  whole  are  loyally  sup- 
porting the  government  in  the  maintenance  of  order.  This  is  the  first  and 
possibly  the  most  important  accomplishment  of  the  United  States  in  the 
Philippines." 

Ill  fonehision  on  this  point  it  mig-ht  be  added  that  six  thou- 
sand Filipino  teachers  who  are  now  teaching  Knglish  have 
received  their  English  education  from  our  normal  schools  or 
our  American  teachers.  Their  number  is  growing,  and  as  de- 
clared by  Secretary  Taft  they  represent  and  are  the  most  val- 
uable educational  asset  we  have  acquired  in  working  out  our 
school  system  in  the  Islands.  The  Filipino  insular  teachers 
are  drawn  from  the  graduates  of  normal  schools  and  also  from 
the  students  sent  by  the  government  and  at  the  expense  ot 
t  lie  Government  to  the  United  States  to  be  educated  here. 
I''orty-six  of  these  students  have  recently  returned  from  the 
Tnited  States  and  have  been  appointed  as  insular  teachers  at 
salaries  ranging  from  eight  hundred  and  forty  to  nine  hun- 
dred and  si.\ty  pesos  per  annum,  which  of  course  is  much 
less  than  the  salaries  paid  to  American  teachers,  who  get  about 
twelve  hundi-ed   dollars  per  annum. 

The  total  school  enrollment  for  the  past  year,  inclusive  of 
the  ISforo  province,  was  479,978.  This,  however,  was  in  thi; 
month  of  March,  when  the  enrollment  reached  its  highest  point; 
but  the  average  enrollment  divided  by  months  was  346,245,  of 
which  sixty-two  per  cent  were  boys  and  thirty-eight  per  cent 
girls.  The  average  daily  attendance  was  269,000,  or  a  percent- 
age of  about  eighty-five — the  highest  percentage  of  attendance, 
however,  being  ninety-four   in  the  City  of  Manila. 

In  this  connection  it  might  be  well  to  quote  in  full  a  few 
paragrai)hs  from  the  last  report  of  Secretary  Taft  on  the  Thilip- 
])ines,  in  which  he  discus.ses  "education  in  schools"  as  fol- 
lows :  .  ^ 

Scliool    E^dneation. 

"Reference  has  already  been  made  to  the  fact  of  the  very  great  ig- 
norance and  illiteracy  that  prevail  among  the  Filipino  people.  It  is  not 
too  much  to  say  that  knowledge  of  Spanish  is  a  fairly  good  indication 
whether  an  individual  can  be  said  to  be  educated.  Statistics  show  that 
7  per  cent  of  the  people  of  the  Islands  speak  Spanish  ;  all  the  others 
speak  in  the  varying  dialects,  which  among  the  civilized  people  number 
some  16.  The  Philippine  people  should  be  educated  sufficiently  to  have  a 
common  medium  of  communication,  and  every  man,  woman,  and  child  should 
have  the  benefit  of  the  primary  education  in  that  common  medium.  Read- 
ing, writing,  and  arithmetic  are  necessary  to  enable  the  rural  laborer  and 
the  small  hemp,  cocoanut,  or  tobacco  farmer  to  make  contracts  for  the  sale 
of  his  products  and  to  know  what  price  he  .should  receive  for  that  which 
he  has  to  sell.  With  this  knowledge,  too,  he  will  soon  be  able  to  know 
his  own  rights  and  to  resist  the  absolute  control  which  is  now  frequently 
exercised  over  him  by  the  local  cacique. 

"The  necessity  for  a  common  school  system  was  emphasized  in  the 
instructions  of  President  McKinley  to  Secretary  Root,  and  those  respon- 
sible for  the  government  of  the  Islands  have  been  earnest  and  active  in 
seeking  to  establish  one.  The  language  selected  for  the  schools  is  English. 
It  is  selected  because  it  is  the  language  of  business  in  the  Orient,  because 
it  is  the  language  of  free  institutions,  and  because  it  is  the  language 
which  the  Filipino  children  who  do  not  know  Spanish  are  able  more  easily 
to  learn  than  they  are  to  learn  Spanish,  and  it  is  the  language  of  the 
present  .sovereign  of  the  Islands.  The  education  in  Engii'-h  b?gan  with 
the  soldiers  of  the  American  Army,  one  of  whom  was  detail-^d  from  each 
company  to  teach  schools  in  the  villages  which  had  become  peaceful.  When 
the  Commission  assumed  authority  it  sent  to  the  United  States  for  1,(100 
American  teachers,  and  after  the  arrival  of  these  pioneers  in  the  I-^land!?, 
a  .system  of  primary  schools  was  inaugurated  together  with  normal  schcelr,. 

"Public  educational  work  in  the  Islands  is  performed  under  the  Burraj 
of  Education,  with   the  central  office  located  in  Manila,   having  37  division  •, 
each   in    charge   of  a  division   superintendent,    embracing   in   all   379    schonl 
districts    each    in    charge    of    a    supervising    teacher.      The    total    number    <"'■ 
schools    in    operation   during    the   past   year   was:      Prim-ry    schools     3  4' 
intermediate  schools,  162;   arts  and  trades  schools,  32;   agricultural  schn<- 
5;    domestic   .science    schools,    17,    and    provincial    high    schools.    ?S,    ma': 
a  total  of  3,687   and  ^n  increase  from  the  previous  year  as    follow.'-  : 


NON-COXTIfirOUF!  TEWY—TJJE  PlI/LIPPiyES.  419 

primary  schools,  70  -  intermediate  sctiools,  15  arts  and  trades  scliools,  3 
agricultural  schools,  and  9  domestic  science  schools.  There  are  engaged 
in  the  teaching  of  these  schools  at  present  717  permanent  American  teachers 
«nd  109  temporary  appointees  and  all  of  these  are  paid  out  of  the  central 
treasury.  In  addition  to  these  there  are  what  are  known  as  Filipino 
insular  teachers,  numbering  455,  who  are  paid  out  of  the  central  treasury. 
In  addition  to  these  there  are  5, 656  municipal  Filipino  teachers,  all  of 
whom  speak  and  teach  English  and  who  are  paid  out  of  the  treasuries  of 
the  municipalities." 

lb]<iii(*utioiial    Fund    \eeded.  ' 

Secretary  Taft,  in  aiiorner  part  of  his  excellent  report,  states 
that  the  Philippine  (lovernment  is  without  funds  enough  to 
educate  in  the  primary  and  industrial  schools  all  the  present 
generation  of  .school  age,  and  unless  some  other  source  of 
funds  than  the  g-overnmental  revenue  is  found  it  will  take  longer 
than  a  generation  to  complete  the  primary  and  industrial  edu- 
cation of  the  common  people  of  these  Islands.  "Until  that 
is  done,"  he  wisely  concludes,  "we  ought  not  to  lift  our  guiding 
hand  from  the  helm  of  the  ship  of  state  of  the  Philij)pine  Is- 
lands." 

He  lays  particular  stress  upon  the  importance  of  this  edu- 
cation, however,  as  the  only  means  of  rescuing  the  Filipino 
people  from  their  present  unfitness  for  popiilar  self-government. 
He  believes  in  their  capacity  for  future  development  by  popu- 
lar education,  general  and  political,  which  he  asserts  will  en- 
able them  to  become  a  self-governing  people.  Commenting  upon 
the  generally  admitted  fact  that  eighty  per  cent  of  the  Fili- 
pino people  are  to-day  densely  ignorant,  he  traces  the  cause 
of  that  ignorance  to  the  peculiar  conditions  under  which  they 
have  lived  for  generations  in  the  past,  and  says : 

"They  are  in  a  state  of  Christian  tutelage.  They  are  childlike  and 
simple,  with  no  language  but  a  local  Malay  dialect  spoken  in  a  few  prov- 
inces ;  they  are  separate  from  the  world's  progress.  The  whole  tendency 
under  the  Spaniards  was  to  keep  them  ignorant  and  innocent.  The  Spanish 
public  school  system  was  chiefly  on  paper.  They  were  for  a  long  time 
subject  completely  to  the  control  of  the  Spanish  friar  who  was  parish 
priest  and  who  generally  did  not  encourage  the  learning  of  Spanish  or 
great  acquaintance  with  the  world  at  large.  The  world  owes  to  the  Span- 
ish friar  the  Christianization  of  the  Filipino  race.  It  is  the  only  Malay 
or  oriental  race  that  is  Christian.  The  friars  beat  back  the  wave  of 
Mohammedanism  and  spread  their  religion  through  all  the  Islands.  They 
taught  the  people  the  arts  of  agriculture  but  they  believed  it  best  to  keep 
them    in   a   state  of   innocent   ignorance." 

In  order  to  lose  no  opportunity  to  extend  the  system  of 
general  education  of  the  people,  every  move  seems  to  have 
been  calculated  for  the  benefit  of  the  people.  For  example, 
when  the  Civil  Service  was  established  necessarilj^,  in  the  be- 
ginning, STibordinate  officers  and  clerks  had  to  be  chosen  almost 
exclusively  from  Americans  and  competent  foreigners,  who  g-rad- 
ually,  however,  gave  way  to  the  appointment  of  natives.  On 
this  point  Secretary  Taft  in  his  recent  report  to  the  President 
^■a ys  : 

"The  organization  and  maintenance  of  the  central  government  were  di- 
rt (tod  not  only  with  a  view  to  its  efficiency  but  also  to  its  educational 
eliect  upon  the  Philippine  people.  This  is  shown  in  the  appointment  of 
three  Filipinos  to  constipate  three-eighths  of  the  insular  legislature  as  well 
as  by  the  opportunity  offered  to  Filipinos  to  enter  the  civil  service  under 
a  civil  service  law  embodying  the  merit  system.  In  the  beginning  it 
was  difficult  to  work  Filipinos  into  the  bureaus  of  the  central  government, 
because  few  of  theti  knew  English  and  fewer  understood  the  American 
business  and  official  methods,  which,  of  course,  obtained  in  the  new  govern- 
ment. As  the  years  v/ent  on.  however,  under  great  pressure  from  the 
Commission,  the  proportion  of  Filipinos  in  the  service  was  increased  from 
year  to  year.  Many  natives  had  learned  English  and  had  shown  an  in- 
creasing aptitude  for  the  work  of  the  civil  service.  ,  Still  in  many  of 
the  bureaus  the  progress  of  Filipinos  to  the  most  responsible  places  is 
necessarily  slow  and  the  proportion  of  them  to  be  found  in  the  positions 
of  high  salaries  is  not  as  large  as  it  ought  to  be  in  the  near  future.  The 
winuowing-out  process,  however,  is  steadily  reducing  the  American  em- 
ployees in  the  civil  service.  It  has  become  a  body  of  highly  deserving, 
faithful  public  servant"^,  whom,  it  is  hoped,  the  Philippine  government  will 
iiuike   permanent  provision    for." 

Some     Practieal     liui>ro>  fiueiits     Made    in    the    PIiilii»itiiies. 

One  thing,  however,  is  sure.  The  honest  and  earnest  pur- 
pose of  the  United  States  in  the  beginning  of  our  dominion 
of  the  Philippine  Islands  as  announced  and  set  forth  in  every 
wni-d  uttered  oi-  act  done  bv  the  lamented  ^T'dCinley  and  his 
siic.essor,  President  Poosevelt,  was  the  estal)lishment  of  and 
'     Miful  adherence  to  a  policy  of  gradual  enlightenment  and  edv- 


420         NON-CONTIGUOUS  TEWJ—TEE  PHILIPPINES. 

cation  of  the  Filipinos,  with  a  view  to  their  gradual  but  steady 
tlevelopinent  into  a  self-governing  people.  Under  that  policy, 
which  has  never  wavered,  the  United  States  made  quick  ar- 
rangements for  the  participation  of  the  Filipinos  themselves 
in  civil  government,  giving  them  the  right  to  participate  in 
the  enactment  of  laws  as  well  as  their  enforcement  through 
the  courts,  and  by  the  aid  of  local  constabulary  and  police 
force  composed  of  duly  selected  Filipinos.  More  than  thi>., 
Ifood  wagon  roads  were  constructed  between  provinces  and  sec- 
tions of  the  Islands  which  previously  had  been  almost  un- 
traversable,  and  railroads,  which  had  hardly  been  known  there 
before,  were,  together  with  a  system  of  telegraph  lines,  post- 
otfices,  coastwise  steamboat  transportation  facilities,  and  va- 
rious agricultural  improvements,  provided  for  and  inaugurated 
in  all  directions.  In  addition  to  these  industrial  developments, 
watchful  attention  was  directed  to  the  methods  and  conditions 
of  business  in  the  Islands,  and  at  the  proper  time  provision 
was  made  for  the  establishment  of  banks  for  the  safe  deposit 
of  money — a  business  blessing  which  the  Filipinos  had  ue\('i- 
known   of  before. 

The  Filipino  people  were  also  given  a  non-fluctuating  coin 
and  paper  currency  and,  as  set  forth  in  detail  in  a  preceding 
paragraph,  a  well-defined  system  of  popular  education  was  in- 
augurated, due  provision  being  made  for  the  education  and  train- 
ing of  Filipino  students  to  act  as  teachers  In  the  Filipino 
schools. 

Among  the  most  practical  advantages  secured  for  the  Islands 
is  the  increase  in  postal  facilities,  which  enables  the  people 
to  communicate  quickly  and  promptly  with  the  remote  parts 
of  the  Islands.  In  1900  there  were  but  nineteen  post-offices, 
whereas  according  to  the  reports  for  the  last  year  there  were 
five  hundred  and  five  post-offices,  and  the  postal  employees  had 
increased  from  one  hundred  and  thirteen  to  one  thousand  and 
ninety-one,  while  the  receipts  from  the  sale  of  stamps  had 
jumped  from  288,187.36  pesos  to  607,233.47  pesos.  To  accomplish 
this  gratifying  result  a  system  was  devised  in  which  mail  sub- 
sidies were  granted  to  commercial  lines  on  condition  that 
good  service  at  reasonable  rates  of  transportation  should  be 
maintained  upon  safe  and  commodious  steamers.  The  Govern- 
ment vessels  which  had  ])reviously  been  purchased  in  order  to 
promote  intercourse  between  the  Islands  are  now  used  on  out- 
lying routes  only  where  commercial  lines  will  not  take  up 
the  traffic,  but  of  course  are  used  in  connection  with  the  com- 
mercial lines;  and  in  this  way  continuous  mail  routes  are 
being  extended  and  the  marine  commerce  communication  be- 
tween the  Islands  is  made  to  increase  and  to  prosper.  By  the 
consent  of  the  Secretary  of  War,  and  on  the  recommendation 
of  the  Commanding  General  of  the  Philippines  and  the  agree- 
ment of  the  civil  government  there,  all  the  telegraph  lines 
in  the  Islands  have  now  been  transferred  to  the  Post-office  De- 
partment of  the  Civil  Government  of  the  Philippines.  These 
telegraph  lines  reach  into  the  remotest  provinces  as  well  as  to 
all  of  the  principal  islands  of  the  lai-ge  Archipelago. 

A   JVotuble  Business   Benefit. 

One  of  the  most  notable  benefits  conferred  upon  the  Fili- 
pino people  is  the  postal  savings  bank,  which  has  proved  to 
be  a  most  advantageous  institution.  At  first  this  bank  was 
patronized  by  more  Americans  than  Filipinos,  but  the  Fili- 
pinos are  now  showing  their  appreciation  of  it  by  their  recently 
reported  deposits,  amounting  to  over  a  million  pesos.  This 
bank,  which  was  established  by  the  Philippine  Commission  in 
May,  1906,  allows  any  person  over  six  years  of  age  residing 
in  the  Philippine  Islands  and  not  under  legal  disability  to 
open  an  account.  Before  its  establishment  there  was  abso- 
lutely no  secure  way  for  the  keeping  of  money  by  the  people, 
many  of  whom  had  been  in  the  habit  of  purchasing  postal 
notes  to  be  retained  in  their  possession  indefinitely.  Thus  the 
Filipinos  had  little  opportunity  to  make  investments  of  their 
savings,  or  to  make  them  secure  in  any  manner,  and  least  of 
all  in  a  manner  to  yield  them  any  income.     Tne  postal  savings 


NON-CONTICWOU;^  TEWY—THE  PHILIPPINES.  421 

banks  allow  the  people  to  deposit  small  sums  of  money  on 
■svhicli  tliey  receive  interest  at  the  rate  of  two  and  one-half 
per  cent  per  annum,  to  be  increased  later  if  the  bank  shows 
that  it  can  be  successfully  done  without  loss  to  the  Govern- 
ment. 

Another  very  essential  institution  needed  by  the  people,  and 
whicli,  if  the  plans  now  making-  are  executed,  will  soon  be 
provided  for,  is  the  proposed  Agricultural  Bank,  authorized 
by  the  Act  of  Congress  passed  last  year.  As  stated  recently 
by  Secretary  Taft  in  his  special  report  on  the  Philippines  to 
the  President  : 

"One  of  the  crying  needs  of  the  Philippines  is  capital,  and  this 
whether  it  be  for  the  development  of  railroads,  wagon  roads,  manufactures, 
or  in  the  promotion  of  agriculture.  The  usurious  interest  which  has  to 
be  paid  by  the  farmers  is  so  high  as  to  leave  very  little  for  his  profit 
and  maintenance  and  ever  since  we  entered  the  islands  the  cry  for  an 
agricultural  bank  which  would  lend  money  for  a  reasonable  interest,  say, 
10  per  cent,  has  been  urged  upon  the  Commission.  Last  year  Congress 
authorized  the  government  to  guarantee  the  interest  of  4  per  cent  on  a 
certain  amount  of  capital  invested  in  such  a  bank,  but  up  to  this  time  no 
one  has  embraced  the  opportunity  thus  offered  to  undertake  the  conduct  and 
operation  of  a  bank,  although  negotiations  are  pending  looking  to  such  a 
result.  It  is  now  proposed  that  the  government  shall  undertake  this  instead 
of  a  private  individual." 

Railroads   and  Dirt  Roads. 

Aside  from  all  the  other  beneficial  improvements  in  the 
T'hilippine  Islands,  however,  one  of  the  most  valued,  from  a 
ccnmiercial  as  well  as  a  moral  point  of  view,  is  the  development 
of  the  railroad  sj  stem  there.  When  the  United  States  captured 
the  Philippine  Islands  in  May,  1898,  there  were  in  operation 
therein  only  one  hundred  and  twenty  miles  of  railroad,  ex- 
tending- from  Manila  northward  to  Dagupan.  There  was  later 
constructed  on  the  authority  of  the  Philippine  Commission 
enough  additional  trackage  to  bring  the  total  mileage  up  to  two 
hundred  miles,  all  being  in  the  Island  of  Luzon.  Under  the  en- 
abling acts  of  Congress  of  July  1,  1902,  and  February  6,  1905,  fur- 
ther concessionary  grants  w^ere  made  by  the  Philippine  Ct)mmis- 
sion  for  four  hundred  and  twenty-eight  additional  miles  of  rail- 
road in  Luzon,  and  two  hundred  and  ninety-five  miles  in  the  Is- 
lands of  Panay,  Cebu,  and  Negros.  Engineers  representing  the 
concessionaries  immediately  left  the  United  States  to  make  the 
preliminary  surveys  and  prepare  specifications  and  maps  to  be 
submitted  to  the  Governor-General  for  approval  of  final  rout'^s. 
These  final  routes  are  to  be  substantially  in  accordance  with 
those  selected  by  the  Government,  which  have  been  highlv  com- 
mended by  the  engineers  both  of  the  Government  and  the  con- 
cessionaries, one  of  them  stating  that  the  same  mileage  could 
not  have  been  better  selected  to  produce  revenue  or  to  serve 
the  Government's  ends  of  reaching  the  large  interior  towns 
ind  rich  uncultivated  lands  and  of  furnishing  an  outlet  for 
the  present  and  prospective  produce  of  the  Islands.  All  of 
the  lines  will  run  through  rich  country,  capable  of  producing 
large  quantities  of  hemp,  rice,  sugar,  tobacco,  cabinet  woods, 
and  minerals. 

The  extension  of  railroads  in  the  Philippines  will  correct 
the  very  deplorable  conditions  which  have  heretofore  prevailed 
on  these  Islands.  -  Until  1892  there  was  no  commercial  rail- 
road whatever  oA  the  Islands,  but  at  that  time  under  a  grant 
made  in  1887,  the  Manila  and  Dagupan  Eailroad  began  operations 
over  a  line  one  hundred  and  tw<Mitv  miles  long,  in  1898  when 
we  took  possession  of  the  Philippines,  this  was  the  only  rail- 
road in  the  Archipelago,  inhabited  by  nearly  eight  millions  of 
people,  with  an  area  of  115.000  square  miles.  Some  idea  of 
the  backwardness  of  this  people  might  perhaps  be  better  given 
in  a  comparative  way.  For  example,  in  Algeria,  with  a  population 
not  exceeding' five  million  and  an  ai-ea  of  184,000  square  miles, 
there  are  about  three  thousand  miles  of  railway  in  operation; 
in  New  Zealand,  with  a  population  of  eight  million  and  a 
half,  and  an  area  of  104,000  square  miles,  there  are  two  thou- 
sand four  hundred  miles  of  railway  in  operation;  while  in 
Queensland,  with  a  population  of  five  hundred  thousand  and  an 
area  of  664,000  square  miles,  there  are  two  thousand  eight 
hundred  miles  in  operation,  and  in  Tasmania  with  one  hundred 


y0N-C0NTr0V0U8  TER'Y—THE  PniLimXESI. 

and  seventy-two  thousand  inhabitants  and  26,000  square  miles 
there  are  one  hundred  and  twenty  miles  in  operation. 

It  will  thus  be  understood  what  a  laek  of  j)r()g'ress  thei-e 
was  in  the  I'hilippiue  Islands  under  the  Spanish  repfime,  and 
it  was  with  the  view  of  rescuing  the  people  from  the  deplorable 
eontlitions  into  which  this  sort  ol  «^-o\ernment  iiad  |)lace(l  the.iu 
that  the  L-nited  States  uudertoolc  its  munlHeent  poliey  of  de- 
veloping the  Islands  and  uplifting  the  people,  keeping  constantly 
a  \\atehful  eye  for  opportunity  to  help  them  along  toward  good 
government  as  well  as  agricultural  and  industrial  improvement. 
In  some  respects  the  United  States  Government,  as  stated  else- 
where in  these  eomme;its,  seems  to  have  been  able  to  do  more 
for  the  Filipino  people  than  for  the  people  of  the  United 
States,  because  while  County  and  State  and  National  conven- 
tions have  been  for  a  long  time  past  i)roclaiming  the  importance 
of  improving  the  roads  and  public  highways  and  many  men 
have  been  elected  to  office  on  that  platform,  definite;  laws  are 
yet  to  be  passed  on  that  subject.  In  the  Philippine  Islands, 
however,  during  1904  two  hundred  and  fifty-two  miles  of  new 
roads  were  constructed  and  sixteen  hundred  and  sixty-two  miles 
of  bad  old  roads  were  repaired,  while  during  1905  there  were  con- 
structed outt  hundred  and  fifteen  nules  ot  new  roads  and  nine 
hundred  and  ninety-two  miles  of  roads  weve  repaired — these 
improvements  aggregating  a  total  outlay  of  between  three  and 
four  millions  of  dollars.  The  roads  will  be  of  incalculable  bene- 
fit to  the  natives  in  bringing  their  produce  to  market  and  encour- 
aging further  industrial  development  of  the  country  through 
which  they  pass.  Numerous  other  roads  are  also  being  built 
in  the  Islands  for  the  purpose  of  benefit  to  the  agricultui'al 
districts  principally,  though  some  of  them,  it  must  be  admitted, 
were  primarily  to  assist  the  military  in  their  operations  of  safe- 
guarding property  and  preserving  the  peace.  All  of  the  roads, 
liowever,  will  naturally  be  of  permanent  use  in  the  gradual 
industrial  and  commercial  growth  of  the  Archipelago,  as  a 
whole. 

In  July,  1906,  the  Philippine  Commission  passed  an  act 
known  as  the  lload  Law,  which  provides  that  whenever  accepted 
by  the  Provincial  P>oard  and  the  majority  of  the  Assembly 
of  the  Presidents  and  Counsellors  of  the  municipalities  of  any 
province,  five  days'  work  upon  the  highways  by  every  able-bodied 
man  of  the  province  should  be  rendered  every  year,  or  pay- 
ment of  an  equivalent  of  five  days'  wages  in  cash.  It  is  be- 
lieved that  these  Assemblies  will  see  their  way  to  accept  this 
law,  and  should  they  do  so  there  may  eventually  be  established 
throughout  the  Archipelago  what  is  known  as  the  Caminero  sys- 
tem, which  consists  in  dividing  the  roads  into  sections  of  such 
length  as  can  be  cared  for  by  the  continuous  work  of  one  man  ; 
those  wishing  to  work  out  their  tax  may  deposit  road  material 
at  given  depositories  along  the  road  or  give  their  service  to 
new  construction  or  reconstruction  where  the  nature  of  the 
work  is  such  that  gangs  become  necessary.  The  money  re- 
ceived from  those  not  wishing  to  work  is  used  to  support  the 
caminero  or  road  worker.  By  this  system  definite  responsibility 
for  deterioration  of  any  part  of  the  road  can  readily  be  placed. 
and  it  has  the  further  advantage  of  reducing  the  expenses  of 
repairs,  which  in  the  tropics,  where  the  rainfall  is  so  abundant, 
amounts   to   considerable   within   the   year. 

The    Friar    Lands. 

The  "Friar  lands"  problem,  one  of  the  most  fruitful  sources 
of  unrest  in  the  whole  Philippine  situation,  was  finally  disposed 
of  by  purchasing  some  four  hundred  and  ten  thousand  acres 
of  land  at  about  seven  millions  of  dollars.  According  to  Act 
No.  1,120  of  the  Philippine  Commission,  the  lands  thus  pur- 
chased have  been  placed  in  the  control  of  the  Bureau  of  Public 
Lands,  with  directions  to  proceed  as  rapidly  as  possible  to  their 
sub-division  and  sale  to  the  occupants  thereof  upon  ten  years' 
time  and  at  first  cost  to  the  Government.  Though  the  exe- 
cution of  this  duty  will  involve  the  expenditure  of  much  time 
and  labor,  as  well  as  some  practical  difficulties,  still  there  is 
a  general  disposition  on   the  part  of  the  former  tenants  of  the 


NON-CONTIGUOUS  TER'Y—TEE  PHILIPPINEB.         428 

religious  orders,  who  are  the  present  occupants  of  the  land, 
to  accept  the  liberal  terms  ottered  by  the  Government.  The 
Governor-General  of  the  Philippines  in  his  report  on  this  sub- 
ject says  :  "Whether  any  ultimate  loss  will  be  incurred  in  these 
large  transactions  can  only  be  a  matter  of  conjecture;  but  how- 
ever it  may  be,  it  must  be  a  siTbject  of  real  congratulation 
that  what  threatened  to  become  a  cancerous  sore  on  the  bod^' 
politic  has  been  extirpated," 

I'resent    ComlitioitH    as    to    Peace    and    Order. 

All  these  improved  conditions  in  the  Pnili]>pines  have  nat- 
urally tended  to  the  enlightenment  and  elevation  of  the  people, 
whose  heightening  self-pride  and  increasing  interest  in  the  gov- 
ernmental att'airs  have  undoubtedy  exercised  upon  them  a  benef- 
icent influence.  At  any  rate,  peace  now  prevails  in  the  Philip- 
pine islands  to  a  gi'eater  extent  than  ever  before  in  their  history. 
True,  there  have  been  disturbances  in  three  of  the  Filipino  prov- 
inces as  well  as  in  the  Moro  province,  but  none  of  these  had 
for  its  object  the  expulsion  of  the  sovereignty  of  the  United 
States,  which  now  seems  to  be  recognized  by  the  Filipino  people 
as  a  fixed  government  over  the  Archipelago.  In  Cavite,  which 
is  regarded  as  the  "Mother  of  Ladrones,"  as  the  people  them- 
selves call  it.  has  ever  been  the  hotbed  of  Ladronism  or  gang 
robbei-s  in  the  Philippine  Islands;  and  therefore  disturl^ances 
in  that  neighborhood  assume  the  nature  of  brigandage  rather 
than  of  insurrection  against  the  civil  governmcmt.  .The  trouble 
in  Samar  grew  out  of  abuses  in  the  way  of  extortion  prac- 
ticed upon  their  ignoi-ant  countrymen  by  prominent  natives  who 
as  agents  for  large  export  houses  in  Manila  force  them  to 
sell  their  hemp  at  a  nominal  valuation  and  then  themselves 
turn  it  in  to  the  business  houses  in  Manila  at  the  market  prices, 
putting  the  difference  in  their  own  pockets.  Some  unscru- 
pulous outlaws  in  the  country  took  advantage  of  the  excited  con- 
dition of  the  people  caused  by  these  commercial  outrages,  or- 
ganized them  into  bands,  -and  used  them  to  reven<.^e  themselves 
upon  their  oppressors  and  for  purposes  of  reprisal,  which  have 
been  set  forth  in  detailed  reports  from  the  Philippine  Commis- 
sion. 

The  Mount  Dajo  affair  was  a  culminating  incident  of  six 
months  of  peaceful  effort  to  induce  the  band  of  Malay  pirates 
to  desist  from  raids  upon  a  peaceful  community.  These  eft'orts 
were  interpreted  as  cowardice  and  the  outlaws  finally  sent  a 
challenge  to  the  Government  forces  to  come  out  and  fight  them. 
In  the  encounter  that  ensued  the  troops  were  assisted  by  the 
respectable  ^Nforo  element  of  the  Islands  where  the  disturbances 
had   occurred.  , 

The  disturbances  in  the  INLoi'o  provinces  and  on  the  Island 
of  Luzon  were  promptly  overcome,  while  that  on  the  Island  of 
Samar  continued  to  manifest  itself  from  time  to  time.  Samar, 
by  the  way,  was  an  unknown  territory  which  the  Spaniards 
during  their  three  hundred  years  of  occupation  never  attempted 
to  explore? — the  interior  of  the  Island  of  Samar  being  a  mere 
tropical  jungle  and  mountain  fastness,  inhabited  by  semi-bar- 
barou^s  tribes,  the  haven  of  the  criminal  refugees  froiii  surround- 
ing islands,  and  all  in  all  a  nest  of  iniquity  too  bad  even  for 
Spain  to  handle.  The  work  of  the  Americans  there  was  that 
of  pioneers,  and  with  the  iisual  result ;  but  it  is  worthy  of  note 
that  the  law-abiding  inhabitants  of  the  Island  have  organized 
volunteers  to  assist  the  constabulary  in  putting  an  end  to  fur- 
ther disturbances  there,  and  the  cooperation  between  the  civil 
and  the  military  authorities  is  complete,  so  that  little  trouble 
may  be  expected  there  hereafter. 

While  of  course  there  must  be  expected  from  time  to  time 
throughout  the  Archipelago  some  minor  disturbances  as  occur 
even  in  the  most  highly  civilized  communities,  still  it  is  safe 
to  assume  that  there  will  not  be  any  organized  hostile  oper- 
ations on  any  considerable  scale  hereafter.  The  best  assurance 
of  this  assumption  is  the  noticeable  manner  in  vvhich  the  people 
throughout  the  entire  Archi])elago  have  settled  down  to  peace- 
ful occupations,  tending  their  fields  and  plying  their  trades 
with  a  whole-souled  earnestness  never  before  observed.       There 


424         NON'CONTIOUOUS  TEWY—TEE  PHILIPPINES. 

nve  of  course  also  likely  to  arise  times  of  depression  in  business 
;itfairs  and  instances  of  great  disco uragemeni  from  the  failure 
of  crops  in  certain  sections  of  the  Islands — conditions  and  ex- 
periences which  ai-e  not  unusual  in  other  parts  of  the  world 
where  the  best  of  governments  prevail — but  the  reports  re- 
ceived from  the  provincial  governors,  all  of  whom  are  natives, 
indicate  the  generally  increased  prosperity  and  contentment  of 
1  he  people,  with  constantly  increasing  faith  and  kindly  goodwilj 
towards  the  American  government.  Not  long  ago,  March  3, 
1903,  it  will  be  remembered  Congress  appropriated  three  mil- 
lion dollars  in  United  States  currency  for  the  alleviation  of  dis- 
tress throughout  the  Philippine  Archipelago  caused  from  war, 
loss  of  cattle  from  plag\ie,  etc.  This  money  was  placed  at  the 
disposal  of  the  Philippine  Commission  and  by  it  expended 
through  appropriation  acts  of  the  Commission  for  the  relief 
of  the  communities  of  the  Islands  that  were  suffering  most 
acutely.  Many  of  the  provinces  of  the  Islands  where  the  bene- 
fits of  this  relief  fund  were  felt  have,  according  to  the  eloquent 
reports  of  their  governors,  shown  the  good  work  it  has  done. 
One  provincial  governor  (Batangas,  in  1904),  speaking  of  the 
feeling  of  the  people  of  his  province  for  this  generous  aid,  said  : 
"With  an  indomitable  and  invincible  spirit,  and  with  head  erect, 
proud  of  their  self-reliance  during  this  straggle  against  the 
cruelties  of  nature,  they  only  bend  the  head  to  kiss  and  bless 
the  generous  hand  of  America  and  render  to  it  unconditional 
adhesion  and  infinite  acknowledgment  for  the  splendid  gifts 
that  it  has  showered  upon  the  people  in  days  of  sorrow,  misery 
and  hunger." 

When  the  United  States  assumed  control  of  the  Filipinos, 
they  were  in  a  chaotic  condition  of  insurrection  and  intestinal 
turmoil.  They  were,  as  a  class,  steeped  in  ignorance,  and  never 
had  been  accustomed  to  self-government.  Now  we  find  them 
happier,  more  comfortable,  more  prosperous,  certainly  more 
Ijeaceful  and  in  every  way  more  interested  in  their  lives  than 
ever  before — all  living  under  governments  conducted  in  the 
municipalities  and  provinces  by  their  own  chosen  governing  offi- 
cials. We  see  a  judicial  system  in  which  a  large  number  of 
their  own  people  hold  place  as  judges,  and  we  find  a  leg- 
islative body  charged  with  the  duty  of  enacting  laws  for 
their  government — a  legislative  "body  pomposed  in  the  lower 
house  entirely  of  their  own  people,  while  in  the  upper  house  of 
that  legislative  body  the  number  of  native  members  of  the  Com- 
mission, which  corresponds  to  the  Senate  in  this  country,  is 
within  one  of  equaling  those  appointed  by  the  United  States. 
Few  governments  on  earth  to-day  are  based  upon  more  lib- 
eral principles,  which  contemplate  not  only  popular  .suffrage, 
but  every  other  feature  of  a  Republican  form  of  government, 
than  which  none  better  has  ever  yet  been  suggested  either  by 
friends  or  foes. 

It  would  seem  only  fit  and  proper  to  conclude  this  paper 
on  the  Philippine  Islands  by  quoting  at  length  from  the  Presi- 
dent's recent  messag'e  to  the  Senate  and  House  of.  Represent- 
atives, which  constitutes  an  interesting  resume  of  the  question 
and  reads  as  follows  : 

"To  the  Senate  and  House  of  Representatives  : 

"I  transmit  herewith  the  report  of  Secretary  Taft  upon  his  recent 
trip  to  the  Philippines.  I  heartily  concur  in  the  recommendations  he 
malces,  and  I  call  especial  attention  to  the  adnvirable  work  of  Governor 
Smith  and  his  associates.  It  is  a  subject  for  just  national  gratification 
that  such  a  report  as  this  can  be  made.  No  great  civilized  power  has 
ever  managed  with  such  wisdom  and  disinterestedness  the  affairs  of  a 
people  committed  by  the  accident  of  war  to  its  hands.  If  we  had  followed 
the  advice  of  the  mj.sguided  persons  who  wished  us  to  turn  the  islands 
loose  and  let  them  suffer  whatever  fate  might  befall  them,  they  would 
have  already  passed  through  a  period  of  complete  and  bloody  chaos,  and 
would  now  undoubtedly  be  the  possession  of  some  other  power  which  there 
is  every  reason  to  believe  would  not  have  done  as,  we  have  done  ;  that  is, 
would  not  have  striven  to  teach  them  how  to  govern  themselves  or  to 
have  developed  them,  as  we  have  developed  them,  primarily  in  their 
own  interests.  Save  only  our  attitude  toward  Cuba,  I  question  whether 
there  is  a  brighter  page  in  the  annals  of  international  dealing  between 
the  strong  and  the  weak  than  the  page  which  tells  of  our  doings  in  the 
Philippines.  I  call  especial  attention  to  the  admirably  clear  showing  mside 
by  Secretary  Taft  of  the  fact  that  it  woukl  have  been  equally  ruii^ous  if 
we  had  yielded  to  the  desires  of  those  who  wished  us  to  go  faster  in  the 
direction   of  giving  the  Filipinos   self-government,    and    if  we   had   followed 


NON-CONTiaVOUi^  TER'Y— HAWAIIAN  IMLANDS.        485 

the  policy  advocated  by  others,  who  desired  us  simply  to  rul«  the  islands 
without  any  thought  at  all  of  fitting  them  for  self-government.  Th« 
islanders  have  made  real  advances  in  a  hopeful  direction,  and  they  have 
opened  well  with  the  new  Philippine  Assembly ;  they  have  yet  "a  long 
way  to  travel  before  they  will  be  fit  for  complete  self-government,  and 
for  deciding,  as  it  will  then  be  their  duty  to  do,  whether  this  self-govern- 
ment shall  be  accompanied  by  complete  independence.  It  will  probably 
be  a  generation,  it  may  even  be  longer,  before  this  point  is  reached ;  but 
it  is  most  gratifying  that  such  substantial  progre.ss  toward  this  as  a  g-^al 
has  already  been  accomplished.  We  desire  that  it  be  reached  at  as  eaiiy 
a  date  as  possible  for  the  sake  of  the  Filipinos  and  for  our  own  Rake. 
But  improperly  to  endeavor  to  hurry  the  time  will  probably  mean  that  th* 
goal  will  not  be  attained  at  all. 

"(Signed)  THEODORE  ROOSSVBLT. 

"The  White  House, 

"January  27,  1908." 


THE  HAWAIIAN  ISLANDS. 

The  Hawaiian  Islands  are  no  longer  a.  political  issue.  While 
a  Democratic  President  and  Secretary  of  State  planned  for  their 
annexation  more  than  a  half  century  ago,  while  they  many  years 
later  applied  for  admission  and  raised  the  American  flag,  and 
while  that  American  flag  was  hauled  down  by  the  orders  of  an- 
other Democratic  President,  carried  out  by  a  former  Member  of 
Congress,  they  have  since  that  time  come  permanently  under  the 
American  flag,  becoming  a  territory  of  the  United  States  with  a 
delegate  in  Congress,  and  the  relation  of  those  islands  to  the 
United  States  is  no  longer  a  political  issue.  Yet  the  effect  of 
annexation  upon  the  prosperity  of  the  people  and  the  prosperity 
®f  our  own  trade  with  them  is  interesting  and  worthy  of  record. 

The  growth  of  prosperity  in  the  Hawaiian  Islands  began  with 
that  closeness  of  relationship  brought  about  by  the  reciprocity 
treaty  with  the  United  States,  which  resulted  in  annexation,  and 
perfect  freedom  of  interchange  between  those  islands,  a  tropical 
area  with  tropical  products  to  sell,  and  the  United  States,  a  tem- 
perate zone  area  desiring  tropical  products,  and  having  temper- 
ate zone  products  to  exchange  therefor.  The  production  of  sugar, 
which  was  formerly  almost  the  sole  product,  grew  from  25  mil- 
lion pounds  at  the  date  of  the  reciprocity  treaty  to  500  million 
pounds  in  the  year  before  annexation ;  but  on  the  assurance 
which  annexation  furnished  that  the  markets  of  the  United 
States  would  remain  permanently  open  to  this  product,  the  sugar 
production  of  the  Hawaiian  Islands  has  in  the  short  period  since 
annexation  grown  to  over  800  million  pounds,  having  thus  in- 
creased over  one-half  since  1899.  The  value  of  the  sugar  product 
of  the  Hawaiian  Islands  during  the  decade  prior  to  annexation 
ranged  from  8  to  16  million  dollars  per  annum.  In  1899  it 
crossed  for  the  first  time  the  20  million  dollar  line.  Since  an- 
nexation the  value  has  ranged  from  25  to  35  million  dollars  per 
annum.  Practically  all  of  this  has  been  sent  to  the  United 
States,  and  in  exchange  the  islands  have  taken  from  the  United 
States  everything  which  they  import,  except  certain  products  of 
China  and  Japan  especiallj'-  required  by  their  Chinese  and  Japa- 
nese population,  and  that  class  of  fertilizers  for  the  plantations 
which  can  only  be  obtained  from  the  nitrate  beds  of  Chile.  That 
the  annexation  of  the  Islands  and  the  permanency  of  trade  rela- 
tions therewith  have  resulted  advantageously  to  the  commerce  of 
the  United  States  is  quite  apparent  from  the  fact  that  the  value 
of  our  shipments  to  the  Hawaiian  Islands,  which  never  touched 
the  10  million  dollar  line  prior  to  1900,  has  been  continuously 
above  that  line  since  annexation,  and  in  1907  was  practically  15 
million  dollars,  and  in  the  fiscal  year  1908  seems  likely  to  exceed 
that  sum.  The  total  value  of  merchandise  sent  from  the  United 
States  to  the  Haw:aiian  Islands  in  the  eight  years  since  annexa- 
tion aggregates  nearly  100  million  dollars,  while  in  the  eight 
years  immediately  preceding  annexation  the  value  of  o\ir  ship- 
ments to  those  islands  was  but  58  millions,  having  thus  practi- 
cally doubled  as  compared  with  the  corresponding  term  of  years 
immediately  prior  to  annexation. 

Meantime  conditions  in  the  islands  have  been  greatly  im- 
proved.    Large   investments   of  capital   from  the   United   States 


426  NON'tfONTIGUOUS  TER'T— PORTO   RICO. 

were  made  ininiediately  following-  the  annexatioji,  which  thus  as- 
sured permanency  of  government,  and  permanency  of  relations 
with  the  United  States;  large  additions  were  made  to  the  popula- 
tion, and  new  eiforts  were  made  towards  a  diversification  of  in- 
dustries. The  l)ei)artment  of  Agriculture  established  an  experi- 
ment station  in  the  Islands,  and  careful  studies  have  been  made 
of  the  producing  power  of  the  various  sections  with  reference 
to  various  tropical  and  subtropical  products,  with  the  purpose 
of  diversifying  as  much  as  possible  the  industries  and  jjroducts 
of  the  islands,  and  thus  increasing  the  earning  power  of  the 
people,  and  especially  of  developing  oi)portnnities  by  which 
persons  of  small  capital  or  those  desiring  to  build  up  prosperous 
lines  of  business  of  their  own  and  own  their  own  homes  may 
be  able  to  do  so  much  more  readily  than  in  the  pi-oduction  of 
sugar,  wliich  requires  large  estates  and  large  investments. 

The  Governor  of  the  Islands,  Hon.  H.  W.  Frear,  in  his  inaugu- 
ral address  in  1907,  referring  to  conditions  since  annexation, 
said  : 

"Seven  brief  years,  and  yet  what  grand  results  if  we  but  pause  to  view 
them  ;  years,  it  is  true  largely  of  adjustment  to  new  conditions,  but  equally 
years  of  advancement.  The  entire  body  of  Hawaiian  statute  laws  has  been 
put  into  compact  and  harmonious  form  and  added  to  by  numerous  laws, 
remedial  and  constructive.  *  *  Local  government  has  been  established 
without  the  baneful  results  predicted.  *  *  Recovery  has  been  had  from 
a  calamitous  pestilence  attended  by  extensive  conflagrations  in  the  capital  ; 
scientific'  investigation  has  been  begun  for  the  ultimate  eradication  of  the 
most  dreaded  disease  ;  the  public  health  has  never  been  better  safeguarded. 
*  *  The  schools  have  grown  in  quality  of  work  as  well  as  in  number  of  pupils. 
Progress  has  been  made  in  the  application  of  advanced  criminological 
principles,  especially  as  applied  to  juvenile  delinquents.  Evidences  of  moral 
and  religious  quickening  are  apparent  on  every  hand.  Much  has  been  ac- 
complished in  the  con.«truction  of  public  works  and  preservation  of  forests, 
settlement  of  public  lands.  Introduction  of  labor,  of  city-making  material, 
the  establishment  of  diversified  industries,  the  execution  of  irrigation  proj- 
ects, and  utilization  of  water  power.  *  *  Even  before  annexation  the  con- 
tract labor  system  had  largely  disappeared,  a  system  possessing  in  some 
degree  the  principle  of  profit-sharing  has  come  into  general  practice  that 
increases  returns  to  both  planter  and  laborer.  The  planters  have  begun  ex- 
tensively to  provide  the  laborers  with  homes  of  sufficient  size  for  residence 
and  gardening  purposes  ;  a  beginning  has  been  made  toward  co-operation  in 
the  establiahment  of  homesteads  of  sufficient  size  to  support  families  inde- 
pendently." 


PORTO  RICO. 


On  the  18th  of  October  of  this  year,  Porto  Itico  completes  the 
tenth  anniversary  of  its  exi.stence  within  the  jurisdiction  of  the 
United  States.  Of  this  period  a  year  and  a  half  was  under  mili- 
tary government  and  eight  years  and  a  half  under  a  civil  govern- 
ment established  by  the  Act  of  Congress  of  April  12,  1900. 

The  changes  for  the  better  in  this  period  of  ten  years  have 
been  remarkable,  and  the  improvement  in  education,  sanitation, 
commerce,  and  the  administration  of  justice  has  demonstrated 
the  wisdom  and  far-seeing  ability  of  the  Repiiblican  party.  These 
improvements  have  not  been  made  without  overcoming  serious 
obstacles.  In  less  than  a  year  after  the  Americans  assumed  con- 
trol, the  progress  of  the  island  received  the  worst  setback  known 
in  its  history.  On  August  8.  1899,  Porto  Kico  was  visited  by  the 
most  severe  cyclone  that  it  has  ever  experienced,  as  a  result  of 
which  thousands  of  lives  were  lost  and  millions  of  dollars  worth 
of  property  destroyed.  Not  only  was  the  coffee  crop  for  that 
year  totally  lost,  but  a  very  large  percentage  of  the  coffee  trees 
themselves  were  completely  ruined.  In  many  places  the  soil  on 
the  sides  of  the  moimtains  was  washed  away,  so  that  where 
fertile  plantations  once  existed,  but  bai-e  rocks  remained.  The 
serious  nature  of  this  disaster  can  be  understood  only  when  it 
is  realized  that  the  value  of  coffee  alone  exported  during  the  last 
years  of  the  Spanish  Government  exceeded  the  combined  value 
of  all  the  other  exports.  The  success  of  the  United  States,  thei-e- 
fore,  has  been  all  the  more  remarkable  when  one  considers  the 
inauspicious  beginning  of  the  administration. 

Free  trade  between  the  I'nited  States  and  Porto  Tlico  was 
established  on  July  25,  1901.  All  duties  collected  on  goods  be- 
tween the  United  States  and  Porto  Rico  prior  to  this  date  were 
subsequently  appropriated  by  Congress  for  the  con.stniction  of 
schools,  roads,  and  other  public  improvements  on  the  island. 


NON-CONTIGUOUS  TER'Y— PORTO   RICO.  427 

The  value  of  the  ex[)ort.s  and  imports  under  the  Spanish  gov- 
ernment reached  its  high-water  mark-  in  1896.  w^ien  the  total 
trade  of  the  island  amounted  approximately  to  the  equivalent  of 
$22,000,000  United  States  currency.  Under  American  occupation 
there  has  been  a  steady  increase  in  the  trade  of  Porto  Kico, 
which,  for  the  fiscal  year  ending-  June  HO,  1907,  amounted  to 
$56,263,472,  The  value  of  the  exports  and  imports  for  that  year 
cac)i  amounted  to  more  than  the  total  trade  of  the  island  in  any 
one  year  under  the  Sj)anish  government.  In  the  same  year  more 
than  204,000  tons  of  sugar,  with  a  total  value  of  $14,770,000,  were 
exported  from  Porto  IJico.  as  compared  with  the  record  under 
Spain,  in  1884,  of  109.000  tons.  The  amount  of  sugar  now  pro- 
duced io  more  than  320  per  cent,  greater  than  it  was  in  1897,  the 
last  year  of  Spanish  rule.  The  value  of  tobacco  exported  in  the 
twelve  months  ending  June  30,  1907,  amounted  to  approximately 
$5,500,000.  The  year  befoi'e  the  United  States  assiyned  control 
(one  of  the  most  prosperous  years  under  the  Spanish  Govern- 
ment) the  value  of  tobacco  exported  was  approximately  $700,000. 
showing  an  increase  of  700  per  cent,  in  the  ten  years  of  American 
administration.  During  the  past  year  more  cigars  were  im- 
ported into  the  United  States  from  Porto  Rico  than  from  Cuba, 
The  follow'ing  brief  table  shows  the  increase  in  the  trade  of  the 
island  since  the  issuance  of  the  last  campaign  book  in  1904  : 


Fiscal  Year. 


190  L. 
1905- 
190G_. 
1907- 


In)i)orts.  P:xports. 


Total  exports 
and  imports. 


$13,169,029 
16,536,259 
21,827,605 
29,267,172 


$16,265,903 
18, 70 J, 565 
23,257,530 
26,996,300 


$29,431,9.32 
35,215,824 
45,085,195 
53,263,472 


It  will  be  noted  that  the  total  trade  in  four  years  has  nearly 
doubled. 

In  education  also  there  has  been  a  very  great  advance.  More 
than  70,000  pupils  are  enrolled  in  the  public  schools,  and  the 
expenses  for  educational  purposes  now  aggregate  more  than 
$1,000,000  annually,  1.200  school  teachers  are  employed,  and 
great  effort  is  being  made  to  extend  oppoi'tunities  for  education 
in  the  outlying  rural  districts,  "When  the  xVmericans  took  chai'ge 
of  the  island,  they  found  but  one  school  building  owned  by  the 
government.  There  are  now  over  80  buildings  completed  or 
imder  construction,  exclusively  for  school  purposes,  including  a 
normal  school  in  the  city  of  San  Juan  and  high  schools  in  the 
important  cities.  In  addition  to  this  number,  over  six  hundred 
buildings  are  rented  for  school  purposes.  Education  is  given  in 
English  and  Spanish  and  the  children  ai'e  rapidly  acquiring  a 
knowledge  of  the  former  language. 

Much  attention  has  been  paid  to  the  question  of  sanitation, 
and  in  the  past  ten  years  thousands  of  people  have  been  cured 
of  uncinariasis,  more  commonly  known  as  the  hookworm  disease. 
Prior  to  American  occupation  this  disease  was  generally  attrib- 
uted to  malnutrition.  In  the  early  da,ys  of  American  occupation. 
Ai-my  surgeons  attendant  upon  the  natives  suffering  from  the 
cyclone,  discovered  that  this  sickness  was  caused  by  a  parasitic 
worm,  and  was  curable  if  taken  in  time.  A  Commission  was 
created  in  the  winter  of  1904,  for  the  study  and  ti-eatment  of 
this  disease.  Free  stations  for  the  care  of  patients  were  es- 
tablished in  central  locations  thronghoTit  the  island,  and  a  cam- 
paign of  education  as  to  the  prevention  and  cure  of  the  disease 
was  at  once  commenced.  The  Commission  estimated  that  90  per 
cent  of  the  rural  population  of  Porto  Rico  was  infected  with  this 
form  of  anemia,  which  gradually  sapped  the  strength  of  the 
patient,  freq.uently  resulting  in  death.  In  the  past  four  years 
over  150,000  natives,  or  one-seventh  of  the  population,  have  been 
treated  at  the  expense  of  the  government.  The  results  have  been 
most  satisfactory,  and  many  families,  disabled  by  the  disease,  have 
been  returned  to  the  number  of  w^age-earners,  Hopes  are  enter- 
tained that  imcinaria-;is  will  be  eradicated  from  the  island  by 
the  efforts  of  the  administration.  This  result  would  work  a  great 
change  in  the  social  and  economical  status  of  the  inhabitants  of 
the  interior. 


428  NON-CONTiaUOVS  TEIt'Y— PORTO  RICO. 

In  order  to  afford  opportunities  to  the  farmers  of  the  interior 
to  bring  their  produce'  to  the  seacoast  for  shipment  to  the 
markets  of  the  United  States  and  elsewhere,  the  government  has 
bent  its  energies  to  the  construction  of  an  extensive  system  of 
roads.  In  the  jJast  ten  years  twice  as  many  miles  of  macadam 
roads  have  been  constructed  by  the  American  government  as 
were  built  in  the  400  years  of  Spanish  control.  This  policy  has 
opened  up  lands  in  the  interior  which  ten  years  ago  were  prac- 
tically valueless.  It  is  not  too  much  to" say  that  in  certain  sec- 
tions of  the  island  the  value  of  land  has  increased  1,000  per  cent. 
In  order  to  carry  on  this  work  further,  the  insular  government, 
in  the  winter  of  1907,  disposed  of  government  bonds  to  the 
amount  of  $1,000,000,  the  proceeds  to  be  devoted  exclusively  to 
the  building  of  roads  and  bridges.  This  is  the  first  and  only  debt 
of  the  insular  government  since  the  American  occupation.  The 
splendid  financial  condition  and  the  economic  prosperity  of  the 
i.sland  was  so  well  recogni?red,  that  at  a  time  of  considerable 
dullness  in  the  bond  market,  when  many  excellent  municipal 
bonds  were  not  bHnging  par,  these  4  per  cent  twenty-year  serial 
bonds  sold  at  an  average  of  over  107,  the  longer  term  series 
bringing  over  113. 

In  addition  to  the  roads,  communication  has  been  greatly  in- 
creased by  railroad  construction,  the  mileage  of  which  is  at 
present  approximately  double  what  it  was  ten  years  ago. 

The  insular  government  operates  the  telegraph  lines,  the  num- 
ber of  offices  of  which  have  increased  since  1904  from  39  to  128. 
Practically  all  of  the  operators  are  Porto  Ricans,  who  have  been 
carefully  trained  in  this  work  under  the  supervision  of  the 
government. 

A  number  of  charitable  institutions  have  been  established 
since  American  occupation,  and  the  Porto  Ricans,  always  a  phil- 
anthropic people,  have  heartily  supported  the  efforts  of  the  gov- 
ernment on  these  lines.  In  the  past  few  years  a  blind  asylum 
has  been  opened  for  the  care  of  the  indigent  blind,  the  govern- 
ment insane  asylum  has  been  enlarged  and  greatly  improved  and 
a  reform  school  for  boys  has  been  commenced.  This  latter  in- 
stitution is  exceedingly  important,  as  it  will  remove  yoiithful 
violators  of  the  law^  from  the  corrupting  influence  of  hardened 
criminals. 

An  important  step  taken  by  the  Congress  of  the  United  States 
some  years  ago  A\as  the  establishment  of  the  Porto  Rico  Pro- 
visional Regiment  of  Infantry.  Organized  in  1899,  the  enlisted 
and  non-commissioned  force  of  the  regiment,  consisting  of  two 
battalions,  is  composed  exclusively  of  Porto  Ricans.  In  addition, 
many  of  the  junior  officers  are  natives  of  the  island,  and  the 
force  is  supported  entirely  by  United  States  funds.  Prior  to 
the  American  occupation  no  such  regiment  was  found  in  Porto 
Rico.  The  military  forces  which  Spain  maintained  in  the  island 
were  composed  of  Spaniards  and  paid  from  Porto  Rican  funds. 
In  this  way  not  only  does  the  United  States  put  into  circulation 
annually  a  large  sum  but  it  provides  an  institution  which  gives 
most  excellent  moral,  mental,  and  physical  training  to  the  natives 
of  the  island.  On  account  of  the  physical  improvement,  due  to 
regular  exercise  and  good  food,  the  habits  of  discipline  and 
knowledge  of  the  English  language,  acquired  during  the  terms 
of  enlistment,  former  members  of  the  regiment  find  their  serv- 
ices in  great  demand  in  various  important  positions  throughout 
the  island. 

Public  order  is  excellent,  and  is  maintained  by  a  force  of 
some  800  police,  composed  entirely  of  Porto  Ricans,  with  the  ex- 
ception of  the  chief  and  assistant  chief. 

Financially,  the  United  States  government  has  done  much  for 
Porto  Rico.  The  customs  revenues  on  foreign  articles  impoi-ted 
into  the  island  are  paid  into  the  insular  treasury.  The  internal 
revenue  laws  of  the  United  States  are  not  extended  to  Porto 
Rico,  but  the  local  legislature  is  vested  with  the  power  of  enact- 
ing insular  internal  revenue  laws,  and  the  proceeds  from  these 
taxes  go  to  swell  the  revenues  of  the  island,  and  are  not  deposited 
in  the  United  States  treasury. 

Harbor  improvements  in  the  port  of  San  Juan,  costing  more 
than  three-quarters  of  a  million  dollars,  have  been  authorized 
and  begun,  and  a  public  building,  to  cost  $300,000,  is  under  pro- 


NON-CONTIGUOUS  TER'Y— PORTO  RICO.  429 

American  capital  is  being-  invested  in  various  enterprises,  the 
most  important  of  which  are  railroads,  the  construction  of  sugar 
centrals,  or  factories  for  the  extraction  of  sugar  from  the  cane, 
electric  lighting  plants,  trolley  lines,  and  in  various  agricultural 
enterprise's,  the  most  recent  and  successful  of  which  is  the  cul- 
tivation of  citrus  fruits  and  pineapples. 

There  has  been  adopted  an  excellent  system  of  laws  based  on 
codes  in  force  in  various  parts  of  the  United  States  and  made 
adaptable  to  conditions  existing  in  the  island.  Among  the  most 
important  are  codes  of  criminal  and  civil  procedure,  and  a  civil 
and  criminal  code,  which  do  away  with  many  provisions  of  the 
former  laws  repugnant  to  the  ideas  of  American  jurisprudence. 

The  object  of  the  Republican  party  in  conducting  affairs  in 
Porto  Rico  has  been  twofold :  first  to  increase  the  prosperity  of 
the  island  and  to  enforce  impartial  justice,  giving  equal  opportu- 
nity to  all  for  advancement ;  and  second,  to  educate  the  natives  of 
the  island  to  the  standards  and  principles  of  American  adminis- 
tration, so  that  increased  self-government  may  be  g-ranted  them 
as  soon  as  they  show  their  capacity  for  it.  The  administration 
not  only  has  for  its  purpose  the  establishment  of  good  govern- 
ment, but  it  endeavors  to  educate  the  people  so  that  they  can 
take  more  and  more  part  in  that  government.  Great  steps  in  this 
direction  have  already  been  made.  The  66  municipalities  of  the 
island  have  complete  autonomy.  The  officials  of  the  municipali- 
ties are  elected  by  popular  vote,  and  have  full  power  to  enact 
ordinances  with  regard  to  municipal  affairs. 

In  the  judicial  branch,  the  Supreme  Court  is  composed  of  3 
Porto  Ricans  and  2  Americans.  The  judges  and  district  attor- 
neys of  the  district  or  trial  courts  are  composed  of  13  Porto 
Ricans  and  3  Americans,  while  all  the  municipal  judges  and  jus- 
tices of  the  peace  are  Porto  Ricans.  The  legislative  assembly 
is  made  up  of  two  hoiises,  the  lower  house  or  Houjfe  of  Delegates, 
consisting  of  35  members,  or  .5  from  each  of  the  7  districts  of  the 
island,  are  elected  by  popular  vote,  and  are  all  Porto  Ricans.  The 
upper  house,  or  Executive  Council,  consists  of  11  members  ap- 
pointed by  the  President,  "at  least  five  of  whom  shall  be  native 
inhabitants  of  Porto  Rico."  It  will  therefore  be  seen  that  no 
act  can  be  passed  except  with  the  approval  of  the  lower  House 
of  Delegates,  composed  entirely  of  Porto  Ricans  and  elected  by 
popiilar  vote. 

The  number  of  Americans  in  positions  supported  by  insular 
revenues  is  comparatively  small,  being  less  than  one-ninth  of  the 
total  number  of  employees.  Should  the  municipal  employees  bcj 
included  in  this  number,  the  percentage  of  Americans  would  of 
course  be  very  much  smaller.  It  will  be  seen  therefore  that  the 
Porto  Ricans  have  a  very  important  share  in  the  government. 
Xever  before  in  the  history  of  the  island  have  they  been  allowed 
such  a  large  and  influential  part  in  the  administration  as  they 
have  at  the  present  time. 

The  wisdom  of  the  policy  of  the  Republican  party  during  the 
past  10  years,  as  directed  by  President  McKinley  aiid  President 
Roosevelt,  has  been  fully  demonstrated,  and  has  more  than  jiisti- 
fied  the  expectations  of  even  its  warmest  friends.  It  is  safe  to 
say  that  in  no  other  tropical  country  in  the  world  has  there  ever 
been,  in  so  short  a  time,  such  rapid  and  marked  increase  in  sani- 
tation, oi-der.  prosperity  and  education. 


THE    PANAMA    CANAL. 

From  Christopher  Columbus  to  Theolore  Roosevelt,  a  period 
of  400  years,  pian  sought  in  vain  for  a  means  of  transferring 
ocean  vessels,  carrying  men  and  merchandise  across  that  narrow 
strip  of  land  which  separates  the  waters  of  the  Atlantic  and 
Pacific  oceans,  known  as  the  Isthmus  of  Panama.  Scores  of 
surveys  were  made;  thousands  of  lives  were  lost;  millions  of 
dollars  expended  in  futile  attempts,  and  it  remained  for  the 
Government  of  the  United  States,  under  a  Republican  President 
and  Secretary  of  War.  to  take  the  preliminary  steps  ad  with 
the    assent    of    Congress    to    actually    enter    upon    the    work    of 


430  THE  PANAMA  CANAL. 

constructinpf  a  ship  canal.  In  doln^  this  they  have  laid  the 
phms  so  broadly  and  carefully  that  the  country  and  the  world 
nuiy  expt'c'L  to  see  a  completetl  modern  canal,  caiJable  of  floating 
the  hirgest  of  vessels,  in  operation  by  1915,  and  to  see  it  con- 
structed at  a  minimum  cost  and,  what  is  more  important,  ai  a 
minimum  loss  of  life.  It  was  the  first  care  of  President  Roose- 
velt and  Secretary  Taft  in  developing-  i)Ians  for  this  work  to 
inavigiirate  a  system  by  which  the  appalling  loss  of  lilV  which 
had  characterized  all  former  undertakings  on  the  Isthmus 
should  be  averted,  and  in  this  they  have  been  eminently  suc- 
cessful. The  state  of  health  of  the  thousands  of  workmen  and 
officials  employed  on  the  canal,  and  the  success  of  the  efforts 
to  prevent  tropical  diseases  have  been  the  marvel  of  the  medi- 
cal and  scientific  world,  while  the  speed  at  which  the  work  is 
being  pushed  forward  under  modern  methods  is  a  matter  of 
surprise  to  the  foreign  observers  and  of  pride  to  every  Ameri- 
can. 

The  canal  is  no  longer  an  issue.  No  American,  whatever  his 
party,  raises  his  voice  against  the  policy  of  the  consti'uction 
and  ownership  and  control  of  this  American  Interoceanic  Canal 
by  the  Government  of  the  United  States.  The  feeble  i:rotests 
which  were  uttered  against  the  prompt  recognition  of  the  lie- 
public  of  Panama  by  this  Government  were  heard  no  ukhv 
when  a  score  of  the  leading  countries  of  the  world  hastened  to 
follow  our  action,  and  when  the  issue  \vas  ]ii'esente  1  to  the 
Democratic  party  in  the  ratification  by  the  Senate  of  the  treaty 
with  Panama  in  Februar^^  1904,  one-half  of  the  Democrats  vot-' 
ing  cast  their  votes  'with  the  Republicans  for  ratification.  Since 
that  time  the  question  has  been  no  longer  a  party  iss  e,  and 
Democrats  have  vied  with  Republicans  in  their  expressions  of 
gratification  that  the  dirt  is  actually  flying.  Men  who  have  been 
for  years  prominent  leaders  in  the  Democratic  party  are  devoting 
their  time  and  energies  on  the  Isthmus  and  at  home  to  up- 
liolding  the  hands  of  the  President  and  the  Secretary  of  War,  to 
\v4iom  the  details  of  this  great  work  have  been  intrusted. 

Record  of  tlie  Worlc. 

Tt  remains  therefore  to  present  at  this  time  merely  the 
record  of  the  work  performed  in  this  great  enterprise,  which 
every  American,  irrespective  of  party,  is  proud  to  call  that  of 
his  country. 

Under  the  provisions  of  an  Act  of  Congress  which  had  been 
approved  March  3,  1899,  the  President  appointed  a  commission 
to  examine  and  report  upon  the  diflferent  practicable  routes  for 
an  Isthmian  canal,  and  this  commission  finally  reported  in 
January,  1902,  in  favor  of  the  Panama  route,  although  in  No- 
vember, 1901,  it  had  reported  in  favor  of  the  Nicaragua  route. 
It  changed  its  recommendation,  it  seemed,  in  favor  of  the 
Panama  route  after  the  French  canal  company  had  agreed  to 
dispose  of  all  its  rights,  property,  and  unfinished  work  on  the 
Isthmus  for  forty  millions  of  dollars. 

Section  7  of  the  Spooner  Act  (June  28,  1902)  provided  for 
a  commission  of  seven  members,  at  least  four  of  whom  shoiild 
be  engineers,  and  at  least  one  an  officer  of  the  army  imd  one 
an  officer  of  the  navy.  The  first  commission  was  appointed 
under  this  Act  on  March  8,  1904,  with  Admiral  Walker,  of  the 
navy,  as  Chairman,  and  General  George  W.  Davis,  as  the  army 
member,  and  in  addition  the  following  five  civilians:  William 
Barclay  Parsons,  C.  E. ;  William  H.  Burr.  C.  E. ;  Benjamin  M. 
Harrod,  C.  E. ;  Carl  Ewald  Grunsky,  C.  E.,  and  Mr.  .Frank  J. 
Hecker. 

On  May  8,  1904,  the  Commission  passed  a  resolution  designat- 
ing General  Davis  as  the  representative  of  the  Commission  on 
the  Isthmus,  and  under  the  provisions  of  a  letter  addressed 
by  the  President  to  the  Secretary  of  War  on  May  9,  1904.  General 
Davis  was  designated  Governor  of  the  Isthmian  Canal  Zone, 
and  was  the  only  member  of  the  Commission  who  was  to  be 
regidarly  stationed  there.  In  this  letter,  which  might  be 
probabl,y  considered  an  executive  order,  the  President  put  the 
work  of  the  Commission  under  the  supervision  of  the  Secretary 
of  War. 


THE  PA-NAM  A  CANAL.  431 

The  Act  of  Congress  approved  April  23,  1904,  provided  that 
until  the  expiration  of  the  Fifty-eighth  Congress  all  the  mili- 
tary, civil,  and  judicial  powers,  as  well  as  the  power  to  make 
all  rules  and  regulations  necessary-  for  the  government  of  the 
Canal  Zone,  and  all  the  rights,  powers,  and  authority  gi-anted 
to  the  United  States  by  the  terms  of  the  treaty  between  the 
United  States  and  the  llepublic  of  Panama,  should  be  vested  in 
such  person  or  persons  and  exercised  in  such  manner  as  the 
President  should  direct.  In  the  letter  of  .^ay  9,  1934,  above  men- 
tioned, the  President  directed  that  these  powers  should  be  vested 
in  and  exercised  by  the  Canal  Commission  until  the  close  of  the 
Fifty-eighth  Congress.  Under  this  authoritj^  the  Commission 
enacted  twenty-four  laws,  covering  a  wide  range  of  subjects, 
but  dealing-  ])rincipally  with  the  org-anization  of  the  govern- 
ment of  the  Zo7ie  and  the  judiciai'y.  including-  a  criminal  code. 

In  May,  1904,  Lieutenant  Mark  Brooke.  Corps  of  E  gineers, 
U.  S.  A.,  representing  the  United  States  on  the  Isthmus  of 
Panama,  was  instructed  by  the  Attorney  General  of  th  United 
States  to  take  possession  of  all  the  canal  properties  there.  This 
transfer  of  property  having  been  made,  instructions  were  at 
once  given  Lieuteiuint  Brooke  by  the  Isthmian  Canal  Commission 
to  continue  operations  with  the  same  force  of  employes  and 
laborers  as  were  engaged  on  the  work  under  the  French  Canal 
Company  at  that  time.  At  this  time  no  excavation  was  being 
done  except  in  the  Culebra  Division,  and  the  total  excavation 
from  May  to  December,  1904,  amounted  in  round  figures  to 
243,000  cubic  yards. 

In  the  meantime,  the  Walker  Commission  was  occup  ed  with 
various  problems  concerning  sanitation  and  government  of  the 
Canal  Zone,  and  the  acquiring  of  necessary  plant  for  piosecut- 
ing  the  work.  Colonel  W.  C.  Gorgas,  U.  S.  A.,  was  appointed 
Chief  Sanitary  OflRcer,  and  immediately  organized  a  most  effi- 
cient system  of  sanitation. 

The  Commission  was  given  control  over  the  Panama  Eail- 
road,  all  the  commissioners  being  made  directors,  it  being  re- 
cognized that  the  railroad  must  be  an  adjunct  to  the  construc- 
tion of  the  canal,  and  at  the  same  time  fulfilling  the  purpose 
for  which  it  was  constructed  as  a   route  of  commerce. 

Mr.  John  F.  Wallace  was  engaged  as  Chief  Eiigineer  on 
June   1,   1904. 

Nearly  all  matters  of  importance  came  before  the  Walker 
Commission  as  a  body,  there  then  being  no  separate  and  inde- 
pendent heads  of  departments  as  provided  in  the  present  organi- 
zation, except  that  the  Chief  Engineer  and  the  Governor  of  the 
Zone  had  a  certain  limited  authority.  The  Walker  Commission 
was  succeeded  by  the  Shonts  Commission  on  April  1,  1905,  con- 
sisting of  four  civilians,  two  of  whom  were  engineers,  tw  o  army 
engineers,  and  one  civil  engineer  of  the  navy.  Mr.  Wallace  was 
continued  as  Chief  Engineer  and  made  one  of  the  Commissioners. 
The  personnel  of  this  Commission  was  as  follows :  T.  P.  Shonts, 
Chairman ;  Charles  E.  Magoon,  Governor  of  the  Canal  Zone ; 
John  F.  Wallace,  Chief  Engineer ;  Rear  Admiral  M.  T.  Enxiicott, 
U.  S.  Navy;  Brig.  Gen.  Peter  C.  ITaiiis.  [I.  S.  Army;  Col.  O.  H. 
Ernst,  U.  S.  Army,  and  Benjamin  M.  Harrod. 

Under  the  provisions  of  an  executive  order  of  the  President, 
dated  April  1,  1905,  three  distinct  departments  were  created, 
namely:  (1)  The  Chairman,  in  charge  of  fiscal  affairs,  pur- 
chase and  delivery  of  materials  aiul  supplies,  accourts  and 
auditing ;  the  commercial  operations  in  the  United  States  of 
the  Panama  Railroad  and  Stean.ship  Lines,  and  of  the  general 
concerns  of  the  Commission,  subject  to  the  supervision  ancl 
direction  of  the  Secretary  of  War ;  (2)  The  Governor  of  the 
Canal  Zone,  in  charge  of  administration  of  law  and  of  all 
matters  of  sanitation,  and  required  to  reside  on  the  Isthmus; 
(3)  The  Chief  "Engineer,  in  charge  of  actual  work  of  construc- 
tion on  the  Isthmus,  having  custody  of  supplies  and  plant  there; 
charged  with  the  practical  operation  of  the  railroad  on  the 
Isthmus,  with  special  view  to  its  utilization  in  caial  construc- 
tion; also  required  to  reside  on  the  Isthmus.  The  other  engi- 
neer members  of  the  Commission  constituted  an  advisory  engi- 
neering committee  and  their  headq -arters  were  in  Washington. 
Tlie  order  provided  for  the  appointment  by  the  Commission  of  an 


432  THE  PANAMA  CANAL. 

Executive  Committee  of  three  members  to  act  in  place  of  the 
Commission  during-  intei'vals  between  meeting-s,  and  the  three 
heads  of  the  Departments  above  named  constituted  this  Com- 
mittee. These  heads  of  Departments  were  authorized  to  ap- 
point all  oflicers  and  employes  in  their  respective  Departments, 
subject  to  the  approval  of  the  Commission. 

Mr.  Wallace  resig"ned  on  June  28,  1905,  and  was  succeeded  by 
Mr.  John  F.  Stevens  as  Chief  Engineer,  although  the  latter  ^\.l 
not  made  a  Commissioner  until  June  30,  1906. 


Lock    Canal    Adoiited. 

Chief  Engineer  Wallace,  in  a  report  dated  February  1,  1905, 
recommended  that  a  sea-level  canal  be  constructed,  and  shortly 
thereafter  a  commitee  of  three  of  the  engineer  members  of  tiu- 
Commission,  namely,  Messrs.  Burr,  Parsons,  and  Davis,  also 
recommended  the  adoption  by  the  Commission  of  a  sea-leve! 
plan.  Up  to  this  time  it  had  been  assunied  that  a  lock  canal 
would  be  constructed  substantially  in  accordance  with  the  plan 
recommended  by  the  former  Commission  in  1901. 

The  reports  of  Chief  Engineer  Wallace  and  the  Engineering 
Committee,  above  referred  to,  favoring  a  sea-level  canal  created 
doubt  as  to  the  best  type  of  canal  to  be  constructed,  and  in  the 
President's  ofder  of  April  1,  1905,  appointing  the  Shonts  Coiii- 
mission,  he  declared  his  intention  to  appoint  a  Board  of  Con-* 
suiting  Engineers  to  advise  on  the  important  engineering  ques- 
tions arising  in  the  selection  of  the  best  plan  for  the  construc- 
tion of  the  canal.  This  Board  was  appointed  by  the  President 
by  an  executive  order  dated  June  24,  1905,  and  consistel  of  the 
following  eight  American  and  five  foreign  engineers :  General 
George  W.  Davis,  Chairman;  Mr.  William  Barclay  Parsons;  Mr. 
William  H.  Burr ;  Mr.  Alfred  Noble ;  Gen.  Henry  L.  Abbot ;  Mr. 
Frederic  P.  Stearns ;  Mr.  Joseph  Ripley ;  Mr.  Isham  Randolph, 
Americans;  and  Mr.  William  H.  Hunter,  British;  Mr.  Ad. 
Guerard,  French ;  Mr.  Eugene  Tincauzer,  German ;  Mr.  J.  W. 
Welcker,  Dutch,  and  Mr.  E.  Quellennec,  of  the  Suez  Canal  Staff. 
This  Board  divided  in  its  recommendations,  eight  members,  in- 
cluding the  five  foreigners,  and  General  Davis,  Mr.  Parsons  and 
Mr.  Burr,  advocating  a  sea-level  canal  with  a  minimum  width 
of  150  feet ;  the  other  five  members  recommended  a  lock  canal 
with  an  85-foot  summit  level  and  three  locks  at  Gatun  on  the 
Atlantic  side,  and  one  at  Pedro  Miguel,  and  two  near  the  coast 
on  the  Pacific  side.  On  June  29,  1906,  Congress  passed  an  Act 
directing  that  the  Canal  be  constructed  "of  the  general  type 
proposed  by  the  minority  of  the  Board  of  Consulting  Engineers," 
the  President,  the  Secretary  of  War,  and  the  majority  of  the 
Commission  having   united  in   recommending  this    type. 

The  delay  in  reaching  a  decision  as  to  the  type  of  canal 
retarded  somewhat  the  progress  of  the  work,  but  as  soon  as  the 
question  was  definitely  decided  the  work  was  prosecuted  with 
gradually  increasing  vigor. 

Description    of   the    Canal. 

The  canal  will  have  a  sum^mit  elevation  of  85  feet  above  the 
sea,  to  be  reached  by  a  flight  of  three  locks,  located  at  (iatun. 
on  the  Atlantic  side,  and  by  a  flight  of  two  locks  at  Miraflores, 
and  one  lock  at  Pedro  Miguel  on  the  Pacific  side ;  all  these  locks 
to  be  in  duplicate,  that  is,  to  have  two  chambers,  side  by  side. 
The  summit  level  will  be  maintained  by  a  large  dam  at  Gatun 
and  a  small  one  at  Pedro  Miguel,  making  the  great  Gatun  Lake, 
which  will  have  an  area  of  164.23  square  miles.  A  small  lake, 
about  two  square  miles  in  area,  with  a  surface  elevation  of  55 
feet,  w^ill  be  formed  on  the  Pacific  side  of  the  canal  between 
Pedro  Miguel  and  Miraflores,  the  valley  of  the  Rio  Grande  being 
closed  by  a  small  dam  and  the  locks  at  Miraflores. 

The  canal  is  to  be  about  fifty  miles  in  length  from  d«,»p 
water  in  the  Caribbean  Sea  to  deep  water  in  the  Pacific  Ocean. 
The  distance  from  deep  water  to  the  shore  line  in  Limon  Bay, 
Atlantic  side,  is  about  414  miles,  and  from  the  Pacific  shore  line 
to   deep   water  is   about    5    miles ;    hence    the    length     of    the 


TEE  PANAMA  CA1\'AL.  4B8 

canal  from  shore  to  shore  will  be  approximately  40i/2  miles. 
The  bottoin  Avidth  of  the  canal  will  vary  from  200  feet  in  Cnle- 
bra  Cut  to  an  indefinite  width  in  the  deep  waters  of  Gatiin 
Lake.  The  approaches  from  deep  water  to  land  on  both  sides 
of  the  canal  are  to  be  500  feet  widf>,  and  the  cuts  in  t'  e  shal- 
low parts  of  the  lakes  from  500  to  1,000  feet  wide.  The  canal 
will  have  a  minimum  depth  of  41  feet.  Each  lock  will  have 
a  usable  leng-th  of  1,000  feet,  a  width  of  110  feet,  and  a  depth  of 
4  feet  4  inches  over  the  sills.  The  walls  of  the  locks  will  be  of 
concrete,  and  the  gates  of  steel. 

The  great  Gatun  dam.  Which  will  impound  the  waters  of  the 
Chagres,  the  Gatuncillo,  and  Trinidad  rivers,  and  create  a  lake 
whose  normal  summit  level  will  be  85  feet  alwve  the  sea,  will 
be  practically  a  mile  and  a  half  long,  half  a  mile  wide  at  the 
base,  w^ith  its  crest  135  feet  above  mean  tide,  and  the  toj)  thick- 
ness of  the  dam  of  the  cross  section  now  "adopted  will  be  80 
feet.  There  will  be  a  spillway  in  about  the  middle  of  this  dam, 
constructed  through  a  hill  or  solid  i^round  now  existing,  by 
means  of  which  the  level  of  the  lake  will  be  contr  lied,  it  being 
the  intention  never  to  let  it  exceed  87  feet  in  hei'^ht.  The  level 
of  water  in  the  lake  will  be  the  same  as  that  throughout  the 
Culebra  Cut,  and  as  far  as  the  upper  lock  gates  at  Pedro 
Miguel. 

lu  entering  the  canal  from  tjie  Atlantic  side  a  ship  will 
proceed  from  deep  water  in  Limon  Bay  to  Gatun  lacks,  a  dis- 
tance of  slightly  over  seven  miles,  through  a  channel  500  feet 
wide ;  going  through  the  flight  of  three  locks  at  Gitun,  she  will 
traverse  nearly  six-tenths  of  a  mile  before  reaching  Gatun  Lake. 
85  feet  above  the  sea ;  thence  for  a  distance  of  nearly  16  miles 
there  will  be  jI  channel  through  the  lake  of  1,000  feet  or  more 
in  A\idth  to  San  I'ablo ;  from  San  Pablo  to  J  nan  Grande,  3.8 
miles,  the  channel  will  be  800  feet  wide ;  from  Juan  Grande  to 
Obispo,  3.7  miles,  the  channel  will  be  500  feet  wide,  and  it 
may  be  said  that  at  this  point  navigation  through  the  lake  will 
be  terminated,  and  the  entrance  to  the  Culebra  Cut  will  begin, 
although  the  channel  from  Obispo  to  Las  Cascadas,  a  d' stance 
of  one  and  a  half  miles,  will  be  maintained  at  300  feet ;  thence 
to  Cucaracha, '  a  distance  of  4.7  miles,  the  channel  wmII  be 
200  feet  wide,  and  from  Cucaracha  to  Pedro  Mig  lel,  a  distance 
of  1,9  miles,  the  channel  will  again  widen  to  300  feet.  Going 
through  the  Pedro  Miguel  lock  and  approaches,  nearly  three- 
teaths  of  a  mile  in  total  length,  the  vessel  will  be  Jowered  to 
the  level  of  INIiraflores  Lake,  55  feet  above  mean  tide,  through 
which  there  will  be  a  channel  500  feet  wide  and  1,4  miles  long  to 
the  Miraflores  locks ;  thence  through  the  two  Miraflores  locks,  of 
a  total  length,  including  approach  walls  of  over  nine-tenths  of  a 
mile,  she  will  be  lowered  to  the  tide  level  and  proceed  through  a 
channel  500  feet  wide  and  8  miles  long  to  deep  water  in  the 
Pacific. 

It  will  thus  be  seen  that  about  25  miles  will  be  navigated 
through  the  two  lakes,  where  the  minimum  channel  width  is 
500  feet,  and  where,  therefore,  practically  full  speed  can  be 
maintained.  The  sea-level  channels  at  both  ends  of  the  canal, 
a  total  length  of  about  15  miles,  can  also  be  traversed  at  prac- 
tically full  speed.  Aside  from  the  locks  there  will  be  only 
about  8  miles  to  be  navigated  through  channels  from  200  to  300 
feet  wide. 

Amonnt    of    Worlc    Done    l»v    the    French. 

The  amount  of  material  excavated  l)y  the  old  and  new  French 
Panama  Canal  Companies  was  81,548,000  cubic  yards,  and  of 
this  amount  it  has  been  estimated  that  about  36,000,000  yards 
will  be  utilized  in  the  construction  of  the  present  canal. 


Worlv  Done  l»y  the  Conmiisslon, 

The  plan  adopted  Joy  the  United  States  required  a  total  ex- 
cavation, since  May  1,  1904,  of  approximately  142,000.000  cubic 
yards.  Up  to  the  end  of  March.  1908.  there  had  been  excavated 
31  802.000  cubic  yards,  leaving  110,108,000  cubic  yards  to  be  ex- 
fin  ated- 


484  THE  PANAMA  CANAL. 

CarliiK   i'or    ileiiltli    of   F^iuployeen. 

Up  to  the  end  of  January,  1908  (the  latest  date  for  which 
fig-ures  are  now  avaihible),  there  had  been  expended  ovi  c 
$1:3,000,000  on  account  of  civil  administration,  municipal  im- 
provements, and  sanitation,  which  covered  tlie  work  of  build- 
ing- roads,  providing  fire  and  police  establishments,  courts  of 
justice,  schools,  postoffices,  the  erection  and  maintenance  of 
hospitals,  and  the  sanitation  of  the  Canal  Zone,  including-  the 
Cities  of  Panama  and  Colon. 

Tlie  principal  streets  of  Panama  and  Colon  have  been  paved, 
and  water  works  and  sewer  systems  established  in  both  cities. 
Three  large  reservoirs  have  been  constructed  and  pumping 
stations  and  standpipes  established  where  needed,  ample  pro- 
vision thus  having  been  made  for  supplying  water  for  all  towns 
and  villages  in  the  Canal  Zone,  as  well  as  in  the  cities  of 
Panama  and  Colon. 

During  the  past  year  fifteen  hotels  for  Americans,  eighteen 
mess  halls  for  Europeans,  and  twenty-three  kitchens  for  West 
Indian  laborers  have  been  operated,  the  employes  concerned 
paying  for  their  meals  practically  only  the  cost  of  food  and 
the  operation  of  the   different  establishments. 

President  Eoosevelt,  commenting  upon  this  subject  in  his 
special  message  to  Congress  after  his  visit  to  Panama  in  1906, 
said :  "The  first  great  problejn  to  be  solved,  upon  the  solution 
of  which  the  rest  of  the  work  depended,  was  the  problem  of 
sanitation.  *  *  The  results  have  been  astounding.  The  Isth- 
mus had  been  a  byword  for  deadly  unhealthfulness.  Now,  after 
two  years  of  our  occupation,  the  conditions  as  regards  sickness 
and  the  death  rate  compare  favorably  with  reasonably  healthy 
localities  in  the  United  States."  * 

Contracts  to  Ijovrest  Bidders. 

The  following  is  a  provision  relative  to  contracts  for  pur- 
chase of  supplies  contained  in  the  executive  order  of  the  Presi- 
dent, of  January  8,  1908,  regarding  the  organization  and  work  of 
the  Commission,  and  is  substantially  the  same  as  that  contained 
in  the  executive  order  of  the  President  dated  Aprii  1,  1905 : 

"Contracts  for  the  purchase  of  supplies,  involving  an  es- 
timated expenditure  exceeding  $10,000.00,  -shall  be  made  only 
after  due  public  advertisement  in  newspapers  of  general  cir- 
culation, and  shall  be  awarded  to  the  lowest  responsible  bidder, 
except  in  "tiase  of  emergency,  when,  with  the  approval  of  the 
Secretary    of   War,   advertising   may   be    dispensed    with. 

"In  the  making  of  contracts  for  supplies  or  construction  in- 
volving an  estimated  expenditure  of  more  than  $1,000.00  and 
less  than  $10,000.00,  competitive  bids  shall  be  secured  by  invi- 
tation or  advertisement  whenever  practicable." 

The    liRbor    Supply. 

Americans  are  given  preference  in  every  branch  of  the  work 
in  which  their  services  can  be  had.  Few  of  them  are  walling 
to  undertake  the  hard  labor  on  the  canal  in  that  climate,  and 
therefore  for  this  class  of  labor  the  Commission  has  been  com- 
pelled to  look  elsewhere. 

The  skilled  labor  force  is  recruited  in  the  United  States. 
Agents  of  the  Commission  receive  applications  for  all  outside 
positions,  personally  examining  the  individual  and  looking  into 
his  previous  service  record.  Whenever  an  applicant  is  not  with- 
in convenient  reach  of  the  employment  agent  written  applica- 
tions are  received  direct  by  the  Washington  Office  of  the  Com- 
mission. This  includes  trainmen,  steam-shovel  operators,  fore- 
men, and  mechanics.  Clerks,  stenographers,  draftsmen,  doctors, 
and  nurses  are  secured  through  the  Civil  Service  registers.  All 
appointments  are  made  through  the  Washington  Office,  which 
also  arranges  for  transportation  of  employes  to  the  Isthmus, 
including  members  of  their  families.  The  skilled  force  on  June 
30,  1906,  was  approximately  2,500  and  on  June  30,  1907,  actually 
4,404.  To  increase  this  force  1,904  men  and  provide  for  the 
usual  separations,  due  to  sickness,  resignations,  etc.,  3,038  men 
were  brought  from  the  United  States  during  the  year. 


THE  PANAMA  CANAL.  435 

An  executive  order,  signed  by  the  Secretary  of  War  by  au- 
thority of  the  President,  February  8,  1908,  provides  that  on  and 
after  that  date  the  employment  of  skilled  laborers,  clerks,  and 
all  others  who  had  theretofore  been  known  as  gold  employees 
of  the  Commission  should  be  restricted  to  American  citizens, 
except  where  American  labor  or  service  of  the  character  re- 
quired is  not  available.  Foreign  employees  were  not  to  be 
affected  by  this  order  save  that  in  the  event  of  any  reduction 
in   force   preference   should   be   accorded   to    American   citizens. 

Owing-  to  the  unwillingness  of  American  laborers  to  engage 
in  the  heavy  work  in  the  tropical  climate  of  Panama  the  un- 
skilled labor  force  is  brought  from  the  ^Vest  Indian  Islands  and 
from  Europe.  On  June  30,  1907,  the  unskilled  labor  force  con- 
sisted  of  4,317   Europeans  and   14,608   West   Indians. 

Appropriations  for  tlie  Canal. 

In  addition  to  the  $40,000,000.00  paid  to  the  French  Com- 
pany for  its  property  and  rig-hts  of  all  kinds  on  the  li-thmus, 
and  the  $10,000,000.00  paid  to  the  Republic  of  Panama  for  the 
rights  granted  under  the  treaty  between  that  Republic  and  the 
United  States,  there  have  been  appropriated  by  Congress  the 
following  amounts  "to  continue  the  construction  of  the  Isth- 
mian Canal" : 

Act  of  June  28,  1902.  This  Act  limits  the 
amount  to  be  thereafter  appropriated  to 
the  sum  of  $145,000,000,  of  which  there 

is  appropriated  thereby    $10,000,000.00 

•  Act  of  December  21,  1905 11,000.000.00 

Act  of  February  27,  1906 5,990,786.00 

Act  of  June  3.:    1906   25,456,415.08 

Act  of  Mai-ch  4,  1907 27,161,307.50 

79,608,568.58 
Act  of  Februarv  15,  1908 12,178,900.00 


91,787,468.58 


Time  of  Completion  of  Canal. 

In  addition  to  excavation  preliminary  work  on  the  locks  and 
dams  is  progressing,  and  it  is  estimated  that  tha  laying  of 
concrete  in  the  locks  will  commence  about  Januar^^  1,  1909.  It 
has  also  been  estimated  that  the  determining  factor  in  this 
time  of  completion  of  the  canal  will  be  the  construction  of  the 
Gatun  dam,  and  w^hile  the  total  excavation  required  for  the 
rest  of  the  work  could  probably  be  finished  in  less  time,  it  is 
the  intention  to  adjust  the  whole  work  so  that  all  the  separate 
parts  will  be  completed  at  approximately  the  same  time,  which, 
it  has  been  unof&oially  estimated,  will  be  about  January,  ig-lo. 

What   tlie   Canal   Means. 

[By  Charles  M.  Pepper.] 

There  are  many  meanings  to  the  Canal  and  many  resul+s 
from  its  construction  by  the  United  States. 

The  daily  story  of  the  steam  shovels  is  one  of  the  most  fasci- 
nating and  instructive  chapters  in  the  history  of  canal  construc- 
tion, telling  as  it  does  in  the  record  of  the  thousands  of  cubic 
yards  excavated  in  the  Culebra  Cut  the  marvelous  engineering 
progress  that  is  being  made  on  the  waterway.  The  sanitary 
miracle  wrought  in  freeing  the  Isthmus  from  yellow  fever  epi- 
demics and  other  tropical  diseases  and  in  insuring  a  healthy 
and  effective  body  of  laborers  is  another  chapter  in  canal  build- 
ing to  which  the  world  offers  no  parallel.  The  transplanting  of 
the  American  home  life,  the  schools,  the  churches,  and  the  Young 
Men's  and  Young  Women's  Christian  Associations  is  a  contribu- 
tion to  Christian  civilization  which  will  find  a  responsive  echo 
in  the  millions  of  American  homes  where  these  ideals  are  clier- 
ished.  The  zealous  and  intelligent  devotion  to  duty  which  is 
shown  by  the  Canal  Commission  and  its  employees,  from  the 
highest  to  the  lowest,  is  an  example  for  all  peoples  who  would 


4M  THE  PANAMA  CANAL. 

advance  in  civic  virtue  up  to  tlie  American  standard.  But  there 
arc  otlicr  chapters  in  whicli  the  Canal  policy,  as  i nan j^u rated  by 
President  Jvoosevelt  and  carried  out  by  Secretary  Taft,  opens 
new  prt»spects.  There  is  both  the  immediate  and  the  ultimate 
expansion  of  American  commerce  and  the  legitimate  extension  of 
the  moral  and  political  influence  of  the  United  States  which 
g-oes  with  it. 

The  Cautil  means  more  trade  iu  the  Orient  and  on  the  West 
Coast  of  Central  and  South  America.  It  means  more  trade  in 
the  first  place  because  the  trade  routes  are  shortened.  The 
Canal  puts  into  force  the  railway  maxim  of  the  short  rail  and  the 
]ong-  water  haul  as  the  best  for  the  i)roducer,  the  common  car- 
rier and  the  consumer.  This  shortening-  of  the  routes  means  that 
the  Mississippi  Valley  with  its  agricultural  products,  its  Hour, 
its  farm  tools  and  other  machinery  has  this  haul  for  the  500,000,- 

000  consumers  in  the  Orient.  It  means  that  the  cotton  mills  of 
the  South  will  be  closer  to  this  huge  body  of  buyers,  and  that 
the  shipping  of  the  world  will  draw  on  the  Southern  coal  fields 
for  fuel.  It  means  that  the  factories  of  New  England  and  the 
Eastern  States,  saving  the  10,000  miles  voj^age  around  Cape  Horn, 
will  have  a  short  cut  from  the  Western  to  the  lOastern  Hemis- 
phere, which  will  neutralize  the  advantage  that  the  Suez  Canal 
gives  to  their  European  competitors;  that  New  York  will  be  as 
near  to  China  as  Liverpool  is,  and  that  it  will  be  2,000  miles 
nearer  to  Japan. 

Here  is  some  of  the  trade  of  the  United  States  w  ith  the  Orient 
and  with  Oceania  to-day:  Japan,  $108,000,000;  the  Chinese  Em- 
pire and  Hongkong.  $70,000,000;  the  British  East  Indies.  $9:5,000,- 
000;  the  Dutch  East  Indies,  $14,000,000.  Tins  is  a  big  quantity  of 
<4<)()ds  going  oi.t  and  a  big  quantity  coming  in,  most  of  which  will 
be  favorably  alfected  by  the  Canal  route.  It  is  some  measure  of 
the  future  growth  of  our  Pacific  commerce,  which  in  the  last  dozen 
years  has  risen  from  $125,000,000  to  $400,000,000. 

'I  hen  there  is  the  trade  with  our  American  Asiatic  capital — 
Manila.  The  foreign  commerce  of  tli^  Philippines  under  our  peace- 
ful and  fostering  control  has  now  i-eached  $65,000,000,  and  is  ex- 
panding toward  the  $100,000,000  mark.  The  present  interchange 
of  $20,000,000  of  commodities  between  the  United  States  and  the 
Philippines  will  undoubtedly  grow,  and  the  United  States  will 
absorb  a  larger  share  of  the  business.  There  is  also  the  trade 
pf  our  strategic  territory  in  the  mid-Pacific,  the  Hawaiian 
Islands,  which,  when  the  Canal  is  opened,  will  be  shipping 
through  it  400,000  tons  of  sugar-cane  productsto  the  refineries  on 

1  he  Atlantic  coast. 

But  above  all,  there  is  the  Pan-American  meaning  of  the 
Canal.  It  means  tnat  for  a  large  section  of  South  America  the 
dreain  of  James  G.  Blaine  becomes  true  and  the  markets  of  the 
United  States  are  extended,  while  the  products  of  those  coun- 
tries flow  to  us  in  an  unbroken  stream.  It  means  that  the  pol- 
icy of  closer  commercial  relations  which  was  inaugurated  by 
President  Roosevelt  will  continue  unchecked,  and  that  the  influ- 
ence of  the  visit  of  Secretary  Boot  in  fostering  and  fomenting 
Pan-American  trade  will  grow  deeper,  while  the  Monroe  Doctrine 
will  vindicate  its  utility  to  the  commerce  of  both  continents.  The 
Canal  means  that  the  people  of  the  West  Coast  of  Central  and  : 
South  America,  throvgh  their  reciprocal  commercial  interest,  will  i 
be  neighbors  to  the  United  States  in  fact  as  well  as  in  name.  j 

The  foreign  trade  of  the  South  American  and  Central  Ameri- 
can countries  which  are  within  the  radius  of  the  Canal  now  ap-  t 
proximates  $300,000,000  annually.     It  is  not  an  exaggerated  esti-  j 
mate  that  by  the  time  the  waterway  is  opened  this  commerce  will  - 
have   reached   $500  000.000,   and   the   tendency   will   be   for   it   to 
gravitate  more  and  more  to  the  United  States.     Here  is  an  illus- 
tration of  the  way  commerce  has  grown  since  the  United  States 
obligated  itself  to  build  the  Canal  : 

In  1904  the  trade  between  the  United  States  and  Chile  was 
$15,150,000;  Bolivia,  a  few  thousand  dollars;  Peru.  $7,000,000; 
Ecuador,  $3,700,000.  In  1907  the  trade  was:  Chile,  $28,500,000; 
Bolivia,  $2,500,000:  Peru,  $13,000,000;  Ecuador,  $4,800,000.  In  a 
single  year  the  imports  from  Peru  were  increased  by  nearly 
f''  000.000,  and  this  was  because  the  great  American  mine  inter- 
I'sts  w-ere  getting  the  first  returns  from  their  copper  investments 


THE  PANAMA  CANAL.  •  487 

and  were  sending-  thousands  of  tons  across  the  Isthmus  to  the 
mills  and  factories  of  the  United  States  to  be  fabricated  into 
railway  material,  electrical  apparatus,  and  the  countless  other 
articles  into  which  copper  enters.  When  the  (anal  is  opened 
and  these  shipments  can  be  made  without  the  necessity  of  tho 
railway-  transfer  across  the  Isthmus  their  volume  will  be  vastly 
increased,  and  substantially  all  the  mines  of  the  Andes  will  be 
laying-  down  their  products  in  the  United  States. 

The  Canal  means  that  the  vast  treasure  house  of  the  Andes, 
the  silver  and  gold,  the  tin  arid  copper  mines,  are  to  be  opened 
up  by  capital  from  the  United  States,  while  the  products  of  the 
farms  and  the  output  of  the  factories  will  be  carried  to  them 
more  quickly  and  more  cheaply.  There  are  hundreds  of  millions 
of  untouched  mineral  wealth  lying  in  these  mountains  waiting 
not  for  future  ages,  but  for  the  present  g-eneration  to  exploit 
theni.  The  Canal  means  the  railway  building  which  will  make 
this  exploitation  possible,  because  under  the  paramount  moral 
influence  of  the  United  States  and  under  the  commercial  pros- 
perity which  the  Andean  countries  see  coming-  to  them  as  a  result 
of  the  Canal  all  are  encouraged  to  maintain  the  stable  govern- 
ment which  alone  can  draw  foreign  capital  to  them. 

There  is  now  $75,000,000  of  American  capital  invested  in  the 
section  of  South  America  which  is  directly  tributary  to  the 
Canal.  Much  of  this  capital  was  invested  after  it  became  settled 
that  the  United  States  would  build  the  waterway.  Without  such 
incentive  those  Andean  treasvire-houses  would  have  remained  un- 
touched for  generations  yet.  This  American  capital  has  gone  into 
the  heart  of  South  America — -Bolivia — where  it  is  building  rail- 
ways and  is  opening  Tip  tin  and  copper  and  silver  mines.  There 
is  $25,000,000  of  it  that  already  has  gone,  and  more  will  go  in  the 
future.  It  has  gone  into  Peru,  where  $20,000,000  has  been  in- 
vested in  a  single  enterprise,  that  of  exploiting  the  gi-eat  Cerro 
de  Pasco  copper  fields.  Other  investments  of  American  millions 
have  been  made  in  other  copper  mines  and  smelting  works  in 
Peru.  ''^American  capital  has  gone  into  Ecuador,  where  it  con- 
trols the  marvelous  railway  leading  from  the  coast  through  the 
clouds  over  the  Andean  plateaus  to  the  ancient  capital  of  Quito. 
In  all  the  countries  it  has  gone  into  these  mining  and  railway 
enterprises,  and  it  is  now  going  into  general  trade,  so  that 
American  goods  are  being  pushed  and  handled  by  Americans. 

One  of  the  first  results  of  the  Canal  has  been  the  development 
of  the  Republic  of  Panama  into  a  prosperous  tropical  State.  In 
1907  it  had  a  total  foreign  trade  of  more  than  $19,000,000.  Nearly 
$8,000,000  of  this  was  exports  from  the  mills  and  factories  of  the 
United  States  to  the  Canal  Zone  to  be  employed  in  building  tho 
waterways.  All  told,  the  United  States  shipped  $18,665,000  worth 
of  goods  to  Panama.  Of  the  imports  taken  by  it  in  addition  to 
the  Canal  supplies  there  was  $5,200,000  of  other  commodities 
from  the  United  States,  and  the  prosperous  little  commonwealth 
increased  its  exports  by  $843,000,  the  total  amount  being 
$1,961,000.  Practically  all  these  exports  were  taken  by  the 
United  States. 

Here  are  some  of  the  products  from  the  farms  and  factories 
of  the  United  States  that  were  consumed  on  the  Isthmus  during 
1907:  Flour,  $350,000;  cotton  cloths  and  wearing  apparel,  $850,- 
000;  coal,  $545,000;  explosives,  $275,000;  steel  rji^ils,  $376,000; 
wire,  $167,000;  locomotives,  $1,093,000;  other  steam  engines,  $1.- 
015,000;  miscellaneous  iron  and  steel  products,  $1,540,000;  boots 
and  shoes,  $421,000;  packing  house  products,  $1,400,000;  illumi- 
nating and  other  oils,  $280,000;  vegetables,  $284,000;  paints, 
$157,000;  soap,  $116,000;  sugar,  $94,000;  lumber  and  various 
products  of  lumber,  $2,000,000;  miscellaneous  products,  $1,600.- 
000. 

The  growth,  in  the  commerce  between  the  United  States  and 
the  countries  of  Central  and  South  America,  the  new  market  for 
railway  material  and  machinery,  for  textiles  and  breadstuffs, 
the  employment  of  .American  capital  in  building  the  railroads 
and  in  opening  up  the  mines,  the  opportunities  for  young  Ameri- 
cans which  these  enterprises  have  offered,  are  among  the  first 
fruits  of  the  Canal.  A  larger  trade,  more  paying  investments, 
and  wider  opportunities  will  come  as  the  w^ork  progresses. 


438  ,  DEMOCRATIC  EXPAN8I0NI8TB. 

Tilli:   DISMOCKATS   AS    BXPAIVSIONISTS. 

I )oniocrattt  Schemed  for  the  Aiinexiition  of  Cuba,  Iluwaii  uud 
Otliei-  ImlaiidM. 

Nearly  every  Democratic  President  from  Jefferson  to  Bu- 
chanan expressed  a  desire  for  the  addition  of  Cuba  to  the  terri- 
tory of  the  United  States,  several  of  them  hinting  at  a  similar 
desire  with  reference  to  Porto  Rico,  and  that  at  leasr,  one  of 
them  actively  pressed  for  the  annexation  of  the  Hawaiian  Is- 
lands to  the  United  States,  while  schemes  looking-  to  the  addi- 
tion of  non-contiguous  territory  in  Central  America  ai  d  upon 
the  Isthmus  of  Darien  were  favored  by  leading  Democrats. 

Many  Democratic   Presi«lents   Wanfed  to   Annex   Cuba. 

Jefferson,  both  while  President  and  afterwards,  in  corre- 
spondence with  Madison  and  Monroe,  frequentlj'^  expressed  a 
desire  that  Cuba  should  some  time  become  a  part  of  the  United 
States,  and  the  Democratic  text  hook  as  late  as  1898,  issued  as 
an  official  document  of  the  Democratic  party,  quotes  extracts 
from  his  letters  in  support  of  that  statement.  President  Monroe 
also  expressed  himself  in  favor  of  making  Cuba  a  part  of  the 
United  States.  Polk  favored  the  annexation  of  Cuba,  ai  d  Hon. 
James  D.  Richardson,  the  present  member  of  Congress  from 
Tennessee,  who  now  holds  iip  his  hands  in  holy  horror  at  the 
thought  of  this  kind  of  expansion,  says  in  his  index  to  the 
Messages  and  Papers  of  the  Presidents,  page  332,  volume  10 : 

President  Polk  made  a  proposition  in  1840  for  the  purchase  of  the  island 
by  the  American  Government  for  $100,000,000.  In  1834  the  Ostsud  mani- 
festo claimed  the  right  of  the  United  States,  should  Spain  reluse  to  sell 
Cuba,   to  take  and  annex   it. 

The  Ostend  manifesto,  it  will  be  remembered,  was  an  an- 
nouncement made  by  President  Pierce's  Ministers  to  P^ngland, 
France  and  Spain  (Buchanan,  Madison,  and  Soule),  in  wiiicu  ihvy 
suggested  that  an  earnest  effort  be  made  to  purchase  Ci;ba  at  a 
price  not  to  exceed  $120,000,000,  and  added  that  if  this  should  be 
refused  by  Spain  "we  should  be  justified  by  every  law,  human 
and  divine,  in  wresting  it  from  Spain  if  we  possess  the  power," 
a  proposition  of  which  Lossing,  the  historian,  saj-^s :  "The  bald 
iniquity  of  this  proposition  amazed  honest  men  in  both  hemi- 
spheres." 

Spain  having  refused  to  sell,  and  the  sentiment  of  the  world 
failing  to  sustain  the  Democratic  proposition  to  seize  the  island, 
Pierce's  Administration  failed,  but  that  of  Buchanan  immediately 
took  it  up  again,  and  President  Buchanan,  in  three  of  his  annual 
messages  to  Congress,  ui'ged  that  Cuba  ought  to  be  made  by 
purchase  a  part  of  the  United  States.  Daring  his  terra  a  bill 
for  that  purpose  was  introduced  in  Congress  by  Senator  Slidell, 
whose  name  is  well  remembered  in  connection  with  the  Confede 
rate  Government,  and  was  sustained  by  Southern  Democrats 
generally,  w^hile  the  same  proposition  for  obtaining  control  of 
the  island  of  Cuba  by  some  process  was  publicly  commended  by 
Jefferson  Davis  in  a  speech  in  his  own  State  during  that  time. 
The  efforts  of  the  various  Democratic  Presidents  for  the  pur- 
chase of  Cuba  having  been  rejected  by  Spain,  the  Democratic 
national  convention  took  up  the  question  and  in  the  platforms 
Upon  which  two  of  its  candidates,  Douglas  and  Breckinridge, 
ran  in  1860  it  declared  pointedlj^  in  favor  of  the  annexation  of 
Cuba,  as  follows : 

Resolved,  That  the  Democratic  party  are  in  favor  of  the  acquisition  of 
the  island  of  Cuba  upon  such  terms  as  shall  be  honorable  to  ourselves  and 
just  to  Spain. 

Democratic   Effort   to  Annex   Ha-waii. 

It  is  also  on  record  that  at  least  one  Democratic  President 
attempted  to  make  Hawaii  a  part  of  the  United  States,  al- 
though within  the  memory  of  the  present  generation  a  Demo- 
cratic President  hauled  down  the  United  States  flag  in  that  is- 
land and  withdrew  from  the  Senate  a  treaty  of  annexation 
which  a  Republican  President  had  sent  to  that  body.  Under 
President  Pierce  an  active  effort  was  made  to  annex  Hawaii, 
and  probably  would  have  been  successful  but  for  the  death  of 


DEMOCRATIC   EXPANSIONISTS.  439 

the  King-  after  the  treaty  of  annexation  had  been  prepared  and* 
forwarded  to  the  United  States.  It  is  a  matter  of  official  record 
in  the  State  Department  that  negotiations  were  opened  by  Presi- 
dent Pierce,  tliroiigli  his  Secretary  of  State,  Marcy,  and  the 
Minister  to  the  Hawaiian  Islands,  David  L.  Gregg,  for  the  an- 
nexation of  Hawaii ;  that  a  treaty  for  that  purpose  was  drawn 
and  forwarded  to  the  United  States  in  1854,  and  that  while 
President  Pierce  objected  to  certain  of  its  features,  his  Secretary 
of  State  resjjonded  to  Minister  Gregg  that — 

This  Government  will  receive  the  transfer  of  the  sovereignty  of  the 
Sandwich  Islands  with  all  proper  provisions  relative  to  existing  rights 
of  the  people  thereof,  such  as  are  usual  and  proper  to  territorial  sover- 
eignty. The  President  directs  me  to  say  that  he  can  not  approve  of  some 
of  the  articles  of  the  treaty ;  there  are  in  his  mind  strong  objections  to 
the  immediate  incorporation  of  the  islands  in  their  present  condition  into 
the  Union  as  an  independent  State.  It  was  expected  that  the  Hawaiian 
Government  would  be  willing  to  offer  the  islands  to  the  United  States 
as  a  Territory  and  leave  the  question  in  relation  to  their  becoming  a 
S,tate  to  the  determination  of  this  Government,  unembarrassed  by  stipu- 
lations on  that  point.  *  *  *  The  President  desires  me  to  assure  you 
that  he  takes  no  exception  ^whatever  to  your  course  in  this  difficult  and 
embarrassing  negotiation,  5ut,  on  the  contrary,  it  is  highly  approved. 
Your  efforts  have  been  properly  directed  and  your  ability  is  appreciated 
and   commended. 

Vncatan  and  tlie   Danisb  West   Indies  Tvanted   by  Demoeratic 
Presidents. 

In  addition  to  the  above  evidence  of  Democratic  efforts  to 
add  island  territoi-y  to  that  of  the  United  States,  a  psrt  of  it 
thonsaads  of  miles  away,  it  may  be  further  remarked  that  ' 
President  Polk  in  a  message  to  Congress,  on  April  29,  1848,  in- 
timated strongiy  a  desire  to  send  troops  to  Yucatan  and  take 
possession  of  that  territorj-,  suggesting  that  this  might  be  ad- 
visable in  order  to  prevent  tliat  territory  from  falling  into  the 
hands  of  a  European  power,  while  President  Johnson,  after 
severing  his  allegiance  to  the  Republican  party  and  receiving 
the  siipport  of  the  Democrats,  recommended,  in  a  mes  age  to 
Congress,  the  purchase  of  the  Danish  West  Indies, 

[Extracts  from  Democratic  Platforms.  | 

1844 
The  reoccupation  of  Oregon  and  the  reannexation   of  Texas 
at  the  earliest  practicable  period,  are  great  American  measures, 
which  this  convention    recommends  to  the  cordial  support  of  the 
Democracy  of  the  Union. 

1860 
That    the    Democratic  party     is  in  favor    of    the   acqi  isition 
of  the  Island, of  Ciiba  on  such  terms  as  shall  be  honorable  to 
ourselves  and  just  to  Spain,  at  the  earliest  practicable  moment. 

1884 
This  country  has  never  had  a  well-defined  and  executed 
foreign  policy  save  under  Democratic  administration.  That 
jjolicy  has  ever  been  in  regard  to  foreign  nations,  so  long  as 
the.y  do  not  act  detrimental  to  the  interests  of  the  country  or 
hurtful  to  our  citizens,  to  let  them  alone ;  that  as  a  result  of 
this  policy  we  recall  the  acquisition  of  Louisiana,  Florida,  Cal- 
ifornia and  of  the  adjacent  INIexican  territory  by  purchase 
alone,  and  contrast  these  grand  acquisitions  of  Democratic 
statesmanship  with  the  purchase  of  Alaska,  the  sole  fruit  of  a 
Republican  administration  of  nearly  a  quarter  of  a  century. 


IMPORTS    OF    TROPICAL.    AND    SUBTROPICAL,    ARTICLES    INTO 
•  THE   UNITED    STATES. 

These  tables  are  given  because  of  their  special  interest  at 
this  time  when  the  United  States  is  developing  a  close  relation 
of  interchange  with  certain  tropical  areas :  In  the  case  of  Porto 
Rico  and  Hawaii,  an  absolute .  freedom  of  interchange  of  its 
manufactures  and  temperate  zone  products  for  the  tropical  pro- 


440 


DEMOCRATIC  EXPANSIONISTS. 


duotions  of  those  islands;  in  the  case  of  the  Philippines,  re- 
duced rates  of  duty  on  articles  coming  from  those  islands,  and 
in  the  case  of  Cuba,  a  reduction  in  rates  of  duty  on  products 
coming-  from  that  island  and  in  return  therefor  reduced  rates 
of  duty  on  articles  from  the  United  States  entering  that  island, 
It  will  be  seen  that  the  value  of  tropical  and  subtropical  mer- 
chandise brought  into  the  United  States,  including  that  from 
our  own  islands,  has  grown  from  145  million  dollars  in  1870  t<) 
567  millions  in  1907,  and  that  a  very  large  proportion  of  these 
articles  are  of  classes  absolutely  required  for  manufacturing  or 
for  foods  and  in  most  cases  of  a  class  which  are  not  produced 
in  the  United  States,  or  at  least  not  sufficient  for  our  own  re- 
quirements. 


Value  of  principal  imports  of  tropical  and  subtropical  articles 
at  quinquennial  periods  from  1810  to  1907. 


Articles. 

Yaar  ending  June  30— 

1870. 

1890. 

1900. 

1907.  b 

Sugar   and   molasses   a. 

Coffee 

$69,802,601 

24,234,879 

3,017,958 

6,043,102 

3,459,665 
7,416,592 
4,181,736 
13,863,273 
331.573 
2,511,334 
1,288,494 

418,064 
1,513,126 

670,131 
1,007,612 

224,918 

52,760 

1,776,908 

$82,915,044 
78,267,432 
24,331,867 
20,541,767 

14,854,512 
20,746,471 

$85,949,891 
.52,467,943 
45,329.760 
26,373,805 

31,792,697 
13  '?R.^.5«2 

$127,351,448 

78,381,182 

Silk 

71,411,899 

Fibers           

42,251,355 

India     rubber     and     gutta 
percha 

89,121,320 

Fruits    and    Huts 

37,040,689 

Tobacco,  and  mfrs  of 

Ten 

21.710, 45t  i       i5',661,'360 
12,317,493         10,558,110 
1,392,728           7,960,945 
3.221,292           6,'«20,711 
5,697,280  1        6,884,704 

2,859,642           6,210,985 
3,223,071  i         3.401.265 

35,608,109 
13,915,544 
20,995,684 

Cotton     ..      .    .. 

Vegetable  oils 

15,394,581 

Gums -_  _  _. 

14,974,156 

Cocoa,    and   mfrs    of.    and 
chocolate        ._  __    . 

14,578,989 

Spices _ 

5,113,000 

Cabinet  woods  .. 

2,430,702 
2.279.036 

5,355,600 

Bice  

2,540,674 

4,548,256 

Cork,   and  mfrs  of.. 

1,588,767           1,909,483 

1,741,383           1.736,458 

1,453,298           2,189,721 

794,503  !        1,667,256 

909,582            1.049.034 

4,063,982 

Feathers  

4,401,154 

Opium    

3,068,126 

Li(orice  

1,140,541 

Ivory      

2,470,405 

Dyewoods  and  ex^racts 

Indigo    ..    

1,337,093 
1,203,664 

1,943,272 

1,827,937 

559,867 

1,108,726 

282,775 
416,718 

1,083,644 

1,446,490 

1,209,334 

411,029 

563,065 

536,303 

913,465 
1,233,541 

Vanilla  beans   

1,523,156 

Sago,  tapioca,  etc 

Barks  for  quinine 

388,621 

1,432,082 
380,552 

Sponges  ..  _. 

86,483 

488,426 

Total     .      . 

$144,a30,587 

$307,246,555 

$336,687,323 

$567,166,242 

a  Only  cane  sugar  not  above  No.  16  Dutch  standard  In  color,   and  molasses. 
b  Includes  articles  from  Hawaii  and  Porto  Rico. 


(Quantities  of  principal  articles  of  tropical  and  subtropical  growth 
imported  from  1870  to  1907. 


Articles. 

Year  ending  June  30— 

1870. 

1880. 

1890. 

1900. 

1907. 

Sugar   a_.lbs. 

Coftee   ..-do. 

Silk  do. 

India     rubber 
and    gutta 
percha,  lbs. 

Tobacco,  leaf 
lbs. 

1,196,622,049 

235,256,574 

583,589 

9,624.098 

6.256,540 
1,698,133 
43,. 533 
3,640,845 
251,727 
47,408,481 
43,123,939 

1.829,286,030 

446,850,727 

2,562,236 

16,826,099 

9,759,355 
3,547,702 
111,751 
7,403,613 
383,131 
72,162,936 
57,006,255 

2>332,820,896 

499,159,120 

5,943,360 

33,842,374 

28,720,674 

8,606,049- 

195,332 

18,266,177 

893,984 

83,886,829 

124,029,171 

3.305,087,796 

787,991,911 

11,259,310 

58,506,569 

19,619,627 
67,398,521 
249,306 
41,746,872 
967,702 
84,845,107 
116,679,891 

5,198,909,054 

986.599,779 

18,743,904 

77,510,728 
42,341,300 

Cotton  ...do. 
Fibers  ..tons. 
Cocoa  -—lbs. 
Olive    oil-gal. 

Tea lbs. 

Rice do. 

127,833,300 

312,983 

92.249,819 

3,449.517 

86,362,490 

213,144,062 

a  Cane  sugar  under  No.   16  Dutch  standard  in  color  only;   figures  of  1907 
Include  sugar  from  Hawaii  and  Porto  Rico. 


COLONIAL    TRADE. 


441 


Trade  of  tlie  United  Kingdom  Trifli  its  Colonies. 

The  table  which  follows  showing  the  trade  of  the  United 
Kingdom  with  its  Colonies  is  suggestive  and  interesting,  es- 
])ecially  in  the  showing  which  it  presents  as  to  the  market  which 
that  country  finds  for  its  merchandise  in  the  communities  with 
which  it  has  relations  of  this  character.  It  will  be  noted  that 
while  the  total  exports  of  the  United  Kingdom  have  barely 
doubled  in  the  period  from  1869  to  1906,  the  exports  to  her  colo- 
nies have  nearly  trebled  during  the  same  period  and  that  the 
value  of  her  merchandise  sold  in  the  colonies  in  that  period 
aggregates   16  billions  of   dollars. 

statement  showing  the  total  imports  and  exports  of  the  United 
Kingdom;  and  the  amount  imported  from  and  exports  to  her 
Colonics  during  the  past  thirty-eight  years,  1869  to  1906. 


Imports. 

Exports. 

Year. 

Total  Imports. 

Imports  from 
colonies. 

Total  exports. 

Exports  to 
colonies. 

1860 

$1,437,857,131 
1,475,802,590 
1,610,886,833 
1,726,116,521 
1,806,869,996 
1,801,007,465 
1,819,776,951 
1,825,690,362 
1,919,443,383 
1,794,622,816 
1,766,499,960 
2,001,248,678 
1,932,109,943 
2,009,959,922 
2,077,467,869 
1,898,025,366 
1,805,315,553 
1,702,610,586 
1,762,780,440 
1,886,429,343 
2,081,098,356 
2,047,207,603 
2,119,074,911 
2,032,392,927 
1,069,415,018 
1,087,210,018 
2,027,820,221 
2,150,063,031 
2,194,932,434 
2,289,905,792 
2,360,425,635 
2,515,545,281 
2,540,265,299 
2,571,416,135 
2,640,564,306 
2,681,629,483 
2,749,669,426 
2,058,289,385 

$342,681,854 
315,506,938 
354,984,010 
386,267,989 
394,235,759 
399,845,456 
410,849,255 
410,404,481 
435,814,531 
379,810,859 
384,174,348 
450,242,765 
445,477,755 
483,880,460 
480,233,544 
466,273,531 
410,741,034 
398,488,695 
407,806,203 
422,975,439 
473,315,335 
467,968,548 
484,045,050 
475,779,718 
446,596,048 

•  457,023,556 
464,807,767 
453,596,873 
457,586,162 
484,815,412 
519,884,761 
533,030,835 
513,774,440 
519,708,295 
553,178,889 
584,069,573 
622,273,136 
691,847,141 

$1,153,433,750 
1,187,818,128 
1,380,016,278 
1,530,946,561 
1,513,504,689 
1,448,515,983 
1,370,466,370 
1,249,603,334 
1,228,041,906 
1,194,647,195 
1,210,704,241 
1,393,835,999 
1,445,753,324 
1,492,364,365 
1,486,409,501 
1,440,326,242 
1,321,129,720 
1,308,891,227 
1,368,765,830 
1,453,027,603 
1,535,831,773 
1,597,438,932 
1,504,301,909 
1,419,266,868 
1,318,693,391 
1,332,378,922 
1,391,003,409 
1,422,329,445 
1,431,598,315 
1,430,810,072 
1,603.680,413 
1,721,550,874 
1,6)2,881,460 
1,609,570,518 
1,753,758,475 
1,805,545,496 
1,983,568,499 
2,241,888,602 

$252,531,187 

L'TO 

269,561,917 

1871 

1872 

270,389,037 
319,287,259 

1873               

346,240.316 

1874        -.     „ 

379,149,151 

1875 

373,041,611 

1876        

841,384,435 

1877    

368,647,838 

350,352,514 

1879 

323,666,917 

1880  __.     

396,763,915 

1881 

421,834,021 

1«82  _ 

449,361,013 

1883 

439,933,016 

1831: 

429,729,930 

1885 

416,034,710 

1886 

400,184,346 

1887 

400,367,265 

1888 

1889    -- 

446,393,791 
442,053,886 

^m) 

1891 

459,993,595 
451,229,956 

1802 

1893 

1894  ^ 

395,215,964 
382,425,688 
382,438,613 

1895 

370, 205  ,"123 

1896 

441,148,230 

1897 

1898 

1899 

1000 

423,212,192 
438,-523,897 
458,665,678 
496,500,059 

1!K)1    

550,490,518 

lfX)2 

571,869,627 

1003 

lfK)l 

581,469,826 
587,792,884 

1005 

597,182,461 

1906 

635,793,874 

Total    exports   of   United   Kingdom    to    colonies    from   1869   to  1906, 
$16,064,055,170. 


We  are  no  more  a|i,-ainnt  org:anizations  of  capital  than 
against  organizations  of  la1)or.  We  Tveleome  botli,  demand- 
ing only  that  each  shall  do  right  and  shall  remember  its 
dnty  to  the  Republic. — President  Roosevelt  at  Milwaukee, 
Wis.,  April  3.  1903. 


Any  unjust  discrimination  in  the  terms  upon  Trhich  trans- 
portation of  freight  or  passengers  is  afforded  an  individual 
or  a  locality  paralyzes  and  Tvithers  the  business  of  the  in- 
dividual or  the  locality  exactly  as  the  Itindifig  of  the  ar- 
teries and  veins  leadlnif  to  a  member  of  the  human  body 
destroys    its    life.— Hon.    Wm.    H.    Taft,    at    Columbus,   Ohio. 

The  course  of  the  Republican  party  since  its  ortranlzation 
in  185G,  and  its  real  assumption  of  control  in  1861,  dovFU 
to  the  present  day,  is  remarliable  for  the  foresight  and 
ability  of  its  leaders,  for  the  discipline  and  solidarity  of 
Its  members,  for  its  elliclency  and  deep  sense  of  respon- 
sibility for  the  i>reservation  and  successful  maintenance  of 
«he  government,  and  for  the  greatest  resourcefulness  in 
meeting  the  various  trying  and  dlftlcult  Issues  ^vhlch  a 
Iiistiiry  of  no>v  a  full  half-century  have  nresented  for  ao- 
iution.— Hun.  M-ni.  H.  Taft,  at  Kansas  City,  Mo. 


RECENT  TEMPORARY  GOVERNMENT 
OF  CUBA  BY  THE  UNITED  STATES 
AND  ITS  EFFECT  ON  THE  CONDI- 
TIONS IN  THE  ISLAND. 


On  May  20,  1902,  the  military  government  of  Cuba,  by  order 
of  President  lloosevelt,  issued  in  compliance  with  the  promise 
made  by  the  United  States  Congress  in  the  Teller  llesolution, 
transferred  the  government  of  Cuba  to  its  newly  elected  Presi- 
dent and  Congress.  Under  the  presidency  of  McKinley,  a 
brief  war  with  Spain  had  secured  Cuba's  freedom  from 
Spanish  dominion.  Three  years  of  military  administration  had 
established  order,  constituted  a  govermueut,  placed  the  finances 
of  the  country  on  a  sound  basis,  and  the  new  Kepublic  entered 
on  its  national  life  under  the  best  auspices.  But  one  circum- 
stance distinguished  it,  in  its  relation  with  the  United  States, 
from  other  Latin  American  Republics ;  namely,  the  existence 
of  a  law  of  the  American  Congress,  known  as  the  Piatt  amend- 
ment, which  had  been  adopted  by  the  Cubans  as  a  x^^rt  of 
their  constitution,  and  was  later  embodied  in  a  permanent 
treaty  between  the  two  countries.  According  to  the  law  and 
treaty,  the  Republic  of  Cuba  undertook  to  enter  into  no  com- 
pact with"  foreign  i^owers  which  would  tend  to  impair  the  inde- 
pendence of  the  Republic,  to  contract  no  public  debt  to  the  ser- 
vice of  which  it  could  not  properly  attend,  to  lease  coaling  sta- 
tions to  the  United  States,  and  to  execute  and  extend  plans  for 
the  sanitation  of  the  cities  of  the  Island,  and  consented  that  the 
United  States  might  exercise  the  right  to  intervene  for  the 
preservation  of  Cuban  independence,  the  maintenance  of  a  gov- 
ernment adequate  for  the  protection  of  life,  property,  and  indi- 
\  idual  liberty,  and  for  discharging  the  obligations  with  re- 
spect to  Cuba  imjiosed  by  the  Treaty  of  Paris  on  the  United 
States  which  were  now  to  be  assumed  and  undertaken  by  the 
Government  of  Cuba. 

But  while  economically,  with  the  assistance  of  the  United 
States,  the  progress  of  Cuba  was  highly  gratifying,  in  political 
matters,  where  the  Cubans  were  left  to  themselves,  the  result 
was  not  so  satisfactory.  It  was  soon  evident  that  political  pas- 
sion was  becoming  more  and  more  intense,  and  personal  am- 
bition keener.  To  such  an  extent  was  partisanship  carried  in 
tilt!  Cuban  Cojigress,  that  the  minority  party,  availing  them- 
selves of  the  provisions  of  the  constitution  which  require  the 
presence  of  two-thirds  of  the  total  membership  of  each  braucJi 
to  open  sessions'  and  of  the  omission  of  the  constitution  to 
provide  means  for  con)pelling  the  attendance  of  absent  mem- 
bers, remained  away  from  the  meetings  of  the  Congress  and 
prevented  sessions  except  at  irregular  intervals.  During  the 
term  of  Congress  lasting  from  April  4th  to  October  20th,  1904, 
a  period  of  199  days,  the  Lower  House  was,  due  to  the  obstructive 
tactics  of  the  minority,  able  to  hold  but  sixteen  daily  sessions 
and  the  Senate  but  twenty-six  daily  sessions;  and  a  similar 
rcord  of  infrequent  and  irregular  sessions  continued  throughout 
190."). 

For  the  administration  of  the  executive  departments  no  la^v 
whatever  has  been  provided.  The  Cuban  Congress,  engrossed  in 
its  political  squabbles,  took  no  steps  to  remedy  the  situation 
beyond  passing  an  electoral  law,  the  defects  of  which  made 
extraordinary  fraud  possible,  and  a  skeleton  provisional  lawH 
Those  who  had  criticised  the  military  government  for  promulj- 
gating  legislation  instead  of  leaving  all  legislative  matters  for 
the  action  of  the  Cuban  Congress,  were  effectively  silenced.  So 
barren  of  legislative  results  were  the  sessions  of  Congress,  tint 
in  five  years  of  the  self-administered  Republic  only  two  annual 
budgets  were  passed;  the  thr«e  remaining  budgets  being  pro- 

442 


OVR  GOVERNMENT  OF  CUBA.  443 

\  ided,  when  Congress  had  failed  to  act,  by  the  doubtful  expedient 
or  executive  order. 

Another  source  of  bitterness  was  the  policy  of  the  govern- 
nu'nt,  in  the  hands  of  the  ALoderate  party,  to  dismiss  the  office- 
holders of  the  opposition  party,  the  Liberals,  and  to  reserve 
the  positions  in  the  public  service  for  its  own  followers.  Local 
pride  was  especially  outraged  by  the  action  of  the  Moderate 
government  in  turning  out  the  Liberal  town  councils,  by  illegal 
or  technical  interpretations  of  the  irritating  municipal  law,  and 
siilistituting   Moderates. 

But  w^hat  niost  exacerbated  the  strained  relations  between 
the  political  parties  were  the  intimidation  and  colossal  frauds 
practiced  at  the  elections  of  1905.  The  Liberals  claimed  that 
the  Moderates  used  the  rural  guai-d  and  municipal  police  to  in- 
timidate thQ  voters,  that  the  assaults  to  which  the  Liberals  were 
exposed  were  such  as  to  make  it  dangerous  for  them  to  appear 
for  registration,  and  they  accordingly  refrained  from  regis- 
tering, and  withdrew  from  the  elections.  Nevertheless,  the  re- 
turns made  by  the  Moderate  election  judges  showed  that  432,313 
persons  had  vohmtarily  appeared  for  registration.  That  the 
electoral  lists  had  been  padded  to  the  degree  of  absurdity  is 
made  evident  by  the  fact  that  the  census  of  Cuba  just  completed 
shows  that  there  are  now  in  the  Island  only  419,342  persons  of  all 
parties  entitled  to  vote.  It  is  probable  that  200,000  names  were 
fraudulently    inserted    in    the    registration    lists. 

Even  during  the  elections  there  had  been  armed  encounters 
l)etween  individual  Moderates  and  Liberals.  In  Cienfuegos,  an 
attempt  made  by  the  Moderate  chief  of  police  to  arrest  a  Lib- 
eral '  congressman  resulted  in  the  death  of  both,  and  the  gov- 
ernment was  bitterly  blamed.  A  few  months  later  a  post  of 
-the  rural  guard  near  Hataana  was  attacked  and  several  guards 
murdered  while  asleep,  and  prominent  Liberals  were  charged 
with  this  deed.  But  it  was  not  until  August,  1906,  that  open 
revolt  against  the  government  began.  On  that  date  a  small 
armed  force  took  the  field,  and  uprisings  immediately  followed 
throughout  the  country  led  by  pi-ominent  leaders  disaffected 
with  the  government.  The  ranks  of  the  insurgents  were  aug- 
mented on  account  of  the  natural  tendency  to  insurrection  that 
had  been  cultivated  by  a  long  period  of  insurrection  in  Cuba, 
as  well  as  bj^  the  inclination  of  many  to  secure  relief  froni 
daily  toil  and  live  on  the  country  and  property  of  others.  The 
pow^er  of  this  irregular  force  to  do  damage  was  incalculable. 
The  greater  part  of  the  wealth  of  Cuba  lies  in  its  sugar  plan- 
tations and  sugar  mills,  most  of  which  are  owned  by  foreign 
capital,  and  the  flaring  of  a  few  matches  could  in  a  short  time 
have  destroyed  property  of  this  kind  to  the  value  of  millions  of 
dollars. 

The  governrrient  of  Cuba  found  itself  entirely  unprepared. 
Its  artillery  and  rural  guard  force  was  comparatively  small, 
and  so  scattered  as  to  be  unable  to  cope  with  the  insurrec- 
tionists. The  government  made  desperate  efforts  to  organize 
militia,  but  with  very  unsatisfactory  results.  President  Palma, 
in  a  letter  to  a  friend  a  few^  wrecks  later,  thus  summarized  the 
situation: 

Prom  the  first  days  of  the  insurrectionary  movement  I  understood 
the  situation  and  was  able  to  appreciate  it  with  a  serene  mind.  I  saw 
before  me  numerous  ujoksos,  tired  of  the  order  and  legality  to  which  thoy 
appeared  to  have  submitted  during  the  four  years  of  the  Republic,  eager 
for  license  and  forays,  follow  like  a  mob  the  first  adventurer  who  in- 
vited them  to  rise  ;  I  saw  everywhere  persons  who  sympathized  with 
disorder  and  encouraged  disturbances ;  I  saw  the  press  in  the  morning, 
afternoon,  and  at  all  hours,  assisting  with  unparalleled  cynicism  the 
secret  conspiracy  organized  in  behalf  of  the  rebels ;  I  suddenly  found 
myself  in  the  midst  of  a  tremendous  social  disorganization,  with  thousands 
of  insurgents  in  three  provinces  and  the  menace  'of  rebellion  in  two  others, 
without  sufficient  regular  forces  to  undertake  immediately  an  active  cam- 
paign against  the  former  and  to  beat  and  disorganize  them  ;  at  the  same 
time  I  constantly"  feared  that  they  would  carry  to  the  great  sugar  plan- 
tations of  Santa  Clara  the  measures  of  destruction  already  realized  on 
railroad  stations,  locomotives,  bridges,  culverts,  etc.  ;  I  saw  the  customs 
revenues  fall  olf  by  one-half  and  the  other  income  of  the  State  to  25  or  30 
per  cent.,  and  that  the  millions  of  the  Treasury  were  being  spent  in 
streams  with  uncertain  result  and  to  very  doubtful  advantage,  a  largo 
part  being  used  for  keeping  up  hastily  improvised  militia,  which,  for 
that  very  reason,  could  not  inspire  sufficient  confidence  as  to  their  reliability 
far  UTKlertaking  the  labor,  the  privations,  nrd  the  dangers  of  a  conitnnt 
persecution  of  adversaries,  who  were  also  Cubans  and  in  a  great  number 
of  cases  friends  and  oomrades. 


444  ,        OUR  GOVERNMENT  OF  CUBA. 

The   Appeal    for   Interveutioii    hy    the   1  nited    StiiteM. 

153'  the  beginning  of  September  the  Cuban  government  reiili/.ed 
the  lielplessness  of  its  situation,  and  applied  to  the  United  States 
Government  for  American  intervention  ;  and  President  Palma  an- 
nounced his  irrevocable  intention  to  resign  his  office  in  order 
to  save  his  country  from  complete  anarchy.  The  American 
State  Department  did  all  in  its  power  to  discourage  the  request, 
but  the  pleas  of  the  Cuban  government  continued.  On  Sep- 
tember 14,  1906,  President  Roosevelt  sent  an  official  letter  to 
Seiior  Quesada,  the  Cuban  Minister  to  Washington,  in  which  he 
described  the  terrible  disaster  imminent  in  Cuba  and  the  evils 
of  anarchy  into  which  civil  war  and  revolutionary  disturbances 
would  assuredly  throw  her,  and  pointed  out  that  the  only  way 
in  which  Cuban  independence  could  be  endangered  was  for 
the  Cuban  people  to  show  their  inability  to  continue  in  their  i)ath 
of  peaceable  and  orderly  progress,  and  that  our  intervention 
in  Cuban  affairs  would  come  only  ff  Cuba  herself  showed  that 
she  had  fallen  into  the  insurrectionary  habit.  He  solemnly 
adjured  all  Cuban  patriots  to  band  together  to  sink  all  differ- 
ences and  personal  ambitions,  and  to  rescue  the  Island  from 
the  anarchy  of  civil  war.  He  said  that,  under  the  treaty  with 
Cuba,  as  President  of  the  United  States  he  had  a  duty  in  the 
matter  which  he  could  not  shirk ;  that  the  3rd  article  of  the 
treaty  explicitly  conferred  upon  the  United  States  the  righ* 
to  intervene  for  the  maintenance  in  Cuba  of  a  government 
adequate  for  the  protection  of  life,  property,  and  individual 
liberty ;  that  the  treaty  conferring  the  right  was  the  supreme 
law  of  the  land  and  furnished  him  with  the  right  and  means 
of  fulfilling  the  obligation  he  was  under  to  protect  American 
interests ;  that  his  information  showed  that  the  social  bonds 
throughout  the  Island  had  been  so  relaxed  that  life,  property, 
and  individual  liberty  were  no  longer  safe ;  and  that,  in  his 
judgment,  it  was  imperative  for  the  sake  of  Cuba  that  there 
should  be  immediate  cessation  of  hostilities  and  some  arrange- 
ment which  would  secure  permanent  pacification  of  the  Island. 
He  closed  the  letter  by  announcing  that  he  would  send  to 
Habana  the  Secretary  of  War,  Mr.  Taft,  and  the  Assistant  Sec- 
retary of  State,  Mr.  Bacon,  as  special  representatives  of  the 
American  government,  to  render  all  possible  aid  toward  secur- 
ing peace. 

The    Peace   Commission. 

Secretaries  Taft  and  Bacon  arrived  in  Habana  September  19, 
1906.  The  task  confronting  them  was  extremely  serious.  Though 
there  was  no  doubt  that  the  American  naval  forces  assembling 
in  Habana  harbor  could  in  a  short  time  disperse  any  large  bodies 
of  insurgents,  it  was  quite  evident  that  the  empltjyment  of  force 
would  certainly  give  rise  to  guerilla  warfare,  which  would  have 
caused  an  immense  destruction  of  property,  and  cost  much  blood 
and  money  to  suppress. 

The  Peace  Commission,  constitiited  by  Secretaries  Taft  and 
Bacon,  gave  hearing  to  prominent  men  of  the  Island,  and  had 
many  conferences  with  the  leaders  of  the  different  political 
parties,  it  received  and  considered  suggestions  for  the  settle- 
ment of  the  pending  differences,  and  finally  proposed  a  com- 
promise which  it  made  earnest  efforts  to  have  accepted.  The 
compromise  contemplated  the  resignations  of  the  Vice-Presi- 
dent, Senators,  and  Ilepresentatives.  (iovernors,  and  Provisional 
Councilmen  elected  at  the  fraudulent  elections  of  December 
1905  ;  the  laying  down  of  the  arms  of  the  insurgents ;  the  con- 
stitution of  a  commission  for  the  purpose  of  drafting  laws 
most  urgently  needed ;  and  the  holding  of  elections  under  the 
provisions  of  the  electoral  law  to  be  drafted  by  such  com- 
mission. Their  endeavors  to  have  the  plan  accepted  by  all  par- 
ties were  without  avail.  The  President  insisted  on  resigning, 
all  the  cabinet  officers  resigned,  and  the  President  called  a 
special  session  of  Congress  to  submit  his  own  resignation  and 
that  of  the  Vice-President.  Pursuant  to  the  call,  Congress  met 
September  28,  received  the  resignations,  and  adjourned  on  the 
same  day  without  electing  a  successor  to  the  President.  The 
country  was  thus  left  without  a  government,  and  President  Palma 


OUR  GOVERNMENT  OF  CUBA.  445 

-so  informed  the  Peace  Commission,  and  stated  that  it  was  neces- 
finry  for  him  to  turn  over  the  national  funds  to  some  responsible 
person.  Secretary  Taft  accordingly  issued  the  following  proc- 
lamation establishing-  the  Provisional  Government  of   Cuba : 

"To  the  People  of  Cuba  : 

"The  failure  of  Congress  to  act  on  the  irrevocable  resignation  of 
the  President  of  the  Republic  of  Cuba,  or  to  elect  a  successor,  leaves 
this  country  without  a  government  at  a  time  when  great  disorder  prevails, 
and  requires  that  pursuant  to  a  request  of  President  Palma,  the  necessary 
steps  be  taken  in  the  name  and  by  the  authority  of  the  President  of 
the  United  States  to  restore  order,  protect, life  and  property  in  the  Island 
of  Cuba  and  islands  and  keys  adjacent  thereto  and  for  this  purpose  to 
establish   therein    a   provisional    government. 

"The  Provisional  Government  hereby  established  by  direction  and  in 
the  name  of  the  President  of  the  United  States  will  be  maintained  only 
long  enough  to  restore  order  and  peace  and  public  confidence,  and  then 
to  hold  such  elections  as  may  be  necessary  to  determine  those  persons 
upon  whom  the  permanent  government  of  the   Republic   should   be  devolved. 

"Insofar  as  is  consistent  with  the  nature  of  a  provisional  govern- 
ment established  under  authority  of  the  United  States,  this  will  be  a 
Cuban  government  conforming,  as  far  as  may  be,  to  the  Constitution  of 
Cuba.  The  Cuban  flag  will  be  hoisted  as  usual  over  the  government  build- 
ings of  the  Island.  All  the  executive  departments  and  the  provisional  and 
municipal  governments,  including  that  of  the  City  of  Habana,  will  continue 
to  be  administered  as  under  the  Cuban  Republic.  The  courts  will  continue 
to  administer  justice,  and  all  laws  not  in  their  nature  inapplicable  by 
reason  .  of  the  temporary  and  emergent  character  of  the  Government  will 
be   in    force. 

"President  Roosevelt  has  been  most  anxious  to  bring  about  peace 
under  the  constitutional  government  of  Cuba,  and  has  made  every  endeavor 
to   avoid   the  present   step.      Longer   delay,   however,    would   be   dangerous. 

"In  view  of  the  resignation  of  the  Cabinet,  until  further  notice  the 
heads  of  all  departments  of  the  Central  Government  will  report  to  me 
for  instructions,  including  Major-General  Alejandro  Rodriguez,  in  com- 
mand of  the  Rural  Guard  and  other  regular  Government  forces,  and  Gen- 
eral   Carlos    Roloff,    Treasurer   of    Cuba. 

"Until  further  notice,  the  Civil  Governors  and  Alcaldes  will  also  report 
to  me  for  instructions. 

'I  ask  all  citizens  and  residents  of  Cuba  to  assist  in  the  work  of 
restoring    order,    tranquillity    and    public    confidence. 

"(Signed)  "WM.   H.    TAFT, 

"Secretary  of  War  of  the   United  States, 

"Provisional   Governor  of   Cuba". 

The  general  public  satisfaction  with  this  action  is  apparent 
from  the  fact  that,  though  the  government  and  the  insurgents 
had  thoiisands  of  men  under  arms,  this  simple  decree  was  sufK- 
cient  to  establish  the  provisional  administration,  the  only  Ameri- 
can force  landed  being  a  small  squad  of  marines  to  protect  the 
Treasury.  The  important  and  delicate  task  of  the  disarmament 
of  the  insurgent  forces  and  of  the  militia  was  then  successfully 
carried  into  effect  by  commissions  consisting  of  American  officers 
and  prominent  Cubans ;  and  a  general  amnesty  was  issued.  The 
general  attitude  of  the  people  of  Habana  toward  the  action  of 
the  Peace  Commission  was  made  evident  when  Secretaries  Taft 
and  Bacon  embarked  for  the  United  States  on  October  13,  1906. 
The  people  of  Habana  forgot  their  political  differences,  and 
taking  thought  of  the  fact  that  the  horrors  of  civil  war  had  been 
averted,  all  parties  joined  in  a  demonstration  of  gratitude  and 
praise  for  the  work  that  had  been  accomplished.  The  shore 
of  the  bay  was  lined  with  thousands  of  cheering  people,  all 
available  water  craft  was  pressed  into  service  to  escort  the 
ships  to  the  mouth  of  the  harbor,  the  forts  exchanged  salutes 
with  the  vessels,  and  amid  cheers  and  all  possible  display  of 
goodwill  the  Peace  Commission  left  Cuba.  The  character  and 
extent  of  the  service  of  Secretaries  Taft  and  Bacon,  and  the 
appreciation  thereof  in  Cuba,  are  indicated  in  the  resolution 
adopted  by  a  mass  meeting  of  the  American  residents  of  Habana, 
as   follows : 

"Gentlemen  : 

"The  American  residents  of  Cuba,  temporarily  organized  for  the  pur- 
pose of  making  kirown  to  you  their  situation  and  necessities  in  connection 
with  the  recent  disturbances,  desire  to  express  to  you  their  high  appre- 
ciation of  the  great  services  your  wise  and  prudent  measures  have  se- 
cured to   them   and   to   all   the    people   of   Cuba. 

"The  results  you  have  accomplished  are  greater  than  could  have  reason- 
ably been  hoped  for  at  the  time  of  your  arrival.  Nearly  thirty  thousand 
armed  men,  moved  by  the  most  intense  and  bitter  passions,  were  then  ar- 
rayed against  the  armed  forces  of  the  government  and  a  disastrous  conflict 
wa-<  imminent,  in  which  enormous  loss  of  life  and  property  would  have  been 
inevitable.  It  scarcely  seemed  possible  that  these  angry  elements  of  dis- 
cord   and    strife    oould    be    brought    into    peaceful    and    orderly    oitizenshlp 


440  OUR  GOVERNMENT  OF  CUBA. 

without  bringing  Into  active  service  tlie  military  power  at  your  command 
to  compel  a  cessation  of  the  struggle  for  supremacy  between  the  contend- 
ing forces.  But  in  less  than  one  month  the  wise  and  sagacious  methods 
you  pursued  and  the  skill  and  adroitness  with  which  you  approached  the 
difficult  ta^k  committed  to  your  charge  have  brought  peace  and  quiet  to 
Cuba.  Warlike  conditions  have  vanished,  with  no  immediate  probability 
of  their  resumption.  The  armed  forces  have  surrendered  their  arms  and 
most  of  them  are  already  in  their  fields  and  shops  engaged  in  peaceful 
industry. 

"Not  the  least  satisfactory  of  the  considerations  involved  is  the  fact 
that  in  the  settlement  of  the  turbulent  conditions  that  have  prevailed, 
you  have  caused  but  little  irritation  or  resentment,  and  have  secured  from 
the  Cuban  people  increased  respect  and  regard  for  the  United  States,  and 
greater  confidence  and  trust  in^  the  goodwill  and  wishes  of  the  American 
people    fdr   the    people   of   Cuba*  and   their   future   welfare. 

"We  do  not  believe  that  so  successful  and  speedy  an  achievement 
under  conditions  so  difficult  and  dangerous  has  any  parallel,  and  the 
thanks  and  gratitude  of  the  people  of  Cuba,  as  well  as  of  the  great 
people  you  represent,  are  due  to  you  for  these   inestimable  services. 

"Wishing  you  a  safe  return  to  the  United   States  and   the  enjoyment 
of  higher  honors  in  the   future,   we  are. 
Very  sincerely  yours, 

"S.    S.  HARVEY,  ^ 

"H.  E.  HAVENS, 

"WM.  HUGHES, 

"H.  W.  BAKER, 

"DR.  C.  CLIFFORD  RYDfc^R, 

"ALFRED  LISC(3MB, 

"W.  ROBERTS, 

"WM.  B  HINE, 

"J.  E.  BARLOW, 

"CHAS.  HASBROOK, 

"Committee." 

Upon  Secretary  Taft's  leaving  the  office  of  Provisional  Gov- 
ernor, President  Koosevelt  appointed  in  his  place  the  Hon.  Charles 
E.  Mag-oon,  who  had  shortly  before  retired  from  the  position 
ot  Governor  of  the  Canal  Zone  and  the  American  Minister  to 
Panama,  in  which  post  he  had  successfully  carried  out  the  diffi- 
cult task  of  organizing  the  Canal  Zone  Government",  and  had 
e  ^iblished  friendly  relations  with  the  Republic  of  Panama.  To 
assist  him,  officers  of  the  United  States  Army  were  appointed 
advisers  to  the  acting  secretaries  of  the  Culjan  executive  de- 
partments. 

Governor  Magoon's  Administration. 

Governor  Magoon's  administration  has  been  one  the  bene- 
fits of  which  will  endure  for  generations  in  Cuba.  Its  most 
lasting  monument  and  the  most  grateful  to  the  poor  farmer 
of  the  country  will  be  the  network  of  roads  -constructed  under 
American  supervision.  Cuba  is  dependent  upon  its  agriculture 
for  the  production  of  wealth,  and  has  been  subjected  to  great 
economic  waste  by  reason  of  lack  and  cost  of  inland  trans- 
portation. The  products  of  Ciiba  are  hauled  to  market  over 
trails  that  are  barely  passable  during  the  dry  season  and  abso- 
lutely impassable  during  the  rainy  season.  In  many  localities 
it  is  impossible  to  transport  the  products  in  wagons  or  carts 
and  necessary  to  pack  them  on  horses  or  mules.  Where  carts 
can  be  used,  it  is  necessary  to  employ  from  four  to  ten  oxen,  ^ 
horses  or  mules,  where  two  would  be  sufficient  if  good  roads 
existed.  Days  are  spent  in  hauling  a  load  to  market  where 
hours  would  be  sufficient  if  the  roads  were  good.  Realizing 
the  necessities  of  the  situation,  the  provisional  government  has 
given  its  best  efforts  to  supplying  the  remedy.  A  comprehen- 
sive plan  of  road  improvement  was  adopted ;  and  in  all  parts 
of  the  Island  trunk  roads  and  local  roads  have  been  constructed 
and  are  now  under  construction,  to  the  amazement  and  delight 
of  the  agriculturist,  who  has  never  seen  his  needs  given  such 
attention.  "^On  September  29,  1906,  when  the  provisional  gov- 
ernment began,  there  were  but  366  miles  of  macadamized  high- 
way in  Cuba,  many  of  which  had  been  constructed  under  the 
American  military  government.  On  May  1,  1908,  the  mileage  had 
been  increased  by  the  provisional  administration  to  573  miles  and 
there  were  457  miles  of  road  under  construction,  most  of  which 
will  be  completed  bj--  the  end  of  the  current  year. 

Other  public  works  have  been  provided  in  all  parts  of  the 
Island.  Harbors  have  been  dredged,  lighthouses  built,  hospitals, 
asylums,  courthouses  and  other  public  buildings  erected  and 
i-epaired,  bridges  provided,  and  waterworks  furnished  the  prln- 


OUR  GOVERNMENT  OF  CUBA.  '  44T 

cipal  towns.     All   these   important  works,   as   well  as  the  road-' 
»vork,  hav^e  been  paid  for  or.t  of  current  funds. 

Careful  attention  has  also  been  given  to  the  legislative  needs 
of  the  Island.  It  was  a  commentary  on  the  necessity  for  legis- 
lation that  nearly  all  the  bases  of  settlement  between  the 
warring  factions,  proposed  during  the  period  of  deliberation 
which  led  up  to  the  establishment  of  the  provisional  government, 
incorporated  more  or  less  urgent  demands  for  legislation,  and 
particularly  for  legislation  under  the  constitution  affecting  mu- 
nicipal and  judicial  administration.  To  meet  this  demand  for 
legislative  action,  and  in  pursuance  of  the  ])lvii\  of  the  Peace 
Commission,  an  advisory  commission  was  created,  composed  of 
twelve  members,  nine  of  whom  were  prominent  Cubans,  all 
political  parties  being  represented,  and  three  Americans,  ^vho 
had  had  experience  with  Spanish  law.  The  commission  on  or- 
ganizing w  as  charged  with  the  drafting  of  five '  laws :  An 
electoral  law,  a  municipal  law,  a  provincial  law,  a  judiciary 
law,  and  a  civil  service  law.  To  these  have  since  been  added 
a  law  organizing  the  armed  forces,  a  military  code,  a  law  or- 
ganizing the  national  executive  departments,  a  general  telephone 
law,  a  notarial  law,  and  the  revision  of  portions  of  the  mort- 
gage law.  Numerous  minor  decrees  ha\e  also  been  reported  by 
the  commission,  and  the  lack  of  adequate  legislation  at  present 
obliged  the  commission  to  draft  a  municipal  accounting  law  and 
a  municipal  tax  law  in  connection  with  the  organic  muni- 
cipal law.  The  work  of  the  Advisory  Law  (commission  is  thus 
a  work  of  organization  of  practically  every  fundamental  branch 
of  the  Cuban  Government.  The  law  of  the  executive  departments, 
together  with  the  civil  service  law,  will  reorganize  the  execu- 
tive i:>ower  of  the  national  government ;  the  organic  municipal 
law  and  the  laws  of  municipal  accounting  and  municipal  tax- 
ation will  afford  to  the  municipalities  a  government  in  harmony 
with  the  constitution  ;  the  electoral  law  is  applicable  to  offices 
national,  provisional,  and  municipal ;  the  judiciary  law  organizes 
the  courts  and  provides  for  the  independence  of  the  judiciary ; 
while  the  law  of  armed  forces  and  the  military  code  organize  the 
m.ilitary  establishment  of  the  Kepublic.  Of  these  laws,  the  elec- 
toral law  and  the  law  of  armed  forces,  as  well  as  numerous 
minor  deci'ees  reported  by  the  commission,  have  been  promul- 
gated by  the  Provisional  Governor.  Drafts  of  the  provincial 
and  municipal  laws  have  also  been  reported  and  approved.  In 
all  of  these  cases  the  proposed  laws  have  been  printed  and 
distributed  for  public  criticism  prior  to  promulg-ation.  Most 
of  the  laws  drafted  by  the  commission  will  be  promulgated  by 
the  Provisional  Governor,  and  the  remainder  will  be  submitted 
for  action  to  the  Cuban  Congress. 

In  addition,  a  commission  has  been  convened,  constituted 
by  prominent  Cuban  judges  and  lawyers,  for  the  revision  of 
the  harsh  and  antiquated  penal  code  and  the  code  of  criminal 
procedure. 

Much  attention  has  been  given  to  the  matter  of  sanitation, 
which,  in  Cuba,  is  not  only  of  vital  importance  to  the  health  of 
the  inhabitants  but  has  also  a  direct  bearing  upon  the  develop- 
ment and  commerce  of  the  country,  for  vessels  will  not  seek  to  en 
ter  a  port  of  the  Island  if  all  other  ports  of  the  world  are  quar- 
antined against  Cuba.  The  matter  is  also  one  of  serious  moment 
to  the  people  and  the  commerce  of  the  Southern  States  of 
the  United  States.  The  dreaded  yellow  fever  had  been  stamped 
out  in  Cuba  during  the  American  military  government,  b  it 
has  reappeared.  Indefatigable  w^ork  on  the  part  of  the  pr-y- 
visional  administration  has  again  suppressed  it.  In  vie'w  of  t'l  ' 
special  importance  of  sanitation  in  Cuba,  a  law  has  been  ])'•  > 
mulgated  which  nationalizes  the  sanitary  service  of  the  Tslaii  I. 
and  provides  a  national  board  of  saiiitation  charged  with  the 
responsibility  of  securing  proper  sanitation  throughout  the  Isla  i  I 
and  invested  with  the  authority  necessary  for  obtaining-  thiu 
result. 

Public  order  has  been  kept  perfectly,  and  at  no  time  for  a 
century  has  the  Island  been  as  quiet  and  as  free  fvoTu  maraudin-; 
bands  as  under  the  American  Provisional  Ad-^i-'i-^tration.  The 
presence  in  the  Island  of  an  American  Army  det  i  hment,  num- 
bering   about    5,000    men,    and    known    as    the    Army    of    Cubaii 


448  OUR  GOVERNMENT  OF  CUBA. 

I'acification,  has  assisted  in  j^reat  measure  in  renewing  confi- 
dence. The  rural  guard,  which  had  been  used  as  a  political 
agency,  has  been  reorganized  by  American  Army  officers  and 
restored  to  its  original  efficiency.  For  the  purpose  of  enabling 
the  new  Cuban  government  to  maintain  itself,  a  decree  has  l)een 
issued  providing  for  the  organ i/,;it  ion  of  tl\c  armed  foi-ces.  L'nder 
this  decree  the  method  of  calling  the  militia  into  service  is 
regulated,  and  provisions  are  made  for  the  establishment  of  a 
permanent  army,  which  is  now  being  organized. 

It  fell  to  the  provisional  government  to  pay  practically  the 
entire  cost  of  the  uprising  of  1906,  as  well  as  the  debts  incurred 
by  the  Cuban  government,  when  it  was  struggling  with  the  in- 
surrectionists, as  the  damage  caused  by  tha  revolutionary  forces. 
Such  payments  have,  up  to  the  present  time,  amounted  to  over 
$9,000,000.  As  a  consequence  of  the  revolution,  about  15,000 
claims  for  damages  wei-e  filed  by  Cubans  and  aliens,  the  total 
amount  claimed  exceeding  $4,000,000.  A  commission  of  Ameri- 
can officers  and  Cubans  have  investigated  and  reported  on  every 
claim,  and  recommended  payments  to  the  amount  of  $1,390,088.39, 
all  of  which  have  been  made,  except  in  a  few  cases  that  are  being 
reconsidered  on  appeal. 

Many  long  pending  questions,  which  had  troubled  the  Cuban 
authorities  for  years,  have  also  been  settled.  A  question  be- 
tween the  State  and  the  Catholic  Church,  involving-  the  pur- 
chase of  property  owned  by  the  Church  in  Habana  and  u^ed  by 
the  State,  has  been  satisfactorily  settled  and  tlie  purchase  car- 
ried out.  A  water  famine  in  the  outskirts  of  Habana  has  been 
remedied  by  the  acquirement  in  behalf  of  the  municipality  and 
under  excellent  conditions  of  a  water  concession,  on  account 
of  which  the  city  and  national  government  had  been  engaged 
in  costly  litigation  for  years,  while  the  public  suffered  from 
lack  of  water.  A  decree  has  been  issued  to  facilitate  the  de- 
marcation of  large  unsurveyed  estates  held  in  common  in  the 
eastern  part  of  the  Island,  the  division  of  which  has  for  a 
century  been  regarded  as  necessary  for  the  public  interests.  Other 
decrees  have  served  to  clear  up  doubts  arising  in  the  interi^re- 
tation  of  customs  tariffs,  and  have  simplified  the  manner  of 
drafting  manifests,  as  well  as  the  customs  regulations  for  the 
entry  and  clearance  of  vessels.  Still  other  decrees  have  been 
promulgated  for  the  settlement  of  minor  difficulties  which  had 
arisen  under  the  present  laws. 

A  remarkable  feature  of  the  provisional  administration  has 
been  the  satisfaction  and  content  with  which  its  acts  have  been 
received  by  the  Cuban  people,  and  the  cordiality  existing  be- 
tween the  American  government  officials  and  all  political  par- 
ties, as  well  as  the  commercial  and  industrial  bodies  of  Cuba. 
This  state  of  public  sentiment  is  all  the  more  gratifying  in 
view  of  the  previous  bitterness  between  the  political  parties, 
and  of  the  difficulties  and  embarrassments  with  which  the  pro- 
visional administration  has  had  to  contend  by  reason  of  long 
periods  of  drought,  labor  strikes,  and  business  depression,  which 
have  affected  the  agricultural  and  ommercial  interests.  All 
classes  have  perfect  confidence  in  the  American  government,  and 
realize  that  their  welfare  is  the  object  of  constant  solicitude 
and  effort. 

Preparation    for    Restoration    of    Cuban    Government. 

In'  the  meantime,  the  work  of  preparation  for  the  return 
of  the  government  to  the  Cubans  has  gone  on  as  rapidly  as 
circumstances  would  permit.  Soon  after  the  advisory  commis- 
sion began  to  consider  the  electoral  law  the  opinion  was  ex- 
pressed in  the  commission,  as  well  as  in  the  public  press,  that 
a  census  of  the  Island  should  be  taken  in  order  to  secure  a 
reliable  basis  for  the  electoral  lists,  and  that  the  local  elections 
be  held  before  the  national  elections  in  order  that  they  might 
serve  as  a  test  of  the  electoral  law.  Secretary  Taft  a'>-ain  visited 
Cuba  in  April,  1907,  and  among  other  matters  which  received 
his  attentipn  was  that  deciding  upon  the  fate  of  the  forth- 
coming elections.  As  a  result  of  his  conference  Avith  tho  national 
committees  of  the  various  political  parties,  and  with  other  rep- 
resentative  bodies,   he   announced   that    a   census   of   the    Island 


OVR  GOVERNMENT  OF  CUBA.  ^    44^ 

should  be  taken  in  as  short  a  time  as  was  consistent  with 
making-  it  thoi-ough,  fair,  and  complete  for  electoral  purposes, 
that  the  municipal  and  provincial  elections  would  be  flield  as 
soon  as  practicable  after  the  termination  of  the  census,  that 
within  six  months  after  these  local  elections  the  national  elec- 
tions would  be  held,  and  that  as  soon  as  the  president 
and  senators  were  desig-nated  by  the  presidential  and  sena- 
torial electoral  colleges  the  government  woiild  be  devolved  upon 
the  Cubans.  On  January  14th  of  this  year,  President  Roosevelt, 
in  transmitting  to  Congress  the  report  of  the  Provisional  Gov- 
ernor for  1906-07,  ordered  that  the  provisional  administration 
end  not  later  than  February  1,  1909.  In  pursuance  of  the 
[Ann  laid  out  by  Secretary  Taft,  a  careful  census  of  the  Island 
has  been  taken  under  the  direction  of  an  official  of  the  United 
States  Census  Department.  The  election  boards  provided  for 
by  the  new  electoral  law  have  been  constituted,  and  it  is  ex- 
pected to  hold  the  local  elections  in  July  of  this  year,  and  the 
national  election  in  the  fall ;  whereupon,  in  compliance  with 
President  Koosevelt's  order,  the  government  of  the  Island  will 
devolve  upon  the  officials  desig-nated  as  a  result  of  such  election, 
not  later  than  February   1,    1909. 


The  eiiiDire  that  shifted  from  the  Mediterranean  will  in 
the  lifetime  of  those  noTr  clilldren  hid  fair  to  shift  once  more 
westwartl  to  the  Pacific.— l»resident  Roosevelt  at  San  Fran- 
cisco, Cal.,   May   13,  1903. 

The  contention  tliat  .we  are  not  a  nation  w^ith  power  to 
Kovern  a  conqnered  or  pnrcliased  territory,  robs  us  of  a 
facnlty  most  important  for  good  to  every  sovereigrnty.— Hon. 
Wm.    H.    Taft,    at    Cleveland,    Ohio. 

It  is  no  long-er  a  question  of  expansion  w^ith  us;  we  have 
expanded.  If  there  is  any  question  at  all  it  is  a  questiqjL  of 
contraction;  and  who  is  goiuK  to  contract?— President  Mc- 
Kinley   at   Iowa   Falls,    Iowa,    Oct.    16,    1S99. 

It    is    a   erood    lesson    for    nations    and    individuals    to    learn 

J    never  to  hit  if  it  can  he  helped,  and  then  never  to  hit  softly. 

I   think  it  is  getting-  to  be  fairly  understood  that  that    is   our 

foreign    policy.— President    Roosevelt    at    San    Francisco,    Cal., 

^   May   13,   1903. 

The  policy  of  expansion  is  what  distinguishes  the  admin- 
istration of  McKinley  and  adds  another  to  tbe  list  of  patri- 
otic victories  of  the  Republican  party.  By  this  policy  the 
United  States  has  become  a  w^orld  power. — Hon.  Wm.  H.  Taft, 
at  Kansas  City,  Mo. 

The  construction  of  the  canal  is  now^  an  assured  fact;  but 
most  certainly  it  is  unT^ise  to  intrust  the  carrying  out  of  so 
momentous  a  policy  to  those  who  have  endeavored  to  defeat 
the  Mhole  undertaking. — President  Roosevelt's  speech  accept- 
ing- 1904  nomination. 

The  guns  that  thundered  off  Manila  and  Santiago  left  us 
echoes  of  glory,  but  they  also  left  us  a  legacy  of  duty.  If 
we  drove  out  a  mediaeval  tyranny  only  to  make  room  for 
savage  anarchy,  w^e  had  better  not  have  begun  the  task  at 
all. — President   Roosevelt    in   Tlie   Strenuo'us  Liife,   p.    11. 

When  we  legislate  for  Alaska  we  are  acting  -vt-ithin  the 
clearly  granted  authority  of  the  Constitution,  and  when  we 
legislate  for  the  Philippines  ^ve  are  likewise  w^ithin  the 
scope  and  plain  purpose  of  the  Constitution. — Hon.  C.  W. 
Fairbanks,   in   U.   S.    Senate,   February  22,    1902. 

For  years  the  commerce  of  the  world  has  demanded  an 
isthmian  canal,  and  recent  events  give  us  the  assurance  that 
this  vast  undertaking  will  be  accomplished  at  an  early 
day  under  the  protection  of  the  American  flag. — Hon.  C. 
W.   Fairbanks,    at   St.   Paul,    Minn,,   August   31,    1903. 

W^e  are  the  trustees  and  guardians  of  the*  whole  Filipino 
people,  and  peculiarly  of  the  ignorant  masses,  and  our  trust 
is  not  discharged  until  those  masses  are  given  education 
sufUcient  '  to  know  their  civil  x'ights  and  maintain  them 
against  a  more  po^verful  class  and  safely  to  exercise  the 
political  franchise. — Hon.  Wm.  H.  Taft,  in  special  report  to 
the    President. 

One  vit«l,  dominating-  fact  confronts  the  Democratic 
party  which  no  oratory,  which  no  eloquence  which  no 
rhetoric  can  obscure:  BRYAN'S  NOMINATION  MEANS  TAFT'S 
EI.RCTION.- New    York    World. 


MERCHANT  MARINE. 


During  the  past  twelve  years  of  Eepublican  control  American 
ship-building-  has  made  steady  growth  in  tonnage  and  improve- 
ment in  design.  The  closing  fiscal  year  of  President  Roosevelt's 
administration  is  the  banner  ship-building  year  in  American  his- 
tory. Up  to  June  20,  1908,  the  output  was  590,231  gross  tons 
(the  highest  record  in  any  earlier  year  was  583,450  gross  tons), 
and  the  few  remaining  days  of  the  fiscal  year  will  bring  the 
aggregate  up  to  600,000  tons.  Of  this  large  output,  however,  no 
vessels  were  built  exclusively  for  the  foreign  trade.  Were  it 
not  for  the  coasting  trade  policy,  which  reserves  to  American 
vessels  exclusively  the  transportation  of  freight  and  passengers 
between  American  ports,  doubtless  domestic  shipyards  would 
have  almost  entirely  disappeared  from  our  seaboard,  and  even 
our  war  vessels  would  have  been  built  abroad,  or  if  at  home,  at 
an  enormous  increase  in  cost.  Every  industrial  factor  and  every 
act  of  Congress  which  tends  ^o  promote  shipbuilding  for  mer- 
cantile purposes  at  the  same  time  renders  the  United  States 
more  capable  of  producing  its  own  war  vessels,  and  such  legis- 
lation accordingly  contributes  to  national  defense.  For  this 
reason,  if  for  no  other,  the  Eepublican  policy  of  promoting  ship- 
building at  home  is  entitled  to  the  support  of  every  patriotic 
citizen. 

The  following  table  shows  the  total  merchant  tonnage  (gross 
register  tons)  under  the  American  flag,  divided  according  to 
the  trade  in  which  engaged,  on  June  30  of  each  year  named,  and 
also  the  gain  or  loss  for  each  period  of  four  fiscal  years,  cover- 
ing the  four  latest  national  administrations : 


Total  American  merchant  shipping. 

On  June  30— 

Foreign 
trade. 

Coasting 
trade. 

Sea 
fisheries. 

Total. 

1892 



977,624 
829,833 
816,796 
888  ,-628 
861,446 

3,700,778 
3,790,296 
4,286,516 
5,335,164 
6,010,658 

88,524 
83,751 
61,528 
67,743 
66,670 

4,764,921 

1896 

4,703,880 

1900     . 

'        .  ^ 

5,164,839 

1904  ^ — - 

6,291,535 

1907. 

6,938,794 

Gain  or 

OSS  in  four  years. 

Foreign 
trade. 

Coasting 
trade. 

Sea 
fisheries. 

Total. 

1893-1896         

—147,791 

—  13,038 
71.833 

—  27,182 

89,523 

496,220 

1,048,648 

675,494 

—  2,773 
—22,223 

6,215 

—  1,073 

—61,041 

1897-1900 _._ . 

460,959 

1901-1904 , —  . 

1905-1907*           _    — 

1,236,696 
♦647,529 

*Gain  or  loss  in  three  years.  The  returns  for  June  80,  1908,  not  yet  com 
pleted,  will  show  a  total  increase  during  the  four  years  of  over  1,100,000  gross 
tons. 

American  tonnage  built  during  recent  periods  of  four  fiscal 
years,  beginning  June  30th : 

Gross  register 
tons. 

1893-1896,    inclusive    681,532 

1897-1900,    inclusive     1,106,518 

1901-1904,  inclusive   1,767,014 

1905-1908,  inclusive    . .- 1,811,624 

In  1896  the  production  of  steel  vessels  in  the  United  State.s 
amounted  to  only  96,331  gross  tons;  by  1908  it  had  increased  to 
425,000  gross  tons.     Two-thirds  of  the  merchant  tonnage  of  all 

450 


MERCHANT  MARINE.  451 

types  under  the  American  flag  on  the  sea,  on  the  lakes  and  the 
rivers  of  the  United  States  were  built  during  the  administra- 
tions of  Presidents  McKinley  and  Roosevelt.  In  1906  115,500  men 
employed  on  American  steam  vessels,  valued  at  $3&6,773,000,  were 
paid  $61,265,000  in  wages. 

In  1905  50,750  w^orkmen  in  American  shipj'^ards  were  paid 
$29,241,000  in  wages. 

Legislation   for   Seamen. 

The  Eepublican  Party  in  control  of  Congress  and  the  execu- 
tive departments  has  steadily  endeavored  to  improve  the  con- 
ditions of  American  labor  at  sea  as  well  as  American 
labor  on  the  laud.  At  the  late  session  Congress,  by  the  act  of 
April  ^,  1908,  for  the  first  time  provided  for  Government  deter- 
mination of  the  nimibers  of  the;  crew  of  every  steam  vessel,  pas- 
senger or  freight,  thereby  providing  also  for  the  fixing  of  hours 
of  labor.  It  also  passed  an  act  for  the  regulation  of  seagoing 
barges,  the  most  dangerous  form  of  navigation  on  our  coasts, 
and  thus  both  gave  better  protection  to  the  crews  on  such  vessels 
and  at  the  same  time  took  steps  to  reduce  a  serious  menace  to 
navigation  along  our  coasts. 

IMore  rigid  inspections  at  home  and  abroad  of  the  seaworthi- 
ness of  vessels  have  been  prescribed  by  Congress  and  the  Ad- 
ministration. As  long  ago  as  1898  a  compulsory  scale  of  pro- 
visions for  seamen  on  American  vessels  was  fixed  by  law  very 
much  superior  in  the  quantity  and  quality  of  the  food  furnished 
to  seamen  on  other  vessels.  Indeed,  the  standard  of  living  on 
American  ships  thus  provided  has  already  led  other  nations  to 
legislate  in  the  same  direction,  thus  improving  the  conditions 
of  labor  at  sea  generally.  The  same  act  of  December  21,  1898, 
provided  for  the  prompter  payment  of  wages,  already  much 
higher  on  American  than  on  foreign  ships,  and  for  the  return  of 
wrecked,  sick  or  injured  American  seamen  from  abroad,  or  from 
Alaska,  Porto  Rico,  Hawaii,  the  Philippines  and  the  Canal  Zone, 
at  the  expense  of  the  Federal  Government.  Forecastle  quarters 
on  American  ships  are  now  equal  to  any  on  foreign  ships  and 
superior  to  most.    Warm  rooms  are  provided  in  cold  weather. 

The  penalty  of  imprisonment  for  the  seaman's  breach  of  a 
civil  contract  has  been  abolished  and  all  forms  of  corporal 
punishment  prohibited  by  heavy  penalties.  Prompt  trials  of  cases 
in  which  a  seaman  is  a  party  are  now  required  by  law. 

Legislative  enactment  and  administrative  effort  have  been 
directed  successfully  against  the  crimping  system  by  which  sea- 
men have  been  cheated  of  their  wages.  Abuses  under  the  sys- 
tem of  allotment  of  wages  have  been  reduced  to  a  minimum,  and 
"shanghaiing"  on  American  vessels  has  practically  ceased  since 
the  acts  of  1906  and  1907,  Under  these  several  acts  the  Fedei-al 
courts  have  inflicted  heavy  penalties  on  those  engaged  in  de- 
frauding seamen.  Of  the  act  of  1898  the  Supreme  Court  has 
said  : 

"The  story  of  the  wrongs  done  to  sailors  in  the  larger  ports,  not 
merely  of  this  nation  but  of  the  world,  is  an  oft-told  tale,  and  many 
have  been  the  efforts  to  "protect  them  against  such  wrongs.  One  of  the 
most  common  means  of  doing  these  wrongs  is  the  advancement  of  wages 
Bad  men  lure  them  into  haunts  of  vice,  advance  a  little  money  to  con- 
tinue their  dissipation,  and  having  thus  acquired  a  partial  control  and 
by  liquor  dulled  their  faculties,  place  them  on  board  the  vessel  just 
ready  to  sail  and  most  ready  to  return  the  advances.  When  once  on 
shipboard  and  the  ship  at  sea,  the  sailor  is  ^werless  and  no  relief 
Is  availing.  It  was  in  order  to  stop  this  evil,  to  protect  the  sailor,  and 
not  to  restrict  him  of  his  liberty,  that  this  statute  was  passed.  And 
while  in  some  cases  it  may  operate  harshly,  no  one  can  doubt  that  the 
best  interests  of  the  seaman  as  a  class  are  preserved  by  such  legislation." 

The  wages  of  seamen  on  American  vessels  are  much  higher 
than  on  foreign  vessels.  Thus  the  average  monthly  wages  paid 
at  Bremen,  the  great  German  seaport,  are  $16,  and  at  Liverpool 
$18  for  seamen  and  $20  for  firemen.  At  New  York  seamen  on 
American  vessels  are  paid  $25  and  firemen  $35  to  $40;  American 
engineers  and  mates  are  paid  double  the  corresponding  British 
wages.  The  American  S.  S.  "St.  Louis"  (11,629  gross  tons)  has  a 
monthly  pay  roll  of  $11,300  for  380  men;  the  British  S.  S. 
"Oceanic"  (17,274  grpss  tons)  pays  $9,891  to  427  men,  and  the 
German   S.  S.  "Kaiser  Wilhelm   der  Grosse"    (14,349  gross  tons) 


4.')2  MEIfClf.WT  M  \RI\E. 

pays  monthly  only  $7,715  to  5l)()  iiumi.  Thus  indirc.-t  ly  the 
Amcrifun  systrm,  which  coutril)ntes  toward  hi^lier  wa^es  in 
AiiuM'ican  industries  on  shore,  causes  also  1l;^lier  wages  on  shiiv 
h(.:n-<l. 

The   HhliipiiiK'  HueMtion. 

In  volume,  mci-chant  shi})pini»'  undtM-  llie  Amcj-ican  H!ii>-  is 
surpassed  only  by  merchaut  shipping  under  the  liiitish  flag.  In 
its  types  and  uses,  however,  our  shipping  differs  radically 
from  the  shipping  of  other  maritime  nations.  It  is  almost  wholly 
devoted  to  domestic  transportation,  and  relatively  is  far  below 
our  strength  as  a  naval  power. 

By  comparison  with  our  rank  in  any  other  of  the  greav 
divisions  of  industrial  and  commercial  endeavor,  the  position  of 
the  United  States  as  an  ocean-carrying  power  is  insignificant.  It 
is  humble  by  comparison  with  the  commercial  sea  power  of  other 
leading  nations,  wit^  which  in  nearly  every  other  respect  we  are 
classed.  Even  in  the  discharge  of  ordinary  functions  of  govern- 
ment we  have  jiut  ourselves  under  the  protection  of  foreign  flags. 
Over  a  year  ago  it  became  neeessai-y  to  dispatch  a  small  force  of 
American  troops  to  Cuba ;  they  were  sent  under  the  British 
flag.  Not  one  American  steamship  of  any  kind  now  runs  to  Bra- 
zil, or  Argentina,  or  Chile,  or  l*eru.  .\n  American  mail  service  to 
those  soiithern  countries  is  absolutely  nonexistent.  Not  one 
American  steamship  now  runs  from  either  our  Atlantic  or  our 
Pacific  coast  to  Australasia. 

In  the  performance  of  its  plain  duties  the  Federal  Government 
has  to  resort  to  foreign  agencies  and  foreign  protection.  There  is 
not  to-day  another  first-class  power  in  a  similar  position.  There 
is  not  another  which,  if  it  found  itself  in  that  position,  would 
allow  such  conditions  to  continue  longer  than  until  by  sufficient 
expenditure  they  could  be  corrected  in  the  shortest  possible 
time.  Such  expenditures  would  be  as  cleai-ly  for  public  purposes 
as  appropriations  for  the  Avvny,  the  Navy,  the  Panama  Canal,  or 
the  postal  system. 

From  the  messages  of  their  Presidents  and  the  reports  of 
their  heads  of  Departments  for  many  years  past  the  American 
people  have  become  familiar  with  the  ti'ifling  share  of  Anierican 
vessels  in  our  own  foreign  carrying  trade  and  with  the  fact  that 
an  American  steamship  is  almost  never  seen  in  the  world's  sea- 
ports outside  of  the  Caribbean  and  the  Gulf  of  Mexico.  Last 
year,  for  example,  only  10.6  per  cent,  of  our  combined  exports  and 
imports  were  carried  in  American  ships;  our  vessels  registered 
for  foreign  trade  aggregated  only  871.146  gross  tons,  a  flc^t 
equaled  in  tonnage  and  greatly  exceeded  in  efficiency  by  the 
fleet  of  one  foreign  shipping  corporation,  while  any  one  of  seve- 
i-al  foreign  corporations  owns  more  ocean-going  .steam  ton- 
nage than  the  entire  amount  of  such  tonnage  registered  under 
the  American  flag.    ^ 

Mc'Klnley,    RooweA'eTf,    and    Taft    on    Shipping-. 

The  best  ra^eans  of  restoring  the  American  merchant  marine 
to  its  former  prominence  in  foreign  trade»has  been  the  subject  of 
careful  investigation  by  the  leading  men  of  the  Republican  party 
during  the  past  twelve  years.  In  his  annual  message  of  December 
3,  1900,  President  McKinley  said : 

Foreign  .ships  should  carry  the  least,  not  tlie  greatest  part  of  Ameri- 
can trade.  The  remarkable  growth  of  the  steel  industries,  the  progress 
of  shipbuilding  for  the  domestic  trade,  and  our  steadily  maintained  ex- 
penditures for  the  Navy  have  created  an  opportunity  to  place  the  United 
States  in  the  first   rank  of  commercial  maritime  powers. 

Besides  realizing  a  proper  national  aspiration  this  will  mean  the 
establishment  and  a  healthy  growth  along  all  our  coasts  of  a  distinctive 
national  industry,  expanding  the  field  for  the  profitable  employment  of 
labor  and  capital.  It  will  increase  the  transportation  facilities  and  reduce 
freight  charges  on  the  vast  volume  of  products  brought  from  the  interior 
to  the  seaboard  for  export,  and  will  strengthen  an  arm  of  the  national 
defense  upon  which  the  founders  of  the  Government  and  their  successors 
have   relied. 

Every  constructive  measure  on  the  subject  brought  before 
(•ongress  has  been  TJepublican  in  origin  and  principle,  and  has 
encountered  unbroken  Democratic  obstruction,  save  in  one  in- 
stance when  a  Democratic  Senator  and  two  Democratic  Repre- 
sentatives patriotically  joined  with  the  majority.     It  is  thus  a 


MERCnANT  MARINE.  453 

moral  certainty  that,  as  in  most  other  matters,  no  constrnctive 
legislation  to  advance  our  maritime  interests  is  to  be  expected 
from  a  Democratic  administration  or  a  Democratic  House  of 
Eepresentatives.  ^ 

In  his  first  annual  report  as  Secretary  of  Commerce  and 
Labor,  in  1903,  Secretary  Cortelyou  recommended  the  appoint- 
ment of  a  Merchant  Marine  Commission,  and  President  Jioose- 
velt  in  his  message  to  Congress  the  same  year  strongly  urged 
the  appointment  of  such  a  Commission.  Accordingly,  Congress, 
in  the  early  part  of  1904,  created  a  Merchant  Marine  Commission 
of  five  Senators  and  five  Representatives,  who  made  an  exhaustive 
investigation  into  shipping.  As  a  result  of  this  investigation  after 
favorable  action  in  the  Senate  the  Republican  majority  in  the 
House  also  passed  on  March  1,  1907.  a  bill  providing  for  increased 
American  ocean  mail  facilities  which  incidentally  would  have 
benefited  American  shipbuilding  with  its  almost  infinite  subsidi- 
ary interests,  would  have  improved  our  means  of  ocean  trans- 
portation, and  would  have  develo]3ed  a  merchant  fleet  auxiliary 
to  the  Navy.  By  the  usual  Democratic  tactics  this  bill  was  fili- 
bustered to  death  on  March  3  ^nd  4,  1907,  in  the  Senate  by  two 
Democratic  Senators  who  had  been  recently  rejected  by  their 
own  States. 

At  the  session  of  Congress  just  closed  the  Senate  passed  a 
bill  to  improve  our  mail  service  with  South  America,  the  Philip- 
pines, Asia  and  Australia  in  exact  accord  with  the  recommenda- 
tion and  argimient  in  President  Roosevelt's  message  of  December 
3.  1907.  That  bill  is  now  pending  in  the  House  Committee  on 
Post-Offices  and  Post-Roads  and  will  be  considered  at  the  next 
session  of  Congress.  The  bill  was  also  passed  by  the  Senate  as 
part  of  the  Post-Office  Appropriation  bill,  but  in  this  shape  lacked 
eight  votes  of  approval  by  the  House.  President  Roosevelt's 
recommendation  and  argument  of  December  3,  1907,  follows : 

The  time  has  come,  iu  my  judgment,  to  set  to  work  seriously  to  make 
our  ocean  mail  service  correspond  more  closely  with  our  recent  commercial 
and  political  development.  A  beginning  was  made  by  the  ocean  mail  act 
of  March  31,  1891,  but  even  at  that  time  the  act  was  known  to  be  in- 
adequate in  various  particulars.  Since  that  time  events  have  moved 
rapidly  in  our  history.  We  have  acquired  Hawaii,  the  Philippines,  and 
lesser  islands  in  the  Pacific.  We  are  steadily  prosecuting  the  great  work 
of  uniting  at  the  Isthmus  the  waters  of  the  Atlantic  and  the  Pacific.  To 
a  greater  extent  than  seemed  probable  even  a  dozen  years  ago,  we  may 
look  to  an  American  future  on  the  sea  worthy  of  the  traditions  of  tho 
past.  As  the  first  step  in  that  direction,  and  the  step  most  feasible  at 
the  present  time,  I  recommend  the  extension  of  the  ocean  mail  act  of  1891. 
That  act  has  stood  for  some  years  free  from  successful  criticism  of  Its 
principle  and  purpose.  It  was  based  on  theories  of  the  obligations  of  a 
great  maritime  nation,  undisputed  in  our  own  land  and  followed  by  other 
nation  since  the  beginning  of  steam  navigation.  Briefly  thoie  theories 
are,  that  it  is  the  duty  of  a  first-class  power  so  far  as  practicable, 
to  carry  its  ocean  mails  under  its  own  flag :  that  the  fast  ocean  steam- 
ships and  their  crews,  required  for  such  mail  service,  are  valuable  aux- 
iliaries to  the  sea  power  of  a  nation.  Furthermore,  the  construction  of 
such  steamships  insures  the  maintenance  in  an  efficient  condition  of  the 
shipyards   in  wliich  our   battleships  must  be  built. 

The  expenditure  of  public  money  for  the  performance  of  such  neces- 
•sary  functions  of  government  is  certainly  warranted,  nor  is  it  necessary 
to  dwell  upon  the  incidental  benefits  of  our  foreign  commerce,  to  the 
shipbuilding  industry,  and  to  ship  owning  and  navigation  which  will  ac- 
company the  discharge  of  these  urgent  public  duties,  though  they,  too. 
should  have  weight. 

In  an  address  before  the  Chamber  of  Commerce  of  Trenton, 
New  Jersey,  on  March  23,  1908,  Secretary  Taft  said : 

I  cannot  understand  any  difference  in  principle  between  government 
assistance  to  our  merchant  marine  and  our  protective  tariff  system,  our 
system  of  improvement  of  internal  waterways,  or  any  other  method  by 
which  the  general  welfare  is  promoted  through  the  government's  assist- 
ance of  particular  industries,  in  which  all  may  engage.  Let  us  hope  that 
the  mail  subsidy  bill  will  lead  to  the  establishment  of  direct  lines  between 
New  York  and  South  America  on  tlie  one  hand,  and  between  the  Pacific 
Coast,  Japan,  China  and  the  Philippines  on  the  other,  and  that  it  may 
be  the  means  of  pointing  out  how  a  wider  system  of  maintenance  of  the 
marine   may  be   inaugurated  in  the  public  interest. 

We  are  expending  from  $200,000,000  to  $250,000,000  to  build  a 
canal  across  the  Isthmus  of  Panama.  Can  it  be  that  this  canal  is  to 
be  built  solely  for  vessels  of  other  countries  than  the  United  States?  Is 
it  true  that  the  flag  of  the  United  States  will  fly  over  but  few  merchantmen 
passing  through  this  great  conquest  of  nature?  The  work  on  the  canal 
is  going  on.  The  dirt  is  flying  at  the  rate  now  of  upward  of  two  and  one-half 
million  cubic  yards  a  month.  We  have  every  hope  that  six  years  from 
next  July  our  battle  fleet  may  be  able  to  ascend  through  the  locks  to 
the  new-made  lake  and  to  descend  on  the  other  side  through  the  locks 
to  the  sea.  Ought  we  not  in  the  six  years  which  lie  between  the  present 
and  the  mmplelion  of  the  canal  to  adopt  n  policy  which  shall  give  us  a  mer- 
chant marine  to  justify  our  expending  this  enormous  sum  of  money  on 
commercial  as  well  as  naval  and  war  strategic  grounds? 


<04  MERCHANT  MARINE. 

Trade    ivltli    South    America. 

Secretary  Root,  after  his  visit  to  South  America  and  Mexico, 
whicli  opened  a  new  era  of  Pan- American  comity,  bring-ing  us 
in  closer  touch  with  our  sister  American  Republics,  said  at  the 
Trans-Mississippi  Commercial  Congress  at  Kansas  City,  on  No- 
vember 20,  1906: 

It  is  absolutely  essential  that  the  means  of  communication  between 
North  and  South  America  should  be  improved  and  increased. 

This  underlies  all  other  considerations  and  it  applies  both  to  the 
mail,  the  passenger,  and  the  freight  services.  Between  all  the  principal 
South  American  ports  and  England,  Germany,  France,  Spain,  Italy,  lines 
of  swift  and  commodious  steamers  ply  regularly.  There  are  five  sub- 
sidized flrst-class  mail  and  passenger  lines  plying  between  Buenos  Ayres 
and  Europe ;  there  is  no  such  line  between  Buenos  Ayres  and  the  United 
States.  No  American  steamships  run  to  any  South  American  port  beyond 
the  TJaribbean. 

The  mails  between  South  America  and  Europe  are  swift,  regular,  and 
certain  ;  between  South  America  and  the  United  States  they  are  slow,  ir- 
regular, and  uncertain.  Six  weeks  is  not  an  uncommon  time  lor  a  letter 
to  take  between  Buenos  Ayres  or  Valparaiso  and  Now  York.  The  mer- 
chant who  wishes  to  order  American  goods  cannot  know  when  his  order 
will  be  received  or  when  it  will  be  filled.  The  freight  charges  between 
the  South  American  cities  and  American  cities  are  generally  and  sub- 
stantially higher  than  between  the  same  cities  and  Europe.  At  many 
points  the.  delivery  of  freight  is  uncertain  and  its  condition  upon  arrival 
doubtful.  The  passenger  accommodations  are  such  as  to  make  a  journey 
to  the  United  States  a  trial  to  be  endured,  and  a  Journey  to  Europe  a 
pleasure  to  be  enjoyed.  The  best  way  to  travel  between  the  United  States 
and  both  the  west  and  the  east  coast  of  South  America  is  to  go  by  way 
of  Europe,  crossing  the  Atlantic  twice.  It  is  impossible  that  trade  should 
prosper  or  intercourse  increase  or  mutual  knowledge  grow  to  any  great 
degree  under  such  circumstances. 

We  are  a  nation  of  maritime  traditions  and  facility ;  we  are  a  nation 
of  constructive  capacity,  competent  to  build  ships  ;  we  are  eminent  if  not 
pre-eminent,  in  the  construction  of  machinery ;  we  have  abundant  capital 
seeking  investment ;  we  have  courage  and  enterprise  shrinking  from  no 
competition  in  any  field  which  we  choose  to  enter.  Why,  then,  have  we 
retired  from  this  field  In  which  we  were  once  consplclously  successful? 

I  think  the  answer  is  twofold : 

1.  The  higher  wages  and  the  greater  cost  of  maintenance  of  American 
ofllcers  and  crews  make  It  impossible  to  compete  on  equal  terms  with 
foreign  ships.  The  scale  of  living  and  the  scale  of  pay  of  American 
sailors  are  fixed  by  the  standard  of  wages  and  of  living  in  the  United 
States,  and  those  are  maintained  at  a  high  level  by  the  protective  tariff 
The  moment  Ihe  American  passes  the  limits  of  his  country  and  engages 
in  ocean  transportation  he  comes  Into  competition  with  the  lower  foreign 
scale  of  wages  and  living. 

2.  The  principal  maritime  nations  of  the  world,  anxious  to  develop 
their  trade,  to  promote  their  shipbuilding  Industry,  to  have  at  hand  trans- 
ports and  auxiliary  cruisers  in  case  of  war,  are  fostering  their  steamship 
lines  by  the  payment  of  subsidies.  England  is  paying  to  her  steamship 
lines  between  six  and  seven  million  dollars  a  year.  It  is  estimated  that 
since  1840  she  has  paid  to  them  between  two  hundred  and  fifty  and  three 
hundred  millions.  The  enormous  development  of  her  commerce,  her  pre- 
ponderant share  of  the  carrying  trade  of  the  world,  and  her  shipyards 
crowded  with  construction  ordew  from  every  part  of  the  earth  indicate 
the   success   of   her  policy. 

Against  fhese  advantages  to  his  competitor  the  American  shipowner 
has  to  contend ;  and  It  Is  manifest  that  the  subsidized  ship  can  afford  to 
carry  freight  at  cost  for  a  long  period  to  drive  him   out  of  business. 

Plainly  these  disadvantages  created  by  governmental  action  can  be 
neutralized  only  by  governmental  action,  and  should  be  neutralized  by 
such  action. 

What  action  ought  our  Government  take  for  the  accomplishment  of 
this  just  purpose?     Three  kinds  of   action   have  been    advocated: 

1.  A  law  providing  for  free  ships — that  is,  permitting  Americans  to 
buy  ships  In  other  countries  and  bring  them  under  the  American  flag. 

2.  It  has  been  proposed  to  establish  a  discriminating  tariff  duty  In 
favor  of  goods  imported  In  American  ships— that  Is  to  say,  to  impose  higher 
duties  upon  goods  imported  in  foreign  ships  than  are  imposed  on  goods 
Imported  in  American  ships.  We  tried  that  once  many  years  ago  and  have 
abandoned  It.  In  its  place  we  have  entered  Into  treaties  of  commerce 
and  navigation  with  the  principal  countries  of  the  world,  expressly 
agreeing  that  no  such  discrimination  shall  be  made  between  their  vessels 
and  ours.  To  sweep  away  all  those  treaties  and  enter  upon  a  war  of  com- 
mercial retaliation  and  reprisal  for  the  sake  of  accomplishing  Indirectly 
what  can   be  done  directly   should  not   be   seriously  considered. 

3.  There  remains  the  third  and  obvious  method — of  neutralizing  the 
artificial  disadvantages  imposed  upon  American  shipping  through  the  action 
of  our  own  Government  and  foreign  governments  by  an  equivalent  ad- 
vantage In  the  form  of  subsidy  or  subvention.  In  my  opinion  this  is  what 
should  be  done  ;  it  Is  the  sensible  and  fair  thing  to  do.  It  is  what  must 
be  done  If  we  would  have  a  revival  of  our  shipping  and  the  desired 
development  of  our  foreign  trade.  We  cannot  repeal  the  protective  tariff ; 
no  political  party  dreams  of  repealing  It ;  we  do  not  wish  to  lower  the 
standard  of  American  living  or  American  wages.  We  should  give  back 
to  the  shipowner  what  we  take  away  from  him  for  the  purpose  of  main- 
taining that  standard ;  and  unless  we  do  give  It  back  we  shall  continue 
to  go  without  ships. 

Such  subventions  should  not  be  gifts.  They  would  be  at  once  com- 
pensation for  Injuries  Inflicted  upon  American  shipping  by  American  laws 
and  the  consideration  for  benefits  received  by  the  whole  American  people — • 
not  the  shippers  or  the  shipbuilders  or  the  sailors  alr>ne.  but  hv  pv^rv 
manufacturer,  every  miner,  every  farmer,  every  merchant  whose  prosperity 
denends   UDon  a  market  for  his  nroducts. 


MERCHANT  MARINE.  466 

J  Foreign    Steamsliiii    Trusts. 

The  trust  question  has  been  uppermost  in  the  minds  of  the 
American  people  during  the  past  few  years.  An  American  trust 
can  be  dealt  with  through  the  instrumentality  of  American  laws, 
but  a  foreign  trust  is  beyond  our  reach.  That  the  commerce  of 
South  America  is  dominated  by  a  foreign  steamship  trust  is  well 
known — a  trust  that  can  give  rebates  at  pleasure,  and  that 
can  and  does  lower  and  increase  prices  according  to  circum- 
stances. So  far  as  steamships  are  concerned  this  important 
American  trade  is  now,  and  for  several  years  has  been,  monopo- 
lized by  a  foreign  shipping  trust  or  combination,  whose  weapons 
are  rebates,  discriminations,  and  boycotting,  and  whose  policies 
are  dictated  from  Liverpool  and  Hamburg. 

Mr.  Anderson,  the  present  consul-general  at  Rio  de  Janeiro, 
says  of  the  foreign  steamship  combination  : 

Merchants  complain  that  the  high  freight  rates  obtaining  on  goods 
from  the  United  States  to  Brazil  generally  continue  to  act  as  a  deter- 
rent to  trade  in  general.  The  conference  rates  (the  conference  is  the 
European  steamship  trust)  on  goods  from  the  United  States  to  this 
part  of  South  America  are  nearly  twice  as  high  as  freight  rates  from 
Asiatic  ports  to  the  United   States. 

Ambassador  Griscom,  at  Rio  de  Janeiro,  said  in  a  report  of 
October  1,  1906 : 

The  English  company  of  Lamport  &  Holt  have  been  running  a  monthly 
service  (between  Rio  and  New  York)  with  a  practical  monopoly,  and 
without  competition  the  freights  have  been  prohibitive.  It  is  hoped 
that  we  are  entering  upon  a  new  era,  more  favorable  to  merchants  who 
may  desire  to  reach  out  for  trade  with  Brazil.  The  crying  need  of 
our  relations  with  Brazil  is  better  steamship  communication.  Inquiry 
among  our  leading  financiers  and  merchants  indicates  that  encouragement 
by  our  National  Government  in  the  form  of  a  small  postal  or  other 
subvention  would  quickly  bring  about  the  establishment  of  a  good  line 
of  American  steamers  between  New  York  and  Rio.  Given  a  few  facilities 
our  trade  with  Brazil  must  inevitably  go  ahead  with  leaps  and  bounds. 

Consul-General  Anderson  has  this  to  say  on  the  subject : 
High  freight  rates  shut  American  exporters  out  of  markets  which 
otherwise  they  might  have.  Low  freight  rates,  for  instance,  would  enable 
American  millers  to  ship  American  flour  to  ports  in  Brazil  far  south  of 
their  present  limit.  Freight  rates  from  New  York  to  Brazil  similar  to 
those  obtaining  between  New  York  and  the  Far  East  would  mean  largely 
increased  sales  of  American  flour.  What  is  true  of  flour  is  true  of  other 
things.  The  rebate  system  adopted  by  the  shipping  combine  also  works 
directly  and  materially  against  small  shippers,  among  the  Jatter  being 
most  American  exporters  selling  to  the  Brazilian  trade. 

One  or  more  strong  American  steamship  lines,  sufficiently 
compensated  by  the  Government  for  the  carriage  of  our  mails, 
will  effectTially  thwart  the  schemes  of  this  now  all-powerful 
foreign  steamship  trust,  and  secure  competition  in  the  trade 
with  South  America. 

Pending  Republican  Propositions. 

Briefly  stated,  the  Republican  shipping  project  now  before 
Congress  is  based  on  these  considerations: 

(a)  Profits  of  ocean  mail  service  to  be  devoted  to  the  im- 
provement of  that  service. 

(b)  Improvements  to  be  made  where  most  needed. 

(c)  Expenses  for  the  whole  ocean  mail  service  not  to  exceed 
receipts  in  any  one  year. 

(d)  American  mail  steamships  to  be  employed  if  possible  in 
extending  and  improving  the  service. 

(e)  Export  trade  to  be  extended. 

(f)  Facilities  for  buyers  and  sellers  to  make  the  voyage 
comfortably  between  the  United  States,  South  America,  and 
Australia. 

(g)  Shipbuilding  to  be  encouraged. 

(h)      Auxiliary  naval  strength  to  be  increased? 

With  an  initial  cost  of  less  than  $1,500,000  the  project  con- 
teniplates  with  27  fast  steamships  (involving-  an  expenditure  Sy 
shipowners  in  American  shipyards  of  over  $30,000,000  for  Ameri- 
can labor  and  its  products)  a  fortnightly  service  to  Rio  de 
Janeiro  and  to  Buenos  Ayres ;  to  Manila  over  two  routes  across 
the  Pacific,  one  via  Hawaii,  one  direct,  and  a  service  once  in 
three  weeks  from  the  Pacific  coast  to  Australasia,  the  approxi- 
mate length  of  each  route  outward  and  the  compensation  to  be 
paid  for,  twenty-six  voyages  in  a  year  (or  to  Australasia  eigh-^ 
teen  voyages,  as  follows : 


466 


MERCHANT  MARINE. 


Nauti- 
cal 
mile-. 

Yearly 
compen- 
sation. 

Number 

of 

ships. 

Atlantic  or  Gulf  coast  to  Rio  <\c  Janeiro _.. 

Atlantic  or  Oulf  coast  to  Huenos  .Vyrcs 

5,000 
6,000 

7,800 

6,500 
7,300 

$198,000 
717,600 

932,880 

777,400 
604,440 

6 
6 

Pacific  coa.st  via  Hawaii  to  Japan,   China,   and 
the  Pliilippines 

I'Mciijc  const   direct   to  Japan,   China,   and  the 

Pacili(!  coast  via  Hawaii  to  Australasia 

4 

Total 

3,630,320 

27 

This  estimate  is  for  the  maximuHi  amounts  which  could  be  paid 
in  any  instance.  Tlie  actual  bids  of  steamship  companies  migfht 
be  for  smaller  amounts  and  would  be  sure  to  be  for  smaller 
amounts  if  there  were  several  bidders.  Moreover,  the  Po.stmaster- 
(Jeneral  in  his  discretion  might  decline  to  pay  more  than  $;}  per 
mile  if  he  believed  that  this  rate  was  sufficient  compensation  to 
secure  a  service. 

ForeiKTn  Subsidies. 

Other  nations  for  military,  mail,  and  commercial  purposes 
deem  it  important  to  promote  their  national  shipping-  in  foreign 
trade  by  national  assistance.  The  annual  grants  for  these  pur- 
poses at  the  present  time  by  the  principal  nations  are  substan- 
tially as  follows : 

Suhsidies  to  shipping. 


Country. 

Mail. 

General. 

Total. 

.\ustria-Hungary 

$1,288,201 

82,455 

5,019,703 

1,825,651 

5,204,068 

1,757,812 

3,417,042 

367,468 

48,338 

63,300 

$656,270 

$1,944,471 

Denmark                 .    _    _  . 

82  45.J 

France - 

3,623,720 

8,643,423 

Germany              _                   . 

1,825,651 

Great  Britain            ..           .    _. 

1,312,200 
1.061,639 
2,718,465 

6,516  268 

Italy 

2,819   t5l 

Japan 

6,135,507 

Netherlands 

367   168 

Norway 

116,018 

137  556 

Portugal .— 

63,300 

Russia     ' 

1,595,701 

1  095,701 

Spain 

1,629,927 

81,849 

1,629,927 

81,849 

Sweden 

Total 

20,785,814 

11,081,013 

31,869,827 

Huhsidies   and   payments  for   the   ocean    mail  service   of    Great 

Britain  and  the  United  States  from  1870  to  J901. 

[Compiled  from  official  sources.] 


Great 
Brllaiu. 

United  States. 

Mall  payments. 

Total 

amount 

paid. 

Year, 

British  mall 

aud  admiralty 

subsidies. 

To  American 
steamers. 

To  foreign 
steamers. 

1870..    

$6,107,761 
4,860,000 
3,873,136 
3,612,065 
3,662,805 
3.625,915 
3,490,864 
3,184,425 
3,827,260 
4,142,139 
4^77,972 
4,328,501 
4,442,361 
4,574,805 
4,450,317 
4,516,583 
4,716,397 
4,801.028 
4.743.000 
4,371,000 
4,017,000 
5,536,612 
5,170,323.59 
■    5,035,076.21 
4,542,978.75 
4,475,067.64 

$791,389 

740,361 

38,780 

49,018 

43,319 

76,727 

83.890 

109,828 

120,170 

147,561     -, 

259,788 

646,031 

711.443 

633,035 

1,027,735 

1,288,674 

1,038,141 

998,211 

1,269,660 

1,250,381 

1,525,313 

1,611,794 

1,. 587, 108,75 

1,651,867.81 

1,767,294.88 

1,564,372.83 

$315,944 
236,283 
161,029 
282,855 
286,319 
335,946 
376,528 
505,573 
420,507 
443,204 
478,748.95 
495,630.87 
461,956.87 
429,856.67 
394,636.60 
392,670.18 
437,882.06 
487,038.24 
518,954 
575,666 
556,195 
597,940 
850,268.15 
913,413.07 
1,028,603.15 
1,204,424.28 

$1,115,333 

1875 

976,614 

1&80 

199,809 

1885 

331,903 

1886 

329,391 

1887 

412,673 

1888 

463,418 

1889 

515,401 

1890 

510,677 

1891 

590,765 

1892 

1893    _. 

738,537.51 
1,141,662.69 

1894    

1,173,400.80 

189r  -- 

1,062, 892.  ;')(> 

1896 

1,122,372.50 

1897  _-. 

1,681,344.40 

1898  - _- 

1,478,023.21 

1S99 

1900  - — 

1,485,250.09 
1,788,614 

1901 

1  826,047 

1902 

2,081,508 

1903 

2,209,735 

1904 

2,137  376.90 

1907 _ 

2,565.280.88 
2,795,898.03 
2,768,796.11 

MERCHANT  MARINE. 


4S7 


^^The  figures  above  for  British  mail  and  admiralty  subsidies 
lov  the  year  1907  do  not  include  the  new  admiralty  subsidy  of 
$729,000  a  year  which  is  now  being  paid  to  the  Cunard  Company 
under  a  20-year  contract  by  which  the  British  Government  ad- 
vanced $13,000,000  to  the  company, at  2%  per  cent  interest,  in  fact 
g-iving-  to  that  company  the  two  finest  ships  ever  constructed  in 
Eng-land,  the  "Lusitania"  and  the  "Mauretania,"  if  the  company 
would  operate  them  to  carry  the  mails  and  hold  them  in  reserve 
for  military  purpo.ses,  each  steamer  capable  of  carrying  10,000 
soldiers  armed  and  equipped. 

Neither  do  these  figures  include  the  sum  of  approximately 
$1,250,000  which  England  has  spent  annually  for  some  years  upon 
I)icked  sailors  on  her  merchant  vessels  to  train  them  for  service 
on  her  battleships  should  ocasion  arise  and  to  retain  them  for  the 
purpose. 


Value  of  foreign  carrying  trade  of^the  United  States  in  Ameri- 
can and  foreign  ve^^cls,etc. — Total  United  States  imports  and 
Exports. 

[From  the  Statistical  Abstract.] 


Year 

By  sea. 

By  laud 
vehlc  es. 

end- 
ing 
June 

In  A.mer- 
ican 

vessels. 

Dollars. 

In  foreign 
vtsselK. 

Total. 

Per  cent 
In  Ameri- 
can 
vessels. 

Total  by 

land 
and  sea. 

Dollars. 

Dollars. 

Dollars. 

D  J  liars. 

1860_. 

507,247,757 

255,040,793 

762.288.550 

66.5 

762. 288.. 550 
584,995,066 
435,710,714 
584,928,502 
669,855,034 
604,412,996 
1,010,938,552 
879,165,307 
848,527.647 

1861 

381,516,788 

203,478.278 

584,995,066 

65.2 

1862_. 

217,695,418 

218,015.296 

435,710.714 

50. 

""" "" 

1863— 

241,872,471 

313,053,031 

584,928,502 

41.4 

1864.- 

184,061,486 

485,793,54s 

669,865,034 

27.5 

1865-- 

167,402,872 

437,010,124 

604,412,996 

27.7 

1866.- 

325,711,861 

685,226,691 

1.010,938,552 

32.2 

1867— 

297,834,904 

581,330,403 

879,165,807 

33.9 

1868.- 

297,981,573 

550,981,074 

818,527,647 

35.1 

1869— 

289,956,772 

586,492,012 

876,448,784 

33.2 

876.448,784 

1870-- 

352,969,401 

638,927,488 

991,896,889 

35.6 

991.896,889 
1,132,472.258 

1871- 

353,664,172 

755,122.576 

1,109,486,748 

.31.9 

"•22^985^510 

l'-J72_- 

.S45,331,101 

839,346,362 

1,184,677,463 

29,2 

27,650,770 

1.212,328.233 

1873- 

316,306,592 

966,722,051 

1,313,029,243 

26.4 

27,869,97g 

1,310,8.J9,221 

1874- 

350,451,994 

939,206,106 

1,289,658,100 

27.2 

23,022,540 

1,312,680,640 

1875- 

314,257,792 

884,788,517 

1,199,016,309 

26.2 

20,388.235 

1,219,434,514 

1876- 

311,076,171 

.813,354,987 

1,124,431,158 

27.7 

18,473.164 

1,142,904,312 

1877- 

316,660,281 

859,920,536 

1,176,580,817 

26.9 

17.464,810 

1,194,045,627 

1878- 

313,050,906 

876,991,129 

1,190,042,035 

26.3 

20,477,364 

1,210,519,399 

1379- 

272,015,692 

911.269,232 

1.183,284.924 

23. 

19,423,685 

1,202,708,609 

1880.. 

258,346,577 

1.224,265, 43i 

1,482,612,011 

17.4 

20,981,393 

1,503,593,404 

1881- 

250,586,470 

1,269,002,983 

1,519,589,453 

16.5 

25,452,521 

1,545,041,974 

1882.. 

227,229,745 

1.212.978.769 

1,440,208,514 

15.8       • 

34,973,317 

1,475,181,831 

1883- . 

240,420,500 

1.258.508,924 

1,498,927,924 

16. 

48,092,892 

1,. 547, 020, 318 

1884- 

233,699,035 

1,127.798,199 

1,361,497,234 

17.2 

46,714,068 

1,408,211,302 

1885- 

194,865,743 

1,079,518,560 

1,274,381,309 

15.3 

45,332,757 

1,319,717,084 

1886- 

197,349,503 

1,073,911,113 

1,271,260,616 

15.5 

43,700,350 

1,314,960,966 

1887.. 

194.356,746 

1,165.194,508 

1,359.551.2.54 

14.3 

48,951,725 

1,408,502,979 

1888- 

190,857,473 

1,174,637,321 

1,. 365, 554, 794 

14. 

54,356,827 

1,419,911,621 

1889- 

203,805,108 

1,217,063,541 

1,420,868.649 

14.3 

66,664,378 

1,487,533,027 

1890- 

202,451,086 

1,371,116,744 

1.573.567,830 

12.9 

73,571,263 

1,647, 1.39, 0J3 

1S91- 

206,459,725 

1,450,081,087 

1,656,540,812 

12.5 

72,856,194 

1,729,397,006 

1892- 

220,173,735 

1,564,559,651 

1,784,733,386 

12.3 

72,947,224 

1,857,680,610 

•189.S- 

197,765,507 

1,428, 316,, 568 

1,626,082,075 

12.2 

87,984,041 

1,714,066,116 

1894- 

195,268,216 

1,273,022.456 

1,468,290,672 

13.3 

78,844,522 

1,547,135,194 

1895- 

170,507,190 

1.285,896,192 

1,456,403,388 

11.7 

83,101,742 

1.533.508.130 

1896- 

187,691,887 

1,377,973,521 

1,565,665,408 

12. 

96,666,204 

1,662.331,612 

1897- 

189,075,277 

1,525,753,766 

1,714,829.043 

11. 

100,894,925 

1,815,723,968 

189,S_- 

161,328,017 

1,582,492,479 

1,743,820,496 

9.3 

103,711,488 

1,847,531,984 

1890-- 

160,612,206 

1,646,263,857 

1,806,876,063 

8.9 

117,295,728 

1.924,171.791 

1900-- 

195,084,192 

1,894,444,424 

2,089,528,616 

9.3 

154,895.650 

2.244,424,263 

1901- 

177,398,615 

1,974,536,796 

2.151.935,411 

8.2 

159,001,745 

2,310.937.1.59 

lf.02-_ 

185,819,987 

1,919,029,314 

2,104,849,301 

8.8 

180,191,048 

2,285,040.316 

1903— 

214,695.032 

2,026,106,388 

2,240,801,420 

9.1 

205,059.496 

2,445,860.916 

190L. 

229,735,119 

2,001,203,514 

2,230,938,633 

10.3 

220.976.009 

2,4.51.914,642 

1005— 

290,607,946 

2,103.201,462 

2,393,809,408 

12.1 

242,265,329 

2.636,074.737 

1906- 

322,347,205 

2,367,667,354 

2,690,014,559 

12.0 

280,412.387 

2.970,426.946 

1907.. 

318,331,026 

2,684,296.291 

3. 002, 627.. 317 

10.« 

312.645.186 

8.315.272,503 

A  nation  like  that  of  tlie  United  States,  Tvitli  el»lity  mil- 
lions of  people,  Tvltli  resources  unexampled  in  tlie  history  ol 
the  Tvorld,  Tvlth  Ideals  as  high  as  those  of  any  nation,  Tvith 
the  earnest  desire  to  spread  the  principles  of  liberty  and  of 
]>opnlar  g^overnment,  cannot  maintain  a  position  of  isola- 
tion -with  respect  to  the  peoples  of  the  world  Tvhen  fate 
■hall  haAC  thrnst  some  of  those  peoples  under  our  control. 
—Hon.   Wm.    H.   Taft,    at   Cleveland,    Ohio. 


158  MERCHANT  MARINE. 


[From  th«  «p««oh  of  the  Hon.  J.  Sloat  Faisfltt,  of  New  York.] 

Tou  will  remember  there  are  two  great  American  questions  put  to 
•very    proposition  : 

First.      Is  it  right? 

Second.     Will  it  pay? 

The  great  prizes  of  the  future  are  to  be  won  from  the  waters,  not 
from  the  lands.  Our  political  well-being  and  our  social  integrity  and 
health  are  all  wrapped  up  in  developing  a  merchant  navy  large  enough  to 
carry  our  goods  to  all  the  open  and  opening  markets  of  the  world  in 
times  of  peace,  and  strong  enough,  in  cooperation  with  our  Army  and 
Navy,  to  protect  our  coasts,  as  well  as  our  commerce,  in  times  of  war. 
This  can  be  done,  as  matters  are  at  present,  only  by  putting  up  our  sub- 
sidies, or  putCing  down  our  wages  and  reducing  our  scale  of  living,  but 
the  scale  of  living  will  not  go  backward ;  that  is  too  dear  a  price  to 
pay.  If  war  should  come — which  Qod  forbid — and  If  our  Navy  and  our 
Army  should^  undertake  to  meet  ideal  conditions  and  strike  the  swiftest 
possible  blow  with  the  greatest  possible  force,  at  the  greatest  possible 
distance  from  home,  we  should  find  ourselves  utterly  unable  to  meet  con- 
ditions. We  could  not  embark  a  single  Army  division  of  20,000  men 
fully  armed  and  fully  equipped  and  prepared  for  any  point,  either  on  the 
Atlantic  or  Pacific  coast.  We  cauld  not  supply  the  auxiliary  transports 
and  hospital  ships  and  other  necessary  ships  for  the  Navy  alone,  to  sa> 
nothing  of  supplying  ships  to  carry  and  provide  for  troops.  We  should 
be  reduced  in  spite  of  our  glorious  Navy,  to  the  ridiculous  and  dangerou.s, 
if  not  the  fatal,  absurdity  of  operating  our  fleet  within  sight  of  shore  and 
waiting  to  receive  the  attack  of  the  enemy  at  the  enemy's  own  pleasure 
and  in  the  enemy's  own  good  way.  Our  trade  rivals  subsidize  and  flourish. 
We  are  living  on  a  high  plane.  We  could  not  and  would  not  reduce 
the  comforts  in  the  lives  and  homes  of  our  American  working  people, 
either  at  sea  or  on  land,  so  we  must  come  squarely  to  the  line  and 
give  aid,  and  give  it  quickly,  and  give  it  abundantly  In  the  form  of 
adequate  subsidies  for  services  rendered  and  to  be  rendered.  We  must 
give  It  not  because  It  will  be  of  advantage  to  individuals  here  and  there, 
but  In  spite  of  that  fact ;  not  because  It  will  increase  the  revenues  of 
corporations  engaged  in  deep-sea  commerce,  but  in  spite  of  that  fact. 
We  must  give  it  in  this  way,  because  it  is  necessary  for  the  well-being 
of  all  our  citizens  ;  because  it  enables  us  in  times  of  peace  to  obtain  se- 
curity In  times  of  war ;  we  must  do  It  to  Insure  the  best  interests  of 
our  future ;  we  must  do  It  because  It  will  pay  to  do  it  and  because  it 
is  right  to  do  It.  We  must  subsldiz*  because  it  is  the  only  way ;  because 
we  must  be  prepared  to  meet  the  call  of  our  manifest  destiny ;  because 
we  cannot  shirk  the  burden  put  upon  us  by  circumstances,  and  we  must 
do  it  quickly — before  our  ships  are  all  gone,  and  before  our  sailors  have 
all  disappeared.  It  is  not  a  question  of  pride ;  it  Is  not  a  question  of 
pleasure ;  between  failure  and  success,  we  must  choose  success ;  between 
humiliation  and  victory,  we  must  choose  victory.  We  must  choose  to  meet 
our  rivals  as  gloriously  on  the  seas  as  we  have  ever  met  them  on  the 
land.  To  maintain  our  merchant  victorias  by  land  we  must  arrange  for 
merchant  victories   at  sea. 

From    First    Annual    Report    of    Secretary-    of  jCommeroe    and 
Labor,   Hon.  Georgre  B.  Cortelyon,   1903. 

For  years  the  condition  of  our  shipping  in  foreign  trade  has 
been  a  matter  of  concern  to  public-spirited  Americans.  It  is  vir- 
tually the  only  form  of  commercial  and  industrial  activity  in 
which  the  country  has  not  recently  shown  creditable  growth.  As 
an  industry  it  holds  exceptional  relations  to  Government.  From 
the  nature  of  things,  it  has  been  exposed  in  an  unusual  degree  to 
foreign  competition.  These  and  other  considerations  make  it  a 
fitting  subject  for  our  highest  statesmanship.  Strong  appeals  in 
its  behalf  by  our  Presidents  from  the  time  of  General  Grant 
and  earnest  efforts  more  recently  in  Congress  have  so  far  brought 
meager  results.  Congress  has  made  it  the  duty  of  the  Depart- 
ment of  Commerce  and  Labor  to  foster,  promote  and  develop  our 
shipping  interests.  Commerce  and  labor,  however,  are  not  the 
only  interests  concerned  in  the  improvement  of  our  merchant 
shipping.  Recent  legislation  and  administration  have  aimed  to 
render  more  effective  the  militia  of  the  States  as  an  important 
factor  in  the  national  defense.  In  our  past  wars  the  men  and 
ships  of  the  merchant  marine  were  the  reserves  that  put  our 
Navy  on  a  war  footing,  and  under  like  circumstances  they  must 
perform  the  same  service.  Government  aid  to  the  merchant  ma- 
rine, in  its  naval  features,  should  conform  closely  to  our  general 
naval  policy.  The  position  among  nations  now  occupied  by  the 
United  States  warrants  the  maintenance  of  an  ocean  mail  service 
equal  to  that  of  the  United  Kingdom  or  of  Germany,  in  order 
that  like  those  countries  we  may  possess  the  best  possible  facili- 
ties of  communication  in  our  dealings  with  distant  quarters  of 
the  world.  'By  the  establishment  of  such  service  other  nations 
have  helped  to  build  up  their  shipbuilding  industries  and  to 
strengthen  their  position  on  the  sea. 


MERCHANT  MARINE. 


4S9 


Ocean   Mall   Receipt*   and   Revennes. 

For  some  years  past  the  postage  collected  on  our  foreign 
ocean  mails  has  been  very  much  greater  than  the  expenses  of 
our  foreign  ocean  mail  service.  For  the  past  fiscal  year  our 
revenues  (postage)  from  foreign  ocean  mails  were  $6,579, 0"43. 48 
and  expenses  $2,941,816.67,  .leaving  an  apparent  surplus  of 
$3,637,226.81.  From  this  surplus  something  (between  $500,000 
aad  $600,000)  should  be  cleducte(f  for  railroad  transportation,  so 
that  the  actual  surplus  was  about  $3,000,000.  It  is.  proposed  to 
apply  this  surplus  of  ocean  mail  revenues  to  the  improvement 
and  extension  of  the  ocean  mail  service  in  those  directions  where 
improvement  and  extension  are  most  needed. 

Receipts,  cost  and  surplus  of  our  foreign  mails. 


Year. 

Receipts. 

Cost. 

Surplus. 

1907—                       

$6,579,043.48 
6,008,807.53 
4,711,215.03 
5,095,389.18 
4,991,974.54 
3,737,318.57 
3,005,323.61 
3,467,139.26 

$2,941,816.67 
2,965,624.21 
2,670,798.43 
2,516,053.03 
2,383.588.80 
2,245,625.55 
2,062.537.16 
2.014,537.96 

$3,637,226.81 

1906 

1905 

3,043,183.32 
2,040,416.60 

1904 

2,579,336.12 

1903 

1902 

1901 

1900 - _ 

2,608,385.74 

1,491,693.02 

942,786.45 

1,452,601.30 

Shii>  Materials   Already  Free. 

All  materials  of  every  kind  required  for  the  construction, 
equipment  or  repair  of  vessels  built  in  this  country  for  the  for- 
eign trade  or  for  the  long-voyage  coastwise  trade  between  our 
Atlantic  and  Pacific  seaports  are  free  of  duty  under  sections  12 
and  13  of  the  free  list  of  the  Dingley  tariff,  as  follows :  . 

Dingley    TarifE    Free    liist. 

Sec.  12.  That  all  materials  of  foreign  production  which  may  be  nec- 
essary for  the  construction  of  vessels  built  in  the  United  States  for 
foreign  account  and  ownership,  or  for  the  purpose  of  being  employed  in 
the  foreign  trade,  including  the  trade  between  the  Atlantic  and  Pad  tic 
ports  of  the  United  States,  and  all  such  materials  necessary  for  the  build- 
ing of  their  machinery,  and  all  articles  necessary  for  their  outfit  aud 
equipment,  may  be  imported  in  bond  under  such  pegulations  as  the  Sec- 
retary of  the  Treasury  may  prescribe  ;  and  upon  proof  that  such  materials 
have  been  used  for  such  purposes  no  duties  shall  be  paid  thereon.  But 
vessels  receiving  the  benefit  of  this  section  shall  not  be  allowed  to  engage 
in  the  coastwise  trade  of  the  United  States  more  than  two  months  in 
any  one  year,  except  upon  the  payment  to  the  United  States  of  the  duties 
of  which  a  rebate  is  herein  allowed :  provided,  That  vessels  built  in  the 
United  States  for  foreign  account  and  ownership  shall  not  be  allowed  to 
engage  in  the  coastwise  trade  of  the  United  States. 

Sec.  13.  That  all  articles  of  foreign  production  needed  for  the  repair 
of  American  vessels  engaged  in  foreign  trade,  including  the  trade  beween 
the  Atlantic  and  Pacific  ports  of  the  United  States,  may  be  withdrawn 
from  bond(^  warehouses  free  of  duty  under  such  regulations  as  the  Sec- 
retary of  tne  Treasury  may  prescribe. 

Under  this  law  not  only  steel  plates  and  shapes,  but  articles 
of  equipment  so  elaborate  and  costly  as  ships'  compasses,  have 
been  imported  free  of  duty  for  the  use  of  vessels  built  in  this 
country  for  the  foreign  trade  and  for  the  coastwise  trade  be- 
tween the  Atlantic  and  Pacific. 


Ocean   Freig-lits   and  Fares. 

The  total  amount  expended  in  ocean  freights  and  fares  in 
trade  between  the  United  States  and  foreign  countries,  both 
going  and  coming,  is  not  a  matter  of  official  record.  From 
careful  computations  made  by  American  and  foreign  authorities 
it  is  estimated,  however,  that  in  1906  the  fares  paid  by  passen- 
gers to  and  fro  between  the  United  States  and  foreign  countries 
amounted  to  $65,000,000 ;  the  cost  of  transporting  the  mails,  both 
going  and  coming,  to  about  $5,000,000,  and  freights  on  cargoes 
to  $155,000,000,  making  a  grand  total  of  $225,000,000. 


460 


MERCHANT  MARINE. 


Number  and  net  and  gross  tonnage  of  steam  and  sailing  ves- 
sels of  over  100  tons,  of  the  several  countries  of  the  world,  as 
recorded  in  Lloyd's  Register  for  1907-8. 


Steam. 

BalL 

Flag. 

Num- 
ber. 

Gross  tops. 

Num- 
ber. 

Net  tons. 

Total 
tounagtt. 

Hfitisli: 

Uiiiteti   Kingdom— 

Colouiea L 

8,292 
1,219 

15,930,368 
1,070,771 

1,225 
781 

1,069,300 
250,229 

16,999,668 
1,321,000 

Total          —    — 

9,511 

17.001.139 

2,006 

1,319,529 

18,820,668 

\iiierican  (United  States): 
Sea   

1,029 
465 

83 

1,503,059 

1,618,718 

39,118 

1,905 
47 
29 

1.225,652 

119,045 

6,338 

2,728,711 

1,737,763 

46,454 

Lake 

PhiUppine  Islands 

Total .— 

1,577 

3.160,895 

1,981 

1,851.033 

4.511.928 

Argentine 

169 
312 
131 
283 
87 
501 
455 
809 

1,713 
255 
397 
829 

1,181 
65 
687 
468 
889 
132 
295 

105,916 

677,221 

191,597 

191,088 

107,727 

650,955 

776,855 

1,284,368 

3,705,700 

421,743 

823,325 

1,068,747 

1,264,002 

62,675 

720,198 

673,301 

686,517 

106,929 

288,913 

74 
14 
2 

S 

674 
381 
156 
710 
6 
980 
133 
672 
110 
649 
170 
148 

27,155 

11,398 
1,118 

19,597 
-        48,589 

77,635 

36,772 
477,415 
404,862 

44,789 

396,084 

3,219 

654,529 

38,363 
217,713 

35,448 
191,031 

58,092 

.54,825 

133,071 
fi88,6l9 
192,715 
210,6!55 
156,316 
728,. 590 
813,627 
1,761,733 
4,110,562 
466  532 

Belgian  

Cliilean  

Danish < 

Outeh 

(ierman ^ 

Greek 

Italian 

1,219,409 
1,071,873 
1,918,5.J1 
101,038 
937,911 
708,749 
877  518 

•Japanese 

Norwegian  ...    

Portuguese  

Russian 

Spanish 

Swedish 

Turkish 

165,021 
343,738 

Otiier  countries 

Total 

20,746 

33,969,811 

9,457 

5,469,106 

39.438,917 

Condition  of  American  merchant  marine  1880  to  1901. 


American  vessels. 

Regis- 
tered ton- 
nage 
ofvessels 
passlnu 
tnrough 
8anltSte 
Marie 
Canal. 

Year. 

Built 

Kngaged 

in  foreign 

trade. 

Engaged 
In  domes- 
tic trade. 

Engaged 
In  com- 
merce of 
Great 
Lakes. 

1880 

Tons. 

157,409 
159,056 
294,122 
369,302 
199,633 
211,639 
131,195 
111,602 
227,096 
232,232 
180,458 
300,0.38 
393,790 
483,489 
468,8.33 
4.36,1.52 
378,512 
330,316 
418,745 

Tons. 

1.352,810 
1.287.998 
946,6')5 
1,005,950 
991,676 
899,803 
916,180 
838,186 
844,954 
805,. 581 
737,709 
848,216 
826,694 
889,129 
882,. 555 
&S8.776 
808,768 
951,513 

Tons. 
2,715.224 
2,977,936 
3,477,802 
3,678,809 
3,770,245 
3,925,268 
3,767,819 
3,797,774 
3,858,926 
3,963,436 
4,012,029 
4,015,992 
4,338,145 
4,635,089 
4,915,347 
5,198,569 
5,392,767 
5,;502,030 
5.735,483 
6.0f57,6}8 

Tons. 
605,102 
749,918 
1,063.083 
1,154,870 
1,183,582 
1,261,067 
1,227,400 
1,241,459 
1,324,067 
1,410,102 
1,437,500 
1,446,348 
1,565,587 
1,706,291 
1,816,. 511 
-  1,902,698 
2,019,208 
2,062,147 
2,234,432 
2,439.741 

Registered 
*on8. 
1,734,890 

1885 

1890-... 

1891 

3,036,937 
8,454,435 
8,400,685 

1892 

1893 

18.91 

10,647,203 
8,949,751 
13,110,366 

1895 

16,806,781 

1896. 

17,249,418 

ia97 

17,619,933 

1898      .     . 

18,622,754 

1899— 

21,958,347 

1900 

22,315,834 

1901 

1902 

1!)03 .. 

24,626,976 
31,955.582 
27,736,446 

1901 

24,364,1.38 

1905. > 

36,617,699 

1906 . 

41,098,324 

1907 

471,. 332            R7l.1tR 

44,0S7,974 

The  problems  that  Heemedl  to  hanaisr  over  us  at  the  close  of 
the  w'a,r  t*I11i  Spain  liHve  }?one  far  to\var«l  solution.  We  of 
America  have  discovered  that  we,  too,  possesH  the  supreme 
ICOvernlnKT  capacity,  capacity  not  merely  to  grovern  oiarselves 
at  home,  hut  that  i^reat  povrer  that  in  all  as,'e<4  has  made  the 
difference  het^veen  the  j^reat  and  the  small  i»n(ioBis,  tlie 
r-auacity  to  srovern  mevi  wherever  they  were  f,-»aiid. — 1^1  thu 
Koot    «t    In  ion    I,enj;ue.    \ew    York.    I-^eb.    l\.    1!M>4. 


REPUBLICAN  NATIONAL  PLATFORM 
OF  J  908. 


Once  more  the  JJepiiblican  Party,  in  National  Convention  as- 
sembled, submits  its  cause  to  tlie  people.  This  great  historic  or- 
ganization, that  destroyed  slavery,  preserved  the  Union,  restored 
credit,  expanded  the  national  domain,  established  a  sound  finan- 
cial system,  developed  the  industries  and  resources  of  the  coini- 
try,  and  gave  to  the  nation  her  seat  of  honor  in  the  councils  of 
the  Avorld,  now  meets  the  new  problems  of  government  with  the 
same  courage  and  capacity  with  which  it  solved  the  old. 

Republican  ism    L'nder    lioosevclt. 

In  this  greatest  era  of  American  advancement  the  Kepiiblican 
Party  has  reached  its  highest  service  under  the  leadership  of 
Theodore  Roosevelt.  His  administi-atiou  is  an  epoch  in  American 
history.  In  no  other  period  since  national  sovereignty  was  won, 
under  Washington,  or  preserved  vmder  Lincoln,  has  there  been 
such  might^^  progress  in  those  ideals  of  government  which  make 
for  justice,  equality,  and  fair  dealing  among  men.  The  highest 
aspirations  of  the  American  people  have  found  a  voice.  Their 
most  exalted  servant  represents  the  best  aims  and  worthiest 
purposes  of  all  his  countrymen.  American  manhood  has  been 
lifted  to  a  nobler  sense  of  duty  and  obligation.  Conscience  and 
courage  in  public  station  and  higher  standards  of  right  and  wrong 
in  private  life  have  become  cardinal  principles  of  political  faith; 
capital  and  labor  have  been  brought  into  closer  rehitions  of  con- 
fidence and  interdependence  ;  and  the  abuse  of  wealth,  the  tyranny 
of  power,  and  all  the  evils  of  privilege  and  favoritism  have  been 
put  to  scorn  by  the  simple,  manl3-  virtues  of  justice  and  fair  play. 

The  great  accomplishments  of  President  Roosevelt  have  been, 
first  and  foremost,  a  brave  and  impartial  enforcement  of  the  law  ; 
the  prosecution  of  illegal  trusts  and  monopolies ;  the  exposure  and 
punishment  of  evil-doers  in  the  xwblic  service ;  the  more  effective 
regulation  of  the  rates  and  service  of  the  great  trans- 
portation lines ;  the  complete  overthrow  of  preferences,  rebates, 
and  discriminations ;  the  ai-bitration  of  labor  disputes ;  the  ame- 
lioration of  the  condition  of  wage-workers  everywhere ;  the  con- 
servation of  the  natural  resoui-ces  of  the  country;  the  forward 
step  in  the  improvement  of  the  inland  waterwaj^s,  and  always  the 
earnest  support  and  defense  of  every  wholesome  safeguard  which 
has  m^ade  more  secure  the  guaranties  of  life,  liberty,  and  ijrop- 
erty. 

These  are  the  achievements  that  will  make  Theodore  Roose- 
velt his  place  in  history,  but  more  than  all  else  the  great  things 
he  has  done  will  be  an  inspiration  to  those  who  have  yet  greatc- 
things  to  do.  We  declare  our  unfaltering  adherence  to  the  poli- 
cies thus  inaugurated,  and  pledge  their  continuance  under  a  Re- 
publican administration  of  the  Government. 

Equality   of   Opportunity. 

Under  the  guidance  of  Republican  principles  the  AmericaTi 
people  have  become  the  richest  nation  in  the  world.  Our  wealth 
today  exceeds  that  of  England  and  all  her  colonies,  and  that  of 
France  and  Germany  combined.  When  the  Republican  Party 
was  born  the  total  wealth  of  the  country  was  $16,000,000,000.  It 
has  leaped  to  $110,000,000,000  in  a  generation,  while  Great 
Britain  has  gathered  but  $(50,000,000,000  in  five  hundred  years.  The 
United  States  now  owns  one-fourth  of  the  world's  wealth  and 
makes  one-third  of  all  modern  manufactured  products.  In  the 
great  necessities  of  civilization,  such  as  coal,  the  motive  power 
of  all  activity;  iron,  the  chief  basis  of  all  industry;  cotton,  the 
staple  foundation  of  all  fabrics  ;  wheat,  corn,  and  all  the  agricul- 
tural products  that  feed   mankind,   America's   supremacy   is  uu- 

461 


4«2  liEPUBLICAN  NATIONAL  PLATFORM  OF  1908. 

(lisputeil.  And  yet  her  great  natural  wealth  has  been  scarcely 
toMched.  We  have  a  vast  domain  of  three  million  square  miles, 
literally  bursting  with  latent  treasure,  still  waiting  the  magic 
of  capital  and  industry  to  be  converted  to  the  practical  uses  of 
nuinkind;  a  country  rich  in  soil  and  clihiate,  in  the  iinharnessed 
energy  of  its  rivers,  and  in  all  the  varied  products  of  the  field, 
the  forest,  and  the  factory.  With  gratitude  for  God's  bounty, 
with  pride  in  the  splendid  productiveness  of  the  past,  and  with 
confidence  in  the  plenty  and  prosperity  of  the  future  the  liepub- 
lican  I'arty  declares  for  the  principle  that  in  the  development  and 
enjoyment  of  wealth  so  great  and  blessings  so  benign  there 
shall  be  equal  opportunity  for  all. 

The    Revival    of     BnsineHM. 

Nothing  so  clearly  demonstrates  the  sound  basis  upon  which 
our  commercial,  industrial,  and  agricultural  interests  are  founded, 
and  the  necessity  of  promoting  their  continued  welfare  through 
ihc  operation  of  Kepublican  policies,  as^the  recent  safe  passage  of 
the  American  people  through  a  financial  disturbance  which,  if 
appearing  in  the  midst  of  Democratic  rule  or  the  menace  of  it, 
might  have  equaled  the  familiar  Democratic  panics  of  the  past. 
We  congratulate  the  people  upon  this  renewed  evidence  of  Ameri- 
can supremacy  and  hail  with  confidence  the  signs  now  manifest  of 
a  complete  restoration  of  business  prosperity  in  all  lines  of  trade, 
commerce,  and  manufacturing. 

Recent    Republican    Legrlslation. 

Since  the  election  of  William  McKinley  in  1906  the  people  of 
this  country  have  felt  anew  the  wisdom  of  intrusting  to  the  Re- 
publican Party  through  decisive  majorities  the  control  and  direc- 
tion of  national  legislation. 

The  many  wise  and  progressive  measures  adopted  at  recent 
sessions  of  Congress  have  demonstrated  the  patriotic  resolve  of 
Republican  leadership  in  the  legislative  department  to  keep  step 
in  the  forward  march  toward  better  government. 

Notwithstanding  the  indefensible  filibustering  of  a  Demo- 
cratic minority  in  the  House  of  Representatives  during  the  last 
session  many  wholesome  and  progressive  laws  were  enacted,  and 
we  especially  conmiend  the  passage  of  the  emergency  currency 
bill,  the  appointment  of  the  national  monetary  commission,  the 
employers'  and  Government  liability  laws,  the  measures  for  the 
greater  efficiency  of  the  Army  and  Navy,  the  widows'  pension  bill, 
the  child  labor  law  for  the  District  of  Columbia,  the  new  statute 
for  the  safety  of  railroad  engineers  and  firemen,  and  many  other 
acts  conserving  the  public  welfare. 

Republican  Pledges   for   the   Future. 

Tariff. 

The  Republican  Party  declares  nnequivocally  for  the  revision 
of  the  tariff  by  a  special  session  of  Congress  immediately  follow- 
ing the  inauguration  of  the  next  President,  and  commends  the 
steps  already  taken  to  this  end  in  the  work  assigned  to  the  appro- 
priate committees  of  Congress  which  are  now  investigating  the 
operation  and  effect  of  existing  schedules.  In  all  tariff  legislation 
the  true  principle  of  protection  is  best  maintained  by  the  impo- 
sition of  such  duties  as  will  equal  the  difference  between  the  cost 
of  production  at  home  and  abroad,  together  with  a  reasonable 
profit  to  American  industries.  We  favor  the  establishment  of 
maximum  and  minimum  rates  to  be  administered  by  the  President 
under  limitations  fixed  in  the  law,  the  maximum  to  be  available  to 
meet  discriminations  by  foreign  countries  against  American 
goods  entering  their  markets,  and  the  minimum  to  represent  the 
normal  measure  of  protection  at  home,  the  aim  and  purpose  of 
the  Republican  policy  being  not  only  to  preserve,  without  exces- 
sive duties,  that  security  against  foreign  competition  to  which 
American  manufacturers,  farmers,  and  producers  are  entitled,  but 
also  to  maintain  the  high  standard  of  living  of  the  wage-earners 
of  this  country,  who  a^re  the  most  direct  beneficiaries  of  the  pro- 
tective system.  Between  the  United  States  and  the  Philippines 
we  believe  in  a  free  interchange  of  products  with  such  limitations 
as  to  sugar  and  tobacco  as  will  afford  adequate  protection  to 
domestic  interests. 


REPUBLICAN  NATIONAL  PLATFORM  OF  1908.  468 

Currency. 

We  approve  the  emergency  measures  adopted  by  the  Govern- 
ment during  the  recent  financial  disturbance,  and  especially 
commend  the  passage  by  Congress  at  the  last  session  of  the  law 
designed  to  protect  the  country  from  a  repetition  of  such  strin- 
gency. The  Itepublican  Party  is  committed  to  the  development  of 
a  permanent  currency  system  responding  to  our  great  needs,  and 
the  appointment  of  the  National  Monetary  Commission  by  the 
present  Congress,  which  will  impartially  investigate  all  proposed 
methods,  insures  the  early  realization  of  this  purpose.  The  pres- 
ent currency  laws  have  fully  justified  their  adoption,  but  an  ex- 
panding commerce,  a  marvelous  growth  in  wealth  and  popula- 
tion, multiplying  the  centers  of  distribution,  increasing  the  de- 
mand for  the  movement  of  crops  in  the  West  and  South,  and  en- 
tailing periodic  changes  in  monetary  conditions  disclose  the  need 
of  a  more  elastic  and  adaptable  system.  Sueh  a  system  must  meet 
the  requirements  of  agriculturists,  manufacturers,  merchants,  and 
business  men  generally,  must  be  automatic  in  operation,  minimiz- 
ing the  fluctuations  in  interest  rates,  aud,  above  all,  must  be  in 
harmony  with  that  llepublican  doctrine  which  insists  that  every 
dollar  shall  be  based  upon  and  as  good  as  gold. 

Postal  Savings. 

We  favor  the  establishment  of  a  postal  savings  bank  system 
for  the  convenience  of  the  people  and  the  encouragement  of 
thrift. 

Trusts. 

The  Kepublican  Party  passed  t^e  Sherman  Anti-trust  law  over 
Democratic  opposition  aud  enforced  it  after  Democratic  derelic- 
tion. ]t  has  been  a  wholesome  instrument  for  good  in  the  hands 
of  a  wise  and  fearless  administration.  But  experience  has  shown 
that  its  effectiveness  can  be  strengthened  and  its  real  objects 
better  attained  by  such  amendments  as  will  give  to  the  Federal 
Government  greater  supervision  and  control  over  and  secure 
greater  publicity  in  the  management  of  that  class  of  corpora- 
tions engaged  in  interstate  conunerce  having  power  and  oppor- 
tunity to  effect  monopolies. 

Railroads. 

We  approve  the  enactment  of  the  railroad  rate  law  and  the 
vigorous  enforcement  by  the  present  administration  of  the  stat- 
utes against  rebates  and  discriminations,  as  a  result  of  which 
the  advantages  formerly  possessed  bj^  the  large  shipper  over  the 
small  shipper  have  substantially  disappeared;  and  in  this  con- 
nection we  commend  the  appropriation  by  the  present  Congress 
to  enable  the  Interstate  Commerce  Commission  to  thoroughly  in- 
vestigate and  give  jniblicity  to  the  accounts  of  interstate  rail- 
roads. We  believe,  however,  that  the  interstate  commerce  law 
should  be  further  amended  so  as  to  give  railroads  the  right  to 
make  and  publish  traffic  agreements  subject  to  the  approval  of  the 
Commission,  but  maintaining  always  the  principle  of  competition 
between  naturally  competing  lines  and  avoiding  the  common  con- 
trol of  such  lines  by  any  means  whatsoever.  W^e  favor  such 
national  legislation  and  supervision  as  will  prevent  the  futur<« 
overissue  of  stocks  and  bonds  by  interstate  carriers. 

Railroad  and  Government  Employees. 

The  enactment  in  constitutional  form  at  the  present  session 
of  Congress  of  the  employers'  liability  law,  the  passage  and  en- 
forcement of  the  safety  appliance  statutes,  as  well  as  the  addi- 
tional protection  secured  for  engineers  and  firemen,  the  reduction 
in  the  hours  of  labor  of  trainmen  and  railroad  telegraphers,  the 
STiccessful  exercise  of  the  powers  of  mediation  and  arbitration 
between  interstate  railroads  and  their  employees,  and  the  law 
making  a  beginning  in  the  policy  of  compensation  for  injured 
employees  of  the  Government,  are  among  the  most  commendable 
accomplishments  of  the  present  administration.  But  there  is 
further  work  in  this  direction  yet  to  be  done,  and  the  Hepublican 
Party  pledges  its  continued  devotion  to  every  cause  that  makes 
for  safety  and  the  betterment  of  conditions  among  those  whose 
labor  contributes  so  much  to  the  progress  and  welfare  of  the 
country. 


464  REPUBLICAN  NATIONAL  PLATFORM  OF  1908. 

Wage-earners  Generally . 

The  same  wise  policy  which  has  induced  the  Republican  Party 
to  maintain  protection  to  American  labor,  to  establish  an  eight 
hour  day  in  the  construction  of  all  public  works,  to  increase  the 
list  of  employees  who  shall  have  preferred  claims  for  wages 
under  the  bankruptcy  laws,  to  adopt  a  child  labor  statute  for  the 
District  of  Columbia,  to  direct  an  investigation  into  the  condi- 
tion of  working  women  and  children  and,  later,  of  employees  of 
telephone  and  telegraph  companies  engaged  in  interstate  busi- 
ness, to  appropriate  $150,000  at  the  recent  session  of  Congress  in 
order  to  secure  a  thorough  inquiry  into  the  causes  of  catastro- 
phes and  loss  of  life  in  the  mines,  and  to  amend  and  strengthen 
the  law  prohibiting  the  importation  of  contract  labor,  will  be 
pursued  in  every  legitimate  direction  within  Federal  authority 
to  lighten  the  burdens  and  increase  the  opportunity  for  happiness 
and  advancement  of  all  who  toil.  The  Republican  Party  recog- 
nizes the  special  needs  of  wage-workers  generally,  for  their  well 
being  means  the  well  being  of  all.  But  more  important  than  all 
other  considerations  is  that  of  good  citizenship,  and  we  espe- 
cially stand  for  the  needs  of  every  American,  whatever  his  occu- 
pation, in  his  capacity  as  a  self-respecting  citizen. 

Court  Procedure. 

The  Republican  Party  will  uphold  at  all  times  the  authority 
and  integrity  of  the  courts.  State  and  Federal,  and  will  ever  in- 
sist that  their  powers  to  enforce  their  process  and  to  protect  life, 
liberty,  and  property  shall  be  preserved  inviolate.  We  believe,  how- 
ever, that  the  rules  of  procedure  in  the  Federal  Courts  with  re- 
spect to  the  issuance  of  the  wait  of  injunction  should  be  more  ac- 
curately defined  by  statute,  and  that  no  injiinction  or  temporary 
restraining  order  should  be  issued  without  notice,  except  where 
irreparable  injury  would  result  from  delay,  in  which  case  a 
speedy  hearing  thereafter  should  be  granted. 

TJte  American  Farmer. 

Among  those  whose  welfare  is  as  vital  to  the  welfare  of  the 
whole  country  as  that  of  the  wage-earner  is  the  American  farmer. 
The  prosperity  of  the  country  rests  peculiarly  upon  the  prosper- 
ity of  agriculture.  The  Republican  Party  during  the  last  twelve 
years  has  accomplished  extraordinary  work  in  bringing  the  re- 
sources of  the  National  Government  to  the  aid  of  the  farmer,  not 
only  in  advancing  agriculture  itself,  but  in  increasing  the  conven- 
iences of  rural  life.  Free  rural  mail  delivery  has  been  established; 
it  now  reaches  millions  of  our  citizens,  and  we  favor  its  extension 
until  every  community  in  the  land  receives  the  full  benefits  of  the 
postal  service.  We  recognize  the  social  and  economical  advantages 
of  good  country  roads,  maintained  more  and  more  largely  at  pub- 
lic expense,  and  less  and  less  at  the  expense  of  the  abutting 
owner.  In  this  work  we  commend  the  growing  practice  of  State 
aid,  and  we  approve  the  efForts  of  the  National  Agricultural  De- 
partment, by  experiments  and  otherwise,  to  make  clear  to  the 
public  the  best  methods  of  road  construction. 

Rights  of  the  Negro. 

The  Republican  Party  has  been  for  more  than  fifty  years  the 
consistent  friend  of  the  American  negro.  It  gave  him  freedom 
and  citizenship.  It  wrote  into  the  organic  law  the  declarations 
that  proclaim  his  civil  and  political  rights,  and  it  believes  today 
that  his  noteworthy  progress  in  intelligence,  industry,  and  good 
citizenship  has  earned  the  respect  and  encouragement  of  the 
nation.  We  demand  equal  justice  for  all  men,  without  regard  to 
race  or  color;  we  declare  once  more,  and  without  reservation,  for 
the  enforcement  in  letter  and  spirit  of  the  Thirteenth,  Four- 
teenth, and  Fifteenth  Amendments  to  the  Constitution,  which  were 
designed  for  the  protection  and  advancement  of  the  negro,  and  we 
condemn  all  devices  that  have  for  their  real  aim  his  disfranchise- 
ment for  reasons  of  color  alone  as  unfair,  un-American,  and  re- 
pugnant to  the  supreme  law  of  the  land. 

Xutiiral  Resources  and  Watcricaiis. 

We  indorse  the  msovement  inaugurated  by  the  administratio'n 
for  the  conservation  of  natural  resources;  we  approve  all  meas- 


REPUBLICAN  NATIONAL  PLATFORM  OF  1908.  465 

ures  to  prevent  the  waste  of  timber ;  we  commend  the  "work  now 
going-  on  for  the  reclamation  of  arid  lands,  and  reaflfirm  the  Ee- 
publican  policy  of  the  free  distribution  of  the  available  areas  of 
the  public  domain  to  the  landless  settler.  No  obligation  of  the 
future  is  more  insistent  and  none  will  result  in  greater  blessings 
to  posterity.  In  line  with  this  splendid  undertaking-  is  the  fur- 
ther duty,  equally  imperative,  to  enter  upon  a  systematic  improve- 
ment upon  a  large  and  comprehensive  plan,  just  to  all  portions  of 
the  country,  of  the  waterways,  harbors,  and  great  lakes,  whose 
natural  adaptability  to  the  increasing  traffic  of  the  land  is  one  of 
the  g-reatest  gifts  of  a  benig-n  Providence. 

The  Army  and  Navy. 

The  Sixtieth  Cong-ress  passed  many  commendable  acts  in- 
creasing the  efficiency  of  the  Army  and  Navy,  making  the  militia 
of  the  States  an  integral  part  of  the  national  establishment, 
authorizing-  joint  maneuvers  of  army  and  militia,  fortifying 
new  naval  bases  and  completing-  the  construction  of  coaling  sta- 
tions, instituting  a  female  nurse  corps  for  naval  hospitals 
and  ships,  and  adding  two  new  battleships,  ten  torpedo  boat  de- 
strojers,  three  steam  colliers,  and  eight  submarines  to  the 
strength  of  the  Navy.  Although  at  peace  with  all  the  world,  and 
secure  in  the  consciousness  that  the  American  people  do  not  de- 
sire and  will  not  provoke  a  war  with  any  other  country,  we 
nevertheless  declare  our  unalterable  devotion  to  a  policy  that  will 
keep  this  Eepublic  ready  at  all  times  to  defend  her  traditional 
doctrines,  and  assure  her  appropriate  part  in  promoting  perma- 
nent tranquillity  among  the  nations. 

Protection  of  American  Citizens  Abroad. 

We  commend  the  vigorous  efforts  made  by  the  Administration 
to  protect  American  citizens  in  foreign  lands,  and  pledge  our- 
selves to  insist  upon  the  just  and  equal  protection  of  all  our  citi- 
zens abroad.  It  is  the  unquestioned  duty  of  the  Government  to 
procure  for  all  our  citizens,  without  distinction,  the  rights  to 
travel  and  sojourn  in  friendly  countries,  and  we  declare  our- 
selves in  favor  of  all  proper  efforts  tending  to  that  end. 

Extension  of  Foreign  Commerce. 

Under  the  administration  of  the  Republican  Party  the  for- 
eign commerce  of  the  United  States  has  experienced  a  remark- 
able growth  until  it  has  a  present  annual  valuation  of  approxi- 
mately three  billions  of  dollars,  and  gives  employment  to  a  vast 
amount  of  labor  and  capital  which  would  otherwise  be  idle.  It 
has  inaugurated,  through  the  recent  visit  of  the  Secretary  of 
State  to  South  America  and  Mexico,  a  new  era  of  Pan-American 
commerce  and  comity,  which  is  bringing  us  into  closer  touch 
with  our  twenty  sister  American  Republics,  having  a  conynou 
historical  heritage,  a  Republican  form'  of  government,  and  offer- 
ing us  a  limitless- field  of  legitimate  commercial  expansion. 

Arbitration  and  The  Hague  Treaties. 

The  conspicuous  contributions  of  American  statesmanship  to 
the  great  cause  of  international  peace,  so  signally  advanced  in 
The  Hague  conferences,  are  an  occasion  for  just  pride  and  gratifi- 
cation. At  the  last  session  of  the  Senate  of  the  United  State& 
eleven  Hague  conventions  were  ratified,  establishing  the  rights  of 
neutrals,  laws  of  war  on  land,  restriction  of  submarine  mines, 
limiting  the  use  of  force  for  the  collection  of  contractual  debts, 
governing  the  opening  of  hostilities,  extending-  the  application  of 
Geneva  principles,  and,  in  many  ways,  lessening  the  evils  of  war 
and  promoting  the  peaceful  settlement  of  international  contro- 
versies. At  the  same  session  twelve  arbitration  conventions  with 
great  nations  were  confirmed  and  extradition,  boiindary,  and  nat- 
uralization treaties  of  supreme  importance  were  ratified.  We  in- 
dorse such  achievements  as  the  highest  duty  a  people  can  per- 
form and  proclaim  the  obligation  of  further  strengthening  the 
bonds  of  friendship  and  good-will  with  all  nations  of  the  world. 

Merchant  Marine. 

We  adhei'e  to   the   Republican   doctrine  of   •mcouragement   to 
American  shipping-  and  urge  such  legislation  as  will  revive  the 


466  REI'UIiLlCAN  NATIONAL  VJjATFORM  OF  tmR. 

inerihaut  inarino  prest.ig-e  of  the  country,  so  essential  to  national 
ilefense,  the  enhir<>^enient  of  f«)r«Mi>-ii  tnxle.  and  tlie  indusi  rjiil  pros- 
l)erity  of  onr  own  people. 

Veterans  of  the  Wars. 

Another  Republican  policy  which  must  be  ever  maintained  Is 
that  of  generous  provision  for  those  who  have  fought  the  coun- 
t  ry's  battles  and  for  the  widows  and  orphans  of  those  who  have 
fallen.  We  eomniend  the  increase  in  the  widows'  pensions  niadi' 
by  the  present  Congress,  and  declare  for  a  liberal  administration 
of  all  pension  laws,  to  the  end  that  the  ])eople's  gratitude  may 
grow  deeper  as  the  memories  of  heroic  saci'ificc  grow  more  sacred 
with  the  passing  years.  ' 

Civil  Service. 

We  reaffirm  oui-  former  declaiation  that  the  civil  .service  laws, 
enacted,  extended,  and  enforced  by  the  Kepublican  Party,  shall 
continue  to  be  maintained  and  obeyed. 

I'Khlic  llralth. 

We  commend  the  elTorts  designed  to  secure  greater  efficiency 
in  National  ))ublic  health  agencies,  and  favor-  such  Icgishition  as 
will  efTect  this  purpose. 

Bureau  of  Mines  and  Mining, 

In  the  interest  of  the  great  mineral  industries  of  our  country, 
we  earnestly  favor  the  establishment  of  a  Bureau  of  Mines  and 
Mining. 

Cuba,  Porto  Rico,  PhilipinncH,  and  Panama. 

The  American  (iovernment,  in  Kepublican  hands,  has  freed 
Cuba,  giving  peace  and  protection  to  Porto  Rico  and  the  Philip- 
pines under  our  flag,  and  begun  the  construction  of  the  Panama 
Canal.  The  present  conditions  in  Cuba  vindicate  the  wMsdom  of 
maintaining  between  that  Kepublic  and  this  imperishable  bonds 
of  mutual  interest,  and  the  hope  is  now  expressed  that  the  Culian 
people  will  soon  again  be  ready  to  assume  complete  sovereignty 
over  their  land. 

In  Porto  Rico  the  Government  of  the  United  States  is  meeting 
loyal  and  patriotic  support ;  order  and  prosperity  prevail,  and  the 
well-being  of  the  people  is  in  every  respect  promoted  and, con- 
served. 

We  believe  that  the  native  inhabitants  of  Porto  Rico  should  be 
at  once  collectively  made  citizens  of  the  United  States,  and  that 
all  others  properly  qualified  under  existing  laws  residing  in  said 
island  should  have  the  privilege  of  becoming  naturalised. 

In  the  Philippines  insurrection  has  been  suppressed,  law  es- 
tablished, and  life  and  property  made  secure.  Education  and  prac- 
tical experience  are  there  advancing  the  capacity  of  the  people  for 
government,  and  the  policies  of  McKinley  and  Roosevelt  are  lead- 
ing the  inhabitants  step  by  step  to  an  ever-increasing  measure  of 
home  rule. 

Time  has  justified  the  selection  of  the  Panama  route  for  the 
great  Isthmian  Canal,  and  events  have  shown  the  wisdom  of  se- 
curing authority  over  the  zone  through  which  it  is  to  be  built. 
The  work  is  now  progressing  with  a  rapidity  far  beyond  expec- 
tation, and  already  the  realization  of  the  hopes  of  centuries  has 
come  within  the  vision  of  the  near  future. 

Xciv  Mexico  and  Arizona. 

We  favor  the  immediate  admission  of  the  Territories  of  New 
Mexico  and  Arizona  as  separate  States  in  the  Union. 

Centenary  of  the  Birth  of  JAncoln. 

February  12.  1909.  will  be  the  one  hundredth  anniversary  of 
Ihe  birth  of  Abraham  Li-ficoln,  an  immortal  spirit  whose  fame  has 
brightened  with  the  receding  years,  and  whose  name  stands 
imong  the  first  of  those  given  to  the  world  by  the  great  Republic. 
We  recommend  that  this  centennial  anniversary  be  celebrated 
throughout  the  confines  of  the  nation  by  all  the  people  thereof, 
and  especially  by  the  ])ublic  schools,  as  an  exercise  to  stir  the 
patriotism  of  the  youth  of  the  land. 


REPUBLICAN  NATIONAL  PLATFORM  OF  1908.  467^ 

Democratic    Incapacity    for    Government. 

We  call  the  attention  of  the  American  people  to  the  fact  that 
none  of  the  great  measures  here  advocated  by  the  Republican 
Party  could  be  enacted  and  none  of  the  steps  forward  here  pro- 
posed could  be  taken  under  a  Democratic  administration  or  under 
one  in  which  party  responsibility  is  divided.  The  continuance  of 
present  policies,  therefore,  absolutely  requires  the  continuance  in 
power  of  that  party  which  believes  in  them  and  which  possesses 
the  capacity  to  put  them  into  operation. 

Fundamental    Differences    BetTreen    Democracy    and    Republi- 
canism. 

Beyond  all  platform  declarations  there  are  fundamental  dif- 
ferences between  the  Republican  Party  and  its  chief  opponent 
which  makes  the  one  worthy  and  the  other  unworthy  of  public 
trust. 

In  history  the  difference  between  Democracy  and  Republican- 
ism is  that  the  one  stood  for  debased  currency,  the  other  for 
honest  currency;  the  one  for  free  silver,  the  other  for  sound 
money ;  the  one  for  free  trade,  the  other  for  protection ;  the  one 
for  the  conti-action  of  American  influence,  the  other  for  its  ex- 
pansion ;  the  one  has  b^en  forced  to  abandon  every  position  taken 
on  the  great  issues  before  the  people,  the  other  has  held  and 
vindicated  all. 

In  experience,  the  difference  between  Democracy  and  Rej^ubli- 
canism  is  that  one  means  adversity,  while  the  other  means  jsros- 
perity ;  one  means  low  w^ages,  the  other  means  high ;  one  means 
doubt  and  debt,  the  other  means  confidence  and  thrift. 

In  principle,  the  difference  between  Democracy  and  Republi- 
canism is  that  one  stands  for  vacillation  and  timidity  in  govern- 
ment, the  other  for  strength  and  purpose  ;  one  promises,  the  other 
performs;  one  finds  fault,  the  other  finds  work. 

The  present  tendencies  of  the  two  parties  are  even  more 
marked  by  inherent  differences.  The  trend  of  Democracy  is  to- 
ward socialism,  while  the  Republican  Party  stands  for  a  wise  and 
regulated  individualism.  Socialism  would  destroy  wealth.  I^e-  . 
})ublicanism  would  prevent  its  abuse.  Socialism  would  give  to  ^ 
each  an  equal  right  to  take ;  Republicanism  would  give  to  each 
an  equal  right  to  earn.  Socialism  would  offer  an  equality  of  pos- 
session which  woiild  soon  leave  no  one  anything  to  possess;  Re- 
publicanism would  give  equality  of  opportunity  which  would  as- 
sure to  each  his  share  of  a  constantly  increasing  sum  of  posses- 
sions. In  line  with  this  tendency  the  Democratic  party  of  to-day 
believes  in  government  ownership,  while  the  Republican  Party 
believes  in  government  regulation.  Ultimately  Democracy  would 
have  the  nation  own  the  people,  while  Republicanism  would  have 
the  people  own  the  nation. 

Upon  this  platform  of  principles,  of  purposes,  reaffirming  our 
adherence  to  every  Republican  doctrine  proclaimed  since  the  birth 
of  the  party,  we  go  before  the  country  asking  the  suppoi't  not 
only  of  those  who  have  acted  with  us  heretofore,  but  of  all  our 
fellow-citizens  who.  regardless  of  past  political  differences,  unife 
in  the  desire  to  maintain  the  policies,  perpetuate  the  blessings, 
and  make  secure  the  achiev^ements  of  a  srreater  America. 


Our  free  trade  friends  have  told  us  for  years  and  years 
that  if  Ave  do  not  hny  ^ve  cannot  sell,  l>ut  ^ve  have  grone 
<»n  doiit|£'  hoth  at  a  ^vondronsly  increasing"  rate,  hut  selling;;' 
.inst  enough  more  than  -\ve  buy  to  meet  all  foreign  obli- 
gations and  keep  our  Kold  as  a  bulwark  of  redemption. 
That  has  been  the  Republican  method,  and  that  is  groin^-  to 
continue  to  be  the  Republican  method. — Hon.  James  S.  Sher- 
man. 

^Ve  were  passing-  into  a  regime  of  au  Irresponsible 
l>luiocracy.  During  the  last  four  years  there  has  been  a 
great  moral  awakening  to  this  danger  among  the  people  and 
a  popular  demand  that  the  lav^'breakers — no  matter  ho^v 
■tvealthy  or  how  higli  or  powerful  their  position — shall  be 
made  to  suffer.  Under  the  leadersliip  of  Theodore  Hoose- 
A-elt  the  Republican  party  has  not  faltered  in  its  detertnina- 
tion  to  meet  the  rennircments  of  this  situation  and  to  en- 
act such  legislation  as  may  be  necessary  to  bring  to  a  close 
litis  T»«»ri*T»l  of  illegitimnfe  corporate  immunity. — Hon.  'Wm. 
II.  Tuft,   sit   Kansas   City,  Mo. 


THE  DEMOCRATIC  NATIONAL  PLAT- 
FORM  OF  J  908. 


We,  the  representatives  of  the  Democracy  of  the  United  States, 
in  National  Convention  assembled,  reaffirm  onr  belief  in,  and 
pledge  our  loyalty  to,  the  principles  of  the  party. 

We  rejoice  at  the  increasing  signs  of  an  awakening  through- 
out the  country.  The  various  investigations  have  traced  graft 
and  political  corruption  to  the  representatives  of  jiredatory 
wealth,  and  laid  bare  the  unscrupulous  methods  by  which  they 
have  debauched  elections  and  preyed  upon  a  defenseless  public 
through  the  subservient  officials  whom  they  have  raised  to  place 
and  power. 

The  conscience  of  the  nation  is  now  aroused  to  free  the 
Government  from  the  grip  of  those  who  have  made  it  a  business 
asset  of  the  favor-seeking  corporations.  ^It  must  become  ag.iin 
a  people's  government,  and  be  administered  in  all  its  departments 
according  to  the  Jeffersonian  maxim — "equal  rights  to  all;  special 
privileges  to  none." 

"Shall  the  people  rule?"  is  the  overshadowing  issue  which 
manifests  itself  in  all  the  questions  now  imder  discussion. 

Increase     of    Ofiice    Holders. 

Coincident  with  the  enormous  increase  in  expenditures  is  a 
like  addition  to  the  number  of  officeholders.  During  the  past 
year  23,784  were  added,  costing  $16,156,000  and  in  the  past  six 
years  of  llepublican  administration  the  total  number  of  nevv 
offices  created,  aside  from  any  commissions,  has  been  99,319, 
entailing  an  additional  expenditure  of  nearly  $70,000,000  as 
against  only  10,279  new  offices  created  under  the  Cleveland  and 
McKinley  administrations,  which  involved  an  expenditure  of 
only  $6,000,000.  We  denounce  this  great  and  growing  increase 
in  the  number  of  officeholders  as  not  only  imnecessary  and 
wasteful  but  also  as  clearly  indicating  a  deliberate  purpose  on 
the  part  of  the  administration  to  keep  the  Republican  party 
in  power  at  public  expense  by  thus  increasing  the  number  of  its 
retainers  and  dependents.  Such  procedure  v\^e  declare  to  be  no 
less  dangerous  and  corrupt  than  the  open  purchase  of  votes  at 
the  polls.  / 

li^couonky   in    Adniinistratiou. 

The  Republican  Congress  in  the  session  just  ended  made 
appropriations  amounting  to  $1,008,000,000,  exceeding  the  total 
expenditures  of  the  past  fiscal  year  by  $90,000,000  and  leaving  a 
deficit  of  more  than  $60,000,000  for  the  fiscal  year  just  ended. 
W^e  denounce  the  heedless  waste  of  the  people's  money  which 
has  resulted  in  this  appalling  increase  as  a  shameful  violation 
of  all  prudent  considerations  of  government  and  as  no  less  than 
a  crime  against  the  millions  of  working  men  and  women  from 
whose  earnings  the  great  proportion  of  these  colossal  sums  mast 
be  extorted  through  excessive  tariff  exactions  and  other  indirect 
methods.  It  is  not  surprising  that  in  the  face  of  this  shocking 
record  the  Republican  platform  contains  no  reference  to  econom- 
ical administration  or  promise  thereof  in  the  future.  W^e  demand 
that  a  stop  be  put  to  this  frightful  extravagance,  and  insist  upon 
the  strictest  economy  in  every  department  compatible  with 
frugal  and  efficient  administration.  , 

..,.<!      '.'jJj' 

Arbitrary   Po^jver— The  Sftealcer. 

The  House  of  Representatives  was  designed  by  tht-  fathers 
of  the  Constitution  to  be  the  popular  branch  of  our  Government, 
responsive  to  the  public  will.  -'r 

The  House  of  Representatives,  as  controlled  in  recent  years  by 
the  Republican  party  has  ceased  to  be  a  deliberative  and  legisla- 

468 


DEMOCRATIC   NATIONAL   PLATFORM   OF  190%.         469 

tive  body,  responsire  to  the  will  of  a  majority  of  its  members, 
but  has  come  under  the  absolute  domination  of  the  Speaker, 
who  has  entire  -control  of  its  deliberations  and  powers  of  legisla- 
tion. 

We  have  observed  with  amazement  the  popular  branch  of  our 
Federal  Qovernment  helpless  to  obtain  either  the  consideration 
or  enactment  of  measures  desired  by  a  majority  of  its  mem- 
bers. 

Legislative  control  becomes  a  failure  when  one  member  in  the 
person  of  the  Speaker  is  more  powerful  than  the  entire  oody. 

We  demand  that  the  House  of  Representatives  shall  again 
become  a  deliberative  body,  controlled  by  a  majority  of  the 
people's  representatives,  and  not  by  the  Speaker ;  and  we  pledge 
ourselves  to  adopt  such  rules  and  regulations  to  govern  the  House 
of  Eepresentatives  as  will  enable  a  majority  of  its  members  to 
direct  its  deliberations  and  control  legislation. 

Misuse     of     Pa.tronagre. 

We  condemn  as  a  violation  of  the  spirit  of  our  institutions 
the  action  of  the  present  Chief  Executive  in  using  the  patronage 
of  his  high  office  to  secure  the  nomination  for  the  Presidency  of 
one  of  his  cabinet  officers.  A  forced  succession  in  the  Presidency 
is  scarcely  less  repugnant  to  public  sentiment  than  is  life  tenure 
in  that  office.  No  good  intention  on  the  part  of  the  Executive, 
and  no  virtue  in  the  one  selected,  can  justify  the  establishment 
of  a  dynasty.  The  right  of  the  people  freelj'^  to  select  their 
officials  is  inalienable  and  can  not  be  delegated. 

Publicity     of     Campaign     Contribntlons. 

We  demand  Federal  legislation  forever  terminating  the  part- 
nership which  has  existed  between  corporations  of  the  country 
and  the  Republican  party  under  the  expressed  or  implied  agree- 
ment that  in  return  for  the  contribution  of  great  sums  of  money 
wherewith  to  purchase  elections,  they  should  be  allowed  to  con- 
tinue substantially  unmolested  in  their  efforts  to  encroach  upon 
the  rights  of  the  people. 

Any  reasonable  doubt  as  to  the  existence  of  this  relation  has 
been  forever  dispelled  by  the  sworn-  testimony  of  witnesses  ex- 
amined in  the  insurance  investigation  in  New  York,  and  the 
open  admission  of  a  single  individual — unchallenged  by  the 
Republican  National  Committee — that  he  himself  at  the  personal 
request  of  the  Republican  candidate  for  the  Presidency  raised 
over  a  quarter  of  a  million  dollars  to  be  used  in  a  single  State 
during  the  closing  hours  of  the  last  campaign.  In  order  that 
this  practice  shall  be  stopped  for  all  time,  we  demand  the  passage 
of  a  statute  punishing  by  imprisonment  any  officer  of  a  corpora- 
tion who  shall  either  contribute  on  behalf  of,  or  consent  to  the 
contribution  by,  a  corporation  of  any  money  or  thing  of  value  to 
be  used  in  furthering  the  election  of  a  President  or  Vice  Presi- 
dent of  the  United  States  or  of  any  member  of  the  Congress 
thereof. 

We  denounce  the  Republican  party,  having  Complete  control 
of  the  Federal  Government,  for  their  failure  to  pass  the  bill, 
introduced  in  the  last  Congress,  to  compel  the  publication  of  the 
names  of  contributors  and  the  amounts  contributed  toward  cam- 
paign funds,  and  point  to  the  evidence  of  their  insinceritj^  when 
they  sought  by  an  absolutely  irrelevant  and  impossible  amend- 
ment to  defeat  the  passage  of  the  bill.  As  a  further  evidence 
of  their  intention  to  conduct  their  campaign  in  the  coming  con- 
test with  vast  sums  of  money  wrested  from  favor-seeking  corpor- 
ations, we  call  attention  to  the  fact  that  the  recent  Republican 
National  Convention  at  Chicago  refused,  when  the  issue  was  pre- 
sented to  it,  to  declare  against  such  practices. 

We  pledge  the  Democratic  party  to  the  enactment  of  a  law 
prohibiting  any  corporation  from  contributing  to  a  campaign 
fund  and  any  individual  from  contributing  an  amount  above  a 
reasonable  maximum,  and  providing  for  the  publication  before 
elections  of  all  such  contributions. 


% 


41^         DEMOCRATIC   NATIONAL    PLATFORM    OF   1908. 

The   RiKhtM  of   the  StaleM. 

Believing-,  with  Jefferson,  in  "the  support  of  the  State  gov- 
ernments in  all  their  rights  as  the  most  competent  administra- 
tions for  our  (loniesi  ic  eoncerns.  and  the  surest  bulwarks  against 
anti-republiean  tendencies,"  and  in  "the  preservation  of  the  Gen- 
eral Government  in  its  whole  constitutional  vigor,  as  the  sheet 
anchor  of  our  peace  at  home  and  safety  abroad,"  we  are  opposed 
to  the  centralization  implied  in  the  suggestion,  now  frequently 
made,  that  the  powers  of  the  General  (government  should  be 
extended  by  judicial  construction.  There  is  no  twiliglit  zone 
between  the  Nation  and  the  State  in  which  exploiting  interests 
can  take  refuge  from  both  ;  and  it  is  as  necessary  that  the  Fed- 
eral Government  shall  exercise  the  powers  delegated  to  it  as 
it  is  that  the  State  Governments  shall  use  the  authority  reserved 
to  them  ;  but  we  insist  that  Federal  remedies  for  the  regulation 
of  interstate  commerce  and  for  the  ])revention  of  private  mo- 
nopoly shall  be  added  to,  not  substituted  for.  State  remedies. 

Tariff. 

We  welcome  the  belated  promise  of  tariff  reform  now  offered 
by  the  Republican  party  in  tardy  recognition  of  the  righteous- 
ness of  the  Democratic  position  on  this  question ;  but  the 
people  can  not  safely  intrust  the  execution  of  this  important 
work  to  a  party  which  is  so  deeply  obligated  to  the  highly  pro- 
tected interests  as  is  the  Republican  party.  We  call  attention  to 
the  significant  fact  that  the  promised  relief  is  postponed  until 
after  the  coming  election — an  election  to  succeed  in  which  the 
IJepublican  pai'ty  must  have  that  same  support  from  the  bene- 
ficiaries of  the  high  protective  tariff  as  it  has  always  hereto- 
fore received  from  them  ;  and  to  the  further  fact  that  during 
years  of  uninterrupted  power  no  action  whatever  has  been  taken 
by  the  Republican  Congress  to  correct  the  admittedly  existing 
tariff  iniquities. 

We  favor  immediate  revision  of  the  tariff  by  the  reduction 
of  import  duties.  Articles  entering  into  competition  with  trust- 
controlled  products  should  be  placed  upon  the  free  list,  and 
material  reduction  should  be  made  in  the  tariff  upon  the  neces- 
saries of  life,  especially  upon  articles  conripeting  with  such 
American  manufactures  as  are  sold  abroad  more  cheaply  than 
at  home ;  and  gradual  reduction  should  be  made  in  such  other 
schedules  as  may  be  necessary  to  restore  the  tariff  to  a  reve- 
nue  basis. 

Existing  duties  have  given  to  the  manufacturers  of  paper 
a  shelter  behind  which  they  have  organized  combinations  to 
raise  the  price  of  pulp  and  of  paper,  thus  imposing  a  tax  upon 
the  spread  of  knowledge.  We  demand  the  immediate  repeal 
of  the  tariff  on  wood  pulp,  print  paper,  lumber,  timber  and 
lf)gs,  and  that  these  articles  be  placed  upon  the  free  list. 

r 
Trusts. 

A  private  monopoly  is  indefensible  and  intolerable.  We 
therefore  favor  the  vigorous  enforcement  of  the  criminal  law 
against  guilty  j:.rust  magnates  and  officials,  and  demand  the 
enactment  of  such  additional  legislation  as  may  be  necessary 
to  make  it  impossible  for  a  private  monopoly  to  exist  in 
the  United  States,  ^mong  the  additional  remedies  we  specify 
three:  First,  a  law  preventing  a  duplication  of  directors  among 
competing  corporations ;  second,  a  license  system  which  will,  with- 
out abridging  the  right  of  each  State  to  create  corporations,  or 
its  right  to  regulate  as  it  wn'll  foreign  corporations  doing  busi- 
ness within  its  limits,  make  it  necessary  for  a  manufacturing 
or  trading  corporation  engaged  in  interstate  commerce  to  take 
out  a  Federal  license  before  'it  shall  be  permitted  to  control 
as  much  as  twenty-five  per  cent  of  the  product  in  which  it  deals, 
the  license  to  protect  the  public  from  watered  stock  and  to  pro- 
hibit the  control  by  such  corporation  of  more  than  fifiy  per 
cent  of  the  total  amount  of  any  j)rodTK't  consumed  in  the  TJnited 
States;  and.  third,  a  law  Cf)mpe11ing  such  licensed  corporations 
to  sell  to  all  purchasers  in  all  parts  of  the  country  on  the 
same  terms,  after  making  due  allowance  for  cost  of  transpor- 
tation. 


DEMOCRATIC   NATIONAL   PLATFORM    OF   1908.         471 

Railroad   Regalatloii. 

We  assert  the  right  of  Congress  to  exercise  complete  con- 
trol over  interstate  commerce  and  the  right  of  each  State  to 
exercise    like    control    over  commerce    within    its    borders. 

We  demand  such  enlargement  of  the  powers  of  the  Inter- 
state Commerce  Commission  as  may  be  necessary  to  enable 
it  to  compel  railroads  to  perform  their  duties  as  common  car- 
riers   and  prevent    discrimination    and   extortion. 

We  favor  the  efficient  supervision  and  rate  regulatioii  of  rail- 
roads engaged  in  interstate  commerce.  To  this  end  we  recom- 
mend the  valuation  of  railroads  by  the  interstate  Coinmeree 
Commission,  such  valuation  to  take  into  consideration  the  phys- 
ical value  of  the  property,  the  original  cost  of  production,  and 
all  elements  of  value  that  will  render  the  valuation  fair  and 
just. 

We  favor  such  legislation  as  will  prohibit  the  railroads  from 
engaging  in  business  which  brings  them  into  competition  with 
their  shippers;  also  legislation  which  will  assure  such  reduction 
in  tranportation  rates  as  conditions  will  permit,  care  being 
taken  to  avoid  reduction  that  would  compel  a  i-eduction  of 
wages,  prevent  adequate  service,  or  do  injustice  to  legitimate  in- 
vestments. 

We  heartily  approve  the  laws  prohibiting  the  pass  and  the 
rebate,  and  we  ^a\  or  any  further  necessary  legislation  to  re- 
strain, correct  and  prevent  such  abuses. 

We  favor  such  legislation  as  will  increase  the  power  of  the 
Interstate  Commerce  Commission,  giving  to  it  the  initiative 
with  reference  to  rates  and  transportation  charges  put  into 
effect  by  the  railroad  companies,  and  permitting  the  Interstate 
Commerce  Commission,  on  its  own  initiative,  to  declare  a  I'ate 
illegal  and  as  being'  more  than  should  be  charged  for  such  serv- 
ice. The  pi'esent  law  relating  thereto  is  inadequate,  by  reason 
of  the  fact  that  the  Interstate  Commerce  Commission  is  wirli- 
out  power  to  fix  or  investigate  a  rate  until  complaint  has 
been  made  to  it  by  the  shipper. 

We  further  declare  in  favor  of  a  law  providing  that  all 
agreements  of  traffic  or  other  associations  of  railway  agents 
affecting  interstate  rates,  service  or  classification  shall  be  un- 
lawful unless  filed  with  and  approved  by  the  Interstate  Com- 
merce Commission. 

We  favor  the  enactment  of  a  law  giving  to  the  Interstate 
Commerce  Commission  the  power  to  inspect  proposed  railroad 
tariff  rates  or  schedules  before  they  shall  take  effect,  and. 
if  they  be  found  to  be  unreasonable,  to  initiate  an  adjustment 
thereof. 

BanlviiiK'. 

The  panic  of  1907,  coming  without  any  legitimate  excuse, 
when  the  Republican  party  had  for  a  decade  been  in  complete 
control  of  the  Federal  Government,  furnishes  additional  proof 
that  it  is  either  unwilling  or  incompetent  to  protect  the  in-. 
terests  of  the  general  public.  It  has  so  linked  the  country  to  ' 
Wall  street  that  the  sins  of  the  speculators  are  visited  ujvm 
the  whole  people.  While  refusing  to  rescue  the  wealtli  pro- 
ducers from  spoliation  at  the  hands  of  the  stock  gamblers  and 
speculators  in  farm  products,  it  has  deposited  Treasury  funds, 
without  interest  and  without  competition,  in  favorite  banks. 
It  has  used  an  emergency  for  which  it  is  largely  responsible 
to  force  through  Congress  a  bill  changing  the  basis  of  bank 
currency  and  inviting  market  manipulation,  and  has  failed  to 
give  to  the  15,000,000  depositors  of  the  country  protection  in 
their  savings. 

We  believe  that  in  so  far  as  the  needs  of  commerce  r«:jqnjre 
an  emergency  currency,  such  currency  should  be  issued  and  con- 
trolled by  the  Fedepal  Government,  and  loaned  on  adequate  se- 
curity to  National  and  State  banks.  We  pledge  ourselves  to 
legislation  under  which  the  national  banks  shall  be  required 
to  establish  a  guarantee  fund  for  the  prompt  payment  oi'  the 
depositors  of  any  insolvent  national  bank,  under  an  equitable 
system  which  shall  be  available  to  all  State  banking  institu- 
tions wishing  to  use  it. 

We  favor  a  postal  savings  bank  if  the  guaranteed  bank  can 


«r»         DWMOORATIO   NATIONAL   PLATFORM    OF  1908. 

not  be  securod,  and  that  it  be  constituted  so  as  to  keep  the 
deposited  money  in  the  communities  where  it  is  established. 
But  we  condemn  the  policy  of  the  Republican  party  in  providinj; 
postal  savings  banks  under  a  plan  of  conduct  by  which  they  will 
aggregate  the  deposits  of  the  rural  communities  and  redeposit 
the  same  while  imder  Government  charge  in  the  banks  of  Wall 
street,  thus  depleting  the  circulating  medium  of  the  producing 
regions  and  imjustly  favoring  the  speculative  markets. 

Inoome    Tax. 

■''  We  favor  an  income  tax  as  part  of  our  revenue  system,  and 
we  urge  the  submission  of  a  constitutional  amendment  speci- 
fically authorizing  Congress  to  levy  and  collect  a  tax  upon  in- 
dividual and  corporate  incomes,  to  the  end  that  wealth  may 
bear  its  proportionate  share  of  the  burdens  of  the  Federal  Gov- 
ernment. 

Labor   and    InjnnctionH. 

The  courts  of  justice  are  the  bulwark  of  our  liberties, 
and  we  yield  to  none  in  our  purpose  to  maintain  their  dignity. 
Our  party  has  given  to  the  bench  a  long  line  of  distinguished 
judges,  who  have  added  to  the  respect  and  confidence  in  which 
this  department  must  be  jealously  maintained.  We  resent  tue 
attempt  of  the  Republican  party  to  raise  a  false  issue  respect- 
ing the  judiciary.  It  is  an  unjust  reflection  upon  a  great  body 
of  our  citizens  to  assume  that  they  lack  respect  for  the  courts. 

It  is  the  function  of  the  courts  to  interpret  the  laws  which 
the  people  create,  and  if  the  laws  appear  to  work  economic, 
social  or  political  injustice,  it  is  our  duty  to  change  them.  The 
only  basis  upon  which  the  integrity  of  our  courts  can  stand 
is  that  of  unswerving  justice  and  protection  of  life,  personal 
liberty  and  property.  If  judicial  processes  may  be  abused, 
we  should  guard  them  against  abuse. 

Experience  has  proved  the  necessity  of  a  modification  of 
the  present  law  relating  to  injunctions,  and  we  reiterate  the 
pledge  of  our  national  platforms  of  1896  and  1904  in  favor  of 
the  measure  which  passed  the  United  States  Senate  in  1896,  but 
which  a  Republican  Congress  has  ever  since  refused  to  enact, 
relating  to  contempts  in  Federal  Courts  and  providing  for  trial 
l>y  j^i'y  in  cases  of  indirect  contempt. 

(^A^  Questions  of  judicial  practice  have  arisen  especially  in  con- 
nection with  industrial  disputes.  We  deem  that  the  parties 
to  all  judicial  proceedings  should  be  treated  with  rigid  ^impar- 
tiality, and  that  injunctions  should  not  be  issued  in  any  cases 
in  which  injunctions  would  not  issue  if  no  industrial  dispute 
were  involved.  (^ 

The  expandtng  organization  of  industry  makes  it  essential 
that  there  should  be  no  abridgment  of  the  right  of  wage  earners 
and  producers  to  organize  for  the  protection  of  wages  and  the 
improvement  of  labor  conditions,  to  the  end  that  such  labor 
organizations  and  their  members  should  not  be  regarded  as 
illegal  combinations  in  restraint  of  trade. 

We  favor  the  eight-hour  day  on  all  Government  work. 

We  pledge  the  Democratic  party  to  the  enactment  of  a  law 
by  Congress,  as  far  as  the  Federal  jurisdiction  extends,  for  a 
general  employers'  liability  act  covering  injury  to  body  or  loss 
of  life  of  employees. 

We  pledge  the  Democratic  party  to  the  enactment  of  a  law 
creating  a  Department  of  Labor,  represented  separately  in  the 
President's  Cabinet,  in  which  Department  shall  be  included  the 
subject  of  mines  and  mining. 

Merchant    Marine. 

We  believe  in  the  upbuilding  of  the  ^^nerican  merchant 
marine  without  new  or  additional  burdens  upon  the  people  and 
without  bounties  from  the  public  treasury. 

The    Navy. 

The  constitutional  provision  that  a  navy  should  be  pro- 
vided and  maintained  means  an  adequate  navy,  and  we  believe 


DEMOCRATIC   NATIONAL   PLATFORM   OF  1908.         473 

that  the  interests  of  this  country  would  be  best  served  by  having 
a  navy  sufficient  to  defend  the  coasts  of  this  country  and  pro- 
tect American  citizens  wherever  their  rights  may  be  in  jeopardy. 

Protection   of  American   Citizen*. 

We  pledge  ourselves  to  insist  upon  the  just  and  lawful  pro- 
tection of  our  citizens  at  home  and  abroad,  and  to  use  all  proper 
methods  to  secure  for  them,  whether  native  born  or  natural- 
ized, and  without  distinction  of  race  or  creed,  the  equal  pro- 
tection of  the  law  and  the  enjoyment  of  all  rights  and  priv- 
ileges open  to  them  under  our  treaties ;  and  if,  under  existing 
treaties,  the  right  to  travel  and  sojourn  is  denied  to  American 
citizens,  or  recognition  is  withheld  from  American  passports 
by  any  countries  on  the  ground  of  race  or  creed,  we  favor  prompt 
negotiations  with  the  governments  of  such  countries  to  secure  the 
removal  of  these  unjust  discriminations. 

We  demand  that  all  over  the  world  a  duly  authenticated 
passport  issued  by  the  Government  of  the  United  States  to  an 
American  citizen  shall  be  proof  of  the  fact  that  he  is  an 
American  citizen  and  shall  entitle  him  to  the  treatment  due  him 
as  such. 

Civil  Service. 

The  laws  pertaining  to  the  civil  service  should  be  honestly 
and  rigidly  enforced,  to  the  end  that  merit  and  ability  shall 
be  the  standard  of  appointment  and  promotion  rather  than 
service  rendered  to  a  political  party.  » 

Pensions. 

We  favor  a  generous  pension  policy,  both  as  a  matter  of 
justice  to  the  surviving  veterans  and  their  dependents,  and 
because  it  tends  to  relieve  the  country  of  the  necessity  of 
maintaining  a  large  standing  army. 

Health    Burean      ^ 

We  advocate  the  organization  of  all  existing  national  pub- 
lic health  agencies  into  a  national  bureau  of  public  health 
with  such  power  over  sanitary  conditions  connected  with  fac- 
tories, mines,  tenements,  child  labor  and  other  such  subjects  as 
are  properly  within  the  jurisdiction  of  the  Federal  Government 
and  do  not  interfere  with  the  power  of  the  States  controlling 
public  health  agencies. 

A§rriciiltnral  and  Meclianical   Kdncation.      '* 

The  Democratic  party  favors  the  extension  of  agricultural, 
mechanical  and  industrial  education.  We  therefore  favor  the 
establishment  of  district  agricultural  experiment  stations  and 
secondary  agricultural  and  mechanical  colleges  in  the  several 
States. 

Popular    Election    of    Senators. 

We  favor  the  election  of  United  States  Senators  by  direct 
vote  of  the  people,  and  regard  this  reform  as  the  gateway  to 
other  national  reforms. 

Oklalioma. 

We  welcome  Oklahoma  to  the  sisterhood  of  States  and  heart- 
ily congratulate  her  upon  the  auspicious  beginning  of  a  great 
career. 

Panama  Canal. 

We  believe  that  the  Panama  Canal  will  prove  of  great  value 
to  our  country,  and  favor  its  speedy  completion. 

Arizona    and    Vleyv    Mexico. 

The  National  Democratic  party  has  for  the  last  sixteen 
years  labored  for  the  admission  of  Arizona  and  New  Mexico  as 
"separate  States  of  the  Federal  Union,  and  recognizing  that  each 
possesses  every  qualification  sucsessfully  to  maintain  sej)arate 
State  governlnents,  we  favor  the  immediate  admission  of  these 
Territories  as  separate   States. 


474         DEMOCRATIC   NATIONAL   PLATFORM    OF   1908. 

GrasinK'  I<and8. 

The  establishment  of  rules  and  regulations,  if  any  such 
are  necessary,  in  relation  to  free  grazing  upon  the  public 
lands  outside  of  forest  and  other  reservations,  until  the  same 
shall  eventually  be  disposed  of,  should  be  left  to  the  people 
of  the  States  respectively  in  which  such  lands  may  be  situated. 

IVaterTrays. 

Water  furnishes  the  cheaper  means  of  transportation,  and 
the  National  Government,  having  the  control  of  navigable  waters, 
should  improve  them  to  their  fullest  capacity.  We  earnestly 
favor  the  inmiediate  adoption  of  a  liberal  and  comprehensive 
plan  for  improving  every  water  course  *in  the  Union  which 
is  justified  by  the  needs  of  commerce ;  and,  to  secure  that 
end,  we  favor,  when  practicable,  the  connection  of  the  Great 
Lakes  with  the  navigable  rivers  and  with  the  (jiulf  through 
the  Mississippi  river,  and  the  navigable  rivers  with  each  other, 
and  the  rivers,  bays  and  sounds  of  our  coasts  with  each  other, 
by  artificial  canals,  with  a  view  to  perfecting  a  system  of 
inland  waterways  to  be  navigated  by  vessels  of  standard  draught. 

We  favor  the  coordination  of  the  various  services  of  the 
Government  connected  with  waterways  in  one  service,  for  the 
purpose  of  aiding  in  the  completion  of  such  a  system  of  inland 
waterways;  and  we  favor  the  creation  of  a  fund  ample  for 
continuous  work,  which  shall  be  conducted  under  the  direction 
of  a  commission  of  experts  to  be  authorized  by  law. 

PoNt   RondN. 

We  favor  Federal  aid  to  State  and  local  authorities  in  the 
construction  and  maintenance  of  post  roads. 

TelejBirapli     and     Tefephone. 

We  pledge  the  Democratic  party  to  the  enactment  of  a  law 
to  regulate,  under  the  jurisdiction  of  the  Interstate  Commei'ce 
Commission,  the  rates  and  services  of  telegraph  and  telephone 
companies  engaged  in  the  transmission  of  messages  between 
the  States. 

Natural    Resources. 

We  repeat  the  demand  for  internal  develomnent  and  for  the 
conservation  of  our  natural  resources  contained  in  previous 
platforms,  the  enforcement  of  which  Mr.  lioosevelt  has  vainly 
sought  from  a  reluctant  party ;  and  to  that  end  we  insist 
upon  the  preservation,  protection  and  replacement  of  needed 
forests,  the  preservation  of  the  public  domain  for  home-seekers, 
the  protection  of  the  national  resources  in  timber,  coal,  iron  and 
oil  against  monopolistic  control,  the  development  of  our  water- 
ways for  navigation  and  every  other  useful  purpose,  including 
the  irrigation  of  arid  lands,  the  reclamation  of  swamp  lands, 
the  clarification  of  streams,  the  development  of  water  power, 
and  the  preservation  of  electric  power,  generated  by  this  nat- 
ural force,  from  the  control  of  monopoly;  and  to  such  end  we 
ur^e  the  exercise  of  all  powers,  national,  State  and  municipal, 
both  separately  and  in  co-operation. 

We  insist  upon  a  policy  of  administration  of  our  forest 
reserves  which  shall  relieve  it  of  the  abuses  which  have  arisen 
thereimder,  and  which  shall,  as  far  as  practicable^  conform 
to  the  police  regulations  of  the  several  States  wherein  the 
reserves  are  located,  which  shall  enable  homesteaders  as  of  right 
to  occupy  and  acquire  title  to  all  portions  thereof  which  are 
especially  adapted  to  agricidture.  and  which  shall  furnish  a 
sy.stem  of  timber  sales  available  as  well  to  the  private  citizen 
as  to  the  larger  manufacturer  and  consumer. 

Hawaii. 

We  favor  the  application  of  the  principles  of  the  land  laws 
of  the  United  States  to  our  newly  acquired  territory,  Kawaii, 
to  thf^  end  that  the  public  lands  of  that  territory  may  be 
held  and  utilized  for  the  benefit  of  bona  fide  homesteaders. 


DEMOCRATIC   NATIONAL   PLATFORM   OF  1908.         476 

Tlie    Philippines. 

We  condemn  the  experiment  of  imperialism  as  an  inexcus- 
able blunder  which  has  involved  as  in  enormous  expense,  brought 
us  weakness  instead  of  strength,  and  laid  our  nation  open  to 
the  charge  of  adandonii:^  a  fundamental  doctrine  of  self-gov- 
ernment. We  favor  an  immediate  declaration  of  the  nation's 
purpose  to  recognize  the  independence  of  the  Philippine  Islands 
as  soon  as  a  stable  government  can  be  established,  such  in- 
dependence to  be  guaranteed  by  us  as  we  guarantee  the  in- 
dependence of  Cuba,  until  the  neutralization  of  the  islands  can 
be  secured  by  treaty  with  other  powers.  In  recognizing  the 
independence  of  the  Philippines  our  Government  should  retain 
such  land  as  may  be  necessary  for  coaling  stations  and  naval 
bases. 

Alasl£:a    and    Porto    Rico. 

We  demand  for  the  people  of  Alaska  and  Porto  Eico  the 
full  enjoyment  of  the  rights  and  privileges  of  a  territorial 
form  of  government,  and  that  the  officials  appointed  to  ad- 
minister the  government  of  all  our  territories  and  the  District 
of  Columbia  should  be  thoroughly  qualified  by  previous  bona 
fide  residence. 

Pan-American    Relations. 

The  Democratic  part^^  recognizes  the  importance  and  ad- 
vantage of  developing  closer  ties  of  Pan-American  friendship 
and  commerce  between  the  United  States  and  her  sister  nations 
of  Latin- America,  and  favors  the  taking  of  such  steps,  consistent 
with  Democratic  policies,  for  the  better  acquaintance,  greater 
mutual  confidence,  and  larger  exchange  of  trade  as  will  bring 
lasting  benefit  not  only  to  the  United  States,  but  to  this  group 
of  American  Republics,  having  constitutions,  forms  of  govern- 
ment, ambitions  and  interests  akin  to  our  own. 

Asiatic    Iraniig;ration. 

We  favor  full  protection,  by  both  National  and  State  gov- 
ernments within  their  respective  spheres,  of  all  foi-eigners  re- 
siding in  the  United  States  under  treaty,  but  we  are  opposed 
to  the  admission  of  Asiatic  immigrants  who  cannot  be  amal- 
gamated with  our  population,  or  whose  presence  among  us  would 
raise  a  race  issue  and  involve  us  in  diplomatic  controversies 
with  Oriental  powers. 

Foreign    Patents. 

We  believe  that  where  an  American  citizen  holding  a  patent 
in  a  foreign  country  is  compelled  to  manufacture  under  his 
patent  within  a  certain  time,  similar  restrictions  should  be 
applied  in  this  country  to  the  citizens  or  subjects  of  such  a 
country. 

Conclusion. 

The  Democratic  party  stands  for  Democracy ;  the  Republican 
party  has  di-avvn  to  itself  all  that  is  aristocratic  and  pluto- 
cratic. 

The  Democratic  x^arty  is  the  champion  of  equal  rights  and 
opportunities  to  all ;  the  Republican  party  is  the  party  of 
privilege  and  private  monopoly.  The  Democratic  party  listens 
to  the  voice  of  the  whole  people  and  gauges  progress  by  the 
prosperity  and  advancement  of  the  average  man ;  the  Republican 
party  is  subservient  to  the  comparatively  few  who  are  the  bene- 
ficiaries of  governmental  favoritism.  We  invite  the  co-operation 
of  all,  regardless  of  previous  political  affiliation  or  past  differ- 
ences, who  desire  to  preserve  a  government  of  the  people  by 
the  people,  and  for  the  people,  and  who  favor  such  an  admin- 
istration of  the  government  as  will  insure,  aSv  far  as  human 
wisdom  can,  that  each  citizen  shall  draw  from  society  a  reward 
commensurate  with  his  contribution  to  the  welfare  of  society. 


The  Republican  party  is  grreater  than  any  man,  a  dis- 
tinct contrast  to  the  Democratic  party,  ^vhlc^  has  but  one 
leader   and    he    its    master. — Hon.    James    S.    Sherman. 


SPEECH  OF  WILLIAM  JENNINGS  BRYAN. 

At  I^incoln,  Nebraska,  Amcunt   12,   1808,  Aooeptluff   the  Demo- 
cratic  Nomination  for  tlie  Presidency. 


Mr.  Clayton  and  Gentlemen  of  the  Notification  Committee: 
I  cannot  accept  the  nomination  which  you  officially  tender, 
without  first  acknQwledging  my  deep  indebtedness  to  the  Demo- 
cratic party  for  the  extraordinary  honor  which  it  has  conferred 
upon  me.  Having-  twice  before  been  a  candidate  for  Ihe  Presi- 
dency, in  campaig-ns  which  ended  in  defeat,  a  third  nomination, 
the  result  of  the  free  and  voluntary  act  of  the  voters  of  the  party, 
can  only  be  explained  by  a  substantial  and  undisputed  growth 
in  the  principles  and  policies  for  which  I,  with  a  multitude  of 
others,  have  contended.  As  these  principles  and  policies  have 
g-iven  me  whatever  political  strength  I  possess,  the  action  of 
the  convention  not  only  renews  my  faith  in  them,  but  strengthens 
my  attachment  to  them. 

A  Platform  is  Bindingr. 

I  shall,  in  the  near  future,  prepare  a  more  formal  reply  to 
your  notification,  and,  in  that  letter  of  acceptance,  will  deal 
with  the  pTatfoi-m  in  detail.  It  is  sufficient,  at  this  time,  to 
assure  you  that  I  am  in  hearty  accord  with  both  the  letter  and 
the  spirit  of  the  platform.  I  indorse  it  in  whole  and  in  part, 
and  shall,  if  elected,  reg-ard  its  declarations  as  binding  upon 
me.  And,  I  may  add,  a  platform  is  binding  as  to  what  it  omits 
as  well  as  to  what  it  contains.  According  to  the  Democratic 
idea,  the  people  think  for  themselves  and  select  officials  to 
carry  out  their  wishes.  The  voters  are  the  sovereigns ;  the  offi- 
cials are  the  servants,  employed  for  a  fixed  time  and  at  a  stated 
salary  to  do  what  the  sovereigns  want  done,  and  to  do  it  in 
t  he  way  the  sovereigns  want  it  done.  Platforms  are  entirely  in 
harmony  with  this  Democratic  idea.  A  platform  announces 
the  party's  position  on  the  questions  which  are  at  issue ;  and 
an  official  is  not  at  liberty  to  use  the  authority  vested  in  him 
to  urge  personal  views  which  have  not  been  submitted  to  the 
voters  for  their  approval.  If  one  is  nominated  upon  a  plat- 
form which  is  not  satisfactory  to  him,  he  must,  if  candid, 
either  decline  the  nomination,  or,  in  accepting  it,  propose  an 
amended  platform  in  lieu  of  the  one  adopted  by  the  convention. 
'So  such  situation,  however,  confr/)nts  your  candidate,  for  the 
platform  upon  which  I  was  nominated  not  only  contains  nothing 
from  which  I  dissent,  but  it  especially  outlines  all  the  reme- 
dial legislation  which  we  pan  hope  to  secure  during  the  next 
four  years. 

Republican    Cliallengre  Accepted. 

The  distinguished  statesman  who  received  the  Republican 
nomination  for  President  said,  in  his  notification  speech  : 

"The  strength  of  the  Republican  cause  in  the  campaign  at  hand 
is  the  fact  that  we  represent  the  policies  essential  to  the  reform  of  known 
abuses,  to  the  continuance  of  liberty  and  true  prosperity,  and  that  we 
are  determined,  as  our  platform  unequivocally  declares,  to  maintain  them 
and  carry  them  on." 

In  the  name  of  the  Democratic  party,  I  accept  the  chal- 
lenge, and  charge  that  the  Republican  party  is  responsible  for 
all  the  abuses  which  now  exist  in  the  Federal  Government, 
and  that  it  is  impotent  to  accomplish  the  reforms  which  are 
imperatively  needed.  Further,  T  cannot  concur  in  the  state- 
ment that  the  Republican  platform  unequivocally  declares  for 
the  reforms  that  are  necessary ;  on  the  contrary,  I  affirm  that 
it  openly  and  notoriously  disappoints  the  hopes,  and  expectations 
of  reformers,  whether  those  reformers  be  Republicans  or  Demo- 
crats.    So  far^id  the  Republican  convention  fall  short  of   its 

476 


SPEECH  OF  WILLIAM  JENNING8  BRYAN.  477 

duty  that  the  Eepublican  candidate  felt  it  necessary  to  add 
to  his  platform  in  several  important  particulars,  thus  rebuking 
the  leaders  of  the  party,  upon  whose  co-operation  he  must 
rely  for  the  enactment  of  remedial  leg-islation. 

As  I   shall,  in  separate   speeches,   discuss  the   leading  ques- 
tions at  issue,  I  shall  at  this  time   confine  myself  to  the  para- 
moimt  question,  and  to  the  far-reaching  purpose  of  our  party, 
as  that  purpose  is  set  forth  in  the  platform. 
» 

Shall   tlie   People   Rule? 

Our  platform  declares  that  the  over-shadowing  issue 
which  manifests  itself  in  all  the  questions  now  under  discussion 
is  "Shall  the  people  rule?"  No  matter  which  way  we  turn, 
no  matter  to  what  subject  we  address  ourselves,  the  same  ques- 
tion confronts  us :  Shall  the  j)eople  control  their  own  govern- 
ment, and  use  that  government  for  the  protection  of  their 
rights  and  for  the  promotion  of  their  welfare?  or  shall  the 
representatives  of  predatory  wealth  prey  upon  a  defenseless 
public,  while  the  offenders  secure  immunity  from  subservient 
officials  whom  they  raise  to  power  by  unscrupulous  methods? 
This  is  the  issue  raised  by  the  "known  abuses"  to  which  Mr. 
Taft  refers. 

The    Preaident'a    Indictment    Agrainst    the    Party. 

In  a  message  sent  to  Congress  last  January,  President  Roose- 
velt said :  "The  attacks  by  these  great  corporations  on  the 
administration's  actions  have  been  given  a  wide  circulation 
throughout  the  country,  in  the  newspapers  and  otherwise,  by 
those  writers  and  speakers  who,  consciously  or  unconsciously, 
act  as  the  representative  of  predatory  wealth — of  the  wealth 
accumulated  on  a  giant  scale  by  all  forms  of  iniquity,  ranging 
from  the  oppression  of  the  wage-earners  to  unfair  and  unwhole- 
some methods  of  crushing  out  competition,  and  to  defrauding 
the  public  by  stock-jobbing  and  the  manipulation  of  securities. 
Certain  wealthy  men  of  this  stamp,  whose  conduct  should  be 
abhorrent  to  every  man  of  ordinary  decent  conscience,  and  who 
commit  the  hideous  wrong  of  teaching  our  young  men  that 
phenomenal  business  success  must  ordinarily  be  based  on  dis- 
honesty, have,  during  the  last  few  months,  made  it  apparent 
that  they  have  banded  together  to  work  for  a  reaction.  Their 
endeavor  is  to  overthrow  and  discredit  all  who  honestly  admin- 
ister the  law,  to  prevent  any  additional  legislation  which  would 
check  and  restrain  them,  and  to  secure,  if  possible,  a  freedom 
from  all  restraint  which  will  permit  every  unscrupulous  wrong- 
doer to  do  what  he  wishes  unchecked,  provided  he  has  enough 
money."     What   an   arraignment   of   the   predatory   interests ! 

Is  the  President's  indictment  true?  And,  if  true,  against 
whom  was  the  indictment  directed?  Not  against  the  Democratic 
party. 

Mr.  Taft   Indorses   the   Indictment. 

Mr.  Taft  says  that  these  evils  have  crept  in  during  the  last 
ten  years.  He  declares  that  during  this  time  some  "prominent 
and  infliiential  member's  of  the  community, ^spurred  by  financial 
success  and  in  their  hurry  for  greater  wealth,^  became  unmind- 
ful of  the  common  rules  of  business  honesty  ~and  fidelity,  and 
of  the  limitations  imposed  by  law  upon  their  actions;"  and 
that  "the  revelations  of  the  breaches  of  trusts,  the  disclosures 
as  to  rebates  and  discriminations  by  railroads,  the  accumulating 
evidence  of  the  violation  of  the  anti-trust  laws  by  a  number 
of  corporations,  and  the  over-issue  of  stocks  and  bonds  of  inter- 
state railroads  for  the  unlawful  enriching  of  directors  and  for 
the  purpose  of  concentrating  the  control  of  the  railroads  under 
one  management" — all  these,  he  charges,  "quickened  the  con- 
science of  the  people  and  brought  on  a  moral  awakening." 

During  all  this  time,  I  beg  to  remind  you,  Republican  offi- 
cials presided  in  the  executive  department,  filled  the  cabinet, 
dominated  the  Senate,  controlled  the  House  of  Representatives 
and  nccu])ied  most  of  the  Federal  judgeships.  Four  years  ago 
the   Republican   platform   boastfully   declared  that   since    1860 — 


478  SPEECH  OF  WILLIAM  JENMXdS  liRYAN. 

vvitlj  the  exception  of  two  years — the  Uepiibliean  party  had  been 
in  control  of  part  or  of  all  the  branches  of  the  Federal  Govern- 
ment; that  for  two  years  only  was  the  Democratic  i)arty  in 
a  position  to  either  enact  or  repeal  a  law.  liavini*-  drawn  the 
salaries,  having-  enjoyed  the  honors,  havinj?  seen  red  the  pres- 
tige, let  the  Republican  party  accept  the  resp()nsil)ility  ! 

Republican    Party    Responsible. 

Why  were  these  "known  abuses"  perniittecj  to  develop?  Why 
have  they  not  been  corrected?  If  existing  laws  are  sufficient, 
why  have  they  not  been  enforced?  All  of  the  executive  ma- 
chinery of  the  Federal  Government  is  in  the  hands  of  the  lie- 
publican  party.  Are  new  laws  necessary?  Why  have  they  not 
been  enacted?  With  a  llepublican  President  to  recommend, 
with  a  liepublican  Senate  and  House  to  carry  out  his  recom- 
mendations, why  does  the  Republican  candidate  plead  for  further 
time  in  which  to  do  what  should  have  been  done  long  ago? 
Can  Mr.  Taft  promise  to  be  more  strenuous  in  the  prosecution 
of  wrong-doors  than  the  present  executive?  Can  he  ask  for  a 
larger  majority  in  the  Senate  than  his  party  now  has?  Does 
he  need  more  Republicans  in  the  House,  of  Representatives,  or 
a  Speaker  with  more  unlimited  authority? 

"Wliy    no    Tariff    Reform. 

The  President's  close  friends  have  been  promising  for  several 
years  that  he  would  attack  the  iniquities  of  the  tariif.  We  have 
had  intimation  that  Mr.  Taft  was  restive  under  the  demands 
of  the  highly  protected  industries.  And  yet  the  influence  of  the 
manufacturers,  who  have  for  twenty-five  years  contributed  to 
the  Republican  campaign  fund  and  who  in  return  have  framed 
the  tariff  schedules,  has  been  sufficient  to  prevent  tariff  reform. 
As  the  present  campaign  approached,  both  the  President  and 
Mr.  Taft  declared  in  favor  of  tariff  revision,  but  set  the  date 
of  revision  after  the  election.  But  the  pressure  brought  to 
bear  by  the  protected  interests  has  been  great  enough  to  pre- 
vent any  attempt  at  tariff  reform  before  the  election ;  and  the 
reduction  promised  after  the  election  is  so  hedged  about  with 
qualifying  phrases  that  no  one  can  estimate  with  accuracy  the 
sum  total  of  tariff  reform  to  be  expected  in  case  of  Republican 
success.  If  the  past  can  be  taken  as  a  guide,  the  Republican 
party  will  be  so  obligated  by  campaign  contributions  from 
the  beneficiaries  of  protection  as  to  make  that  party  jjowerless 
to  bring  to  the  country  any  material  relief  from  the  present 
tariff  burdens. 

Why    no    Anti-Trn«t    Leftislation. 

A  few  years  ago  the  Republican  leaders  in  the  House  of 
Representatives  were  coerced  by  puplic  opinion  into  the  sup- 
port of  an  anti-trust  law  which  had  the  indorsement  of  the 
President,  but  the  Senate  refused  even  to  consider  the  measure, 
.and  since  that  time  no  effort  has  been  made  by  the  dominant 
party  to  secure  remedial  legislation  upon  this  subject. 

IVliy  no  Railroad  I^egrlslation? 

For  ten  years  the  Interstate  Commerce  Commission  has  been 
asking  for  an  enlargement  of  its  powers,  that  it  might  prevent 
rebates  and  discriminations,  but  a  Republican  Senate  and  a 
Republican  House  of  Representatives  were  unmoved  by  its  en- 
treaties. In  1900  the  Republican  National  Convention  was  urged 
to  indorse  the  demand  for  railway  legislation,  but  the  plat- 
form was  silent  on  the  subject.  Even  in  1904  the  convention 
gave  no  pledge  to  remedy  these  abuses.  W^hen  the  President 
finally  asked  for  legislation  he  drew  his  inspiration  from  three 
Democratic  National  platforms  and  he  received  more  cordial 
support  from  the  Democrats  than  from  the  Republicans."  The 
Republicans  in  the  Senate  deliberately  defeated  several  amend- 
ments offered  by  Senator  La  Follette  and  supported  by  the  Demo- 
crats— amendments  embodying  legislation  asked  by  the  Inter- 
state Commerce  Commission.  One  of  these  amendments  au- 
thorized   the    ascertainment    of    the    value    of    railroads.      This 


SPEECH  OF  WILLIAM  JENNINGS  BRYAN.  479 

amendment  was  not  only  defeated  by  tJie  Senate,  bnt  it  was 
overwhelmingly  rejected  by  the  recent  Republican  National  Con- 
vention, and  the  Republican  candidate  has  songht  to  rescue  his 
party  from  the  disastrous  residts  of  this  act  by  expressing  him- 
self, in  a  qualified  way,  in  favor  of  ascertaining  the  value  of 
the  railroads. 

OverJHNues  of  Stocks   and  Bonds. 

Mr.  Taft  complains  of  the  overissue  of  stocks  and  bonds  of 
railroads  "for  the  unlawful  enriching  of  directors  and  for 
the  purpose  of  concentrating  the  control  of  the  railroads  under 
one  management,"  and  the  comp,laint  is  well  founded.  But 
with  a  President  to  point  out  the  evil  and  a  Ilepublican  Congress 
to  correct  it  we  find  nothing  done  for  the  protection  of 
the  public.  Why?  My  honorable  opponent  has,  by  his  con- 
fession, relieved  me  of  the  necessity  of  fiirnishing  proof :  he 
admits  the  condition,  aiid  he  cannot  avoid  the  logical  conclu- 
sion that  must  be  drawn  from  the  admission.  There  is  no 
doubt  whatever  that  a  large  majority  of  the  voters  of  the 
Republican  party  recognize  the  deplorable  situation  which  Mr. 
Taft  describes ;  they  recognize  that  the  masses  have  had  but 
little  influence  upon  legislation  or  upon  the  administration  of 
the  government,  and  they  are  beginning  to  understand  the 
cause.  "For  a  generation  the  Republican  party  has  drawn  its 
campaign  funds  from  the  beneficiaries  of  special  legislation. 
Privileges  have  been  pledged  and  granted  in  return  for  money 
contributed  to  debauch  elections.  What  can  be  expected  when 
official  authority  is  turned  over  to  the  representatives  of  those 
who, first  furnish  the  sinews  of  war  and  then  reimburse  tAem- 
selves  out  of  the  pockets  of  the  taxpayers? 

Fasting;   in    Wilderness    Neeessary. 

So  long  as  the  Republican  party  remains  in  power  it  is  power- 
less to  regenerate  itself.  It  cannot  attack  wrongdoing  in  high 
places  without  disgracing  many  of  its  prominent  members,  and 
it,  therefore,  uses  opiates  instead  of  the  surgeon's  knife.  Its 
malfactors  construe  each  Republican  victory  as  an  endorsement 
of  their  conduct,  and  threaten  the  party  with  defeat  if  they 
are  interfered  with.  Not  until  that  party  passes  through  a 
period  of  fasting  in  the  wilderness  will  the  Republican  leaders 
learn  to  study  public  questions  from  the  standpoint  of  the 
masses.  Just  as  with  individuals  "the  cares  of  this  world  and 
the  deceitfulness  of  riches  choke  the  truth,"  so  in  politics,  when 
party  leaders  serve  far  away  from  home  and  are  not  in  constant 
contact  with  the  voters,  continued  party  success  blinds  their 
eyes  to  the  needs  of  the  people  and  makes  them  deaf  to  the 
cry  of  distress. 

Pnblicity   as   to   Campai^rn   Contributions. 

An  effort  has  been  made  to  secure  legislation  requiring 
publicity  as  to  campaign  contributions  and  expenditures,  but 
the  Republican  leaders,  even  in  the  face  of  an  indignant  public, 
refused  to  consent  to  a  law  which  would  compel  haneisty  in 
elections.  When  the  matter  was  brought  up  in  the  recent 
Republican  National  Convention  the  plank  was  repudiated  by  a 
vote  of  880  to  94.  Here,  too,  Mr.  Taft  has  been  driven  to  apolo- 
gize for  his  convention  and  to  declare  himself  in  favor  of  a 
publicity  law,  and  yet,  if  you  will  read  what  he  says  upon  tiiis 
subject,  you  will  find  that  his  promise  falls  far  short  of 
the  requirements  of  the  situation.     He  says : 

"If  I  am  elected  President  I  shall  urge  upon  Congress,  with 
every  hope  of  success,  that  a  law  be  passed  requiring  the  filing-, 
in  a  federal  office,  of  a  statement  of  the  contributions  received 
by  committees  and  candidates  in  elections  for  members  of  Con- 
gress, and  in  such  other  elections  as  are  constitutionally  within 
the  control"  of  Congress." 

I  shall  not  embarrass  him  by  asking  him  upon  what  he  bases 
his  hope  of  success ;  it  is  certainly  not  on  any  encouragement  he 
has  received  from  Republican  leaders.  It  is  sufficient  to  say  that 
if  his  hopes  .were  resilrA&d — if,  in  spite  of  the  adverse  action  ol 
his  convention,  he  lehould  succeed  in  securing  the  enactment  oX 


480  SPEECH  OF  WILLIAM  JENNINGS  BRYAN. 

the  very  law  which  he  favors,  it  would  give  but  partial  relief. 
He  has  read  the  Democratic  platform;  not  only  his  language, 
but  his  evident  alarm,  indicates  that  he  has  read  it  carefully. 
He  even  had  before  him  tho  action  of  the  Democratic  National 
Committee  in  interpreting  and  applying  that  platform,  and 
yet  he  fails  to  say  that  he  favors  the  publication  of  the  con- 
tributions before  the  election.  Of  course,  it  satisfies  a  natural 
curiosity  to  find  out  how  an  election  has  been  purchased,  even 
when  the  knowledge  comes  too  late  to  be  of  service,  but  why 
should  the  pt^ple  be  kept  in  darkness  until  the  election  is  past? 
Why  should  the  locking  of  the  door  be  delayed  until  the  horse 
is  gone? 

An  Klectlon  a  Public  Affair. 

An  election  is  a  public  affair.  The  people,  exercising  the 
right  to  select  their  officials  and  to  decide  upon  the  policies  to 
be  pursued,  proceed  to  their  several  polling  places  on  election 
day  and  register  their  will.  What  excuse  can  be  given  for 
secrecy  as  to  the  influences  at  work?  If  a  man,  pecuniarily  in- 
terested in  "concentrating  the  control  of  the  railroads  in  one 
management,"  subscribes  a  large  sum  to  aid  in  carrying  the 
election,  why  should  his  part  in  the  campaign  be  concealed  until 
he  has  put  the  officials  nnder  obligation  to  him?  If  a  trust 
magnate  contributes  $100,000  to  elect  political  friends  to  oflice, 
with  a  view  to  preventing  hostile  legislation,  why  should  that 
fact  be  concealed  nntil  his  friends  are  securely  seated  in  their 
official  position? 

This  is  not  a  new  question ;  it-is  a  question  which  has  been 
agitated — a  question  which  the  Ilepublican  leaders  fully  under- 
stand— a  question  which  the  Kepublican  candidate  has  studied, 
and  yet  he  refuses  to  declare  himself  in  favor  of  the  legislation 
absolutely  necessary,  namely,  legislation  requiring  publication 
before  the  election. 

Democratic  Party  Promises   Pablicity. 

How  can  the  people  hope  to  rule  if  they  are  not  able  to 
learn  until  after  the  election  what  the  predatory  interests  are 
doing?  The  Democratic  party  meets  the  issue  honestly  and 
courageously.     It  says : 

"We  pledge  the  Democratic  party  to  the  enactment  of  a 
law  prohibiting  any  corporation  from  contributing  to  a  cam- 
paign fund,  and  any  individual  from  contributing  an  amount 
above  a  reasonable  maximum,  and  providing  for  the  jjublica- 
tion,  before  election,  of  all  such  contributions  above  a  reason- 
able minimum." 

The  Democratic  National  Committee  immexliately  proceeded 
to  interpret  and  apply  this  plank,  announcing  that  no  contri- 
butions would  be  received  from  corporations,  that  no  individual 
would  be  allowed  to  contribute  more  than  $10,000,  and  that  all 
contributions  above  $100  would  be  made  public  before  the  elec- 
tion— those  received  before  October  15  to  oe  made  public  on  or 
before  that  day,  those  received  afterward  to  be  made  ])ublic 
on  the  day  when  received,  and  no  such  contributions  to  be 
accepted  within  three  days  of  the  election.  The  expenditures  are 
to  be  published  after  the  election.  Here  is  a  plan  which  is  com- 
plete and  effiective. 

Popular  Election   of   Senators. 

Next  to  the  corrupt  use  of  mone\%  the  present  method  of 
electing  United  States  Senators  is  most  responsible  for  the 
obstruction  of  reforms.  For  one  hundred  years  after  the  adop- 
tion of  the  Constitution  the  demand  for  the  popular  election 
of  senators,  while  finding  increased  expression,  did  not  become 
a  dominant  sentiment.  A  constitutional  amendment  had  from 
time  to  time  been  suggested  and  the  matter  had  been  more 
or  less  discussed  in  a  few  of  the  States,  but  the  movement 
had  not  reached  a  point  where  it  manifested  itself  through  con- 
gressional action.  In  the  Fifty-second  Congress,  however,  a 
resolution  was  reported  from  a  House  committee  proposing  the 
necessary  constitutional  amendment,  and  this  resolution  passed 
the  House  of  Representatives  by  a  vote  which  was  practically 
unanimous.      In   the '  Fifty-third    Congress   a   timilar   resolution 


SPEECH  OF  WILLIAM  JENNINGS  BRYAN.  481 

was  reported  to  and  adopted  by  the  House  of  Eepresentatives. 
Both  the  Fifty-second  and  Fifty-third  Congresses  were  Demo- 
cratic. The  Eepublicans  gained  control  of  the  House  as  a 
result  of  the  election  of  1894  and  in  the  Fifty-fourth  Congress 
the  proposition  died  in  committee.  As  time  went  on,  however, 
the  sentiment  grew  among  the  people  until  it  forced  a  Kepublican 
Congress  to  follow  the  example  set  by  the  Democrats,  and  then 
another  and  another  Kepublican  Congress  acted  favorably.  State 
after  State  has  indorsed  this  reform,  until  nearly  two-thirds  of 
the  States  have  recorded  themselves  in  its  favor.  The  United 
States  Senate,  however,  inpudently  and  arrogantly  obstructs  the 
passage  of  the  resolution,  notwithstanding  the  fact  that  the 
voters  of  the  United  States,  by  an  overwhelming  majority,  de- 
mand it.  And  this  refusal  is  the  more  significant  when  it  is 
retnembered  that  a  number  of  senators  owe  their  election  to 
great  corporate  interests.  Three  Democratic  National  platforms 
— the  platforms  of  1900,  1904  and  1908 — specifically,  call  for  a 
change  in  the  Constitution  which  will  put  the  election  of 
senators  in  the  hands  of  the  voters,  and  the  proposition  has 
been  indorsed  by  a  number  of  the  smaller  parties,  but  no 
Republican  National  Convention  has  been  willing  to  champion 
the  cause  of  the  people  on  this  subject.  The  subject  was 
ignored  by  the  Eepublican  National  Convention  in  1900 ;  it  was 
ignored  in  1904,  and  the  proposition  wg.s  explicitly  repudiated 
in  1908,  for  the  recent  Republican  National  Convention  by  a 
vote  of  866  to  144  rejected  the  plank  indorsing  the  popular  elec- 
tion of  senators — and  this  was  done  in  the  convention  which 
nominated  Mr.  Taft,  few  delegates  from  his  own  State  voting 
for  the  plank. 

Personal  Inclination  not  Safflcient. 

In  his  notification  speech  the  Eepublican  candidate,  speaking 
of  the  election  of  senators  by  the  people  says :  "Personally,  I 
am  inclined  to  favor  it,  but  it  is  hardly  a  party  question." 
What  is  necessary  to  make  this  a  party  question?  When  the 
Democratic  convention  indorses  a  proposition  by  a  unanimous 
vote,  and  the  Eepublican  convention  rejects  the  proposition  by  a 
vote  of  seven  to  one,  does  it  not  become  an  issue  between  the 
parties?  Mr.  Taft  cannot  remove  the  question  from  the  arena 
of  politics  by  expressing  a  personal  inclination  toward  the 
Democratic  position.  For  several  years  he  has  been  connected 
with  the  administration.  What  has  he  ever  said  or  done  to 
bring  this  question  before  the  public?  What  enthusiasm  has 
he  shown  in  the  reformation  of  the  Senate?  What  influence 
could  he  exert  in  behalf  of  a  reform  which  his  party  has  openly 
and  notoriously  condemned  in  its  convention  and  to  which  he 
is  attached  only  by  a  belated  expression  of  personal  inclination? 

The  Gateway  to  other  Feforms. 

"Shall  the  people  rule?"  Every  remedial  measure  of  a  na- 
tional character  must  run  the  gantlet  of  the  Senate.  The  Presi- 
dent may  personally  incline  toward  a  reform ;  the  House  may 
consent  to  it,  but  as,  long  as  the  Senate  obstructs  the  reform 
the  people  must  wait.  The  President  may  heed  a  popular 
demand ;  the  House  may  yield  to  public  opinion,  but  as  long 
as  the  Senate  is  defiant  the  rule  of  the  people  is  defeated.  The 
Democratic  platform  very  properly  describes  the  popular  elec- 
tion of  senators  as  "the  gateway  to  other  national  reforms." 
Shall  we  open  the  gate,  or  shall  we  allow  the  exploiting  interests 
to  bar  the  way  by  the  control  of  this  branch  of  the  federal 
legislature?  Through  a  Democratic  victory  and  through  a  Dem- 
ocratic victory  only,  can  the  people  secure  the  popular  election 
of  senators.  The  smaller  parties  are  unable  to  secure  this 
reform ;  the  Eepublican  party,  under  its  present  leadership, 
is  resolutely  opposed  to  it ;  the  Democratic  party  stands  for 
it  and  has  boldly  demanded  it.  If  I  am  elected  to  the  Presi- 
dency, those  who  are  elected  upon  the  ticket  with  me  will 
be,  like  myself,  pledged  to  this  reform,  and  I  shall  convene 
Congress  in  extraordinai'y  session  immediately  after  inaugura- 
tion anl  ask,  among  other  things,  for  the  fulfillment  of  this 
platform  pledge. 


482  SI'I-JECn  OF   Wn.LIAM  JE\XlX(;s  HRYAN. 

Hontie    Uulen    DoNpotic. 

The  third  instriniHMitJility  employed  to  defeat  the  will  of  the 
people  is  found  in  the  rules  of  the  House  of  Kepresentatlves. 
Our  platform  points  out  that  "the  House  of  Ivepresentatives  was 
<losif>neil  by  the  fathers  of  the  Constitution  to  be  the  popular 
branch  of  our  government,  responsive  to  the  public  will,"  and 
adds : 

'"J'he  House  of  Representatives,  as  controlled  in  recent  years 
by  the  iiepublican  party,  has  ceased  to  be  a  deliberative  and 
ie{?islative  Ixxly,  responsive  to  the  will  of  a  majority  of  the 
members,  but  has  come  under  the  absolute  dominion  of  the 
Sl)eaker,  who  has  entire  control  of  its  deliberations  and  powers 
of   leg-islation. 

'*\\'e  have  observed  with  amazement  the  popular  branch  of 
our  federal  government  helpless  to  obtain  either  the  considera- 
tion or  enactment  of  measures  desired  by  a  majority  of  its 
members."  • 

This  arraignment  is  fully  justified.  The  reform  Republicans 
ill  the  House  of  Representatives,  when  in  the  minority  in  their 
own  party,  are  as  helpless  to  obtain  a  hearing-  or  to  secui'e  a 
vote  upon  a  measure  as  are  the  Democi-ats.  In  the  recent  .session 
of  the  present  Congress  there  was  a  considerable  element  in  the 
Kepublican  party  favorable  to  remedial  legislation;  but  a  few 
leaders,  in  control  of  t?he  organization,  despotically  suppressed 
these  members,  and  thus  forced  a  real  majority  in  the  House 
to  submit  to  a  well-organized  minority.  The  Republican  Na- 
tional Convention,  instead  of  rebuking  this  attack  upon  popular 
government,  eulogized  Congress  and  nominated  as  the  Republican 
candidate  for  Vice-President  one  of  the  men  who  shared  in  the 
responsibility  for  the  coercion  of  the  House.  Our  party  demands 
that  "the  House  of  Representatives  shall  again  become  a  deliber- 
ative body,  controlled  by  a  majority  of  the  people's  representa- 
tives, and  not  by  the  Speaker,"  and  is  pledged  to  adopt  "such 
rules  and  regulations  to  govern  the  House  of  Representatives 
as  will  enable  a  majority  of  its  members  to  direct  its  delibera- 
tions and  control  legislation." 

"Shall  the  people  rule?"  They  cannot  do  so  unless  they  can 
control  the  House  of  Representatives,  and  through  their  repre- 
sentatives in  the  Honse  give  expression  to  their  purposes  and 
their  desires.  The  Republican  party  is  committed  to  the  methods 
now  in  vogue  in  the  House  of  Representatives ;  the  Democratic 
party  is  pledged  to  such  a  revision  of  the  rules  as  will  bring 
the  popular  l)ranch  of  the  federal  government  into  harmony 
with  the  ideas  of  those  who  fran)ed  our  Constit\ition  and 
founded  our  government. 

Other  Issues    will   1>e   Discussed   I^ater. 

"Shall  the  people  rule?"  I  repeat,  is  declared  by  our  plat- 
form to  be  the  overshadowing  question,  and  as  the  campaign 
progresses  I  shall  take  occasion  to  discuss  this  question  as  it 
manifests  itself  in  other  issues;  for  whether  we  consider  the 
tariff  question,  the  tru.st  question,  the  railroad  question,  the 
banking  question,  the  labor  question,  the  question  of  imperialism, 
the  development  of  our  waterways,  or  aiay  other  of  the  nu- 
merous problems  which  press  for  solution,  we  shall  find  that  the 
r«al  (juestion  involved  in  each  is,  whether  the  government  shall 
remain  a  mere  business  asset  of  favor-seeking  corporations  or 
be  an  instrument  in  the  hands  of  the  people  for  the  advance- 
ment of  the  common   weal. 

Democratic   Party   Has   Earnetl   Confidence. 

If  the  voters  are  satisfied  with  the  record  of  the  Republican 
party  and  with  its  management  of  public  affairs  we  cannot  rea- 
sonably ask  f o^  a  change  in  administration ;  if,  however,  the 
voters  feel  that  the  people,  as  a  whole,  have  too  little  influence  in 
shaping  the  policies  of  the  Government;  if  they  feel  that  great 
combinations  of  capital  have  encroached  upon  the  rights  of  the; 
ma.s.ses  and  employed  the  instrumentalities  of  government  to 
secure  an  unfair  .share  of  the  total  wealth  produced,  then  we 
have  a  right  to  expect  a  verdict  again.st  the  Republican  partv 
and  in  favor  of  the  Democratic  party ;  for  our  party  has  risked 


SPEECH  OF  WILLIAM  JENNINGS  BRYAN.  483 

defeat — aye,  suffered  defeat — in  its  effort  to  arouse  tlie  conscience 
of  the  public  and  to  bring-  about  that  very  awakening  to 
which  Mr.  Taft  has  referred. 

Only  those  are  worthy  to  be  ijitrusted  with  leadership  in 
a  gi-eat  cause  who  are  willing  to  die  for  it,  and  the  Democratic 
party  has  proven  its  worthiness  by  its  refusal  to  purchase  vic- 
tory by  delivering  the  people  into  the  hands  of  those  who  have 
despoiled  them.  In  this  contest  between  Democracy  on  the 
one  side  and  plutocracy  on  the  other  the  Democratic  party  has 
taken  its  position  on  the  side  of  equal  rights,  and  invites  the 
opposition  of  those  who  use  politics  to  secure  special  privileges 
and  governmental  favoritism.  Gauging  the  progress  of  the 
nation,  not  by  the  happiness,  or  wealth  or  refinement  of  a  few, 
but  "by  the  prosperity  and  advancement  of  the  average  man," 
the  Democratic  party  charges  the  Kepublican  party  with  being 
the  promoter  of  present  abuses,  the  opponent  of  necessary  rem- 
edies and  the  only  bulvyark  of  private  monopoly.  The  Demo- 
cratic party  affirms  that  in  this  campaign  it  is  the  only  party, 
having  a  prospect  of  success,  which  stands  for  justice  in  govern- 
ment and  for  equity  in  the  division  of  the  fruits  of  industry. 

Democratic    Party    Defender    of    Honest    Wealth. 

We  may  expect  those  who  have  committed  larceny  by  law 
and  purchased  immunity  with  their  political  influence  to  attempt 
to  raise  false  issues  and  to  employ  "the  livery  or  Heaven"  to 
conceal  their  evil  purposes,  but  they  can  no  longer  deceive.  The 
Democratic  party  is  not  the  enemy  of  any  legitimate  industry 
or  of  honest  accumulations.  It  is,  on  the  contrary,  a  friend 
of  industry  and  the  steadfast  protector  of  that  wealth  which 
represents  a  service  to  society.  The  Democratic  party  does  not 
seek  to  annihilate  all  corporations ;  it  simply  asserts  that  as 
the  Government  creates  corporations,  it  must  retain  the  power 
to  regulate  and  control  them,  and  that  it  should  not  permit 
any  corporation  to  convert  itself  into  a  monopoly.  Surely  we 
should  have  the  co-operation  of  all  legitimate  corporations  in 
our  effort  to  protect  business  and  industry  from  the  odium 
which  lawless  combinations  of  capital  will,  if  unchecked,  ca.st 
upon  them.  Only  by  the  separation  of  the  good  from  the  bad 
can  the  good  be  made  secure. 

Not  Revolution,  but  Reformation. 

The  Democratic  party  seeks  not  revolution,  but  reformation, 
and  I  need  hardly  remind  the  student  of  history  that  cures 
are  mildest  when  applied  at  once ;  that  remedies  increase  in 
severity  as  their  application  is  postponed.  Blood  poisoning 
may  be  stopped  by  the  loss  of  a  finger  today ;  it  may  cost  an 
arm  tomorrow  or  a  life  the  next  day.  So  poison  in  the  body 
politic  cannot  be  removed  too  soon,  for  the  evils  produced  by 
it  increase  with  the  lapse  of  time.  That  there  are  abuses  which 
need  to  be  remedied  even  the  Republican  candidate  admits; 
that  his  party  is  unable  to  remedy  them  has  been  fully  demon- 
strated during  the  last  ten  years.  I  have  such  confidence  in 
tiie  intelligence"  as  well  as  the  patriotism  of  the  people  that  I 
cannot  doubt  their  readiness  to  accept  the  reasonable  reforms 
which  our  party  proposes,  rather  than  permit  the  continued 
growth  of  existing  abuses  to  hurry  the  coimtry  on  to  remedies 
more  radical  and  more  drastic. 

Onr    Party's   Ideal. 

The  platform  of  our  party  closes  with  a  brief  statement  of 
the  party's  ideal.  It  favors  "such"  an  administration  of  the 
government  as  will  insure,  as  far  as  human  wisdom  can,  that 
each  citizen  shall  draw  from  society  a  reward  commensurate 
with  his  contribution  to  the  welfare  of  society." 

Governments  are  good  in  proportion  as  they  assure  to  each 
member  of  society,  so  far  as  governments  can,  a  return  com- 
mensurate with  individual  merit. 

The  Divine  La^v  of  Revrards. 

There  is  a  divine  law  of  rewards.  When  the  Creator  gave 
us  the  earth,  with  its  fruitful  soil,  the  sunshine  with  its  warmth 


484  SPEECH  OF  WILLIAM  JENNINGS  BRYAN. 

and  the  rains  with  their  moisture.  He  proclaimed,  as  clearly 
as  if  His  voice  had  thundered  from  the  clouds,  "Go  work,  and 
according  to  your  industry  and  yoiir  intelligence,  so  shall  be 
your  reward."  Only  where  might  has  overthrown,  cnnnijig 
undermined  or  government  suspended  this  law,  has  a  different 
hiAV  prevailed.  To  conform  the  government  to  this  law  ought 
to  l)e  the  ambition  of  the  statesman;  and  no  party  can  have  a 
higher  mission  than  to  make  it  a  reality  wherever  governments 
can  legitimately  operate. 

Justice  to  All. 

llecognizing  that  I  am  indebted  for  my  nomination  to  the 
rank  and  file  of  our  party,  and  that  my  election  must  come, 
if  it  comes  at  all,  from  the  unpurchased  and  unpurchasable 
suffrages  of  the  American  people,  I  promise,  if  intrusted  with 
the  responsibilities  of  this  high  office,  to  consecrate  whatever 
ability  I  have  to  the  one  purpose  of  making  this,  in  fact,  a  gov- 
ernment in  which  the  people  rule — a  government  which  will 
do  justice  to  all,  and  offer  to  everyone  the  highest  possible  stimu- 
lus to  great  and  persistent  effort,  by  assuring  to  each  the  en- 
joyment of  his  just  share  of  the  proceeds  of  his  toil,  no  matter 
in  what  part  of  the  vineyard  he  labors,  or  to  what  occupation, 
profession  or  calling  he  devotes  himself. 


Protection  creates  a  home  market,  ^vitliout  ^vliicli  tlie  cul- 
tivators of  land  in  America  Tvould  be  but  little  better  oif  tlian 
our    aborigrines. — Hon.    J.    S.    Morrill. 

The  Republican  party  -will  continue  to  be  a  protectionist 
party  and  tli^  American  people  a  protectionist  people.  And 
tlint  protection  must  apply  to  every  section,  every  in- 
dustry and  every  class. — Hon.  James    S.  Sherman. 

We  face  the  future  "fvith  onr  past  and  present  as  guaran- 
tors of  onr  promises;  and  vre  are  content  to  stand  or  to  fall 
by  the  record  which  we  have  made  and  are  malcinjjr. — Presi- 
dent   Roosevelt's    speech    acceptiniS    1904    nomination. 

When  in  1900  tike  Gold  Standard  wan  established  by  the 
Republican  party,  in  spite  of  Democratic  opposition,  it  com- 
pleted and  perfected  its  record  as  rejsards  our  Na- 
tional honor  and  party  honor  in  meeting:  in  full  every  fi- 
nancial    obligration. — Hon.    James     S.     Sherman. 

We  deal  too  much  in  the  superlative  of  denunciation  and 
blind  our  eyes  to  the  i^ood  that  is  all  about  us.  Deep  down 
»inder  all  hastily  formed  public  opinion  are  the  sound  judg- 
ment and  sober  common  sense  of  millions  of  sturdy  and 
reasonable  and  far-seeing-  Americans  Tvho  believe  in  the 
strength  of  our  institutions,  in  our  ability  to  work  out  our 
problems,  and  alTvays,  in  the  last  analysis,  in  our  capacity 
for  self-grovernment. — Hon.  George  B.  Cortelyou,  at  Urbana, 
Illinois,  June  7,  190o. 

The  representative  government  that  has  served  us  -well 
from  130  years  has  not  been  for  Mr.  Bryan  sufflciently  ex- 
pressive of  the  will  of  the  people.  We  must  call  upon  four- 
teen million  electors  to  legislate  directly.  Could  any  more 
burdensome  or  inefilcient  method  be  devised  than  this?  1 
believe  that  the  referendum  under  certain  conditions  and 
limitations  in  the  subdivisions  of  a  State  on  certain  issues 
may  be  healthful  and  useful,  but  as  applied  to  our  national 
Srovernment  it  is  entirely  impracticable.— Hon.  W^in.  H.  Taft, 
at   Columbus,  Ohio. 

The  influence  of  a  free  press  must  not  be  impaired,  nor 
must  the  great  body  of  American  newspapers — among-  the 
noblest  ag'cncies  of  enlightenment  and  civilization — be  judgetl 
by  a  few^  w^ho  have  prostituted  their  high  calling  to  ignoble 
uses.— Hon.  George  B.  Cortelyou,  at  Urbana,  Illinois,  June 
7,    1905. 

The  Democrats  are  a  party  having  no  aolidarity,  uniting 
elements  that  are  as  unmlxable  as  oil  and  vrater,  and  ■when 
they  come  to  make  a  government,  should  they  ever  be  elected 
to  power,  the  administration  -would  become  as  nerveless  as 
a  man  stricken  -with  paralysis,  because  the  radical  difference 
l»et-v*'een  the  elements  necessary  to  make  up  the  party  >vould 
be  so  great  as  to  produce  perfect  stagnation  in  legislative 
provision  for  the  emergencies  -which  might  arise.  Tlie 
Democratic  party  to-day,  as  organized,  is  nothing  but  organ - 
ixed  incapacity.  Neither  element  of  the  party  v*^ould  have  a 
sense  of  responsibility  strong  enough  to  overcome  its  an- 
tagonism to  the  principles  upheld  by  the  other  faction  vi^ere 
it  to  come  into  power.— Hon.  Wm.  H.  Taft,  at  Montpelier, 
Vermont. 


STATISTICAL  STATEMENTS. 


Prices  1880  to  1907. 


The  figures  presented  in  this  table  are  the  annual  average 
wholesale  price  of  each  article  in  the  year  named.  They  are 
based,  for  the  earlier  years,  upon  the  Aldrich  tables,  and  in  the 
later  years  upon  the  quotations  of  the  Labor  Bureau  of  the 
Department  of  Commerce  and  Labor,  and  the  annual  averages 
are  the  result  of  the  combination  of  a  large  number  of  quota- 
tions made  at  various  periods  during  the  years  in  question. 

Awiual  average  of  wholesale  prices  during  calendar  years. 


Articles. 


Pood,   etc.: 

Butter,  creamery,  extra lb— 

Coffee,  Rio,  fair  and  No.  7_-lb.- 

riour,  wheat  bbl.- 

riour,  rye bbl.. 

Fruit: 

Apples,   evaporated  lb.. 

Currants   tb.. 

Raisins,  California,  London 

layers   box.. 

Lard,   prime  — > Ib.. 

Meat: 

Beef,  fresh,  native  sides lb.. 

Salt,   extra  mess bbl.. 

Ham    fh.- 

Pork,   salt,  mess bbL. 

Bacon   Ib.. 

Molasses,    New   Orleans, 

prime    gal.. 

Rice ..-Ib.- 

Salt  .bbl.- 

Spices : 

Nutmegs    lb.. 

Pepper    lb.. 

Starch,  pure lb_. 

Sugar: 

96"    centrifugal    .._ lb.. 

Refined,   granulated  ^ .lb- 
Tallow    tb-- 

Farm  products: 

Wheat,  cash bush.. 

Wheat,  No.  2,  red  win- 
ter   bush.. 

Wheat,    contract  grades 

cash   bush__ 

Corn,   No.  2,   cash bush.. 

Oats,    cash    bush.. 

Rye,  No.  2,  cash bush.. 

Barley,    by   sample bush.. 

Flaxseed,   No.   1 bush.. 

Cattle: 
Steers,  choice  to  extra.lOOlbs.. 
Steers,  good  to  choice-lOO  Ibs— 
Hogs : 

Heavy  100  Ibs— 

Light   ...100  Ibs-- 

Sheep : 

Native   MOO  lbs.. 

Western    100  Ibs.. 

Hides,  green,  salted,  pack- 
ers' Iieavy  native  steers Ib.. 

Hay,   timothy,   No.   1 ton.. 

Hops,     New    York    State, 

choice    lb.: 

Cotton,   upland,   middling— .lb.. 
Wool: 
Ohio    medium    fleece, 

scoured     lb.. 

Ohio,  fine  fleeced,  scoured. lb. . 
Cloths  and  clothing: 

Bags,  2-bush.,  Amoskeag.each.. 
Boots  and  shoes: 

'^fen's   brogans   pair.. 

Men's  split  boots doz.  pairs.. 

\'i  ')nien's  solid  grain  shoes.pair.. 
Calico,   Cocheo  prints yd.. 


1880.  1890.  1900.  1903.  1907. 


Dollars. 

0.2925 

.1513 

8.9000 

4.9880 

.1433 


2.2875 
.0750 


.0991 
13.3100 


.5500 
.0725 
.7500 


.1417 
.0613 


.0876 
.0988 
.0672 


.  .8375 
1.0275 

.1931 

1.3000 
21.500 
.9500 
_  .0762_ 

49' 


Dollars. 

0.2276 

.1793 

5.1856 

3.3646 

.1136 

.0478 

2.3604 
.0633 


6.9596 

.0995 

12.1502 


.3542 
.0605 
.7921 

.6317 
.1151 
.0546 

.0546 

.06168 

.0460 


.5447 

.5062 

1.3967 

4.8697 
4.1375 

3.9534 


.5284 


9.9952 
.2621 


.6143 
.7156 

.1594 

1.0500 

17.000 

.8500 

.0650 


Dollars. 

0.2z45 

.0822 

3.8423 

3,4250 

.0615 
.0720 

1.5208 


.0304 

9.7538 

.1025 

12.5072 

.0752 

.4775 

.0548 

1.0010 


.2601 
.1291 
.0500 

.04572 


.0485 

.7040 

.804 

.7010 
.3811 
.2271 
.5177 
.4815 
1.6223 

5.7827 
5.3938 

5.0815 
5.1135 

4.1236 
4.. 5207 

.1194 
11.5673 

.1483 


.5296 
.6594 

.1575 

.9375 

18.000 

.9042 

.0525 


Dollars. 

0.2;i48 

.0559 

4.8303 

3.1479 

.0611 
.0476 

1.4458 
.0377 

.0784 

9.0673 

.1271 

16.6514 


.3546 
.0566 
.6140 

.2877 
.1289 
.0507 


.03720 
.04641 
.0510 

,78955 


.7895 
.4606 
.3511 
.5156 
.5494 
1.0471 

5.5678 
5.0615 

6.0572 
6.0541 

3.7101 


12.4279 

.2825 
.11235 


.6646 

.1458 

.9250 
18.500 

88.75 
.0504 


Dollars. 

0.2/O1 


486  STATISTICAL  STATEMENTS. 

Annual  average  of  wholesale  prices — Continued. 


Articles. 


Cur  pels: 

Ixiijrain,   2-ply,    Lowell yd— 

Wiltou,    llve-iraine   Uigelow.yd.. 
Cotton  tlireuU,  (i-coru,  200 

yards,  .1.  &  i\  Coats. .sspooL. 

Deniuis,    AmoskeaK-.. yd.. 

Drillings,   Stark  A. yd— 

Giiiifliams,   Amoakeag  yd.. 

rriut    clotlis,    2a-lucii.    tti 

by  (ji  „.yd— 

Sliirtlngs,     bleached.      4-4 

Fruit  of   loom ...yd.. 

Siiirtiiigs,     bleached,     4-4 

Lonsdale    yd.. 

Tickings,     Auioskeag,     A. 

C.    A yd.- 

Women's  dress  goods: 
Cotton   warp   alapaca,   22 

in.    Hamilton   yd.. 

Cotton     warp     cashmere, 

22  in.   Atlantic  F »..yd-. 

Cotton     warp     cashmere, 

27   in.    Hamiltoa yd.. 

Cashmere,    all    wool,    At- 
lantic J_ —yd.. 

Fuel  and  lighting: 

Coal,   anthracite  stove ton.. 

Bituminous    ton.. 

Metals    and    implements: 

Nails,  cut 100  Ibs.- 

Wire   100  lbs.. 

Barbed  wire, 

galvanized    100  lbs.. 

Pig  iron,  No.  1  foundry... ton- 
Steel  rails  ton.- 

Bar     iron,      best     refined 

(Philadelphia)    _. .._.lb.. 

Copper,    sheet  ; lb— 

.  Quicksilver  Ih.. 

Lead,    pig ^^ll>_. 

Lead  pipe  100  Ibs-- 

Saws,    hand,    Disston's doz.. 

Sliovels,  Ames'  No.  2 doz.. 

Spelter   (Western)    lb.. 

Lumber  and  building  materials: 

plain    M.  feet.. 

Pine  boards,   wliite M  feet.. 

Shingles,    white    pine M.. 

Doors,   pine  i_-eaeh_- 

Linie,    common    bbl.. 

Brick,    common   domestic M.. 

Cement    Rosendale bbL. 

Rope,  manila  tt>_. 

Putty .lb- 
Carbonate  ol  lead  in  oil lb.. 

Turpentine,    spirits   of gal.. 

Shingles,  cypress,  d M.. 

Drugs   and   chemicals: 

Alcohol    gal-- 

Brimstone,   crude  tjon.. 

Glycerin,    refined    Ib.. 

Linseed  oil,  domestic,   raw-gaL. 

Opium,   natural  (cases) lb_. 

Quinine    oz-. 

Sulphuric  acid  lb.. 

Furniture: 
Chairs,  bedroom,  maple.. .doz.. 

Chairs,    kitchen    doz,. 

Tables,   kitchen  _. doz_- 

Glassware: 

Tumblers,    %   pint... .doz 

Pails,    wooden doz. 

Tubs,   wooden  _ nest  ol  3. 

Miscellaneous 
Rubber,    Para   ^__ft_ 


Dollars. 

.8767 

2.0750 

.041250 
.14<Ji) 
.0800 
.0881 

.0431 

.1621 

.0950 

.1588 

.1067 


.1450 


3.9625 
5.1125 


28.500 
67.5000 


.2900 

.4138 

.0172 

6.5825 

14.040 

10.0300 

.0575 

33.0000 

37.0000 

2.3750 

1.8750 

.8875 
7.0000 
1.0500 

.1250 


.0770 
.3^00 


2.1025 
27.7500 
.1925 
.7025 
6.6875 
2.9'iOO 
■  .0100 

8.000 
4.50(V) 
15.000 


Dollars. 

.5160 

1.9200 

.0315 
Alio 
.0640 
.0625 

.0334 

.0815 

.0845 

.1200 

.0735 
.1813 
.0980 
.3479 

3.7108 

2.9875 

2.2875 
2.9646 

3.5665 
18.4083 
31.7792 

.0205 
.2275 
.7300 
.0440 

5.4000 
14.400 

7.8700 
.0554 

37.8750 

44.0833 

3.8  H7 

1.3750 

.9792 

6.;5625 

1.0512 

.1494 

.0175 

.0338 

.4080 

3.35 

2.0717 

21.1458 

.1767 

.6158 

2.6208 
.3275 
.0088 

7.000 
4.2000 
15.000 

.1800 
1.5117 
1.6500 

.8379 


1900. 

1903. 

Dollars. 

Dollars. 

.4920 

.5136 

l.»720 

2.00a0 

.0372 

.0372 

.10/3 

.1127 

.0542 

.0i81 

.0515 

.05.30 

.0308 

.0321 

.0753 

.0707 

.0731 

.0755 

.1084 

.1104 

.0711 

.0690 

.1642 

.1679 

.0882 

.0894 

.3459 

.3320 

3.9451 

4.8245 

2.9083 

4.43/5 

2.2500 

2.1958 

2.6833 

2.0750 

.3:3942 

2.7:575 

19.9800 

19.9158 

32.2875 

28.0000 

.0196 

.0200 

.2067 

.1917 

.0769 

.6342 

.0445 

.0428 

5.1208 

5.1958  ! 

12.600 

12.600 

9.1200 

8.0200 

.0442 

.0558 

40.8333 

44.8333 

57.5000 

80.0000 

4.0000 

a3.6500 

1.5900 

1.7292  1 

.6833 

.7>j75 

5.2500 

5.9063 

1.0167 

.8896 

.i:?20 

b.ll46 

.0190 

.0140 

.0625 

.0815 

.4771 

.5715 

2.85 

2.5667 

2.3867 

2.3958 

21.1458 

22.3333 

.1515 

.1446 

.6292 

.4167 

3.2000 

3.0813 

..3325 

.2525 

.0120 

.0127 

8.000 

7.917 

5.2080 

5.0000 

15.600 

15.600 

.1800 

.1767 

'    1.4917 

1.5875 

1.4417 

1.4500 

.9817 

.9054 

a  Michigan  white  pine  16  inches  long,  XXXX.         b    7-16  inch, 
d  Prices  at  Southern  mills. 


c  Not  stated. 


Tlie  attitude  of  tbe  grovernment  toivard  combinations  of 
capital  for  tlie  reduction  in  tlie  cost  of  production  sliould 
l»o  exactly  the  same  as  toT»'ard  tlie  coniblnationH  of  labor 
for  tbe  purpose  of  bettering  the  conditions  of  the  wage- 
worlter  and  of  increasing  his  share  of  the  joint  profit  of 
capital  and  labor.  They  are  both  to  be  encouraged  In  every 
-way  so  long  as  they  contluct  themselves  -tvithin  the  law.— 
Hon.    Wm.    H.    Taft,    at    Columbus,    Ohio. 


ST  A  TISTICAL  ST  A  TEMFJNTS. 


487 


FOREIGN    COMMERCE    UNDER    THE    McKINLEY,    WILSON    AND 
DINGLEY  TARIFF  LAWS. 

Values  of  Inipoj-fs  and  Exports  of  McrcJiaiidisc   under  the 
McKinleu  Tariff  Act. 


Imports. 


Exports 

domestic  and 

foreign. 


October  1,  1890,  to  September  30,  1891 

October  1,  1891,   to  September  30,  1892 

October  1,  1892,  to  September  30,  1893 

October  1,  1893,  to  August  31,  1891a 

a  Eleven  months. 


$824,716,842 
837,280,798 
830,150,318 
603,865,893 


$:>23,362,015 
998,226,775 
876,332,434 
790,703,509 


Values  of  Imports   and  Exports  of  Merchandise  under   the 
Wilson   Tariff  Act. 


September  1,  1894,  to  August  31,  189 
September  1,  1895,  to  July  31,  1896. 
August  1,  1896,  to  July  31,  1897 


?759,108,416  $806,670,050 

687,6)1,637  837,802,519 

760,298,619  I       1,051,379,735 


Values  of  Imports   and  Exports  of  Merchandise  under  the 
Dingley  Tariff  Act. 


August  I,  1897,  to  July  31,  1898 |  $613,359,27( 

August  1.  1898,  to  July  31,   189^) i        706,265,852 

August  1,  1899,  to  July  31,  1900 I        853,499,132 

August  1,  1900,  to  July  31,   1901 I        832,591,908 

August  1,  1901,  to  July  31,   1902 i        909,386,387 

August  1,  1902,  to  July  31,  1905 I  1,028,759, 

August  1,  1903,  to  July  31,  1901 ' 980,093,491 

August  1,  1901,  to  July  31,  1905 !  1,130,831,734 

August  1,  1905,  to  July  31,  1906 ,  1,244,642, 

August  1,  1906,  to  July  31,  1907 1,456,450, J 

August  1,  1907,  to  June  30,  1908 |  1,069,719,899 


$1,232,903,411 
1,249,424,423 
1,400,009,719 
1,496,764,694 
1,361,057,518 
1,423,164,317 
1,454,237,485 
1,541,268,608 
1,747,627,353 
1,897,707,339 
1,732,223,811 


Excess  of  Exports  of  Merchandise  under  McKinleii  Act. 

Merchandise. 

Oftober  1,   1890,   to  September  30,   1891 $98,645,173 

October  1,   1891,   to  September  30,  1892 160,945,977 

October  1,  1892,   to  September  30,   1893 46,182,116 

October  1,   1893,   to  August  31,   1894 _♦. 186,840,613 


Excess  of  Exports  of  Merchandise  U)ider  Wilson  Act. 

September  1,  1894,   to  August  31.   1895 $47,561,634 

September  1,  1895,  to  July  31,  1896 150,106,882 

August  1,   1896,   to  July  31,1897 288,083,116 


Excess   of   Exports   of  Merchandise   under   Dingle}/   Act. 

August  1,   1897,  to  July  31,   1898 $619,544,135 

August  1,   18:)8,  to  July  31,   1899 543,158,571 

Aug'.ist  1,   1899,  to  July  31 ;  1900 546,510,587 

August  1,  1900,  to  Ju'y  31,   1901 664,169,786 

August  1,    1901,  to  July  31,   1902 4&1,671,131 

August  1,   1902,  to  July  31,   1903 394,405.131 

August  1,  1903,  to  July  31,   1901 474,143,994 

August  i,  1904,  to  July  31,   1905 410,436,874 

August  1,   1905,  to  July  31,   1906 502,985,064 

August  1,  1903,  to  July  31,   1907 441,256,470 

August  1,  1907,  to  June  30,  1908 _  662,503,912 


Annual  Average  Excess  of  Exports  of  Merchandise. 

Under  McKinley  Act  of  1890 -. $123,153,470 

Under  Wilson   .\ot  of  1891 . . 161,917,210 

Under  Dingley   Act   of   1897 - _ 519,162,882 


418 


STATISTICAL  STATEMENTS. 


Table  of  Annual  Averages  of  National  Financial  and  Industrial 
Conditions  during  the  administrations  of  Presidents  Cleve- 
land, McKinley,  and  Roosevelt. 

[Annual  average  for  periods  named.] 
[Compiled  from  the  Statistical  Abstract  of  the  United  States.] 


1893-1896 

1897-1900 

1901-1903 

1904-1907 

Interest-bearing  debt,  million  dollars 

696 

941 

944 

89-) 

Annual  interest  charge 

27.9 

37.5 

27.6 

23..; 

Annual  interest  per  capita... 

$0.41 

$0.48 

$0.35 

$0.28  . 

Treasury    receipts,     net     ordinary. 

millions    

331 

459 

570 

586 

Government  expenditures,  ordinary. 

millions   

365 
1,592 

475 
1,859 

496 
2^264 

574 

Money  in  circulation,  millions 

2,651 

Money  in  circulation,   per  capita- 

$23.29 

$25.13 

$28.61 

$31.60 

Bank  clearings,   total,  millions 

51,700 

73,300 

114,900 

138,823 

Bank  clearings,  New  York,  millions- 

29,066 

45,131 

74,202 

87,655 

Bank  deposits,   total,  millions 

4,757 

6,223 

9,139 

11,667 

Bank  deposits,  savings,  millions 

1,813 

2.169 

2,760 

3,374 

Depositors  in  savings  banks,  millions 

4.9 

5.6 

6.8 

7.9 

Industrial   life   insurance   in    force. 

millions   

793 

1,217 

1,723 

2,299 

Life    insurance,     total,     in    force. 

millions   

5,635 

7,394 

10,051 

13,206 

nnports,   total,  millions 

758 

732 

917 

1,192 

Exports,  total,  millions 

856 

1,251 

1.430 

1,631 

Excess    of    exports    over    imports, 

millions   

98 

519 

513 

459 

Exports  of  manufactures,  millions. 

211 

275 

462 

640 

Imports  of  raw  materials  for  manu- 

facturing, millions 

179 

218 

294 

400 

Gold:     Excess     imports     over     ex- 

ports, millions  

*50 

50 

4.5 

99 

Exports  to  Asia  and  Oceanift, 

millions  

34 

79 

93 

132 

Crude  rubber  imports,  lbs.,  millions 

38 

45 

53 

65 

Pig  tin  imports,  lbs.,  millions. 

42 

63 

80 

88 

Tin  plate  imports,  lbs.,  millions 

494 

164 

142 

138 

Coal,  tons,  millions _„ 

165 

210 

270       ■ 

338 

Pig  iron,  tons,   millions 

7.96 

12.21 

17.27 

22.6  i 

Steel  rails,   tons,  millions 

1.27 

1.75 

2.73 

3.15 

Steel,  total  tons,   millions 

4.96 

9.23 

14.21 

29.09 

Tin     plat«,     manufactured,     lbs., 

millions  

226 
575 

698 
731 

857 
1,319 

1,141 

Minerals,  total  value,  millions 

1,629 

Cotton,  total  value,  millions 

266 

300 

331 

584 

Beet  sugar,  1,000  tons 

26 

54 

170 

320 

Wool,   lbs.,   millions 

271 

272 

302 

296 

Raw  silk,  imports,  lbs.,  millions.. _ 

8.02 

11.09 

13.30 

18.79 

Cotton     used     in     manufacturing, 

bales,  millions 

2.51 

3.38 

3.85 

4.71 

Animals    on    farms,    total    value, 

millions   

2,050 

1,942 

3,034 

3,526 

Horses     on     farms,     total    value. 

millions  

709 

512 

1,005 

1,606- 

Cattle     on     farms,     total     valu^ 

millions   

879 

1,060 

1,325 

1.374 

Sheep     on     farms,      total     value, 
millions    

87 

97 

161 

180 

Net  earnings  of  railways,  millions..- 

33 

416 

540 

705 

Dividends  paid  by  railways,  millions 

83 

107 

16S 

227 

Passengers  carried,  millions 

558 

535 

650 

760 

Freight  carried  1  mile,  billion  tons.. 

89 

100 

155 

158 

Railways  placed  under  receivership, 

miles   

11,474 

1,697 

193 

1,214 

Railways    sold    under    foreclosure, 

miles 

7,951 

5,125 

795 

395 

Railways  built,   miles 

1.900 

2,891 

4,439 

5,100 

Average  receipts  per  ton  mile. 

$0.85 

$0.76 

$0..75 

$0.78 

Tonnage  of  vessels  passing  through 

Sault  Ste.  Marie  Canal,  millions- 

14 

20 

•       28 

36 

Failures,  liabilities  of,   millions 

280 

128 

128 

141 

Post  office  receipts,  millions 

77 

92 

122 

162 

Wheat,  average  price  of,  per  bushel 

$0.70 

87.6 

83.1 

99.1 

Corn,  per  bushel 

44.4 
31.3 
6,174 

39.0 
27.5 
6,328 

45.5 
40.8 
14,241 

59.7 

Oats,  per  bushel  

41.1 

Homestead  entries,   number 

12,944 

•Excess  exports. 


Tke  sreneral  tariff  policy  to  ^vliioli,  without  regard  to 
cKanitreH  in  detail,  I  believe  this  country  to  l»e  irrevocably 
committed  in  fundamentally  based  upon  ample  i*ecogfnltion  of 
the  difference  in  labor  cost  here  and  abroad.— President 
Roosevelt   at    New   York,    November   11,    lOOS. 


STATISriOAL  STATEMENTS. 


489 


Value  of  expor 


of  principal  farm  products  from  the  United 
States  under  three  tariffs. 


[Compiled  from  reports  of  Bureau  of  Statistics.] 


Cotton  

Preadstufls    (all) 

Sieat  and  dairy  prod 

ucts    (all) 

Flour    _. 

Wheat    

Lard  

Bacon    

Animals   (all) 

Cattle  

Corn   

Beef  

Oil  cake 

Seeds  

Cheese    

Pork   . 

Clover  seed 

Hides    - 

Hops  

Tallow   

Flaxseed   

Barley    

Sugar  and  molasses-. 

Oats 

Vegetables   

Hay  

Broom  corn  

Rye    

Tobacco,  unmf'd 

Fruits  and  nuts 

Cotton  seed  oil 


McKinley 
law,  fiscal 
year  1894. 


$210,869,289 
ld6,777,229 

145,270,643 
69,271,770 
59,^07,011 
40,089,809 
38,338,813 
35,712,641 
33,461,922 
30,211,151 
25,193,699 
8,807,256 
7,942,221 
7.180,331 
5,139,868 
4,540,851 
3,972,494 
3,814,232 
2,766,164 
2,426,281 
2,379.714 
1,718,663 
2,027,934 
1,744,462 
890,654 
210,742 
126,532 
24,085,234 
2,424,2.39 
6,008,405 


Wilson  law, 

calendar 

year  lfc93. 

$189,890,645 

125,266,871 

132,456,827 

50,292,886 

40,898,547 

37,348,753 

37,411,944 

33,791,114 

26,997,701 

27,907,766 

25,741,709 

7,851,246 

1,983,894 

3,401,117 

4,430,155 

1,126,618 

2,835,947 

1,745,945 

1,207,350 

31,076 

1,485,088 

1,300,993 

599,835 

1,557,488 

701,346 

179,856 

724 

24,707,563 

5,450,878 

6,429,828 

Dingley  law, 

tl  cal 

year  1899. 


$210,089,376 
273,999,699 

175,508,608 

73,093,870 

104,269,169 

42,208,465 

41,557,067 

37,880,916 

30,516,883 

68,977,448 

29,720,258 

14,. 548, 765 

5,079,39*^ 

3,316,049 

10,639,727 

1,264,922 

929,117 

3,626,144 

4,367,356 

2,815,449 

1,375,274 

2,350,718 

9,787,540 

2,799,400 

858,992 

185,902 

5,936,078 

25,467,218 

7,897,485 

12,077,519 


Dingley 
law,  im. 


$481,277,797 
184,120,702 

202,392,508 
62,175,397 
60,214,388 
57,497,980 
26,470,972 
41,203,080 
34,577,392 
44,261,816 
31,831,263 
26,415,627 
10,094,609 
2,012,626 
16,593,404 
420,104 
1,760,032 
3,531,972 
7,182,688 
7, 990, .383 
4,556,295 


3,179,619 

1,670,8S1 

4,007,833 

976,287 

263,812 

562,016 

.33,377,398 

17,588,432 

17,074,403 


Conditions  in  States  oarried  hy  McKinley  and  Bryan,  respectively, 

in  1900. 


McKinley  States. 


Area  square  miles 

Population    

Illiterate  native  white  nopu-  ) 
lation  10  years  old  and  0T«  i 

Scboril    PTr>enrlitnr*.s    ill    !90U_-^ 

Auesied  yalue  of  real  estate 
Asaosse'd    value    of   personal  ) 

[U-operty    J 

Value  of  farm  lands,  includ-   I 

*"«:  buildings,   etc l 

Value  of  farm  produQte  1899. . 
Total  value  of  manufactures  ) 

in  1900  -., i 

Wages  and  salaries  paid  in 

manufacturing  in  1900. 
Value  of  product  of  mines, 

oil  and  gas  wells,  etc. 
Savings  banks  deposits  in  li 
Number     of     depositors     In  > 

savings  banks j 


1,380,760 
49,. 300, 585 

.589,434 

$189,246,785 
$21,598,538,094 

12,608,630,997 
56,036,998,020 
$3,137,968,675 
;l  1,274, 824, 602 

$2,392,173,372 

$616,581,477 

$2,436,212,780 

5.826,989 


Per  cent 
of  total 


51.8 
66.2 


34.1 

77 

74  ■ 
67.8 
87.2 

88.3 

79.2 

99.5 
98.9 


Bryan  States, 


1,284,200 
25,216,640 

•1,270,048 


$33,512 
$4,076,900, 


$3,789,316,055 
$2,122,040,651 
$1,487,984,098 
$1,649,647,187 

$.317,067,517 

$161,868,006 

$12,913,792 

67,788 


Per  oent 

of  total. 


48.2 
33.8 


15 
15.9 

28 

26 

S2.2 

12.8 

11.7 

20.8 
0.5 
1.1 


Neitlier  our  nation  nor  any  ot]&«r  can  staucl  tke  minona 
policy  of  readjitstiliiir  its  lt»asines8  to  radical  changres  in  tlie 
tariff  at  sliort  interValn.— President  Roosevelt  at  Logransport, 
Ind.,    September    2»,    1903. 


Every  one  wlio  knows  anytliing  abont  tbe  manaarement  of 
railroads  knows  that  tbere  bas  been  a  revolution  fn  respect 
to  tbeir  obedience  to  tbe  law.  No  longer  are  special 
prlvlleses  grranted  to  tbe  few^— no  longer  are  secret  rebates 
extended  to  bnlld  up  tbe  monopoly  of  tbe  trusts.  Tbe  rail- 
roads arc  operating-  witbin  tbe  law,  and  tbe  railroad  direc- 
tors and  oMcers  and  stoclcbolders  ougbt  to  rise  up  and  call 
blessed  tbe"  men  wbo  are  responsible  for  tbe  passage  of  tbe 
Rate   bill.— Hon.   Wta.   H.   Taft,   at   Kansas    City,   Mo. 


490 


8TA  TIfiTICA  L  !<TA  TEM  E\Tf^. 


Clca ring-house   rettmm   of   the    United   States. 
IFroin  the  Statistical  Abstract  of  the  United  States.] 


Year. 

New 
in 

188«-. 
1S«7- 
18^ 

:::::;i::::::;i;i;!;^:;:::i::.;;,.;.zi!^i" 

$33, 
34, 
30 

18i>9 -- 

34, 

18»0 

37, 

18»1.. 

31 

1892-. 

■ y 

3»i, 

1893t          ^            -.  ,  ^  ^ 

31 

189lt. 

24, 

I8»5t- 

■  • 

28, 

ism --  

29, 

1S^7— 

-.-__.      ♦ 

31, 

1S98 

39 

18'J» 

57, 

1900 

51, 

1901 - ._•- 

77, 

1902 ... 

1903 

70, 

1904 

59, 

1905 - 

91 

1906    • 

103 

1907 -- 

95. 

Ing  house. 


,082,2ir> 
,818,780 
,6S(),60:» 
,4(35,529 
.686,572 
,698,770 
,905.236 
,379,870 
,145,36» 
,379,126 
,894,884 
,760,948 
,413,948 
,230,771 
,588,56t 
,672,494 
,189,433 
,655,940 
,796,801 
,318,360 
,100,091 
,421,238 


Clearinghouses 

of  the 
United  States. 


1^18,211 

52,126 

48,750 

53,501 

58,845 

57,298. 

60,883 

58,880 

45,028 

50,975 

51,935 

54,179. 

65,924 

88,828: 

84,582, 

114,819, 

116,021, 

113,963 

102,355; 

140,5)2, 

157,681, 

154,632, 


,043.771 
.704,488 
,886,813 
,411,510 
,279,505 
,737,938 
.572,438 
,682,455 
,496,746 
,155,046 
,651.733 
,515,030 
,820,769 
,672.53', 
,450.081 
,792,08o 
,618,00! 
,298,973 
,435,047 
,0S7,616 
,259,993 
,515,258 


tDemocratic  and  low  tariff  years. 


Hvposits  171  banks  of  all  kinds  in  the  various  States,  1892,  1890 

1903  and  1907. 

[From  Official  Reports  of  the  Comptroller  of  the  Currency.] 


States. 


Maine   

New  Hampshire 

Vermont   

Massachusetts 

Rhode  Island  

Connecticut    

New   York   

New  Jersey  — 

Pennsylvania   

Delaware  

Maryland   

District  of  Columbia 

Virginia  .!.— 

West  Virginia  

North  Carolina  

South  Carolina  

Oeorgia 

Florida 

Alabama  

Mississippi   

Louisiana 

Texas  

Arkansas  

K«iltueky    

Tennessee  ^—— 

Ohio 

Indiana  

Tllirois   -.-,. 

Michigan  _ 

Wisconsin  _— 

Minnesota  . 

Iowa 

Missouri    

North  Dnkota   

South  Dakota  

Nebraska  .... 

Kf^nsas  .^.1.1—. 

Montana  ', ' 

Wyoniiag   -. 

Colorado 


Indian  Terri*o"y 

Wflshington  .-_ 

O'^^s^on  

California  

Mnlio    

0tah    

N^'ada 

Ari7.'>na    

Alaska    


1832. 


$65,850,798 

80,435,557 

33,748,904 

616,598,531 

99,066,388 

165,415,581 

1,417,556,006 

98,891,294 

423,548,016 

10,121,401 

83,219,217 

15,670,372 

29,693,509 

11,037,899 

8,461,372 

9,849,188 

15,363,576 

5,740,494 

7,661,424 

7,093,530 

26,308,565 

34,120,225 

4,563,594 

49,603,578 

24,543,584 

175,952,224 

54,206,771 

226,801,889 

107,704,051 

79,7.38.823 

76,795.498 

85,460,606 

117,478.165 

8,278,548 

7,551,266 

43,770,311 

38,514,219 

10,515.264 

3.167,147 

.33,827,434 

3,104,956 

723,968 

309,119 

17,807.584 

1-2,647,373 

108.024.054 

2.006,7<'0 

0,213.285 

i12.320 

758,212 


1896. 


Totnl 


$240,870,488 


$75, 

71, 

40, 

705, 

110, 

188, 

,604, 

115, 

459, 

7, 

87, 

18, 

28, 

17, 

9, 

9, 

10, 

5, 


,804,424 
921,727 
572,077 
759,418 
535,816 
712,003 
236,105 
583,033 
041,818 
019,958 
351,355 
677,413 
243,822 
745,571 
722,451 
890,679 
952,349 
531,365 
853,085 


25,306,751 

31,747,215 

3,555,383 

41,502,038 

21,722,670 

174,954,981 

52,386,403 

213,708,711 

103,670.827 

68.863,503 

68,404,642 

78,439,707 

117,150,075 

7,032.360 

7,216.612 

30.865,894 

30,520,487 

16,800,020 

2,650,836 

29,966,835 

2,311,206 

755.510 

701,202 

9,228. 8 '8 

9,262.021 

202,874.270 

1,961,292 

6, .366, 103 

579.731 

1.518,074 


1903. 


$2.^,828,339 


$112,447,981 

78,453,488 

56,3i-6,930 

938,627,298 

155,644,733 

264,131,827 

2,861,024,291 

254,980,170 

1,011,917,132 

19,592,430 

144,703,712 

37, 916,. 326 

59, 933, 002 

.50,387,580 

28,224,670 

16,584,452 

43,0)3,019 

16,535,101 

19,963,480 

29.174,325 

63,450,271 

80,389.641 

14,4.-)8,572 

68,501,184 

62,183,036 

448,120,819 

141,601,752 

.522, 88).  078 

218,432,-300 

156.140,971 

135,514.105 

211,033.378 

298,747,005 

22,1 17,222 

27 ; 801 ; 725 

80,565,404 

84.055.110 

.32,023,515 

7,821.62) 

60.730.278 

7,2 '0,032 

18.677.080 

8,^33,629 

-3.212.0.53 

26  0  50,463 

406,-^2,343 

7,810.0.30  I 

33,526,202  I 

4,107.402 

8, 4-18, 30)  , 

893,913 


1907. 


$141,477,154 

99,037,933 

71,7l0.4i0 

1,121,038,648 

198,307,824 

327,614,301 

3,684,312,102 

371,304,160. 

1,284,624,8  3 

25, 147, 5/1 

180.957,508 

.50,779,3)5 

102,765,424 

81,182,847 

54,780,972 

41.951,535 

78,082,1.30 

.34.9a5.043 

.54.701,372 

47,765,622 

03,272,311 

178,771,888 

27,035,411 

115,516,514 

04,686,356 

642,100,577 

231,6,52,0.32 

767. 1.56,. 586 

301,921,708 

218,707,-334 

203,826,720 

300,805,924 

-370, 526,  If  6 

41.977,114 

,52,833,608 

1-36,7.53,097 

1.38.556,276 

45.587,516 

13,876.537 

103.. 300, 307 

13, "91,935 

36,470,609 

21,222,158 

87,427,578 

61, 992,. 504 

619,420.315 

24,378,4)4 

44,9-1,688 

9,694,340 

17,700,107 

2,759,640 


$510,649,702  ,13,077,330,466 


Aggrega'e,  United  States  only.  $0,530,423,252. 
Annual  increase  in  indivi  inn]  dep.isits,  180V1S)6.     $70,000  o'>'> 
Annual  increase  in  individual  deposits,  1898-1903,  $657,000,000. 


STATISTICAL  .STATEMENTS. 


491 


Value  of  the  Priiieipal  Farm  Crops  of  the  United  States  in 
1SS9  and  1J>07  Compared  witli  1895— Farm  Valne  of  Teh 
Principal  Crops  Increased  More  Tlian  Sj;  1,000,000,000  Since 
1895. 

This  table  shoAvs  the  value  of  the  principal  farm  crops  of  the 
L'liited    States   in   1895,    1899,   and    1907. 

Thf  figures  are  from  the  Department  of  Agriculture,  except 
those  of  flaxseed. 


Crop. 


Corn  _ 

Wheat 

Oats  

Rye   

Barley   

Potatoes  -_ 

Cotton 

Hay 

Tobawo   -- 
Flaxseed  — 


1895. 


Total  value. 


$544,985,534 

237,9.'?8,998 

163,655,068 

11,964,826 

29,312,413 

78.984,901 

293,358,852 

393,185,615 

:!5,574,220 

12,000,000 


Total. 1,800,960,427    2,113,542,988 


Value 
per 


$0,253 
,  .509 
.199 
.440 
.337 
.266 
.076 
8.35 
.069 
.7,50 


1899 


Total  value. 


^629,210,110 
319,545,259 
198,167,975 
12,214,118 
29,594,254 
89,328,832 
i.76,556,253 
411,926,187 
57,000,000 
20,000,000- 


Value 

per 
unit,  a 

$0..303 

.584 
.2t9 
.510 
.405 
.3*0 
.070 
7.27 
.090 
1.25 


J  907 


1  Value 
Total  value.       per 
uult^  a 


$1,337 
554 
335 
23 
l02 
181 
578 
744 
76 
25 


,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 
,000,000 


$0,516 
.874 
.443 
.731 
.666 
.617 
.104 
114)8 
.109 
.955 


a  Corn,  wheat,  oats,  rye,  barley,  potatoes,   and  flaxseed,   bushels  ;   hay, 
ton  ;  cotton  and  tobacco,   pounds. 


Production,  farm  value,  and  value  per  bushel  of  corn,  icheat,  and 
oats,  1885  to  1907. 


Year. 


18Sd- 
1886- 
1887- 


1890 

1891 

1892 

1893 

1894 

1895 


1897 

1898 

1899 

1900 

1901 

1902 

1903. 

1904 

1905 

1006 

1907 


Corn. 


Total. 


Production 


Bushels. 
1,936,176,000 
1,665,441,000 
1,456,161,000 
1,987,790,000 
2,112,892,000 
1,489,970,000 
2,060,154,000 
1,628,464,000 
1,619,496,131 
1,212,770,052 
2,151,138,-580 
2,283,875,165 
1,902,967,933 
1,924,184,660 
2,078,143,933 
2,105,102,516 
1,522,519,891 
2,523,6  !8,. 312 
2,244,176,925 
2.467,480,93 t 
2,707,9^3,540 
2,927,416,001 
2,592,-320,000 


Farm 
value 

per 
bushel 
Dec.l 


Cents. 
32.8 
36.6 
44.4 
34.1 
28.3 
50.6 
40.6 
39.4 
36.5 
45.7 
25. S 
21.5 
26.3 
28.7 
30.3 
35.7 
60.5 
40.3 
42.5 
44.1 
41.2 
39.9 
.51.6 


Wheat. 


Total. 


Produc- 
tion- 


Bushels. 
357,112,000 
457,218,000 
4.56,329,000 
415,868,000 
490,560,000 
399,262,000 
611,780,000 
.515,949,000 
396,131,725 
460,267,416 
467,102,947 
427,684,346 
530,149,168 
675,148,705 
547,303,846 
.522,229,-505 
748,460,218 
670,063,008 
637,821,835 
552,399,517 
692,979,489 
735.260,970 
634,087,000 


Farm 
value 

per 
bushel 
Dec  1. 


Oats. 


62.4 
53.8 
49.1 
50.9 
72.6 
80.8 
.58.2 
58.4 
61,9 
62.4 
63.0 
69.5 
92.4 
74.8 
66.7 
87.4 


Total. 


Produc- 
tion. 


Bushels. 
6z9,409,000 
624,13  4,000 
659,618,000 
701,735,000 
751,515,000 
-523,621,000 
738,394,000 
661,035,000 
638,^54,850 


824,443,537 
707,3  !6, 404 
608,767,809 
730,906,643 
796,177,713 
809,125,989 
7.36,808,724 
987,8(2,712 
784,094,199 
894,595,552 
953.216,197 
961,904,522 
754,443,000 


Cents. 
28.5 
20.8 
30.4 
27.8 
22.9 
42.4 
.31.5 
31.7 
29.4 
32.4 
19.9 
18.7 
21.2 
25.5 
24.9 
25.8 
39.9 
30.7 
34.1 
31.3 
29.1 
31.7 
44.8 


If  we  assume  control  over  a  peopie  merely  in  tlie  spirit 
of  conqnest  and  merely  to  extend  onr  control  and  merely 
from  the  Inst  of  poTver.  then  we:  may  he  properly  denounced 
as  imperialists;  hnt  if  we  assume  control  over  a  people  for 
the  benefit  of  that  people  and  ivith  the  purpose  of  develop- 
ing them  to  a  self-KOverninjjr  capacity,  and  with  the  inten- 
tion of  givingr  them  the  rijtlit  to  become  independent  when 
<hey  shall  show  themselves  fit,  then  the  charge  that  ^ve  are 
imperialists  is  utterly  -tvithout  foundation. — Hon.  Wm.  H. 
Taft,   at   Cleveland,   Ohio. 


492 


STATISTICAL  STATEMENTS. 


Live  stock  and  dressed  meats,  Chicago  to  New  York 
freight  rates,  in  cents,  per  100  pounds. 


verage 


Year. 


1881 


1884. 
1886. 


189] 
18»2 


1900 

190 

1902 

1903 

190 

1905 

1906 

1907 


Dresfie 

d  hogs. 

Hogs. 

Sheep 

Horses 
and 

Dressed, 
beef. 

ittle. 

Refrig- 

Com- 

ni ules. 

erator 

mon 

cars. 

cars. 

55 

43 
31 

65 
61 

60 
60 

88 
56 

35 



3« 

29 
32 
28 
26 
30 
32 

53 
50 
44 
43 
42 
40 

60 
60 
60 
60 
60 
60 

57 
64 
51 
64 
61 
62 

40 

81 

31 

_ 

33 

...::.:: 

33 

59 

54 

22 

26 

31 

60 

46 

46 

44 

25 

80 

30 

60 

47 

47 

45 

23 

28 

30 

60 

39 

39 

39 

27 

30 

30 

60 

45 

45 

45 

28 

28 

30 

60 

45 

45 

45 

28 

20 

30 

60 

45 

45 

45 

28 

30 

30 

60 

.      45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

25 

25 

25 

60 

40 

40 

40 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

42.9 

42.^ 

42.9 

28 

30 

30 

60 

41.2 

41.2 

41.2 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

28 

30 

30 

60 

45 

45 

45 

Relative  conditions  of  prosperity  in  the  manufacturing  and  non- 
manufacturing  sections  of  the  United  States,  respectively.* 

[Prom  Census  of  1900.] 


Per  cent  of  total  population  of  United  States... 

Per  cent  of  total  area  of  United  States 

Gross  value  of  manufactures  in  1900 

Per   cent   of   total    manufactures   produced  jn 

section    

Salaries  and  wages  paid  in  manufactures  in  1900 
Number  of  persons  employed  in  manufactures 

In   1900   

Average  value  per  acre  of  all  farm  lands 

Average  value  per  acre  of  all  lands  and  buildings 
Average    value    per    acre    of    land    (Improved 

only)   and  buildings 

Average  value  of  buildings  per  Improved  acre- 
Average   value   of   implements   owned    per   im- 
proved   acre    — 

Average  value  per  head  of  milch  cows 

Average  value  per  head  of  horses 

Average  value  of   all  farm  products,   per   im- 
proved acre  _ 

Average   value  of  farm   products,    per   person 

engaged 

Deposits  in  savings  banlcs,   total 

Deposits  in  savings  banks,   per  capita 

Deposits  in  all  banks,  total 

Deposits  in  all  banks,  per  capita 

Bank    clearings,    total 

Bank  clearings,  average  per  capita — 

Banking    resources,    total 

Banking  resources,   average  per  capita 

Real  and  personal  property,  assessed  valuation 

Real  and  personal  property,  per  capita— 

Salaries  paid  teachers  in  public  schools -. 

Newspapers  pubhshed,   number 

Newspapers,    aggregate    circulation 


""^e^irn""""  Oth,r  States. 


50.9 

14.1 

$10,021,718,461 

77 
$2,194,936,683 

4,437,714 

$24.07 
$32.50 

$58.60 
$15.25 

$2.54 
$33.62 
$60.87 

$141.00 

$619.25 

$2,200,439,8.^8 

$56.90 

$5,949,984,845 

$153.80 

$76,356,970,422 

$1,973. .50 

$8,613,200,000 

$222.6.-> 

$23,445,809,898 

$606.25 

$85,23t,f)61 

9,151 

6,168,125,616 


49.1 

85.9 

$2,988,318,053 

23 
$536,471,656 

1,273,917 

$12.78 
$14.85 

$31.65 
$5.54 

$1.47 
$27.46 
$43.32 

$101.40 

$394.50 

$249,108,047 

$6.67 

$1,384, 666,. 395 

.$37.10 

$8,225,479,659 

$220.40 

$2,167,500,000 

$58.10 

$10,. 388, 667, 238 

$278.50 

$52,452,785 

9,075 

2,000,023,133 


•Manufacturing  section  includes  area  north  of  the  Potomac  and  Ohio  and 
east  ol  the  Mississippi,  viz.,  the  New  England  and  Middle  States,  and  Mary- 
land. Dlttriot  of  Columbia,  Ohio,  Indiana,  Illinois,   Michigan,   and  Wisconsin. 


STATISTICAL  STATEMENTS. 


493 


2S5 


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494 


STATISTIC  Ah  STATEMEST8. 


I'liHjrcss  of  maiiufacturitip  in   the   Initcd  ^stairs,   ISoO   to  1005. 
[From  ofTkiai  reports  of  tlie  Ceusus  Office.] 


Years. 

Number 
of  estab- 

lueuts. 

Average 
number 
of  wage 
earners. 

Wages  paid. 

Value  of 
product. 

1850    ^-u„--v 

1860 ..      ,. 

123,025 
140,433 
252,148 
253,852 
355,415 
512,254 
533,769 

967,059 
1.311,216 
2,053,9.% 
2,732, 5!)5 
4,251.,613 
5,306,406 
6,157,751 

$2.38,785,461 

378,878,960 

775,58t,343 

947,953,795 

1,891,228,321 

2,322,333,877 

3,016,711,706 

$1,019,106,810 

1,885,811,676 
4,2.32,32  >,  412 
5,.3G9.57il,191 
9,372, 437, 28.< 
13,004,400,143 
16,86a.706,985 

1«70 _. 

isao    

1890    __    . 

I'.Mxr  _„ 

190>»  -.- 

*  Exclusive  of  statiBtlcs  for  governmental  establishments  and  for  Hawaii. 
Figin-ea  for  1905  include  neighborhood  industries  and  hand  trades,  estimate<l 
by  Census  Office  at  two  billions  of»  dollars. 


Production  of  principal  groups  of  manufacturer  in  the  year  1905. 

Food  and  Icindred  products $2,815,231,9)0 

Iron  and  steel  and  their  products... 2,176,739,726 

Textiles  ._•.— .. ...v 2,147,441,418 

Lumber  and  its  manufactures:^— — — ; 1,223,730,336 

Miscellaneous  industries  : ^1 9U,60t,87.J 

Metals,  other  than  iron  and  sfeel 1)22,262,450 

Paper  and  printing 857,112,256 

Leather  nnd  its  finished  products 705,747,470 

Cliemicals  and  allied  products 1,031,965,26;^ 

Vehicles   for  land  transportation 643.,924,4t2 

Liquors  and  beverages . 501,266,605 

Clay,  glass,  and  stone  products 391,230,422 

Tobacco    331,117,681 

Shipbuilding  82,769,239 

'JMie  manufacturing  industries  gave  employment  in  1905  to  6,157,751  wage- 
earners,  earning  $3,016,711,706;  566,175  officials  and  clerks  earning  $60!), 200,251 
in  5:33,769  establishments. 


Production  and  average  prices  of  middling  cotton,  and  prices  of 
the  staple  manufactures  of  cotton,  in  the  New  York  market 
each  year,  from  1880  to  1907. 

[From  the  Statistical  Abstract.] 


Calendar  Year 

s 

g 

OC3 

2.Q 

It 

3^ 

^c8 

c 

ill 
111 

a 

4  by  6-1  printing 
elotlKS,  per  yard 

II 

08  >. 

11 

I- 

H 

S 

X 

^ 

2 

CD 

Cents 

«b 

Bales 

Cents 

Cents 

Cents 

Cents 

Cents 

1880 

5,761 ,000 

11.51 

8.51 

8.51 

12.74 

7.41 

4.51 

1881  - 

6,606,000 

12.0:3« 

8.51 

8.06 

12.74 

7.00 

3.95 

1882 . 

5,456,000 
6,950,000 

11.56 
11.88 

8.45 
8.32 

8.25 
7.11 

12.95 
12.93 

6., 50 
6.00 

3.76 

1883 

3.60 

1884 1 

F^  713, 000 

10.88 

7.28 

6.86 

10.46 

6.00 

3.36 

1885 

5,706,000 

10.45 

6.75 

6.36 

10.37 

6.00 

3.12 

1886               -     -  — 

6,575,000 
'6,499,000 
7,047,000 

9.28 
10.21 
10.03 

6.75 
7.15 
7.25 

6.25 
6.58 
6.75 

10.65 

10.88 
10.91 

6.00 
6.00 
6.50 

3.31 

1887               — 

3.. 33 

1888 . 

3.81 

1889                     .     .  — 

6,939,000 

7,2)7.000 

10.65 
11.07 

7.00 
7.00 

6.75 
6.75 

10.. 50 
10.00 

6.. 50 

6.00 

3.81 

1890 ._... 

3.31 

1891  .- - 

8,674,000 

8.60 

6.83 

6.41 

10.61 

6.00 

2.95 

1892 

-9,018,000 

7.71 

6.50 

5.60 

10.25 

6.25 

3.39 

1893 

6,661,000 

8.56 

5.90 

5.72 

9.75 

5.25 

3.. 30 

1894                      

7,5:32,000 
9,837,000 

6.94 
7.44 

5.11 
5.74 

5.07 
5.69 

9.. 50 
9.85 

4.90 
.5.25 

2.75 

1895 

2.86 

1806                   _  .     ._     . 

7,117,000 
8,703,000 

7.93 
7.00 

5.45 
4.73 

5.48 
4.75 

9.50 
9.25 

4.66 
4.70 

2.60 

1897 

2.48 

1898 . 

11,216,000 

5.94 

4.20 

4.10 

8.00 

3.93 

2.06 

1899             ... 

11,253,000 
9,422,000 

6.88 
9.25 

5.28 
6.05 

5.13 
5.95 

9.50 
10.75 

4.25 
5.00 

2.69 

1900 

3.21 

1901 

10,. 33),  000 

8.75 

5.51 

5.48 

10.25 

4.62 

2.84 

1902 

10,768,000 
10, 671, 010 

9.00 
11.18 

5.48 
6.25 

5.52 
6.37 

10.50 
10.75 

5.00 
5.00 

3.11 

1903 

3.25 

I90t        .        -  -    .- 

10,002,000 
13,651,003 

11.75 
9.80 

7.13 
7.00 

7.31 
7.00 

10.50 
9.00 

5.00 
4.75 

3.41 

1905 

3.13 

1906 

11,231,000 

11.50 

7.25 

7.. 37 

10.93 

5.12 

3.63 

1907 

13,510,000 

12.10 

7.62 

7.62 

13.00 

6.00 

4.62 

a  Years  ending  August  31.      Compiled  by  Mr.  A.  B.  .Shepperson,  of  New  Yorlj. 
b  Including  1881   and   since,    the  price  of  standard  drillings  are  net;  raw  cot- 
ton prices  are  alsu  net  for  the  entire  period. 


8TA  TfSTICyi  L  ^TA  TEM  EXT8. 


49- 


Import    prices. 

L Represents  prices  in  foreign  countries.] 


Articles. 


March- 


1807. 


Chemicals,    drugs,    etc.: 

Bark,    cinchona,    etc lb_ 

Ounis:    Ca!iiphor,    crude.lb- 

Potash,    nitrate    of Ib- 

Quiiiia,   sulphate  of,  etc.oz. 

Sumac,   ground  — lb.' 

Cotton,    raw    

Manufactures      of:      Cloth, 

not    bleached sq.  yd- 

Fertilizers:    Phosphates, 

crude    . ton- 
Fibers,    vegetable,   etc.: 

Flax    ton_ 

Hemp   ton- 

Tstle  or  tampico  fiber_„ton- 

Jut«  ton. 

Manila  ton- 
Sisal  grass  ton- 
Manufactures  of:* 
(-ables,  cordage,  etc--.lb- 
Hides  and  skins,  other  than 
fur  skins: 

Goatskins  lb- 
All  other,  except  hides  of 
cattle  lb- 
Hides  of  cattle lb- 
India  rubber  lb- 
Iron  and  steel  and  manufac- 
tures of: 

Pig  iron  ton- 
Tin     plates,     terne     plates, 
etc.     lb- 
Wire,     and     articles     made 
from -lb- 
Silk,  raw  -' lb- 
Sugar;    Not  above  No.   16— 
Beet    lb- 
Cane    and   other.. lb- 
Above  No.    16 lb- 
Tin    in    bars,    blocks,    nigs, 

etc.    -—.lb. 

Wood:     Boards,    planks,    etc. 

M   ft- 

Wool:    Class  1— clothing.. -lb- 
Class    2 -combing Ib. 

Class    3 — carpet lb-1 

Manufactures  of:  Cloths-lb-l 
Zinc    or    spelter:     in    blocks, 
pigs   and  old lb. 


$0.018( 
.289 
.020 
.152 
.015 
.112 

.089 


219.54 
126.00 
49.95 
29.82 
79.67 
59.85 

.18T 


.220| 

.108; 

7,5]| 


051 

2.87  I 

.017' 

.020; 

.024! 


10.27 
.171 
.200 
.111 
..567 


1898. 

1900. 

1904. 

1906. 

• 

$0,096 
.171 
.022 

!016 
.092 

$0,198 
.291 
.027 
.328 
.023 
.136 

$0,152 

.m 

.027 
.232 
.015 
.189 

$0,085 
.360 
.033 
.131 
.015 
.1.51 

.076 

.094 

.112 

.123 

2.16 

5.08 

6.21 

5.90 

295.63 
138.41 
49.71 
24.93 
60.64 
84.47 

296.18 
133.65 
73.30 
:«.50 
135.84 
168.23 

258.76 
150.42 
93.00 
48.. 37 
200.72 
155.91 

278.79 
176.80 
89.71 
61.25 
183.88 
148.70 

.295 

.817 

.615 

.285 

.231 

.272 

.273 

.300 

.152 
.117 
.586 

.174 
.130 
-680 

.152 
.133 

.695 

.182 
.146 
.766 

25.80 

36.21 

17.47 

28.81 

.022 

.035 

.027 

.030 

.087 
3.26 

.091 
4.63 

.070 
3.45 

.081 
3.25 

.021 
.027 
.027 

.0151 
.0191 
.031 

.022 
.024 

.0202 
.032 

.135 

.254 

.273 

.342 

9.99 
.169 
.€31 
.093 
.869 

12.01 

.2:39 

.212 

.097 

1.22 

15.59 

.188 

.206 

.114 

1.01 

17.23 
.243 

.288 

.133 

1.09 

.039 

.053 

.052 

.038 

$0,129 
.419 
.029 
.217 
.024 
.207 

.115 

10.75 

265.80 
174.55 
101.17 
8>.34 
213.71 
144.07 


.237 
.155 

.759 


23.04 
.034 


.065 
4.53 


.0207 
.038 

.411 

18.56 

.2.55 

.30) 

.142 

1.09 

.08.1 


^Includes  thread  and  twine. 


The  T^-ell-l»eiiis  of  the  -tvagre-^vorker  is  a  prime  considera- 
tion of  onr  entire  policy  of  economic  lejjrlslatron. — President 
Roosevelt's  Annual  Message,  Fifty-seventli  Congress,  first 
session. 

Th  present  business  system  of  the  country  rests  on  tlir- 
protective  taritf  and  any  attempt  to  cha-ige  it  to  a  free 
trade  basis  viill  certainly  lead  to  disaster.— Hon.  IVm.  H.  Taft, 
at    Columbus,    Oliio. 

To  increase  i>rodHction  here,  diversify  our  productive 
enterprises,  enlarge  tlie  field  an<l  increase  the  demand  for 
American  vi^orlvnien:  ^vliat  American  can  oppose  these 
worthy    and    patriotic    ol>jects  ?— McKinley. 

Let  us  keep  steady  lieads  and  stea<ly  hearts.  The  country 
is  not  going  bacli^vard,  but  forward.  American  energy  has 
not  been  destroyed  by  tiie  storms  of  tlie  past.— President  Mc- 
Kinley before  Mannfacturers'  Clul»,  Pliiladelphia,  June  2, 
1897. 

It  is  not  safe  for  the  body  politic  that  the  power  arising 
from  the  management  of  enormous  or  swollen  fortunes 
should  be  .  continued  from  generation  to  generation  in  the 
hands  of  a  fe^v.  and  efforts  by  law,  which  are  not  confisca- 
tory, to  divide  these  fortunes  and  to  reduce  the  motive  for 
nccumulating  them  are  i»roi»er  and  statesmanlike  and  with- 
out tlie  slightest  savor  of  socialism  or  anarchy.— Hon.  Wni. 
H.   Taft,   at   Columbus,    Ohio. 


496 


STATISTICAL  STATEMENTS. 


Total  values  of  imports  entered  for  consumption  and  duties  cot- 
lectcd  thereon  from  1816  to  1907. 

[From  Statistical  Abstract.] 


"Where  possible.  It  Is  alvrays  better  to  mediate  before  the 
strike  begins  than  to  try  to  arbitrate  vrhen  the  lifirht  Is  on 
and  both  sides  have  »ro-»vn  stnbborn  and  bitter. — President 
Roosevelt  at   the  Labor  Day  picnic,   Chlcagro,   Sept.   3,   1900. 

The  Republican  party  -was  dedicated  to  freedom  forty- 
four  years  ago.  It  has  been  the  party  of  liberty  and  emanci- 
pation from  that  hoar;  not  of  profession  bnt  of  performance. 
—President   McKinley,   at   Canton,  July   12,   1900. 

I  think  it  would  be  entirely  rlg:ht  In  this  class  of  cases, 
to  amend  the  law  and  provide  that  no  temporary  restrain- 
ing order  should  issue  at  all  until  after  notice  and  a  hear- 
iniff.  Then  the  court  could  be  advised  by  both  sides  with 
reference  to  the  exact  situation,  and  the  dansrer  of  Issuin^ir 
a  writ  too  broad  or  of  issuing  a  Tvrit  Tvlthout  good  ground 
w^ould  generally  be  avoided.— Hon.  Wm.  H.  Taft,  at  Cooper 
Union,  New  York  City. 

But  the  most  gratifying  feature  of  this  picture  of  bank- 
ing and  financial  conditions  In  our  country  is  the  fact  that 
deposits  in  savings  banks — those  inHtitutiouts  for  the  safe- 
keeping of  the  earning  of  worklngmen  and  T»^idovi's  and 
orphans  and  children  of  the  country — have  Increased  from 
^R.nO.OOOjOOO  in  1S70  to  f3,500,OOO,0OO,  in  1908.  What  say  you 
business  men  of  the  future  of  a  country  -tvhose  working- 
men  and  working  -women  and  children  have  three  and  a 
half  billion  dollars  laid  aside  for  a  "rainy  day."— O.  P.  Austin. 

E^fflcient  regulation  is  the  very  antidote  an<l  preventive 
of  socialism  and  government  ow^nership.  The  railroads, 
until  now,  have  been  permitted  to  Triel«l  tvlthout  any  real 
control  the  enormously  important  franchise  of  furnishing 
transportation  to  the  entire  country.  In  certain  respects 
they  have  done  a  marvelous  vrork  and  have  afforded  trans- 
portation at  a  cheaper  rate  per  ton,  per  mile,  and  per  passen- 
ger, than  in  any  country  in  the  world.  They  have,  lio^»^ 
ever,  many  of  them,  shamefully  violated,  the  trust  obligation 
they  have  been  under  to  the  public  of  furnlMh.Ing  equal  facil- 
ities at  the  same  price  to  all  shippers.  They  -have  been 
weighe<l  in  the  balance  and  found  -^vanting.  The  remedy 
for  the  evils  must  be  radical  to  be  effective.  If  it  is  no*  so, 
then  we  may  certainly  expect  that  the  movement  tOT»ard 
government  ownership  vfHI  become  a  formidable  one  that 
cannot    be   stayed.— Hon.   Wm.    H.   Taft,    at    Columbus,    Ohio. 


ST  A  TIS  Tl  CA  L  ST  A  TEM  E  A  TS. 


497 


Merchandise  imported  into,  exported  from,  and  retained  for  con- 
sumption in  the  United  States,  and  duty  collected  per  capita, 
1811  to  1901. 

[From  the  Statistical  Abstract.] 


Tear. 


91  o 

-a- 


1871 

S12.65 

1872 

1873 

13.80 
15.91 

1874 

13  26 

1875 

11  97 

1876 

10.29 

1877 

1878 

9.49 
9.21 

1879  -. 

8.90 

1880 

1881   __-  _ 

12.51 
12.68 

1882 

13.64 

1883 

13  05 

1884  .- 

1885* 

1886* 

12.16 
10.32 

10.80 

1887* 

11.65 

1888* _ 

11.88 

1889  . 

1890  . 

1891  . 

1892  . 
1893t- 
18941. 
1895t- 
1896t. 
1897t- 


1899 

1900 

1001 

1902 

1903 

1904 

1905 

1906  _ 

1907 


Imports, 
per  capita. 


8.05 


Exports  of 

domestic 

merchandise. 


!  o  'i,  £5 


$5.12 

$10.83 

5.23 

10.55 

4.44 

12.12 

3.75 

13.31 

3.51 

.  11.36 

3.22 

11.64 

2.77 

12.72 

2.67 

14.30 

2.73 

14.29 

3.64 

16.43 

3.78 

17.23 

4.12 

13.97 

3.92 

14.98 

3.47 

13.20 

3.17 

12.94 

3.. 30 

11.60 

3.65 

11.98 

3.60 

11.40 

3.60 

11.92 

3.62 

13.50 

3.40 

13.63 

2.68 

15.61 

3.00 

12.98 

1.92 

12.85 

2.17 

11.51 

2.23 

12.29 

2.41 

14.42 

1.99 

16.59 

2.72 

16.29 

3.01 

17.96 

3.03 

18.81 

3.17 

17.16 

3.49 

17.32 

3.16 

17.56 

3.11 

17.94 

3.49 

20.40 

3.84 

21.60 

P.  cent, 
20.86 

20.16 
20.01 
18.81 
20.42 
20.14 
24.45 
20.45 
19.10 
14.78 
15.30 
22.09 
19.95 
21.51 
20.67 
21.87 
21.21 
22.53 
22.72 
21.18 
21.58 
18.02 
21.57 
23.33 
25.84 
29.89 
30.15 
26.81 
.31.59 
35.30 
31.88 
33.48 
33.61 
36.47 
40.98 
.30.93 
39.92 


Retained    for    consumption, 
per  capita. 


Lbs. 
14.10 
11.10 
15.19 
13.60 
11.90 
14.77 
14.03 
13.71 
15.90 
18.94 
19.64 
16.15 
20.80 
16.30 
15.16 
19.59 
16.81 
19.. 59 
17.22 
18.50 
22.38 
24.58 
17.84 
16.45 
22.75 
18.67 
18.77 
25.76 
27.87 
22.57 
25.94 
25.65 
24.64 
25.28 
33.07 
26.49 
29.53 


Raw  wool 


Bush. 

4.69 
4.79 
4.81 
4.46 
5.38 
4.89 
5.01 
5.72 
5.58 
5.. 35 
6.09 
4.98 
6.64 
5.61 
6.77 
4.57 
5.17 
5.62 
5.34 
6.0!) 
4.59 
5.9t 
4.89 
3.44 
4.59 
4.85 
3.95 
4.29 
6.09 
4.74 
3.95 
6.50 
5.81 
6.33 
6.15 
7.07 


Lbs. 
5.73 
6.75 
5.67 
4.81 
5.28 
5.21 
5.16 
5.28 
5.03 
6.11 
5.66 
6.36 
6.62 
6.85 

7!30 
6.68 
6.. 31 
6.33 
6.03 
6.44 
6.75 
7.10 
5.13 
7.39 
6.98 
8.40 
5.44 
4.51 
5.72 
5.18 
6.07 
5.74 
5.66 
6.52 
5.88 
5.81 


P.  cent. 
29.4 
45.3 
33.2 
17.5 
22.1 
18.3 
16.3 
16.9 
14.2 
34.9 
17.3 
19. 
18.7 
20.6 
18.0 
28.9 
27.4 
28.9 
31.8 
27.0 
30.8 
33.1 
35.7 
14.2 
40.0 
45.9 
.57.8 
32.8 
19.2 
34.4 
24.9 
Si.l 
37.8 
37.0 
45.5 
39.6 
40,0 


The  national  credit  Is  inseparably  associated  vrltli  onr 
national  gfro^vtli  and  i»ro8i»erity.  and  if  yon  tonch  the  latter 
Trith  an  nnfriendly  hand  yon  rtill  serionsly  injnre  the  for- 
mer.—Hon.    W.   McKlnley,    in    Honse   of  Representatives,    April 

15.  1878. 


It  is  probable  that  the  stringency  "tvhich  reached  its 
heigrht  on.  that  dark  day  of  October  24  mi^ht  in  part  have 
been  alleviated  bad  we  had  a  currency  which  conld  auto- 
niatioally  enlarj^ie  itself  to  meet  the  tremendous*  demanil  of 
a  day  or  a  ^veek  or  a  month,  while  public  confidence  -was 
beingr  restored— Hon.  Wm.  H.  Taft,  to  Merchants  and  Manu- 
facturers'   Association,    Boston,    Mass. 

It  is  easy  and  it  often  seems  expedient  to  yield  to  the  out- 
cry of  the  hour;  but  -what  the  tboujarhtful  people  of  America 
demand  of  an  official  is  that  he  shall  set  his  face  like  flint 
asrainst  it  if  his  conscience  or  his  experience  convinces  him 
that  it  is  a  mistaken  cry.— Hon.  Georgre  B.  Cortelyou,  at 
Urbana,   Illinois,   June   7,    1905. 

Xo  party  in  the  whole  history  of  the  country  has  ever 
taken  more  decided  steps  to  restrain  the  abuses  of  irre- 
spnnsible  corporate  w^ealth  and  power  than  has  the  Re- 
publican party,  both  in  the  executive  and  in  the  legislative 
branches  of  the  Government  duringf  the  last  ei^bt  years. 
No  party  has  ever  shown  greater  independence  of  corporate 
control  and  corporate  influence  than  the  Republican  ma- 
jority in  the  House  and  Senate  and  the  E.vecutive.— Hon. 
"Wm.  H,  Taft,  at  Greensboro,  North  Carolina.  '^ 


408 


STATISTICAL  STATEMENTS. 


Imports  and  ewports  of  the  United  States. 


Fiscal  years. 

Imports. 

Exports. 

Excess  of 
Imports. 

Excess  of 
exports. 

1790 

1800 

$23,000,000 
91,252,768 
85,400,000 
74,450.000 
90,180,310 
62,720,956 
136,764,295 
176,579,154 
130,472,803 
95,970,288 
156,496,956 
98,258,706 
122,957,544 
J6, 075, 071 
42,433,464 
102,604,606 
113,184,322 
117,914,065 
122,424,349 
148,638,644 
141,206,199 
173,509,526 
210,771,429 
207,440,398 
263,777,265 
297,803,794 
257,808,708 
310,432,310 
348,428,342 
263,338,654 
231,333,341 
353,616,119 
289,310,542 
189,356,677 
243,335,815 
316,447,283 
238,745,580 
434, 812.,  066 
395,761,096 
357,436,440 
417,506,379 
435,958,408 
520,223,684 
626,595,077 
642,136,210 
567,406,342 
.533,005,436 
460,741,190 
451,32a,126 
437,051,532 
445,777,775 
667,954,746 
642,664,628 
724,639,574 
723,180,914 
667,697,693 
.577,527,329 
635,436,136 
692,819,768 
723,957,114 
745,131,6.52 
789,310,409 
844,916,196 
827,402,462 
866,400,922 
654,994,622 
731,969,965 
779,724,674 
764,730,412 
616,049,654 
697,148,489 
849,941,184 
823,172,165 
903,. 320, 9  48 
1,025,719,237 
991,087,371 
1,117,513,071 
1,226,. 562, 446 
1,434,421,425 
1,185,000,000 

$20,205,156 

70,971,780 

.  66,757,970 

69,691,669 

90,738,333 

71,670,735 

115,215,80^ 

124,838,704 

111,443,127 

104,978,570 

112,251,673 

123,668,932 

111,817,471 

99,877,995 

82,825,689 

105,745,832 

106,040,111 

109,583,248 

1.56, 741,. 598 

138,190,515 

140,351,172 

144,375,726 

188,915,2,59 

166,984,231 

203,489,282 

237,043,764 

218,909,503 

281,219,423 

293,823,760 

272,011,274 

292,902,051 

333,. 576, 057 

219,553,833 

190,670,501 

203,964,447 

158,837,988 

166,029,303 

348, 8.59,. 522 

294,506,141 

281,952,899 

286,117,697 

392,771,768 

442,820,178 

444,177,586 

522,479,922 

586,283,040 

513,442,711 

540,384,671 

602,475,220 

694,865,766 

710,439,441 

835,638,6.58 

902, 377,. 346 

750„542,257 

823,8.39,402 

740,513,609 

742,189,755 

679,524,830 

716,183,211 

695, 954,. 507 

742,401,375 

8.57,828,684 

884,480,810 

1,030,278,148 

847,665,194 

892,140,572 

807,538,165 

882,606,938 

1,050,993,5.56 

1,231,482,330 

1,227, 023,. 302 

1,394,483,082 

1,487,764,901 

1,381,719,401 

1,420,141,679 

1,460,827,271 

1,518,561.666 

1,743,864,500 

1,880,851,078 

1,859,000,000 

$2,794,844 

20,280,988 
18,642,030 
4,758,331 

— 

1810 

1820 

1825 

$549,023 
8,949.779 

1830 1 

1835 1 

21,548,493 
52,240,450 
19,029.676 

ia36 

1837! 

1838 

91^008^282 

1839 

44,245,283 

1840       -  -    

25.410,226 

1841 

11,140,073 

1842 

3.802,924 
40, 392.,  225 

1843 

1844 

3,141,226 

1845 __. 

7,144,211 
8,330.817 

1846 

1847  —    — - 

34,317,249 

1848    -                  

10.448,129 
855,027 
29,133,800 
21,856,170 
40,456,167 
60,287,983 
60,760,030 
38,899,205 
29,212,887 
54,604,582 

18491 

1850 

1851 

1852 - 

• 

1853 

1854 

1855 ^ 

, 

1856 _>... 

1857    L. 

•' 

1858 

8,672.620 

1859 

38,431,290 
20,040,062 
69,756.709 

I860-. 

■ 

1861  - 

1862 

1.313,824 

1863 

39,371,368 
157,609,295 
72,716,277 
85,952,544 
101,254,955 
75,483,-541 
131,388,682 
43,186,640 
77,403,506 
182,417,491 
119,656,288 

19^562^725" 

1864 

1865 

1866 

1867  -. 

t868- 

■ 

1869  _ 

1870 

1871 

1872              _        

1873         

• 

1874           .           

18  876  698 

1875         _.    

1876                 -    

79.643,481 
1.51,1.52,094 

1877 

1878 

1879 



257,814,231 
2^4,661,660 
167,683,912 
259,712,718 

1880 

1881 

1882 

25,902,683 
100,658,488 
72,815,916 

1883 

1884      

1885 

164  662  426 

1886 

44,088  694 

1887 

23,863,443 

1888 

28,002,607 
2,730,277 

1889 

1890  „. 

68, -518, 275 

39,564,614 

202,875,686 

1891 

1892 

1893 

18,735,728 

1894 

237,145  950 

1895 

75,-568,200 

1896  - 

102,882,264 

1897 _ 

286,263,144 

1898. ._ 

615,432,676 
.529,874,813 
544,541,898 
664,-592,826 
478,398,453 
394  422  442 

1899 

1900  .._ 

1901 



1902 

1903 

1904 

469,739,900 
401,048,595 
517  302  054 

1905 

1906 

■ 

1907 

446.429,6.53 

1908a 

674,000,000 

*Total 

$40,233,847,823 

$46,326,439,955 



$6,092,592,132 

♦  The  totals  include  the  figures  of  all  omitted  years  and  are  thus  the  totals 
of  all  years  from  1789  to  1907. 
a  June,  1908,  estimated. 


STATISTICAL  STATEMENTS. 


499 


Receipts  and  expenditufes  in  the  United  States. 


Fiscal  years. 

Net  ordinary 
receipts 

Net  ordinary 
expenditures. 

Excess 
receipts. 

Excess  of 
expendi- 
tures. 

1800 

$10,848,749 
9.384,214 
17,840,670 
24,844,117 
19,480,115 
43,592,889 
52,555,039 
49,846,816 
61,587,032 
73,800,341 
65,350,575 
74,056,699 
68,965,313 
46,655,366 
52,777,108 
56,054,600 
41,476,299 
51.919,261 
112.094,946 
243,412,971 
322,031,158 
519,949,564 
462,846,680 
376,434,454 
357,188,256 
395,959,834 
371,431,105 
364,694,230 
322,177,674 
299,941,091 
284,020,771 
290,066,533 
281,000,642 
257,446,776 
272,322,137 
333,526,501 
360J:82,293 
403^25,250 
398,287,582 
318,519,870 
323,690,706 
336,439,727 
371,403,278 
379,266,075 
387,050.059 
-:03, 030,983 
392,612,447 
354,937,784 
385,819,629 
297,722,019 
313,390,075 
326,976,200 
347,721,70'5 
405,321,33? 
515.860,620 
567,240,852 
587,685,338 
562,478,233 
560,396,674 
540,631,749 
544.274,685 
594,464,122 
663,140,334 
599,895.763 

$10,813,971 
8,474,753 
18,285,535 
15,142,108 
24,314,518 
40,948,383 
47. 751.,  478 
44.390.252 
47,743,989 
55.038.455 
58,630.663 
68,726,350 
67. 634,409 
73,982,493 
68,993,600 
63,200,876 
66,6,50,213 
469,570,212 
718,734,276 
864,969,101 
1,295,009,290 
519,02a,356 
346,729,326 
370,339,134 
321,190,598 
293,657,005 
283,160,394 
270,55a.696 
285,239,325 
301,238,800 
274,623,393 
265,101,085 
241,334,475 
236,964,327 
266,947,884 
264,847,637 
259,651.639 
257,981,440 
265,408,138 
244,12fi.244 
260.226.935 
242,483,139 
267,932,180 
259,653,959 
281,996,616 
297,73G,487 
355,372,685 
345,023,331 
383,477,954 
367,525,280 
356,195,298 
352,179,446 
365,774,160 
443,368,583 
605,072,180 
487,712,792 
509,937.353 
471,190,858 
506,099,007 
.582.402,321 
567,278,913 
.568,784,799 
57S,90a,748 
659,552,125 

$31,778 
909,461 

1810 

1820 

$444,865 

1830 

ft, 702. 009 

4,834,403 

1850 

2.644,506 
4,803,531 
5,456,564 
13,843,043 
18,761,886 
6,719,912 
5.330,349 
1,330,904 

1851 

1852 

1853 

1855 

1856 

1857 

1858 

27,327,127 

1859 

16,216,492 

1860 

7,146,276 

1861 

25,173,914 

1862 

417,650,981 

1863 

606,639,330 

1864 

621,556,130 

1865 

973,068,132 

1866 

927,208 
116,117,354 
6.095,320 
35..997,658 
102,302,829 
91,270,711 
94,134,534 
36,938,349 

1867 

1868 

1869 

1870 

1871 

1872 

1873 

1874 

1,297,709 

1875 

a, 397. 378 
24.965,500 
39,666,167 
20,482,449 
5,374,253 
68,678,864 
1011,130,654 
145,543,810 
132,879,444 
104,393,626 
63,463,776 
93,9.56,588 
10a,471,098 
119,612,116 
105,053,443 
105,344,496 
37,239,762 
9,914,453 
a, 341, 675 

1S76 

1877 

1878 

1879                             

1880                           

1881                             

1882 

1883 

1884 

1885                 -.        

1886             

1887 

1888 

1889 

1890 

1891 

1892 

1893  _- 

1894  _ 

69,803,261 

1895      _  . 

42,805,223 

1896  -. 

25,203  246 

1897  . 

18  052,455 

1898  „       - 

-- - 

38  047  248 

1899 

89,111,560 

1900 

79,527,060 

•      77,717.985 

91,287.375 

54,297,667 

1901 

1902 

1903 

1904 

41.,770,572 
23,004,228 

1905 

1906  _ 

25, 669.. 323 
84,236,586 

1907 

1908  _ 

.59,656,362 

Note.— Net  ordinary  receipts  include  receipts  from  customs,  internal  revenue, 
direct  tax,  public  lands,  and  "miscellaneous,'  but  do  not  include  receipts  from 
loans,  premiums,  or  treasury  notes,  or  revenues  of  Post  Office  Department. 
Net  ordinary  expenses  include  expenditures  for  War,  Navy,  Indians,  pensions, 
l^ayments  for  interest,  and  "miscellaneous-,"  but  do  not  include  premiums, 
principal  or  public  debt,  or  expenditures  for  postal  service  paid  from  revenues 
thereof. 


Ill  flie  enomioii.s  production  of  wenltli,  in  tlie  hereto- 
fore n«lieard  of  prosperity.  It  was  inevitable  that  ahnses 
ihould  creep  in  and  that  in  tlie  absence  of  publicity  some 
►f  the  men  enjoyingr  irresponsible  poTrer  should  yield  to 
le  temptations  of  cupidity  and  ignore  the  sacred  character 
►f  the  trust  relation.  But  there  has  been  a  house-cleaning: 
smd  the  Republican  party  has  exerted  every  effort  to  destroy 
sjsiy  further  oi»portnnlty  for  such  abuses  and  to  prevent  any 
r<'««nrrei»ce  of  tliem — Hon  W«i.  H.  Taft,  at  Greensboro,  North 
(.  aroliiiu. 


500 


STATISTICAL  STATEMENTS. 


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502 


8TA  T I  STIC  A  L  8TA  TEMENT8. 


Ooveniment  finance,  per  capita. 


Year. 

Population 
J  une  1. 

1871 

39,555,000 

1872 

40,596,000 

1873 

41,677,000 

1874 

42,796,000 

1875 

43,951,000 

'       45,137,000 

46,353,000 

1876 

1877 

1878 .... 

1879— 

47.598,000 
48,866,000 

1880 

50,155,78;^ 

1881 

51,316,000 

1882 

1883 

52,495,000 
53,693,000 

1884 

54,911,000 

1885. 

56,148,000 

1886 

57,404,000 

1887 

58,6801,000 

1888 

1889 

1890- 

1891_ 

1892 

•     59,974,000 
61,289,000 
62,622,250 
63,844,000 
65,086,000 

1893 

66,349,000 

1894_ 

67,632,000 

1895 

68,934,000 

1899 

70,254  OOO 

1897 

1898 

1899 _ 

71,592,000 
72,947,000 
74,318,000 

1900 

76,803,387 

1901. 

77,647,000 
79,003,000 
80,372,000 

1902 

1908 

1904.. 

81,752,000 
83,143,000 

1905.  _ 

190C 

1907 

84,216,433 
85,817,239 

GoTernment  flnance,  per  capita. 


Amou't 

of 
money 
in  the 
United 
States 
July  1. 


Dolls. 

18.75 
18.79 
18.58 
18.83 
18.16 
17.52 
16.46 
16.59 
21.16 
23.41 
26.30 
26.85 
27.42 
27.08 
27.38 
27.20 
27.84 
28.20 
27.06 
2G.91 
26.28 
26.92 
26.21 
26.69 
26.39 
25.62 
26.62 
28.43 
29.47 
80.66 
31,98 
32.45 
33.40 
34.29 
34.68 
36.45 


Money 
in  cir- 
cula- 
tion 
July  1. 


Dolls. 
18.10 
18.19 
18.04 
18.13 
17.16 
16.12 
15.58 
15.32 
16.75 
19.41 
21.71 
22.37 
22.91 
22.65 
23.02 
21.82 
22.45 
22.88 
22.52 
22.82 
23.42 
2i.5S 
24.03 
24.52 
23.20 
21.41 
22.81 
25.15 
25.. 58 
26.94 
27.98 
28.43 
29.42 
30.77 
31.08 
32.32 
32.22 


Debt 
leas 
cash  in 
Treas- 
ury, 
July  I. 


Dolls. 
56.81 
52.96 
50.52 
49.17 
47.53 
45.66 
43.56 
41.01 
40.85 
38.27 
35.46 
31.91 
28.66 
26.20 
24.50 
22.34 
20.03 
17.72 
15.92 
14.22 
13.34 
12.93 
12.04 
13.30 
13.08 
13.60 
13.78 
14.08 
15.. 55 
14.52 
13.45 
12.27 
11.51 
11.88 
11.91 
11.45 
10.22 


Year  ending  June  3l). 


Inter- 
est on 
public 
debt. 


Dolls. 

2.83 

2.56 

2.35 

2.31 

2.20 

2.11 

2.01 

1.99 

1.71 

1.59 

1.46 

1.09 

.96 

.87 

.84 

.79 

.71 

.65 

.53 

.47 

.87 

.35 

.35 

.38 

.42 

.49 

.48 

.47 

.54 

.44 

.38 

.35 

.32 

.30 

.29 

.28 

.25 


Net 
reve- 
nue. 


Dolls. 
9.69 
9.22 
8.01 
7.13 
6.55 
6.52 
6.07 
5.42 
5.60 
6.65 
7.00 
7.68 
7.41 
6.36 
5.76 
5.86 
6.33 
6.32 
6.31 
6.43 
6.14 
5.44 
5.81 
4.40 
4.5t 
4.65 
4.85 
5.55 
6.93 
7.43 
7.56 
7.11 
6.93 
6.60 
6.51 
7.02 
7.70 


Net  ex- 
penses. 


Dolls. 

7.39 
6.84 
6.97 
7.07 
6.25 
5.87 
5.21 
4.98 
5.46 
5.34 
5.08 
4.91 
4.94 
4.44 
4.63 
4.22 
4.56 
4.46- 
4.88 
4.88 
5.72 
5.29 
5.77 
5.43 
5.16 
5.01 
5.10 
6.07 
8.14 
6.39 
6.56 
5.96 
6.26 
7.11 
6.81 
6.72 
6.73 


1.14 
.98 
1.03 
1.13 
1.04 
1.17 
1.13 
1.27 
1.33 
1.45 
1.71 
1.95 
2.07 
2.40 
2.0:) 
2.05 
1.98 
1.97 
2.02 
1.88 
1.85 
1.79 
1.75 
1.72 
1.74 
1.72 
1.07 
1.62 


Reciprocity  must  lie  treated  as  tl»e  liand maiden  of  pro- 
tection. Our  flrat  dnty  Is  to  see  that  tlie  protection  granted 
by  the  tariff  in  every  case  -tvhere  it  is  needed  is  maintained, 
and  that  reciprocity  he  soug^ht  for  so  far  as  it  can  safely  be 
done  -without  tnjnry  to  our  home  industries.— President 
Roosevelt's  Annual  Message,  Fifty-seventh  Congress,  first 
session. 

While  Mr.  Bryan  has  been  most  emphatic  and  eloauent 
in  his  description  and  denunciation  of  trusts  and  abuses  of 
corporate  orgranixatlon  and  wealth,  his  su^'s^ested  remedies 
for  their  prompt  suppression  have  been  very  vague.,  unless 
Indeed  his  proposal  that  the  Government  buy  or  condemn 
all  Interstate  railTrays  vrith  their  immense  inlleag,'e  and 
maintain  and  operate  them  is  to  be  regarded  as  an  im- 
mediate, ready,  practical,  and  feasible  remedy. — Hon.  Wm. 
H.   Taft,   at   Greensboro.   Narth   Carolina. 

Think  of  it,  men  of  Rochester;  you  producers  and  manu- 
facturers and  merchants  and  traders  and  bankers  and  trans- 
porters, think  of  it!  The  market  of  our  ovfu  country,  the 
home  market,  in  which  you  can  transport  your  soods  from 
I  the  door  of  the  factory  to  the  door  of  the  consumer,  -without 
breakinir  bulk  a  single  time,  is  equal  to  the  entire  inter- 
national commerce  of  the  world.— O.   P.  Austin,  at  Rochester. 


But  n«r  one  can  read  the  report  of  the  commission  on 
the  history  of  the  union  of  the  Southern  Pacific  and  Union 
Pacific  systems  with  the  Illinois  Central  system  Tvithout 
treniblingr  at  the  enormous  power  that  one  man,  by  the  un- 
controlled use  of  the  stock  and  bond  issuinfli:  power  of 
interstate  rail-ways  under  state  charters,  had  aca«lred  in 
respect  to  a  vital  part  of  the  country's  bnslness  and  -with- 
out looking:  for  some  menns  of  remedyinB:  such  a  dangerous 
tendency  -which.  If  not  stopped,  -will  lead  to  the  absorption 
of  all  the  railroads  of  the  country  into  one  hand. — Hon. 
Wnt.   H.   Taft,    at    Columbus,    Ohio. 


STATISTICAL  STATEMENTS. 


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504 


ST  A  Tis  TIC  A  L  aT-1  TEMES  TS. 


Number  and  mileage  of  I'ailroads  placed  under  receiverships  and 
sold  under  foreclosure  during  the  calendar  years  18l6  to  1901. 


[From  the  Railway  Age, 

Chicago.) 

Caleudar 
year. 

P.aced  under  receivership. 

Sold  under  foreclosure. 

Number     mii.o 
of  roads.     ^"*^- 

stocks  and 
bonds. 

Number 
of  roads. 

Miles. 

Stoclis  and 
bonds. 

1876 

1877 

42           6,662 
38           3,637 

$467,000,000 
220.294.000 

30 
54 

48 
65 
31 
29 
16 
18 
15 
22 
45 
31 
19 
25 
29 
21 
28 
25 
42 
52 
58 
42 
47 
32 
24 
17 
20 
13 
13 
6 
8 
6 

3,840 
3,875 
3.906 
4,90J 
3,775 
2,617 

867 
1.351 

710 
3,156 
7,687 
5,478 
1,596 

$217,818,000 

198,981,01)0 

311,681,000 

248,288,000 

268,882,000 

137,928,000 

05,426,000 

47,100,000 

23,501,(M)0 

278,394,000 

374,109,000 

328,181,000 

64,555,000 

137,815,090 

182.495,000 

109, 069, 000 

95,898,000 

79,921,000 

318,999,000 

761,791,000 

1,150.377,000 

517.680,00? 

252,910,000 

267, .534, 000 

190,374,000 

85,808,000 

.39,788,000 

15,885,000 

28  ,-266, 000 

20,307,000 

10,400,000 

13,777.000 

1878 

27           2,320             92,385,000 

12  1         1,102  i          39,367,000 

13  1             885  1         140.265.000 

1879 

1880 

1881 

5 
12 
11 
37 
44 
13 

110  1            3,742,000 
912  '         -^  074  nno 

1882 

1883 

1  990 

108,470,000 

714,755,000 

385,460,000 

70,346,000 

90,318,000 

186.814,000 

99,664,000 

105,007,000 

84,479,000 

357,692.000 

1,781,046,000 

395,791,000 

369,075,000 

275,597,000 

92,909,000 

138,701,000 

52,285,000 

78.234,000 

1.627,000 

5,835,000 

18,828,000 

36,069,000 

176,321,000 

55,042,000 

13,585.000 

1884 

11,038 
8,386 
1    7QQ 

1885 

1886 

1887 

9           1,046 
22  1        3,270 
22  1        3,803 
26  !        2,963 
26  >        2,159 
36          10,508 
74         29.310 

1888 

1889 

2,930 

3,825 

3,223 

1,922 

1,613 

5,613 

12,831 

13,730 

6,675 

6,054 

4,294 

3,477 

1,139 

693 

555 

524 

679 

262 

114 

1890 

1891 

1892 

1893 

1894 

38 
31 
34 
18 
18 
10 
16 
4 
5 
9 

7.025 

4,089 

5,441 

1,637 

2,069 

1,019 

1,165 

73 

278 

229 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1908 

1904 

8 

744 

1905 

10  j         3,593 

6  201 

7  317 

1906 

1907 

Total.-- 

683 

119,713 

$6,696,072,000 

931 

113,953 

$8,893,922,000 

The  job  Iiunts  tlie  mau,  not  the  man  tlie  jol>.  Wlien  tliat 
condition  exiMts  labor  is  always  better  revi^arded. — President 
McKinley. 

Eni^land  learns  from  experience — Democracy  does  not. 
—Hon.    Charles    Dick,    in    Congrress,   Jan.   fi,    1J><)4. 

What  has  been  done  for  the  tin-plate  manufactnrers  in 
the  United  States  can  be  done  for  American  shipbnllders  and 
American  shipoTrners. — Hon.  Wm.  S.  Greene,  in  Congress, 
April  28,   1904. 

Mr.  Bryan  asks  me  >That  I  >vonld  do  Tvith  the  trnsts.  I  • 
aiisTver  that  I  vronld  restrain  nnla^'fnl  trnsts  -with  all  the 
efficiency  of  injunctive  process  and  would  punish  Tvith  a:il 
the  severity  of  criminal  prosecution  every  attempt  on  the 
part  of  a.ggrefSB,ted  capital  through  the  iileji^al  means  I  have 
describe<l  to  suppress  competition. — Hon.  Wm.  H.  Taft,  at 
Columbus,  Ohio. 

Not  only  is  our  home  market  etiual  to  the  international 
commerce  of  the  entire  world,  but  it  is  KrowinR-  far  more 
rapidly  than  international  commece.  The  Internal  com- 
merce of  the  United  States  has  srrow^n  from  7  billions  in 
IH70  to  28  billions  in  190S,  while  the  international  com- 
merce has  grown  from  11  billions  in  1870  to  28  billions  in 
1908;  in  other  words,  -while  the  international  commerce  of 
the  -world  is  now  t-wo  and  one-half  times  as  Rreat  as  in 
1S70,  the  internal  commerce  of  the  United  States  is  no^v 
four  times  as  great  as  in  that  year  and  equals  the  entire 
commerce  bet-ween  all  nations.— O.  P.  Austin,  Chief  of  Bu- 
reau of   Statistics. 

What  has  been  the  result  to  the  United  States  of  this 
so-called  colonial  policy?  Well,  it  has  added  to  her  trade 
something  over  one  hundred  millions  of  dollars.  I  do  not 
think  that  is  important  except  as  a  beginning.  If  the  gov- 
ernment continues  its  friendly  policy  toward  Porto  Rico 
and  the  Philippines  and  opens  her  markets  as  ^vell  to  the 
Philippines  as  to  Porto  Rico,  this  trade  will  treble  an<l 
quadruple  in  a  marvelously  short  time,  so  that  merely  from 
the  standpoint  of  material  progress,  the  mutnul  benefits  for 
the  people  ^ve  are  hel»»lng  and  ourselves  ^vill  l»e  no  mean 
Justification  for  the  policy.— Hon.  Wm.  H.  Taft,  at  Cleveland, 
Ohio. 


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STATISTICAL  STATEMENTS.  513 

ifotes  to   accompanying  tables  entitled  progress  of  the   United 
States  in  its  area,  population,  and  material  industries. 

a  Exclusive  of  Alaska  and  islands  belonging  to  the  United  States. 

b  Census  figures. 

c  True  valuation  of  real  and  personal  property. 

d  1904. 

e  Total  debt  prior  to  1855. 

f  Figures  for  the  years  1800  to  1850  include  the  total  public  debt. 

g  Gold  and  silver  cannot  be  stated  separately  prior  to  1876.  From  1862  to 
1875,  inclusive,  gold  and  silver  were  not  in  circulation  except  on  the  Pacific 
coast,  where  it  is  estimatetl  that  the  average  specie  circulation  was  about 
$25,000,000,  and  this  estimate  is  continued  for  the  three  following  years  under 
the  head  of  gold.     After  that  period  gold  was  available  for  Circulation. 

h  Total  specie  in  circulation.  Gold  and  silver  not  separately  stated  prior 
to  1876.  , 

i  As  the  result  of  a  special  investigation  by  the  Director  of  the  Mint,  a  re- 
duction of  $135,000,000  was  made  in  the  estimate  of  gold  coin  in  circulation  on 
July  1,  1907.  as  compared  with  the  basis  of  previous  years. 

j  Includes  notes  of  Bank  of  United  States;  State-bank  notes;  demand  notes 
of  1862  and  1863;  fractional  currency,  1S63  to  1878;  Treasury  notes  of  1890,  1891 
to  date;  and  currency  certificates,  act  of  June  8,  1872,  1892  to  1900. 

k  1905. 

1  Exclusive  of  neighborhood  industries  and  hand  trades,  included  in  previous 
years. 

m  "Net  ordinary  receipts"  include  receipts  from  customs,  internal  revenue, 
direct  tax,  pubhc  lands,  and  "miscellaneous." 

n  "Net  ordinary  expenses"   include  expenditures  for  War,   Navy,   Indians, 
pensions,  interest,  and  "miscellaneous." 
o  Imports  for  consumption  after  1860. 
p  Domestic  exports  only  after  1860. 
q  Includes  mules. 

r  Doctor  Soetbeer's  estimate  averaged  for  the  period. 
s  Estimated  by  the  Director  of  the  Mint. 
t  1814. 

u  1903. 

V  Last  six  months  of  1891. 

vv  1845. 


Clieap  labor  is  not  tlie  sole  end  we  seek  in  tlie  United 
States.  *  *  *  We  desire  not  only  tvell-paid  labor,  but  >vant 
that  labor  steadily  employed.— Hon.  C.  "W.  Fairbanks,  at  Kan- 
sas  City,  Mo.,   September  1,   \iiirj,. 

We  Trant  no  slave  labor.  Tt»'o  million  men  -fvitli  their 
blood  wiped  away  slavery  forever.  We  want  no  labor, 
eitlier  wliite  or  black,  in  a  virtnal  state  of  serfdom.  Labor 
must  be  free,  with  all  the  prerogatives  which  pertain  to 
freedom.— Hon.  C.  W^.  Fairbanks,  at  Kansas  City,  Mo.,  Sep- 
tember  1,    1902. 

No  argument  is  reawired  to  sustain  the  w^isdom  of  a  stable 
currency,  for  an  unstable,  fluctuating,-  circulating  medium 
unsettles  and  disturbs,  and  brings  a  train  of  evils  which 
are  as  merciless  and  destructive  as  the  ravages  of  ^var. — 
Hon.    C.   W.  Fairbanks,   in    U.    S.    Senate,    March   5,    1900. 

The  business  men  of  our  community  as  a  -t^'hole  are  honest 
and  their  methods  are  sound.  The  President  has  never  said 
otherwise.  Indeed,  it  is  chieily  in  the  interest  of  the  great 
body  of  honest  business  men  that  he  has  made  his  fight 
for  la^vful  business  methods.— Hon.  Wm.  H.  Taft,  to  Mer- 
chants  and  Manufacturers'  Association,    Boston,   Mass. 

The  complaints  that  the  courts  are  made  for  the  rich 
and  not  for  the  poor  has  no  foundation  in  fact  in  the  atti- 
tude of  the  courts  upon  the  merits  of  any  controversy  Avhich 
may  come  before  them,  for  the  judges  of  this  country  are 
as  free  from  nrejudice  in  this  respect  as  it  is  possible  to 
be.— Hon.  Wm.   H.   Taft,  to   the   Civic   Forum,   New   York    City. 

Not  only  is  our  home  market  equal  to  the  international 
commerce  of  the  entire  world,  but  it  is  growling  far  more 
I'apidly  than  international  commerce.  The  intei'ual  cont- 
meree  of  the  United  States  has  gro-tvn  from  7  billions  in 
1870  to  28  billions  in  1908,  while  the  international  com- 
merce has  grown  from  11  billions  in  1870  to  28  billions  in 
1908;  in  other  words,  while  tlie  international  commerce  of 
the  w^orld  is  now  two  and  one-half  times  as  great  as  in 
1870,  the  internal  commei'ce  of  the  Inited  States  is  noAV 
four  times  as  great  as  in  that  year  and  euanls  the  entire 
commerce  l»et^veen  all  nations. — O.  P.  Austin,  Chief  of  Bu- 
reau of  Statistics. 


514 


BTATISTIGAL  STATSMBNTS. 


Value  of  gold  coin  and  hulUon  imported  into  and  eaported  from 
the   United  States,  flaoal  years  since  1850. 


Year  ending 
June   80— 

Imports. 

Bxporta. 

EXOAM  of 

imports    over 
exports. 

Excess  of 

exports  over 

imports. 

1850 -. 

1851 

1852 

$1,776,706 

3,569.090 

3.658,059 

2,427,356 

3,031,904 

1,092.802 

990,805 

6,654.686 

11,566,068 

2,125,897 

2,508,786 

"  42.291,930 

13.907,011 

5,630,538 

11,176,769 

6,498.228 

8.196,261 

17,024,866 

8,787,448 

14.182,668 

12,086,950 

6.888,561 

8,717,458 

8,682,447 

19,603,137 

13,696,793 

^ 992, 709 

26,246,234 

18,880,215 

5,624,948 

80.758.396 

100,031,259 

34,377,054 

17,734,149 

22.831,317 

26,691,696 

20,743,349 

42,910,601 

43.934,317 

10,284, g58 

12,943,342 

18*,  232, 567 

49,699,454 

21,174,881 

.72,449,119 

36,384,760 

33,525,065 

85,014,780 

120,391,674 

.       .88,954,603 

44,573,184 

66,051,187 

52,021,254 

44,982,027 

99.055,368 

53,648,961 

96,221,730 

114,510,249 

$4,560,687 
22,836,913 
40,073,979 
26.442,858 
40,470,260 
56,109,215 
45,000,977 
65,282.658 
50,002.804 
61.108,063 
58,446,039 
27,428,978 
35,489.908 
62,162,838 
100,661,684 
58,881,088 
71.197.309 
39,026,627 
73.396,344 
36,008,498 
33,685,962 
66,686,208 
49,548,760 
44,856,715 
34,042,420 
68,980,977 
31,177,050 
26,590,374 
9,204,455 
4,587,614 
3,639,025 
2,565,132 
82,587,880 
11,600,888 
41,081,957 
8,477,892 
42,952,191 
9,701,187 
18,376,234 
59,952.285 
17,274.491 
86,362.654 
50,195,827 
108,680,844 
76,978,061 
66,468.481 
112,409,947 
40,361,580 
15,466,891 
37,522,086 
48,286,759 
63,185,177 
48,568,950 
47,090,595 
81,459,986 
92,594,024 
38,573,591 
51,399,176 

Iliiilili 
tiilli.ill! 

$2,783,921 
19.267,823 
36,415,<>>0 
23,015,502 
37.438.296 
54,016,413 
44.010,072 
58,578,017 
38,436,786 
58,982,656 
.    55,937.253 

'2i^532"892 

56,632,300 
89,484.865 
51,882,805 
63,004,048 
22,001,761 
64  658  901 

1853 -w 

1854 

1855-    

16S8  _        

1857 :.. 

1888-    — 

1889 

I860 

S§ :::::;:::::::.- 

$14,867,957 

1868 



1864  _    „J 

1866 

- 

1866 

1867 : 



1868 — 

1869  .    — -._  - 

21,870,930 
21,579  012 

1870 - 



1871  -    .-- 

59  802  647 

1872-    

40  831,302 

1873 -_     

36,174,268 
14,539,283 

1874  _     „-        -      _- 



1875 

53,284,184 

23,184,341 

844.140 

1876-     

1877 .- 

~ 

1878.      „    

4,125,760 
1,037,334 
77,119,371 
97,466,127 
1,789,174 
6,138,281 

1879 

1880.    

1881 

1882  _    

1888 

1884 

18,250,640 

1885 ^ 

18,218,804 

25,558,083 

1886 .-     „. 

22,208,842 

1887 

1888 

1889 

49,667,427 

1890 

4,331,149 

1891 

68,130,087 

1892 

:::::z~::::z: 

495,873 

1893 

1894.     

87,506,463 
4,528,942 

1895 

30,083,721 

1896.     

""iT,m',20o" 

104,935,283 
.     51,432,517 

78,884,882 

1897 

1898.    

1899 

1900 

8,693,575 

1901 

12,866,010 
3,452,804 

1902 

1903 

2.108,568 

1904 

17,595,887 

1905 

88,945,063 

190f5 

57,648,189 
63,111,078 

1907 

Tl»e  Mo-faM<Ml  iioprro  doiiiination  i«  notliiiis  but  a  dream 
and  a  iiitrlitmn  re  of  the  past.— Hon.  Wm.  H.  Taft.  at  Plymouth 
Chureh.  Brooklyn. 

I  faney  the  people  vplll  he  found  pretty  well  content  Trith 
an  AdniiniNtration  which  did  not  hesitate  to  say,  "Let  no 
Rnllty  ntan  escape,"  and  then  enforced  that  order.— Hon.  Al- 
bert  J.    Beveridse,   In  the   Senate,   April    1.    1904. 

The  prreatness  of  onr  Nation,  as  shown  In  the  strnorarle 
of  the  Civil  War,  is  noTT  everywhere  recognized,  and  in 
the  perspective  of  forty  years  there  is  none  to  decry  or 
belittle   It.— Hon.   Wm.  H.  Taft,  at  Riverside  Park.   New   York. 

I.e. 

A  condition  of  prosperity  came  with  the  policy  of  pro- 
tection and  a  condition  of  adversity  came  -when  the  theory 
of  free  trade  was  yiel<le«l  to  and  this  has  been  without  an 
exception.— Hon.   P.  P.   Campbell,   in   Congress,  April   1,   1904. 


Class  appeals  are  dishonest;  •  *  •  they  calculate  tt 
separate  those  who  shoulfl  be  unite«l,  for  our  economic  In- 
ii^vvilH  are  common  and  indivisible. — Maj.  McKinley  to  Com- 
me-cial  Traveling  Men's  Republican  Club,  September  20, 
1890. 


STATISTICAL  STATEMENTS. 


816 


Production   of  gold  and  silver  htj  principal  countries,   in  1906. 

[Includes  all  countries  having  a  product  of  more  than  $1,000,000  of  either  gold 

or  silver.] 


Gold. 

Silver. 

Country. 

Value. 

Coining 
value. 

Oommerolftl 
value. 

North  America: 

194,873,800 
18,534,700 
12,023,900 

135,472,500 
82,391,400 

19,494,700 

2,815,400 

80,400 

41,200 

18,800 
948,500 
2,190,800 
2,403,000 
1,607,700 
1,859,700 
829,000 
1.910,700 

3,226,100 
1,839,000 
2,250,000 
12,087,700 
1,522,200 

178,073.600 

71,402,40^ 

11,078,700 

908.200 

18,407,700 

214,900 
2,835,400 
7,865,100 

869,400 
5,255,100 
1,071,900 

4,004,200 
514,400 
986,900 

$83,256,400 

Alexico 

37,381,400 

5,800,000 

476,500 

An«<"rnln<iia 

9,637,000 

Europe: 

112,500 

Austria-Hungary 

1,222,700 

Germany                                   -- 

3,855,900 

Italy                                         

455,200 

Spain                                 -- 

2,751,200 

Greece                    --  --  --    -    

561,200 

South  America: 

Bolivia » 

Chile         ..       

2,096,300 
269,300 

516,700 

Brazil  _- s 

(rninna    ^T^r^nfli"* 

9,573,100 
2,159,400 

3,169,400 

5,011,900 

1,130,500 

Asia: 

1,669,300 

British  India 

East  Indies  (British) 

—^ 

Note.— Gold  production  of  the  United  States  in  1907  eetlmated  at  90  million 
dollars;   of  the  world,   403  millions. 


We  shall  al^vays  need  protective  duties  as  Ions  as  our 
people  insist  npo«  a  lilglier  standard  of  Tvagres  and  scale  of 
living    tlian   prevail   abroad.— Jas.    M.   Swank. 

Arraying  labor  against  capital  is  a  pnblic  calamity  and 
an  irreparable  injnry  to  botb.— MaJ.  McKlnley  to  Contmercial 
Traveling   Men's   Republican    CInb,   September   26,    1896. 

It  is  true,  as  Peter  Cooper  Tvell  said:  "No  goods  purobased 
abroad  are  cbeap  tbat  take  tbe  place  of  our  OTvn  labor  and 
our  own  raw  material."— H.  K,  Thurber,  in  tbe  American 
Elconoinist. 

Tbe  man  or  party  that  vrould  seek  to  array  labor  against 
capital  and  capital  against  labor  is  tbe  enemy  of  both.— 
Maj.   McKlnley   at    Canton,    September   18,    1896. 

Tbe  rich  manifestations  of  our  commercial  pOTrer,  our 
military  and  naval  strength,  great  and  splendid  as  they  are, 
are  not  to  be  counted  vrhen  compared  -with  the  moral  and 
intellectual  grandeur  of  our  people. — Hon.  C.  W.  Fairbanks, 
at  Baldwin,  Kas..  June  7,  1901. 

No  lessons  of  experience  and  actual  trial  have  been  more 
valuable  to  us  in  working  out  our  problem  in  the  Philip- 
pines than  those  otf  General  "William  Armstrong  and  Booker 
Washington  in  the  uplifting  of  the  negro  race  in  the  United 
States.— Hon.    Win.    H.    Taft,    at    Plymouth    Church,    Brooklyn. 


W^hile  I  fully  recognize  the  fact  that  the  Fifteenth  Amend- 
ment has  not  accomplished  all  tbat  it  was  intended  to 
accomplish,  and  that  for  a  time  it  seemed  to  be  a  dead 
letter,  I  am  confident  that  in  the  end  it  will  prove  to  be 
a,  bulT^^ark  equally  beneficial  with  that  of  the  Thirteenth 
:ind  Fourteenth  Amendments  to  an  unfortunate  and  down- 
trodden, struggling  race,  to  Trhom,  in  view  of  the  clr- 
t'nmstances  under  vthich  they  were  brought  to  this  country 
and  the  conditions  in  bondage  in  T»hich  they  -were  continued 
for  more  than  t-wo  centuries,  ^ve  owe  every  obligation  of 
care  and  protection.  That  which  has  been  done  for  the 
benefit  of  the  negro  rxice  is  the  -vrork  of  the  Republican 
warty.  It  is  one  of  those  great  issues  presented  by  the  ex- 
igencies of  ^lie  Tjvnr  ^vhich  the  party  had  the  firmness  and 
courage    to    meet. — Hon.    Wm.    H.    Taft,    at    Kansas    City.    Mo. 


51« 


STATISTICAL  STATEMENTS. 


I'roduction  of  Oold  and  Silver  in  the  United  States  from  1800 

to  1907. 


Year. 

Gold. 

Silver. 

Total. 

1800-.  — - — 

1820          """IIIIIII.III-  "I 

(1^2,463 
d73,112 
d56 1,950 
dn,697,829 
50,000,000 
55,000,000 
60,000,000 
65,000,000 
60,000.000 
55,000,000 
55,000,000 
55,000,000 
50,000,000 
50,000,000 
46,000,000 
43.000,000 
39,200,000 
4O,0OO,00i- 
46,100,000 
53.225,000 
53,500,000 
51,725,000 
48,000,000 
49.500,000 
50.000,000 
43,500,000 
36,000,000 
36,000,000 
33.490,900 
33,467.900 
39.929,200 
46,897.400 
51,206,400 
38,900,000 
36,000,000 
34.700,000 
32,500,000 
30,000,000 
30,800,000 
31,801,000 
35,869,000 
33,136,000 
33,167,500 
32,967,000 
32,845,000 
33,175,000 
33,015,000 
35,955,000 
39,500,000 
46,610,000 
53,088,000 
57,363,000 
64,463,000 
71,053,400 
79,171,000 
78,666,700 
80,000,000 
73,591,700 
80,461.700 
88,180,700 
94,373,800 
189.620,399 

$253^400" 

252.300 

50,900 

51.700 

51,300 

52.200 

52,200 

52,000 

62,000 

52.400 

52,000 

105.000 

156,800 

2,062,000 

4,684.800 

8,842,300 

11,443,000 

11,642,200 

10,356,400 

13,866,200 

12,306,900 

12,297,600 

16,434,000 

23,588,300 

29.396,400 

35,881,600 

36,917,500 

30,485,900 

34,919,800 

36,991,500 

40,401,000 

35.477,100 

34,717,000 

37,657,500 

41,105,900 

39,618,400 

41,921,300 

42,503,500 

39^82,400 

40,887,200 

43,015,100 

46,838,400 

57,242,100 

57,630,000 

55,662,500 

46,800,000 

31,422,100 

36,445„500 

39,654,600 

32,316,000 

32.118,400 

32,858,700 

35,741,100 

33,128,400 

29,415,000 

29,322,000 

33,456,000 

31,222,000 

38.256,400 

137,571,580 

d$2.463 
d73.112 

1830               .  

d818,350 

dll.950.129 

50.050,900 

1810- _ 

1850 

1851 — — 

'  55,051,700 

1852 - 

1863 . - 

1854 

1855 

1856 

1857 

1858 -' 

1859 

1860 - 

1861 - 

60,051,300 
65,052,200 
60,052,200 
55,052,000 
55,052,000 
55.052,400 
50.052,000 
50,105,100 
46,156,800 
45,062,000 

1862 ,^ 

43,884,800 

1863        -   -   _ 

48,842,300 
57,543,000 
64,867,200 

1864 — 

1866 

1866 

§3,856,400 
65,591,200 
60  306  900 

1867 - — - 

1868-, - — 

IRfifl 

61,797  600 

1 1  i 

!   i   1 
I   !   i 
i   1   1 
t   I   ! 
1   !   1 

1   j   1 

66,434,000 
67,088,300 
65,396,400 
71,881,600 
70,408,400 
63,953,800 
74,849,000 
83,888,900 
91,607,400 
74,377,100 
70  717  000 

1874 _ 

1875 - 

1676- - 

1877 

1878- - — 

1879 

1880 

1881 

1882 

1883 

72,357,600 
73,605.900 
69,618,400 

1884 

72,721,300 

1886lIIIZ~III™~I""I"~"""III 

1887 _„ 

1888 

1889 _ 

1890 

1892lIII"IIIIIII~~II~"~I"I""" 
1893 

1895l~"~™ir~II"IIIII 

74,304,500 
75,351.400 
74,023,200 
76,212,600 
79,805,400 
90,087,100 
90,905,000 
88,677,500 
82,755,000 
70,922,100 
83,055.500 
92,742,600 
89.679,000 
96  581  400 

1896— 

1897 

1898 

1899 

103,912,100 
114,912,100 

1900 

1901 

111,795,100 

1902 

1903. 

109,415,000 
102,913,700 

1905lIIII"~"~""~"I"ZIIII~III 

1906 

1907 

113,920,700 
122,402,700 
132,630,200 
127,191,979 

d  Estimate  averaged  lor  the  period. 


A  tax,  and  a  stiff  one,  npon  foreisn  manufacturers  \voulcl 
be  one  of  the  most  popular  as  ^vell  as  one  of  tlie  >visest 
Imposts  ever  levied  in  this  country.  Eit^-er  the  foreigrn  mau- 
nfacturer  tvould  pay  the  duty  or  the  home  manufacturer 
fvould  gfet  the  trade. — London  Daily  Telegraph.  December 
10,  1903. 

In  the  first  place  it  is  said  that  the  policy  of  the  admin- 
istration has  been  directed  for  the  last  four  years  ajuvn i ii n t 
organized  capital,  and  that  it  has  thereby  frightened  in- 
vestors. I  deny  it.  The  course  of  the  administration  has 
been  directed  against  such  organized  capital  as  was  vio- 
lating the  statutes  of  the  United  States— and  no  other.  it 
had  every  consideration  and  desire  to  ai«l  and  assist  organ- 
ized capital  TThich  -was  engaged  in  legitimate  liusint'.sji.— Hon. 
\Vm.  H.  Taft,  to  Mercliants  and  Manufacturers'  Association, 
Boston,    Mass. 


STATISTICAL  STATEMENTS. 


617 


Coinage  of  the  United  States  mints  from  1850  to  1907. 
[From  the  report  of  the  Director  of  the  Mint.] 


Calendar  year. 


Total  colnasre. 


Gold. 


Silver. 


Minor. 


Total. 


1850 
1851 
1852. 
18.53 
1854 
1855 
1856 
1857 
1858 
1859 
1860 
1861 
1862 
1863 
1864 
1865 
1866 
]867 
1868 
1869 
1870 
1871 
1872 
1873 
1874 
1875 
1876 
1877 
1878 
1879 
1880 
1881 
1882 
188.", 
1884 
1885 
1886 
1887 
1888 
1889 
1890 
1891 
1892 
1893 
1894 
1895 
1896 
ISPT 
1898 
1899 
1900 
1901 
1902 
1003 
1904 
1905 
1905 
1907 


Dollars. 
31,981,738.50 
62,614,492.50 
56,846,187.50 
39,377,909.00 
25,915,962.50 
29,387,968.00 
36,857,768.50 
32,214,040.00 
22,938,413.50 
14.780,-570.00 
23,473,654.00 
83,305,530.00 
20,875,997.50 
22,445,482.00 
20,081,415.00 
28,295,107.50 
31,435,945.00 
23,828,625.00 
19,371,387.50 
17,582,987.50 
23,198,787.50 
21,032,685.00 
21,812,645.00 
57,022,747.50 
35,254,630.00 
32,9.51,9*0.00 
46, 579, 452.. 50 
43,999,864.00 
49,786,052.00 
39,080,080.00 
62,308,279.00 
96,850,890.00 
65,887,685.00 
29,241,990.00 
23, 991, 7.56.. 50 
27,773,012.50 
28,945,-542.00 
23,972,383.00 
31,380,808.00 
21,413,9.31.00 
20,467,182.-50 
29,222,005.00 
34. 787, 222.. 50 
56,997,020.00 
79,546.160.00 
59, 616, 357. .50 
47,053,060.00 
76,028,485.00 
77,985,7.57.00 

111,844,220.00 
99,272,942.50 

101,735. 187.. 50 
47,184,9.32.-50 
43.683,970.50 

2.33,402,428.00 
49,638,441.00 
77,538,045.00 

131,907,490.00 


Dollars. 

1,866,100.00 

774,397.00 

999,410.00 

9, 077,. 571. 00 

8,619,270.00 

3,501,215.00 

5,142,210.00 

5,478,760.00 

8,495,370.00 

3,284,450.00 

2,259,390.00 

3,783,740.00 

1,252,516.50 

809,267.80 

609,917.10 

691,005.00 

982,409.25 

908,876.25 

1,074,343.00 

1,266,143.00 

1,378,255.50 

3,104,038.30 

2,-504,488.50 

4,024,747.60 

6,851,776.70 

15,3f7,893.00 

24,503,307.50 

28,. 393, 0*5.-50 

28,518,850.00 

27,569,776.00 

27,411,693.75 

27,940,163.75 

27,973,1.32.00 

29,2*6,968.45 

28,534,866.15 

28,962,176.20 

32,086,709.90 

35,191,081.40 

33,025,606.45 

35,496,683.15 

39,202,908.20 

27,518,856.60 

12.641,078.00 

8,802,797.30 

9,200,3-50.85 

5,698,010.25 

23,089,899.05 

18,487,297.30 

23,0.34,033.45 

26,061,-519.90 

36,3*5,321.45 

30,8-38,460.75 

30,028,167.20 

19,874,4*0.00 

15,695,60r).95 

6,332,180.90 

10,651,087.85 

13.178.435.75 


Dollars. 

44,467.50 

99,635.43 

50,630.94 

67,059.78 

42,638.35 

16,030.79 

27,106.78 

178,010.46 

246,000.00 

361,000.00 

205,680.00 

101,000.00 

280,750.00 

498,400.00 

926,687.14 

968,552.86 

1,042,960.00 

1,819,910.00 

1,697,1-50.00 

963,000.00 

850,325.00 

99,890.00 

369,380.00 

379,455.00 

342,475.00 

246,970.00 

210,800.00 

8,525.00 

58,186.-50 

165,003.00 

391,. 395. 95 

428,151.75 

960,400.00 

1,601,770.41 

796,183.78 

191,622.04 

3*3,186.10 

1,215,686.26 

912.200.78 

1,283,408.49 

1.. 384, 792. 14 

1,312,441.00 

961,480.42 

1,134,931.70 

438.177.92 

882,430.56 

832,718.93 

1,526,100.05 

1,124,835.14 

1,837,4.51.86 

2,031,137.39 

2,120,122.08 

2,447,795.17 

2,251,281.18 

1,683,529.35 

2,298,555.43 

2,890,908.80 

3,042,126.18 


Dollars. 

33,892,306.00 
63,488,524.93 
57,896.228.44 
48,522,-539.78 
34,577,870.85 
32.905,243.79 
42,027,115.28 
37.870,810.46 
31,679,783.50 
18,429,020.00 
25,938,704.00 
87,280,270.00 
22,409,264.00 
23,753,149.80 
21,618,019.24 
29.954,665.36 
33,461,314.25 
26,. 557, 411. 25 
22,142,880.-50 
19,812,130.-50 
24,927,368.00 
24,236,613.30 
24.686,513.50 
61,426,950.10 
42,448,881.70 
48,5*6,803.00 
71, 293,. 560. 00 
72,401,434.50 
78.363,088.-50 
66,814.859.00 
90.111,368.70 
125,219,205.-50 
94,821,217.00 
60,093,728.86 
53.323.106.43 
56,926,810.74 
-  61,375,4.38.00 
60,379,150.66 
65.. SIS,  61 5.23 
58,194,022.64 
61,054,882.84 
58,053,-302.60 
48,389,780.92 
66,931,749.00 
89,184,688.77 
66,196,798.31 
70,975,677.98 
96,041,882.35 
102,144,625.59 
139,213,191.76 
1.37,6*0,401.34 
134,693,770.33 
79,660,895.87 
65,809,691.68 
2.50,781,-567.30 
.58.269,177.33 
91.080,041.65 
148,128,051.93 


The  credit  of  tlie  Government,  tlte  integrity  of  its  cur- 
rency, and  the  inviolability  of  its  obligations  mast  be  pre- 
served.—-President    McKInley's     inangraral. 

Evils  are  to  be  suppressed  by  definite  and  practical  nkeas- 
ures — not  by  oratory  or  denunciation. — Hon.  Wm.  H.  Taft,  at 
Greensboro,   North    Carolina. 

The  sncecfcH  of  the  United  States  in  material  development 
is  the  most  illustrious  of  modern  times.  It  is  my  deliberate 
Judfi-ment  that  the  prosperity  of  America  is  due  mainly  to  its 
system  of  protective   laws. — Prince  BIsmarclc. 


The  Democratic  leaders  have  been  for  years  making  loud 
declarations  against  corporations  and  trusts  and  railroads 
and  have,  nevertheless,  instituted  no  legislative  steps  in 
all  this  time  for  the  purpose  of  restraining  abuses.  They 
are  noTV  indignant  that  the  Republican  party,  in  carrying 
out  the  promises  of  its  own  platform,  is  putting  Into  prac- 
tice the  principles  Tvhich  they,  ivlth  a  superb  self-compln- 
cency,  claim  are  really  covered  by  a  Democratic  patent. — 
Hon.    Wm.    H.    Taft,    at    Greensboro,    North    Carolina. 


518 


8TATI8TI0AL  STATEMENTS. 


Production  of  gold  and  silver  in  the  world  since  the  discovery  of 

America. 

[From  14U3  to  1885,  from  a  table  of  averages  compiled  by  Dr.  Adolph  Soetbeer; 
since  the  latter  date,  the  estimates  of  the  Director  of  the  Mint.] 


Period. 


1493-1520. 
1521-1541. 
1545-15(iO- 
1561-1580. 
1601-1620- 
1581-1600- 
1621-1640. 
1641-16(;0- 
1661-1680. 
1681-1700. 
1701-1720. 
1721-1740- 
1741-1760. 
1761-1780. 
1781-1800. 
1801-1810. 
1811-1820- 
1821-1830. 
1881-1810. 
1841-1850- 
1851-1855. 
1858-1860- 
1861-1865- 
1866-1870. 
1871-1875- 
1876-1800. 
1881-1885- 
1886-1890- 

1891 

1892 


1895- 
1896- 
1897. 


1900- 
1901. 
1902- 
1903. 
1904- 
1905- 
1906. 
1907. 


Total 


Gold. 


Total   for   period. 


Ounces, 
line. 


5,221,160 

5,524,656 

4,377,544 

4,398,120 

5,478,360 

4,745,340 

6,336,900 

5,639,110 

5,954,180 

6,921,895 

8,243, 

12,268,440 

15,824,230 

13,313,315 

11,438,970 

5,715,627 

3,679,568 

4,570,444 

6,522,913 

17,60.5,018 

32,051,621 

32,431,312 

29,747,913 

31,350,430 

27,955,' 

27,715,550 

23,973,773 

27,306,411 

6,320,194 

7,094,266 

7,618,811 

8,764,362 

9,615,190 

9,783,914 

11,420,068 

13,877,806 

14,837,775 

12,315,135 

12,625,257 

14,354,680 

15,852,620 

16,801,372 

18,268,696 

19,366,550 


Value. 


584,231,094 


Dollars 
107,931, 
114,205, 
90,492, 
90,917, 
113,248, 
98,0(J5, 
110,324, 
110,571, 
123, 08i, 
143,088, 
170,403, 
263.611, 
327,116, 
275,211, 
236.484, 
118,152, 
76.063, 
94,479, 
134,841, 
363.928, 
662,666, 
670,415, 
614.944, 
648.071, 
577.883. 
572,931, 
495,582, 
564,474, 
130,650, 
146,651, 
157,494, 
181,175, 
198,763, 
202.251, 
236,073, 
286,879, 
306,724, 
254,576, 
260,992, 
296,737, 
327,702, 
347,377, 
377,647, 
400,342, 
403.000. 


Annual 
average 

for 
period. 


Value. 


Dollars 
3,855,000 
4,759,000 
8,656,000 
4,646,000 
8.662,000 
4,905,000 
5,516,000 
6,828,000 
e. 154, 000 
7,151,000 
8,520,000 
12.681,000 
16,856,000 
13.761,000 
OOOi  11.823,000 
000!  11,815,000 
OOOi  7,806,000 
OOOI     9,448,000 


12,480,130,600 


13.484,000 
38,893,000 
132,513,000 
134,083,000 
122,989,000 
129.614,000 
115,577,000 
114,586,000 
99,116,000 
112,895,000 
130,650,000 
146,651,500 
157,494,800 
181,175,600 
198,768,600 
202,251,600 
236,073,700 
•1'86,879,700 
306,724,100 
251,576,300 
260,992,900 
296,737,600 
327,702,200 
347,377,200 
377,617,700 
400,342,100 
403,000,000 


Silver. 


Total  for  period. 


Ounces, 
fine. 


Coining 
value. 


42,309,400 
69,598,3201 
160,287.0401 
192, 578,. 500 
271,924,700 
269,352,700 
253,084,800 
235,. 530, 900 
216,691,000 
219,841,700 
228,650,800 
277,261,600 
342,812,235 
419,711,820 
565, 235,. 580 
287,469,225 
173,857,555 
148,070,010 
191,758,675 
2.50,903,422 
ll2,442,986 
145,477,142 
177,009,862 
21.5,2,57,914 
316,. 585, 069 
393,878,000 
460,019,722 
544,557,155 
137.170,919 
158,1.51,762 
185,472,621 
164,610,394 
167,800,960 
157,061,370 
160,421,082 
169,055,253 
168,337,4.53 
173, .591, 384 
173,011,283 
162,763,483 
187,689,322 
184,105,266 
160,588,839 
165,754,848 


9,831,584,085 


Dollars. 

54,703,000 
89,980,000 
207,240,000 
248,990,000 
351,579,000 
348,254,000 
327,221,000 
304,625,000 
280,166,000 
284,240,000 
295,629,000 
358,480,000 
443,232,000 
542,658,000 
730,810,000 
371,677,000 
224,786,000 
191,444,000 
247,930,000 
324,400,000 
184,169.000 
188,092,000 
228,801,000 
278,313,000 
409,322,000 
509,256.000 
594,773,000 
704,074,000 
177,352,300 
198,014.400 
213,944,400 
212,829,600 
216,. 566, 900 
203,069,200 
207,413,000 
218,576,800 
217,618,200 
224,441,200 
223,691,300 
210,441,900 
216, 810, .300 
212,202,900 
219,266,300 
214.309,200 


Dollars. 

1.9.54,000 

3,740,000 

12,952,000 

12,450,000 

17,-579,000 

17,413,000 

16,361,000 

15,226,000 

14,008,000 

14,212,000 

It, 781, 000 

17,924,000 

22,162,000 

27,133,000 

36,540,000 

37,168,000 

22,479,000 

19,144,000 

24,793,000 

.^^2, 440,000 

.36,a3l,0!J0 

37,618,000 

45,772,000 

55,603,000 

81,864,000 

101,851,000 

118,955,000 

140,815,000 

177,352,300 

198,014,400 

213,944,400 

1212,829,600 

216,560.900 

203,069,200 

207,413,000 

218,576,800 

217,618,200 

224,441,200 

223,691.300 

210,441,900 

216,810,300 

212,292,900 

219,266.300 

214,309,200 


12,711,478, 


Tlie  depreaslon  and  ruin  that  -was  inausrnrated  with  tlktit 
tariff  re-vision  hir  the  Democratic  party  ia  viyid  in  the  minds 
of   all.— Hon.   P.   P.   Campbell,    in   Coneress,   April  1,   1904. 

The  rail-tvays  can  hiame  no  one  bnt  themselves  if  the 
revelation  of  the  ilavrant  violations  of  law  and  of  their 
unjust  administration  of  a  public  trnst  have  led  to  an  out- 
burst of  popular  indigrnation  and  have  brought  on  temporary 
excess.— Hon.    Wm.    H.    Taft,    at    Columbus,    Ohio. 

The  nation  has  appreciated  the  valor  and  patriotism  of 
the  black  men  of  the  United  States.  They  not  only  fought  in 
Cuba,  but  in  the  Philippines,  and  they  are  still  carrying  the 
flaj?  as  the  symbol  of  liberty  and  hoi>e  to  an  oppressed  peo- 
ple.— President  McKinley  to  colored  citizens,  at  Chicagro,  Oct. 

Much  money  has  been  spent  on  sea  harbors  and  the 
mouths  of  our  rivers  at  the  sea,  but  comparatively  little 
upon  the  internal  -tvaterways  vrhich  nature  has  furnished 
to  the  country,  and  which  form  hiKh^vays  of  travel  from 
one  border  of  it  to  the  other.  The  call  fronu  the  country  for 
the  development  of  a  TFcll-thought-out  plan  for  the  improve- 
ment of  all  these  vi'ater^vays  is  so  emphatic  that  It  cannot 
longrer  be   resisted. — Hon.  Wm.  H.  Taft,  at  Kansas   City,  Mo. 


STATISTICAL  STATEMENTS. 


519 


Growth  in  coal  production  in  free-trade  Great  Britain,  compared 
with  that  of  the  protection  countries,  United  States,  Germany, 
and  France;  also  the  total  coal  production  of  the  world  and 
the  per  cent  supplied  by  the  United  States  at  quinquennial 
periods  from  1810  to  1895,  and  annually  from  1896  to  1906,  in 
tons  of  2,000  pounds. 

[Prom  r«ports  of  the  United  States  Geological  Survey.] 


Year. 

United 
States. 

Great 
Britain. 

Germany. 

France. 

Total  pro- 
duction 
of  the 
world. 

Per 

cent 
of 

U.S. 

1870. 

1875 

1880 

1886 

1890 

1895 

1896 

1897 

1898 

1899 

1900 

1901 

1902 

1903 

1904- 

1905 

1906.... 

Short  tons. 
33,035,580 
52,348,320 
71,481,570 
111,160,295 
157,770,963 
193,117,530 
191,986,357 
200,229,199 
219,976,267 
253,741,192 
269,684,027 
293,299,816 
301,590,439 
357,356,416 
351,816,398 
392,722,(^35 
414,167,278 

Short  tons. 
123,682,935 
119,303,263 
161,605,738 
178,473,588 
203,408,003 
212,320,725 
218,804,611 
226,385,523 
226,301,058 
246.506,155 
252,203,056 
245,332,578 
254,346,447 
257.974,605 
260,319,665 
261,464,408 
281.1&5,743 

Short  tons. 

37,488,312 

52,703,970 

65,177,634 

81,227,255 

98,398,500 

114,561,318 

123,913,159 

132,762,882 

144,283,196 

149,719,766 

164,805,202 

168.217,082 

165,826,496 

179,076,630 

186,785,378 

191,57(5,074 

222,350,526 

Short  tons. 
14,530,716 
18,694,916 
21,346,124 
21,510,359 
28, 756;  6*38 
30,877,922 
32,167,270 
33,938,987 
35,6.->6,428 
36,215,026 
36,811.536 
35,596,536 
33,286,146 
38,466,873 
37,663,349 
38,9=il,3R0 
87,828,931 

Short  ton9>w 
234,850,088 
308,479,177 
369,413,780 
447.783,8'J2 
563,093,232 
644,177,076 
661,001,718 
697,213,515 
.       738,129,608 
801,976,021 
846,011,&18 
870,711,014 
888,453,950 
972,195,531 
983,527,562 

1,034,1^6,601 
*1,106,478,707 

14.07 
16.97 
20.62 
24.82 
27.99 
29.98 
28  An 

28.72 
29.80 
31.63 
31.88 
33.63 
33.95 
36.78 
35.78 
37.98 
37.43 

•Latest  available  figures  arc  used  in  makinsr  up  totals  for  1906. 
(From  page  620,  Mineral  Resources  of  the  United  States,   1906.) 


Our  exports  to  the  Orient  in  1901  compared  with  1890. 

The  following  table  shows  the  exportation  of  leading-  articles 
from  the  United  States  to  China,  Hongkong,  Japan,  Asiatic  Rus- 
sia, Australasia,  Hawaii,  and  the  Philippine  Islands  in  the  fiscal 
years  1890,  1897,  and  1907,  respectively: 


Articles. 

1890. 

1897. 

1907. 

Iron  and  steel,  manufactures  of 

Dollars. 

2,928,971 

1,532,181 

7,246,111 

3,521,936 

.      85,211 

2,017,508 

2,117,058 

1.070,462 

732,260 

128,277 

424,952 

518,190 

.      575.254 

114.988 

441.430 

Dollars. 

7,651,014 

7.767,361 

10,785,435 

8,265,865 

2,354,758 

2.127,181 

2.413,205 

1,597.054 

1.129,933 

781,055 

1.161,365 

602,120 

527,130 

321,006 

533.482 

Dollars. 
23,771.958 
8.544.451 
15,022,782 
19.369.831 
14.317.085 
6.151.259 
6.166,514 
2. 60'),  447 

Cotton  cloth  _    

Mineral  oils 

Breadstuffs  _       _...._ 

Cotton,  and  manufactures  of 

Tobacco,  and  manufactures  of 

Wood,  and  manufactures  of ...         

Chemicals . 

Leather,  and  manufactures  of 

3,786,130 
2,067,977 

Paper  and  manufactures  of 

Carriages  and  cars 

1,808,001 

Provisions  

Agricultural   Implements 

2,177,441 
1.968,416 

Fertilizers — , 

Fruits  and  vegetables 

883,320 
1.277.127 

I  believe  tliat  tlie  x>rotectlve  system  lias  been  a.  mi^lity 
inistrTinient  for  the  development  of  onr  national  Tvealtli  and 
a  most  povrei-ful  agrency  in  protecting  the  homes  of  oar 
workinsmen.— Harrison. 

The  higrhest  claim  of  William  McKinley  for  the  g'ratitnde 
of  his  countrymen  is  that,  in  spite  of  the  abnse  and  eon- 
tnmely  that  was  heaped  npon  his  head  fwr  this  policy,  he 
placed  onr  country  in  the  forefront  of  nations  as  a  civilizer 
and  nplifter  of  unfortnnate  peoples.— Hon.  Wm.  H.  Taft,  at 
Cleveland,   Ohio. 

I  believe  that  a  navy  is  the  greatest  insurer  of  peace 
that  Tve  could  possibly  have — a  navy  commensurate  -with  our 
resources,  and -commensiinvate  "*vith  our  coast  line,  and  com- 
mensurate -frith  the  number  of  dependencies  -^ve  have,  and 
commensurate  with  our  population,  and  commensurate  >vith 
onr  influence  as  a  world  povrer.— Hon.  "Wni.  H.  Taft,  at  Cleve- 
land,   Ohio. 


520 


STATISTICAL  STATEMENTS. 


Relative  advance  in  prices  of  free  and  dutiahle  articles,  respec- 
tively {denominated  l)y  the  Democratic  Campaign  Book  as 
''Controlled  hy  Trusts"),  1896  to  1907. 

Itema  on  free  list. 


Anthracite  *ove  coal  (f.  o.  b. 

New  Vork) per  ton., 

Anthracite   broken   coal    (f.    o. 

b.  New  York) per  ton.. 

Copper,  lake,  ingot  (New  York) 

per   pound— 

Jute,  spot -do 

Petroleum,  crude  (at  well) 

- per  barrel- 
Petroleum,  refined— per  gallon. 
Rubber,  island per  pound- 
Sisal,   spot  — . do 

Binder  twine  do 


July, 
1890. 

July, 
1001. 

iffi- 

July, 

lUO.i. 

Jauu- 

1904. 

$3,881 

$4,236 

$4.80 

$4.75 

3.228 

3.509 

4.55 

5.00 

.115 
.035 

.17 
.035 

$0.1225 
.0325 

.1425 
.045 

.125 
.045 

1.0825 
.069 
.84 
.0362 
.0675 

1.1337 
.069 
.86 
.0562 
.0975 

1.22 
.071 
.77 
.095 
.1425 

1.50 
.14 
.87 
.0762 
.145 

1.85 
.15 
.94 
.075 
.145 

Decem- 
ber, 
1K07. 


$4.9503 

4.2017 

.14 
5.5 

1.78 

.1350 

.78 
6.5 
12.00 


Items  on  dutiable  list. 


Alcohol  (94  per  cent).. per  gal.. 
Brick  per  thousand- 
Bread,  Boston  crackers-per  lb.. 

Cotton   flannels per  yard.. 

Cement,  Rosendale per  bbl.. 

Fish,   canned  salmon. .per  doz.. 

Ginghams ..per  yard.. 

Glassware,    pitchers per  doz.. 

Wire  nails per  keg.. 

Cut  nails  — do 

Fresh  beef  sides per  lb_- 

Salt  beef  _ per  bbl.. 

•Salt   pork do 

Hams,  smoked  do 

Pig  iron,  foundry,  Philadelphia 

per  ton.. 

Rice   —.per  Ib-. 

Sugar,  centrifugal  .—do... 

Sugar,  granulated  do... 

Steel  rails,  Pittsburg.. per  ton.- 


Ju'y. 

July, 

July, 

July, 

Janu- 
ary, 

19U4. 

1896. 

1901. 

1902. 

1908 

$2.31 

$2.43 

$2.51 

$2.48 

$2.40 

5.25 

5.75 

6.25 

5.25 

.065 

.08 

.08 

.07 

.065 

.0825 

.08 

.85 

.100 

.95 

.90 

.95 

1.65 

1.70 

1.65 

1.65 

1.65 

.0425 

.0475 

.08 

.08 

1.25 

1.30 

1.30 

1.30 

1.15 

3.15 

2.40 

2.10 

2.05 

2.00 

2.90 

2.10 

2.05 

2.20 

1.95 

.075 

.09 

1.25 

.125 

16.00 

21.50 

22.50 

11.50 

11.00 

8.25 

16.75 

19.75 

17.75 

13.50 

.10 

.115 

.125 

.1375 

.12 

12.75 

15.87 

22.75 

18.50 

15.00 

.0525 

.0537 

.0575 

.55 

.04 

.035 

.0425 

.0337 

.0356 

.0317 

.016 

.0524 

.0175 

.047 

.0436 

28.00 

28.00 

28.00 

28.00 

28.00 

Decenci- 
ber, 
1907. 


$2.63 
5.50 
.03 
a. 10 
.95 
bl.65 
c.07 
1.05 
2.15 
2.1250 
.0370 
10.6250 
15.1250 
.1068 

18.94 
.06 
.03794 
.0455 
.28 


a  2%  yards  to  the  pound. 


b  August,  1907. 


c  Amoskeag. 


Tlie  nvay  to  lielp  labor  is  to  provide  it  -tvitli  steady  worli 
and  grood  ^vagres  and  then  to  have  those  ^ood  vrases  always 
paid  in  grood  money.— Maj.  McKinley  to  delegation  of  -wori*;- 
men,   Aagpnst    24,    1896. 

I  believe  it  is  a  grood  deal  better  to  open  the  mills  of  the 
United  States  to  the  labor  of  America  than  to  open  the  mintH 
of  the  United  States  to  the  silver  of  the  vrorld.— MaJ.  McKinley 
to  his  comrades  of  the  23d  Ohio  Regiment,  at  Canton,  Au- 
gust  12.    1896. 

The  avowed  policy  of  the  National  administration  of 
these  tTTO  Presidents  has  been  and  is  to  govern  the  Islands, 
having  regard  to  the  interest  and  welfare  of  the  Filipino 
people,  and  by  the  spread  of  general  primary  and  industrial 
education  and  by  practice  in  partial  political  control 
to  fit  the  people  themselves  to  maintain  a  stable  and  well- 
ordered  government  affording  equality  of  right  antl  oppor- 
tunity to  a.11  citizens.— Hon.  Wm.  H.  Taft,  in  special  report 
to   the    President. 


In  spite  of  the  general  comfort,  there  have  been  made 
manifest  by  signs  not  to  be  misunderstood,  a  quickening 
of  the  public  conscience  and  a  demand  for  the  remedy  of 
abuses,  the  outgrowth  of  this  prosperity,  and  for  a  higher 
standard  of  business  integrity.  Every  lover  of  his  country 
should  have  a  feeling  of  pride  and  exaltation  in  this  evi- 
dence that  our  society  is  still  sound  at  flie  core.— Hon.  Wni. 
H.  Taft.  at  Columbus,  Ohio. 


STATISTICAL  STATEMENTS. 


629 


Commerce  of  the  World  Since  1830. 

This  table  showing-  the  commerce  of  the  principal  countries 
of  the  world  at  intervals  from  1830  to  1907  will  be  useful  for 
reference  in  considering  the  question  as  to  the  effect  of  high  or 
low  tariffs  upon  trade  of  the  countries  utilizing  these  resjiec- 
tive  systems.  It  will  be  noted  that  the  commerce  of  the  most 
highly  protective  countries  shows  in  nearly  all  cases  a  higher 
percentage  of  gain,  comparing  1907  with  1897  or  1890,  than 
does  that  of  the  United  Kingdom,  the  sole  remaining  represent- 
ative of  the  low  tariff",  or  free  trade  principle.  The  foreign 
commerce  of  the  United  Kingdom  in  1907  is  47  per  cent  greater 
than  that  of  1890 ;  that  of  France,  50  per  cent ;  Germany,  109  per 
cent;  and  the  United  States,  116  per  cent  greater  in  1907  than  in 
1890. 


g  s, 


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The  theory  of  free  trade  hetAveen  nations  is  as  fallacious, 
impracticable,  and  utterly  ahsurd  as  is  that  of  free  love  be- 
t-ween   families.— Hon.   B.   F.  Jones. 

Abating  none  of  our  interest  in  the  home  market,  let  us 
move  out  to  nevr  fields  steadily  and  increase  the  sale  for  our 
products  in  foreign  markets.— President  McKinley  to  Com- 
mercial   Club,    Cincinnati,    Oct.    30,    181)7. 


Instead  of  making  a  panic,  the  national  policy  of  ending 
the  lavrlessness  of  corporations  in  interstate  commerce,  ami 
of  taking  away  their  poTver  of  issuing,  withuut  superAisloi», 
stocks  anil  bonds,  >vill  produce  a  change  in  their  maiiuge- 
ment  antl  remove  one  fruitful  cause  for  loss  of  public  con- 
ildence.— Hon.  Wm.  H.  Taft,  to  Merchants  and  Manufactnver:* 
AssoeJulion,    Boston,    Mass. 


522 


STATISTICAL  STATEMENTS, 


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TofaZ  actual  expenditures  and  per  capita  expenditures  of  the 
principal  countries  of  the  world,  in  the  latest  year  for  tohich 
figures  are  availaMe. 


Countries. 


Argentina    

Australian  Commonwealth 

Belgium    

Canada  _ _ 

Cuba 

France  

Germany 

Italy  

Japan  

Netherlands    

Portugal 

Eussia   

Spain   

Sweden    

United  Kingdom 

United  States  


Population. 

Expendiure. 
$98,380,000 

Per  capita 
expeudiiure. 

5,878,000 

$17.33 

4,048,000 

164,971,000 

40.75 

7,161,000 

109,367,000 

15.27 

6,440,000 

51,061,000 

8.39  ' 

1,573,000 

18,998,000 

•     12.08 

39,300,000 

715,420,000 

18.20 

60,478,000 

.522,445,000 

8.64 

33,604,000 

367,245,000 

13.11 

47,975,000 

246,363,000 

5.14 

5,592,000 

74,760,000 

.     13.37   . 

5,162,000 

63,096,000 

12,22 

141,000.000 

1,050,448,000 

11.71 

18,618.000 

165,675,000 

8.90     « 

5,261.000 

51,826,000 

9.85 

43,221,000 

678,464,000 

15.69 

85,817,000 

578,904,000 

G.75 

jVoi  open  mints  for  tlie  nnlimited  eoinase  of  tl»e  silver  of 
llie  world,  l>nt  open  mills  for  the  full  and  nnrestricted  labor 
of  tlie  American  TFOrkingmen.— Maj.  Mcltinley's  letter  of  ac- 
ceptance. 

Tlie  panic  Tvas  donbtless  cliieily  due  to  tlie  exlianstion 
of  tlie  free  caiiltal  of  the  ^vorld  by  reason  of  tlie  over- 
investment in  enterprises  tliat  liave  not  been  as  prodnctive 
as  expected.  Tlie  enovmons  industrial  expanaion  lias  at 
last  tied  up-nearly  all  tlie  world's  capital  wbicb  was  avail- 
able and  new  investments  bad  to  halt.  This  result  was 
world-wide.— Hon.    Wm.    H.    Taft,    at    Kansas    City,    Mo. 


624 


8TA  TISTICAL  ST  A  TEMENTS. 


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Not  open  mints  for  tlie  unlimited  coinaKe  of  tlie  silver  of 
tlie  world,  bnt  open  mills  for  tl»e  fnll  and  unrestricted  labor 
of  the  American  -fvorkinKinen.-- Maj.  McKiuley's  letter  of  ac- 
eeptanoe. 

You  cannot  help  tlie  farmeyr  by  coinin^ir  more  silvex*;  lie  can 
only  be  helped'  by  more  consumers  for  his  products.— ]>laj. 
McKinley   to   delegration   of   farmers,   Augfnst  24,   1896. 

Vigorous  action  and  measures  to  stamp  out  existinjL;- 
abnses  and  eifect  reform  are  necessai'y  to  vindicate  society 
as  at  present  constituted.  Otherwise,  we  must  yield  to 
those  ivho  seek  to  Introduce  a  new^  order  of  things  on  a 
socialistic    basis.— Hon.    Wm.    H.    Taft,    at    Kansas    City,    Mo. 

Any  unjust  discrimination  in  the  terms  upon  -tvhich  trans- 
portation of  frels'ht  or  passeng:ers  is  afforded  an  individual 
or  a  locality  paralyzes  and  ^vithers  the  business  of  the  in- 
dividual or  the  locality  exactly  as  the  binding  of  the  ar- 
teries and  veins  leading-  to  a  member  of  the  human  boily 
destroys    its    life.— Hon.    Wm.    H.    Taft,   at    Columbus,    Ohio. 

Only  tvrice  in  all  that  remarkable  history  of  48  years 
have  we  lost  the  confidence  of  the  people  of  the  United 
States  to  the  point  of  their  turning:  over  the  government 
to  a  Democratic  executive.  I  venture  to  say  that  neither 
in  this  nor  in  any  other  country  can  be  disclosed  such  a 
remarkable  record  of  arduous  deeds  done  as  in  that  history 
of  a  half  a  century  of  the  Republican  l»arty.— Hon.  Wm.  H. 
Taft,    at    Kansas    City.    Mo. 


STATISTICAL  STATEMENTS. 


St5 


Party  divisions  in  Congress  since  the  formation  of  the  Republi- 
can Party  in  1856. 


Years. 

Senate. 

House. 

Congress. 

Dem. 

Rep. 

Ind. 

Dena. 

Rep. 

Ind. 

85. 

36                                

1857-1859 
1859-1861 
alS61-1863 
al863-1865 
1865-1867 
1867-1869 
1869-1871 
1871-1873 
1873-1875 
1875-1877 
1877-1879 
1879-1881 
1881-1883 
1883-1885 
1885-1887 
1887-1889 
1889-1891 
1891-1893 
1893-1895 
1895-1897 
1897-1899 
1899-1901 
1901-1903 
1903-1905 
1905-1907 
1907-1909 

39 
38 
10 
9 
11 
11 
11 
17 
20 
29 
39 
44 
38 

34 
37 
37 
39 
44 
39 
34 
26 
29 
32 
32 
29 

20 
26 
31 
36 
41 
42 
58 
57 
47 
43 
36 
32 
37 
e40 
42 
39 
39 
47 
38 
42 
46 
53 
56 
58 
58 
61 

5 
2 
2 
5 

___„.-. 

b2 

bl 

........ 

f3 
i5 
hlO 
111 
n3 

131 
101 
42 
75 
40 
49 
78 
103 
92 
168 
151 
148 
138 
198 
204 
168 
159 
236 
220 
104 
il34 
163 
153 
174 
136 
164 

92 
113 
106 
102 
145 
143 
151 
138 
194 
107 
142 
129 
146 
124 
120 
153 
166 

88 
126 
246 
206 
185 
198 
206 
250 
222 

14 
23 

37„_^ 

38        

28 
9 

40  r"-i"iizi 

43    r 

""'bs 

14 

44 

45 — - 

46             _          —     

""ci6 

47      -               — - 

ciO 

48                 

cl 

49            

cl 

50—      

4 

51 

52      -    ; 

fS 

53 

f8 

54 _ 

55 

f7 
113 

56 

57    —    

k9 
m5 

58               —    

02 

59 

60-          

Parties  as  constituted  at  the  beginning  of  each  Congress  'are  given.  These 
figures  were  liable  to  change  by  contests  for  seats,  etc. 

a  During  the  Civil  War  most  of  the  Southern  States  were  unrepresented  In 
Congress. 

b  Liberal  Republicans.  c  Greenbackers.  d  David  Davis,  Independent,  of 
Illinois. 

e  Two  Virginia  Senators  were  Readjusters,  and  voted  with  the  Republicans. 

f  People's  party,  except  that  in  the  House  of  Representatives  of  the  Fifty- 
fourth  Congress  one  member  is  classed  as  Silver  party. 

g  Three  Senate  seats  were  vacant  (and  continued  so)  and  two  Representative 
seats  were  unfilled  (Rhode  Island  had  not  yet  effected  a  choice)  when  the  session 
began.    Rhode  Island  subsequently  elected  two  Republicans, 

h  Five  Populists,  two  Silver  party,  three  Independents,  i  Including  fifteen 
members  classed  as  Fusionists.  j  Including  three  members  classed  as  Silver 
party.    There  was  one  vacancy. 

k  Six  Populists,  three  Silver  party. 

1  Five  Populists,  one  Silver  party,  two  Independents,  and  three  vacancle*. 

m  Three  Populists,  one  Silver  party,  one  Fusion  party,  one  vacancy. 

n  One  Populist,  one  Silver  party,  one  Fusionist,  two  vacancies. 

o  Two  Union  Labor  and  two  vacancies— one  Democratic,  one  Republican. 


Tou  eaiinot  set  consumers  tlii'ousrli  tlie  mints;  you  get 
tliem  tlirouuli  tlie  factories.— Maj.  McKinley  to  delegation  of 
farmers,   Aug.  24,    1896. 

Resuscitation  Trill  not  be  prompted  by  recrimination.  Tbe 
distrust  of  the  present  Tvlll  not  be  relieved  by  a  distrust  of 
tlie  future.  A  patriot  malces  a  better  citizen  tlian  a  pessi- 
mist.—President  McKlnley  before  Manufacturers'  Club,  Pbila- 
delphia,  June  2,   1S97. 

Xothing-  sbould  ever  tempt  us— nothing  ever  Tvill  tempt  us 
—to  scale  down  the  sacred  debt  of  the  nation  through  a  legal 
technicality.— President  McKinley  before  National  Associa- 
tion   of   Manufacturers,   Xew    York,   Jan.   27,    1898. 


The  administration  of  exact  Justice  by  courts  -without 
fear  or  faAor,  unmoved  by  the  influence  of  the  wealthy  or 
by  the  threats  of  the  demagogue,  is  the  highest  ideal  that 
a  government  of  the  people  can  strive  for,  and  any  means 
by  which  a  suitor,  however  unpopular  or  poor,  is  deprived 
of  enjoying  this  is  to  be  condemned.— Hon.  Wm.  H.  Taft,  at 
Columbus,    Ohio. 

A  railroad  company  engaged  in  interstate  commerce 
should  not  be  permitted  to  issue  stock;  or  bonds  and  pat 
tljcm  on  sale  in  the  market  except  after  a  certificate  by 
the  interstate  commerce  commission  that  the  securities  are 
i?..sued  Avith  the  upprovaJ  of  the  commission  for  a  legiti- 
1^8  I  te  railroad  purpose. — Hon.  Wm.  H,  Taft,  at  Columbus, 
Ohio. 


526 


STATISTICAL  STATEMENTS. 


The  Electoral  College  in  1908. 


states. 

ism 

States. 

1908 

10 
5 

3 

5 

13 

3 

27 

15 

13 

lu 

13 

9 

6 

8 

16 

14 

11 

10 

18 

a 

8 
3 

4 

Arkunsas 

New  Jersey 

12 

California     

New  York    

39 

12 

North  Dakota 

4 

iK'lawar* 

Ohio     

23 

Florida    

7 

Qeorgla      

Oregon     v 

4 

Idaho     

Pennsylvania 

34 

Illinois     

Rhode  Island 

4 

Indiana   

South   Carolina 

9 

Iowa     .(I... •• 

Rniith     Dalcntfl 

4 

Kansas 

TpnTiflsaaA 

12 

Kentucky . 

18 

Utah    

3 

•Maine    

4 

Maryland . 

Virginia     

12 

Massachusetts     

Washington     ..      .......    .... 

5 

Michigan 

Minnesota    

West  Virginia    

Wisconsin                 .      .... 

7 
18 

Mississippi    

Wyoming     ....        . .     *. 

3 

Missouri    

Total    

Montana    

483 

Nebraska     

Necessary  to  a  choice 

242 

Nevada    

Presidential  vote  and  political  record  hy  States,  1864  to  1904- 


Votes,  1904. 


Party  receiving  electoral  vote  In- 


64     '68 


72      '76 


'80 

'84 

'88 

'92 

'96 

1900 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

tD 

R 

R 

tD 

tR 

R 

Li 

R 

R 

P 

D 

i:> 

R 

D 

D 

D 

R 

R 

D 

D 

D 

D 

R 

R 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

* 

» 

« 

P 

D 

D 

R 

R 

R 

D 

R 

R 

R 

D 

R 

D 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

R 

P 

D 

R 

D 

D 

D 

D 

tR 

D 

D 

D 

D 

D 

D 

D 

R 

R 

R 

R 

R 

R 

D 

7) 

D 

D 

R 

tR 

R 

R 

R 

R 

R 

R 

R 

R 

R 

:r 

R 

R 

R 

R 

R 

R 

R 

R 

D 

D 

D 

D 

D 

D 

D 

D 

T> 

D 

D 

D 

♦ 

R 

D 

D 

R 

R 

R 

R 

D 

R 

D 

R 

R 

P 

D 

D 

n 

R 

R 

R 

R 

R 

T) 

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R 

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R 

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R 

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D 

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D 

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tD 

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tR 

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R 

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D 

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D 

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D 

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D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

D 

* 

D 

R 

R 

R 

R 

R 

R 

R 

D 

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D 

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R 

D 

R 

D 

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D 

D 

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D 

R 

R 

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D 

R 

'04 


Alabama   — — H 

Arkansas -  9 

California  10 

Colorado 5 

Connecticut   7 

Delaware   3 

Florida 5 

Georgia 13 

Idaho 3 

Illinois - 27 

Indiana .-_-15 

Iowa 13 

Kansas   10 

Kentucky —13 

Louisiana 9 

Maine    6 

Maryland    _._ —  8 

Massachusetts 16 

Michigan   _ 14 

Minnesota  11 

Mississippi 10 

Missouri  18 

Montana  3 

Nebraska 8 

Nevada  3 

New  Hampshire 4 

New  Jersey 12 

New   York 39 

North   Carolina 12 

North  Dakota 4 

Ohio 23 

Oregon   — —  4 

Pennsylvania _34 

Rhode    Island 4 

South    Carcjlina 9 

South  Dakota _.  4 

Tennessee -12 

Texas 18 

Utah 3 

Vermont 4 

Virginia   12 

Washington  5 

West  Virginia 7 

Wisconsin    13 

Wyoming ._  3 


*No  vote. 

tOne  electoral  vote  given  to  opposing  party. 
{Five  electoral  votes  given  to  opposing  party. 


STATISTICAL  STATEMENTS. 


527 


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WILLIAM  HOWARD  TAFT 


In  William  Howard  Taft  the  Republican  National  Convention 
has  nominated  for  the  Presidency  a  man  exceptionally  equipped, 
not  only  by  nature  and  training,  but  by  experience  and  achieve- 
ment, to  perform  the  delicate  and  arduous  duties  of  the  greatest 
office  in  the  gift  of  any  people.  For  nearly  thirty  years  he  has 
given  himself  with  single-minded  devotion  to  the  public  service. 
He  has  displayed  throughout  a  broad  grasp  of  affairs,  a  literally 
dauntless  courage,  an  unshakable  integrity,  a  quick  and  all  em- 
bracing sympathy,  a  deep  and  abiding  sense  of  justice,  a  mar- 
velous insight  into  human  nature,  a  sure  and  imwavering  judg- 
ment, executive  ability  of  the  highest  order,  and  a  limitless 
capacity  for  hard  work.  In  all  the  years  of  its  history  the 
Kepiiblican  pai-ty  has  never  selected  as  its  leader  in  a  National 
Campaign  a  man  so  tried  beforehand,  and  so  amply  proved  equal  i 
to  the  task. 

A    Family   of  Jurists. 

Mr.  Taft  comes  of  a  family  distinguished  in  the  law  and  the 
public  service.  The  first  American  Tafts  came  of  the  English 
yeomanry,  transplanted  across  the  Atlantic  by  the  great  upheaval 
for  conscience's  sake  which  peopled  New  England  with  its  sturdy 
stock.  In  this  country  they  turned  to  the  study  and  practice 
of  the  law.  Peter  Taft  was  both  a  maker  and  an  interpreter  of 
laws,  having  served  as  a  member  of  the  Vermont  legislature, 
and  afterwards  as  a  judge.  Alphonso  Taft,  son  of  Peter,  was 
graduated  from  Yale  College,  and  then  went  out  to  the  Western 
Reserve  to  practice  law.  He  settled  in  Cincinnati,  and  it  was  at 
Mt.  Auburn,  a  surburb  of  that  city,  on  September  15,  1857,  that 
his  son,  William  Howard  Taft,  first  became  a  presidential  pos- 
sibility. 

The  boy  grew  up  in  an  atmosphere  of  earnest  regard  for 
public  duty  too  little  known  in  these  days  of  the  colossal  and  en- 
grossing material  development  of  the  country.  His  father  earned 
distinction  in  the  service  of  city  and  state  and  nation,  going 
from  the  Superior  bench,  to  which  he  had  been  elected  imanimous- 
ly,  to  the  place  in  Grant's  cabinet  now  held  by  the  son,  then, 
as  Attorney  General,  to. the  Department  of  Justice,  and  finally 
into  the  diplomatic  service,  as  minister  first  to  Austria  and  then 
to  Russia.  His  mother,  who  was  Miss  Louise  M.  Torrey,  also  cam^ 
of  that  staunch  New  England  stock  with  whom  conscience  is  the 
arbiter  of  action  and  duty  performed  the  goal  of  service. 

His    Mother's    Influence. 

It  was  her  express  command  that  sent  him  away  from  her 
last  fall  when  both  knew  that  she  was  entering  upon  the  last 
stage  of  her  life  He  had  promised  the  Filipirios  that  he  would 
go  to  Manila  and  in  i)erson  formally  open  their  Assembly.  It 
was  to  be  their  first  concrete  experience  in  self-government,  and 
he,  more  than  any  other  man,  had  made  it  possible.  If  he  should 
not  keep  his  promise  there  was  danger  that  the  suspicious  Fili- 
pinos would  impute  his  failure  to  sinister  motives,  to  indiiTerence 
or  altered  purpose,  with  result  vastly  unfortunate  to  them  and 
to  us.  Mr.  Taft  saw  all  that  very  clearly,  yet  in  view  of  his 
mother's  health  he  would  have  remained  at  home.  But  she  for- 
bade. She  said  his  duty  lay  to  the  people  he  had  started  on  the 
path  to  liberty,  and  although  it  involved  what  each  thought  to 
be  the  final  parting  she  commanded  him  to  go.  He  went  and  be- 
fore he  could  return  his  mother  had  passed  away. 

Much  was  to  be  expected  of  a  boy  of  such  parentage,  and 
young  Taft  fulfilled  the  expectation.  He  began  by  growing  big 
physically.  He  has  a  tremendous  frame.  The  cartoonists  have 
«nade  a  false  presentment  of  him  familiar  to  the  country  by  draw- 

528 


WILLIAM  HOWARD  TAFT.  529 

ing  him  always  as  a  mountain  of  flesh.  But  if  they  had  gone  to 
the  same  extreme  of  leanness,  and  still  honestly  protrayed  his 
frame  they  would  have  represented  a  man  above  the  average 
weight. 

At  Collegre. 

Of  course  he  went  to  Yale.  His  father  had  been  the  first 
alumnus  elected  to  the  corporation,  and  when  young  Taft  had 
completed  his  preparatory  course  at  the  public  schools  of  Cin- 
cinnati he  went  to  New  Haven  for  his  college  training.  He  was 
a  big,  rollicking,  good  natured  boy,  who  liked  play  but  still  got 
fun  out  of  work.  He  did  enough  in  atheletics  to  keep  his  225 
pounds  of  muscle  in  good  condition,  but  gave  most  of  his  time 
to  his  studies.  When  the  class  of  '78  was  graduated  Taft  was 
its  salutatorian,  having  finished  second  among  12,0.  He  was 
also  elected  class  orator  by  the  class.     He  was  then  not  quite  21. 

He  went  back  to  Cincinnati  and  began  the  study  of  law  in  his 
father's  office,  at  the  same  tirrie  doing  court  reporting  for  the 
newspaper  owned  by  his  half-brother,  Charles  P.  Taft.  His 
salary  at  first  Avas  $6  a  week.  He  did  his  work  so  well,  however, 
that  Murat  Halstead,  editor  of  the  Cincinnati  Commercial 
Gazette,  employed  him  to  work  for  that  paper,  at  the  increased 
salary  of  $25  a  week. 

While  he  was  doing  this  he  was  keeping  up  his  studies,  taking 
the  course  at  the  Cincinnati  Law  School,  from  which  he  was 
graduated  in  1880,  dividing  first  honors  with  another  student, 
and  being  admitted  to  the  bar  soon  afterward. 

His  Respeota  to   a  Blackmailer. 

That  fall  there  occurred  one  of  the  most  celebrated  and  char- 
acteristic incidents  in  his  life.  A  man  named  Eose  was  then 
running  a  blackmailing  paper  in  Cincinnati.  He  had  the  reputa- 
tion of  being  a  dangerous  man.  He  had  been  a  prize  fighter, 
and  was  usually  accompanied  by  a  gang  of  roughs  ready  to 
assault  any  whom  he  wanted  punished.  Alphonso  Taft  had  been 
the  unsuccessful  candidate  for  governor  at  that  election,  and 
Rose's  paper  slanderously  assailed  him.  For  once  young  Taft  for- 
got his  judicial  temperament  and  legal  training,  and  instead  of 
setting  the  law  on  the  blackmailer  he  marched  down  to  his  office 
and  gave  Rose  a  terrific  thrashing'. 

Rose  quit  Cincinnati  that  night  and  his  paper  never  appeared 
again,  l^oung  Taft  had  had  his  first  spectacular  fight,  and  it  was 
in  behalf  of  somebody  else. 

It  is  not  the  purpose  of  this  sketch  to  attempt  a  detailed 
biography  of  Mr.  Taft.  It  merely  seeks  by  a  discussion  of  a  few 
of  the  more  important  events  of  his  life  to  show  what  manner  of 
man  he  is.  They  reveal  him  as  a  student  of  application  and 
ability ;  a  man  with  an  abiding  sense  of  justice,  slow  to  wrath, 
but  terrible  in  anger;  courageous,  aggressively  honest  and 
straightforward;  readier  to  take  up  another's  cause  than  his 
own.  This  is  a  foundation  on  which  experience  may  build  very 
largely,  and  that  is  what  it  has  done  for  Taft. 

Tlie  Call  to  Public  Office. 

He  was  hardly  out  of  his  boyhood  when  he  was  called  to 
public  office,  and  in  most  of  the  years  since  then  he  has  devoted 
himself  to  the  public  service.  First  he  was  assistant  prosecuting 
attorney  of  Hamilton  County,  under  Miller  Outcalt,  now  one. 
of  the  leading  lawyers  of  Ohio.  In  1881  he  became  collector  of 
internal  revenue  for  the  first  Ohio  district,  and  demonstrated 
the  same  ability  in  business  that  he  had  shown  in  the  law.  A 
year  later  he  resigned  that  office  and  went  back  to  the  practice 
of  law,  with  his  father's  old  partner,  H.  P.  Lloyd.  In  1884  he 
became  the  junior  counsel  of  a  Bar  Committee  to  constitute 
testament  proceedings  against  Campbell,  whose  methods  of 
practicing  law  had  brought  on  the  hearing  of  the  Hamilton 
County  Court  house  in  Cincinnati.  Though  technically  unsuc- 
cessful, Mr.  Taft  made  a  good  reputation  from  his  conduct  of 
this  matter  and  Campbell  was  drawn  from  Cincinnati.r  In  1885 
he  became  assistant  county  solicitor.     Two  year  later  Governor 


5S0  WILLIAM  HOWARD  TAFT. 

Foraker  appointed  him  Judge  of  the  Superior  Court,  to  Buceeed 
Judson  Harmon  who  had  resigned  to  enter  President  Cleveland's 
cabinet. 

In  1886  Judge  Taft  married  Miss  Helen  Herron,  daughter  of 
Hon.  John  W.  Herron,  of  Cincinnati.  They  have  three  children, 
Robert  AlpHonso,  a  student  at  Yale,  Helen,  a  student  at  Bryn 
Mawr,  and  Charles  Phelps,  2d,  who  attends  the  public  schools  in 
Washington. 

■!■  J«diol«l    Career   Bevun. 

His  appointment  as  Judge  of  the  Superior  Court  was  the 
beginning  of  the  judicial  career  which  was  Taft's  ambition,  and 
for  which  he  was  so  eminently  fitted.  He  made  such  a  record 
as  a  judge  that  at  the  close  of  his  appointed  term  he  was  tri- 
umphantly elected  for  another  term.  But  already  he  had  at- 
tracted attention  outside  his  state,  and  he  had  served  but  two 
years  of  the  five  years  for  which  he  had  been  elected  when 
President  Harrison  asked  him  to  take  the  difficult  post  of  Solic- 
itor General  of  the  United  States.  This  was  an  office  of  the  ut- 
most importance,  involving  not  only  wide  learning  and  tremendous 
application,  but  the  power  of  clear  and  forceful  presentation  of 
argument.  Two  of  the  cases  which  he  conducted  as  solicitor 
general  involved  questions  of  vital  importance  to  the  entire  coun- 
try. The  first  grew  out  of  the  seal  fisheries  controversy  with 
Great  Britain.  Mr.  Taft  won  against  such  eminent  counsel  as 
Joseph  H.  Choate  who  is  widely  recognized  as  a  leader  of  the 
American  bar.  The  other  was  a  tariff  case  in  which  the  law  was 
attacked  on  the  ground  that  Speaker  Reed  had  counted  a  quorum 
when  the  bill  passed  the  House.  That,  too,  he  won.  It  was  dur- 
ing his  term  as  solicitor  general  that  Mr.  Taft  met  Theodore 
Roosevelt,  then  civil  service  commissioner,  and  began  the  friend- 
ship which  has  continued  and  growm  ever  since  and  which  has 
had  such  far-reaching  influence  upon  the  liv«s  of  both  men. 

On   tlie  Federal  Benoli. 

Mr.  Taft's  record  as  solicitor  general  so  clearly  proved  his 
fitness  for  the  bench  that  atter  three  years  in  Washington  he 
was  sent  back  to  Ohio  as  judge  of  the  Sixth  Federal  Circuit,  a 
post  generally  recognized  as  a  preliminary  step  to  the  Supreme 
Court,  which  was  then  the  goal  of  his  ambition. 

It  was  during  his  seven  years  on  the  federal  bench  that  Mr. 
Taft's  qualities  as  a  judge  became  known  throughout  the  country. 
He  was  called  upon  then  to  decide  some  of  the  most  important 
cases  that  have  ever  been  tried  in  the  federal  courts,  in  the 
conduct  of  which  he  established  an  enviable  reputation  for  learn- 
ing, courage  and  fairness— three  essestial  attributes  of  a  great 
jurist.  His  power  of  application  and  his  ability  to  turn  off 
enormous  masses  of  work  received  ample  demonstration  during 
this  tim«.  It  was  in  this  period  of  his  service  that  he  rendered 
the  labor  decisions  which  have  made  him  famous  as  an  upright 
and  fearless  judge.  In  his  treatment  of  both  labor  and  capital 
he  showed  that  here  was  a  judge  who  knew  no  distinction  of 
parties  when  they  appeared  as  litigants  before  him.  He  voiced 
the  law  as  he  knew  it  and  the  right  as  he  saw  it,  no  matter 
where  the  blow  fell  or  whom  it  struck.  If  sometimes  the  de- 
cisions went  against  what  organized  labor  at  that  time  believed 
to  be  its  cause,  it  must  not  be  forgotten  that  no  clearer  or 
broader  statement  of  the  true  rights  of  labor  has  even  been  made 
than  in  some  of  his  judicial  utterances.  Lawyers  conducting 
litigation  in  other  courts  on  behalf  of  labor  unions  have  often 
cited  these  decisions  of  Judge  Taft  in  support  of  their  conten- 
tions. Neither  should  it  be  forgotten  that  one  of  the  most  im- 
portant and  far  reaching  of  all  his  judgments  was  that  against 
the  Addystone  Pipe  Company,  in  which  for  the  first  time  the 
Sherman  anti-trust  law  was  made  a  living,  vital  force  for  the 
curbing  and  punishment  of  monopoly.  When  this  case  reached 
the  Supreme  Court,  Mr.  Taft  received  the  distinguished  and  un- 
usual honor  of  having  his  decision  quoted  in  full  and  handed 
down  as  part  of  the  opinions  of  the  high  court  which  sustained 
him  at  every  point. 


WILLIAM  HOWARD  TAFT.  631 

Ploneerius:  tlie  Roosevelt   Policy. 

This  Addystone  Pipe  deoision  marked  the  beginning  of  the 
struggle  for  federal  control  of  interstate  corporations  which 
in  the  later  years  has  come  to  be  known  as  the  "Koosevelt  policy." 
Mr.  Taft  in  an  address  to  the  American  Bar  Association  at  De- 
troit, in  the  summer  of  1895,  had  enunciated  the  x>rinciple  on 
which  President  Eoosevelt  has  made  his  great  fight  for  the  sup- 
pression of  monopoly  and  the  abolition  of  special  privilege.  Thus 
Mr.  Taft  pioneered  the  way  for  the  "Eoosevelt  policy." 

Blazinsr  the  Pliilippine  Trail. 

Since  the  settlement  of  the  reconstruction  question  no  more 
delicate  or  fateful  problem  has  confronted  American  statesman- 
ship than  that  of  the  Philippines.  The  sudden  pitching  of  over- 
sea territory  into  our  possession  as  a  result  of  the  war  with 
Spain,  created  a  situation  not  only  unexpected  but  entirely  with- 
out precedent.  There  was  no  guide  for  our  statesmen.  The  path 
had  to  be  hewed  out  new  from  the  beginning.  There  was  no 
crystallization  of  opinion  among  the  American  people  as  to  what 
should  be  done  with  the  Philippines.  A  considerable  element 
was  vigorously  opposed  to  retaining  them,  but  the  vast  majority 
demanded  the  maintenance  of  American  sovereignty  there. 
Among  these,  at  first,  the  desire  was  undoubtedly  due  to  the 
glamour  of  aggrandizement.  The  possibility  of  wealth  some- 
where beyond  the  skyline  always  catches  the  imagination,  and 
there  can  be  no  question  that  the  great  mass  of  the  people  moved, 
without  serious  thought  of  the  consequences,  toward  American 
exploitation  of  the  islands. 

But  even  at  that  early  day  there  were  a  few — a  very  few — 
among  the  leaders  of  American  thought  and  action,  who  saw 
clearly  the  responsibility  thrust  upon  the  country  by  the  ad- 
ventitious possession  of  the  Philippines,  and  determined  to  meet 
it  fully,  no  matter  what  clamor  of  opposition  might  arise.  Among 
these  President  McKinley  was  one.  Mr.  Taft  was  another.  Mr. 
Taft  had  been  opposed  to  taking  the  islands.  He  was  opposed 
to  retaining  them.  More  than  all  he  opposed  their  exploitation 
for  American  benefit.  He  believed  that  the  Philippines  belonged 
to  the  Filipinos,  and  should  be  developed  in  the  interest  of  their 
own  people. 

Slionlderins:    tlie    "White    Man's    Burden." 

He  saw  the  possibility  of  lifting  a  feeble,  ignorant  people 
into  the  light  of  liberty  and  setting  them  upon  the  path  to  intelli- 
gent, efficient  self-government.  That  possibility  reconciled  him 
to  the  continuance  of  American  authority  over  the  islands,  for 
none  saw  more  clearly  than  he  the  chaos  certain  to  result  from 
immediate  independence  for  the  Filipinos,  with  its  inevitable  and 
speedy  end  in  complete  and  hopeless  subjection  to  some  other 
power.  Therefore  when  President  McKinley  asked  him  to  go 
to  Manila  and  undertake  the  difficult  and  thankless  task  of  start- 
ing the  Filipinos  upon  their  true  course,  he  sacrificed  the  judicial 
career  which  was  his  life's  ambition  and  shouldered  the  "White 
Man's  Burden,"  It  was  in  March,  1900,  that  he  received  his  ap- 
pointment as   chairman  of  the  Philippine   Commission. 

Not  many  Americans  have  ever  comprehended  thoroughly  the 
size  of  Mr.  Taft's  undertaking,  or  the  full  meaning  of  his  achieve- 
ment. Through  a  bungle  in  our  first  dealings  with  Aguinaldo 
and  the  Filipinos  the  entire  native  population  of  the  islands  had 
come  to  believe,  with  some  reason,  that  the  Americans  were 
their  enemies  and  had  betrayed  them.  Mr.  Taft  arrived  in 
Manila  to  find  a  people  subdued  by  force  of  arms,  but  unanimous- 
ly hostile,  sivllen  and  suspicious.  They  were  still  struggling, 
with  the  bitterness  of  despair,  against  the  power  in  which  they 
all  saw  only  the  hand  of  the  oppressor. 

Overcoiiiins:  tlie  Barrier  Bet^veen  Kast  and  West. 

Moreover,  their  leaders  had  been  inoculated  with  the  belief 
that  between  west  and  east  there  is  an  impassible  barrier  which 
will  always  prevent  the  Occidental  from  understanding  and  sym- 
pathizing with  the  Oriental.    The  experience  of  generations  had 


58B  WILLIAM  HOWARD  TAFT. 

confirmed  them  in  tluit  belief.  The  only  government  in  their 
knowledge  was  tyranny.  The  only  edtiesition  in  their  history  wiis 
deceit.  The  only  tradition  they  possessed  was  hatred  of  oppres- 
sion, made  concrete  for  them  by  their  experience  with  western 
domination. 

That  was  what  Mr.  Taft  had  to  face,  and  in  three  years  he 
had  overcome  and  changed  it  all.  He  did  it  by  the  i)er8uasive 
power  of  the  most  winning  personality  the  Filipinos  had  ever 
known.  He  met  them  on  their  own  level.  He  lived  with  them, 
ate  with  them,  drank  with  them,  danced  with  them,  and  he  showed 
them  that  here  was  an  Occidental  who  could  read  and  sympathize 
with  the  Oriental  heart.  He  gave  them  a  new  conception  of 
justice,  and  they  saw  with  amazement  that  it  was  even-handed, 
respecting  neither  person  nor  condition,  a  great  leveler,  equaliz- 
ing all  before  the  law.  They  saw  Mr.  Taft  understanding  them 
better  than  they  had  understood  themselves,  comprehending  their 
problems  moi'e  wisely  than  their  own  leaders  had  done,  and  stand- 
ing all  the  time  like  a  rock  solidly  for  their  interests.  They 
saw  him  opposed  by  almost  all  his  countrymen  in  their  islands, 
denounced  and  assailed  with  the  utmost  vehemence  and  venom 
by  Americans  simply  because  he  steadfastly  resisted  American 
exploitation  and  persisted  in  his  declaration  that  the  Philippines 
should  be  for  the  Filipinos.  They  saw  him  laboring  day  and 
night  in  their  behalf  and  facing  death  itself  with  cheerful  resig- 
nation in  order  to  carry  on  their  cause.  It  was  a  revelation 
to  them.  It  was  something  beyond  their  previous  ken,  outside 
of  all  their  experience,  their  education  and  their  tradition.  It 
convinced  them. 

A    Revelation   to   tlie   Filipinos. 

Mr.  Taft  gave  them  concrete  examples  of  disinterestedness 
and  good  faith,  which  they  could  not  fail  to  comprehend.  He  gave 
them  schools  and  the  opportunity  of  education,  one  of  the  dearest 
wishes  of  the  whole  people.  No  man  who  was  not  in  the  Philip- 
pines in  the  early  days  of  theAmerican  occupation  will  ever 
understand  thoroughly  with  w^hat  pitiful  eagerness  the  Filipino 
people  desired  to  learn.  Men,  women  and  children,  white  haired 
grandfathers  and  grandmothers  craved  above  everything  the 
opportunity  to  go  to  school  and  receive  instruction  in  the  simplest 
rudiments.  It  is  difficult  to  tell  how  deeply  that  eager  desire 
touched  Mr.  Taft  and  how  earnestly  he  responded  to  it. 

But  education  was  only  a  beginning.  Mr.  Taft  gave  the  Fili- 
pinos the  opportunity  to  own  their  own  homes.  It  was  another 
concrete  example  of  simple  justice.  When  they  saw  him  negotiat- 
ing for  the  friar  lands,  securing  for  the  Filipinos  the  right  to 
buy  those  lands  on  easy  terms,  it  went  home  to  the  dullest  among 
them  that  he  was  working  unselfishly  in  their  behalf. 

And  they  saw  his  justice  in  their  courts.  For  the  first  time 
in  all  their  experience  the  poorest  and  humblest  Filipino  found 
himself  able  to  secure  an  even-handed  honest  decision,  without 
purchase  and  without  influence. 

Even  that  was  not  all.  They  saw  Mr.  Taft  literally  and  faith- 
fully keeping  his  promise  and  calling  Filipinos  to  share  in  their 
own  government,  not  merely  in  the  subordinate  and  lowly  places 
which  they  hadhbeen  able  to  purchase  from  their  old  masters, 
but  in  the  highest  and  most  responsible  posts.  They  saw  men 
of  their  race  called  to  membership  in  the  commission,  in  the 
supreme  court,  and  in  all  the  other  branches  of  their  govern- 
ment. And  they  believed  the  promise  of  even  wider  experince 
of  self-government  to  come. 

An   Unparalleled  Acliievement.     » 

It  was  a  practical  demonstration  of  honesty  and  good  faith 
such  as  the  Philippines  had  never  known.  It  was  a  showing  of 
sympathy,  justice  and  comprehension  which  could  not  be  resisted. 
Conviction  followed  it  inevitably.  The  whole  people  knew — be- 
cause they  saw — that  the  Philippines  were  to  be  maintained  for 
the  Filipinos,  and  they  recognized  their  own  unfitness  for  the 
full  responsibilities  of  independent  self-government,  and  cheer- 
fully set  themselves  to  the  task  of  preparation. 

That  is  the  achievement  of  Mr.  Taft  in  the  Philippines.     It 


WILLIAM  HOWARD  TAFT.  533 

has  scarcely  a  parallel  in  history.  What  it  cost  hlin  he  paid 
without  question  or ' complaint.  He  had  given  up  his  judicial 
career  when  he  went  to  Manila.  But  three  times  in  the  course 
of  his  service  for  the  Filipinos  the  opportunity  to  re-enter  it 
came  to  him,  each  time  with  an  offer  of  a  place  on  the  supreme 
court  which  had  been  his  life-long-  goal.  Each  time  he  refused  it. 
Not  even  President  Roosevelt  understood  the  call  to  Mr.  Taft 
from  the  Filipinos,  and  when  he  offered  a  supreme  court  justice- 
ship to  Mr.  Taft  he  accompanied  it  with  almost  a  command.  But 
Mr.  Taft  declined.  He  saw  clearly  his  duty  lay  to  the  people 
whom  he  had  led  to  believe  in  him  as  the  personification  of  Amer- 
ican justice  and  good  faith,  and  he  made  the  President  see  it  too. 
How  the  Filipinos  felt  was  shown  when  on  hearing  of  the  danger 
that  Mr.  Taft  might  be  called  away  from  Manila,  they  flocked 
in  thousands  about  his  residence  and  begged  him  not  to  go.  When 
ultimately  he  did  leave  the  islands  it  was  only  to  come  home 
as  Secretary  of  War,  in  which  office  he  could  continue  his  direc- 
tion of  Philippine  affairs  and  make  sure  that  there  should  be 
no  deviation  from  the  successful  line  of  policy  he  had  marked  out. 

The   Birth    of   a   Nation. 

What  is  the  result?  The  birth  of  a  nation.  The  great,  power- 
ful American  people,  through  the  compelling  agency  of  Mr.  Taft, 
has  paused  ever  so  slightly  in  its  triumphant  onward  march,  to 
stoop  down  and  lift  up  a  feeble,  ignorant  and  helpless  people 
and  set  it  on  the  broad  highway  to  liberty.  Vaguely,  uncer- 
tainly, not  comprehending  clearly  just  what  it  was  doing,  not 
understanding  always  fully  either  the  object  or  the  means  of 
accomplishment,  but  its  heart  right,  and  submitting  confidently 
to  the  leadership  of  a  man  in  whom  it  trusted  implicitly,  this 
nation  has  assisted  in  a  new  birth  of  freedom  for  a  lowly  and 
oppressed  people.  To  William  Howard  Taft  belongs  the  lion's 
share  of  the  credit.  Not  often  is  it  given  to  one  man  to  do  such 
work  for  humanity.  Seldom  is  such  altruism  as  his  displayed. 
Many  other  honors  have  come  to  him ;  many  others  will  yet 
come.  Among  them  all  none  will  be  of  greater  sigjiificanee  or 
of  more  lasting  value  than  his  work  for  the  Filipinos. 

Secretary  of  War. 

It  is  not  important  here  to  discuss  in  detail  Mr.  Taft's  adminis- 
tration of  the  War  Department  since  he  succeeded  Elihu  Root 
as  Secretary  of  W^ar  on  February  1,  1904.  He  has  been  at  the 
head  of  it  during  the  years  of  its  greatest  range  of  activity. 
He  is  not  merely  Secretary  of  the  Army,  as  almost  all  his  pre- 
decessors were.  He  is  Secretary  of  the  Colonies.  Under  his 
direction  are  matters  of  the  utmost  importance  affecting  every 
one  of  the  over-sea  possessions  of  the  United  States.  The  affairs 
of  the  army  alone  have  often  proved  sufficient  to  occupy  the 
whole  attention  of  an  able  secretary.  Mr.  Taft  has  had  to 
handle  not  only  those  and  the  Philippine  and  Cuban  business, 
but  to  direct  the  construction  of  the  Panama  Canal  as  well. 
And  at  not  infrequent  intervals  he  has  been  called  on  to  par- 
ticipate in  the  direction  of  other  weighty  affairs  of  government. 
He  has  been  the  general  adviser  of  President  Roosevelt  and  has 
been  called  into  consultation  on  every  important  matter  which 
has  required  governmental  action. 

The  administration  of  canal  affairs  has  required  in  a  high 
degree  that  quality  described  as  executive  ability.  The  building 
of  a  canal  is  a  tremendous  enterprise,  calling  constantly  for  the 
exercise  of  sound  business  judgment.  In  it  Mr.  Taft  has  dis- 
played in  ripened  proportions  the  abilities  he  foreshadowed  when 
solicitor  general  and  collector  of  internal  revenue. 

Building;    tlie    Canal. 

When  Mr.  Taft  became  Secretary  of  War  this  country  had  just 
taken  possession  of  the  canal  zone,  iinder  treaty  with  the  republic 
of  Panama,  and  of  the  old  canal  property,  including  the  Panama 
railroad,  by  purchase  from  the  French  company.  The  work  was 
all  to  do.  The  country  expected  the  dirt  to  fly  at  once.  The 
newspapers  and  periodicals  were  full  of  cartoons  representing 
Uncle  Sam  in  long  boots  with  a  spade  on  his  shoulder,  striding 
down  to  the  isthmus  to  begin  digging.     B\it  before  there  could 


534  WILLIAM  HOWARD  TAFT. 

be  any  real  exca\ution  there  was  a  tremendoris  task  to  meet. 
First  of  all  the  isthnme  must  be  changed  Tfrom  a  disease  breed- 
ing pest-hole  to  a  place  where  Americans  could  live  and  work 
in  safety.  The  canal  zone  must  be  cleaned  up,  mosquitoes 
stamped  out  and  the  place  made  sweet  and  healthy.  Habi- 
tations must  be  constructed  for  many  thousands  of  workmen 
and  their  families.  The  cities  of  Panama  and  Colon,  at  the 
terminal  of  the  canal,  m\ist  be  made  thoroughly  sanitary  and 
supplied  with  water  and  sewers.  An  organization  for  the  work 
of  canal  construction  must  be  perfected  and  millions  of  dol- 
lars worth  of  machinery  and  supplies  must  be  purchased  and 
transported  to  the  isthmus. 

All  these  things,  however,  were  of  a  purely  business  char- 
acter. It  required  only  time  and  ability  to  handle  them  prop- 
erly. But  there  was  another  matter  to  be  taken  care  of  before 
these  could  be  undertaken,  and  it  was  of  a  decidedly  different 
nature.  The  Hay-Varilla  treaty  with  Panama  had  secured  to 
the  United  States  all  the  rights  necessary  for  complete  control 
of  the  canal  zone,  and  it  became  of  the  utmost  importance  to 
insure  the  maintenance  of  friendly  relations  with  the  people 
of  the  isthmus  republic.  It  would  certainly  greatly  increase 
the  ordinary  difficulties  of  building  the  canal  if  our  people  had 
to  encounter  the  hostilities  of  the  Panamanians. 

Here  was  a  problem  largely  similar  to  that  met  by  Mr. 
Taft  in  the  Philippines,  and  calling  for  the  exercise  of  the  same 
qualities  of  tact,  symj^athy,  justice  and  patience  which  he  had 
exhibited  in  the  Far  East. 

It  became  his  task  to  convince  the  Panamanian  people  and 
government  that  the  United  States  had  not  gone  to  the  isthmus 
to  build  a  rival  state  instead  of  a  canal.  As  head  of  the  War 
Department,  and  the  superior  of  the  Canal  Commission,  he  has 
conducted  all  the  affairs  of  this  Government  with  the  Republic 
of  Panama  since  the  ratification  of  the  original  treaty,  and  has 
succeeded  in  keeping  our  relations  with  the  isthmus  uniformly 
pleasant.  Always,  at  least  once  a  year,  he  has  made  a  trip  to 
the  canal  zone  and  examined  affairs  there  with  his  own  eyes. 
He  has  just  returned  from  the  isthmus,  the  President  having 
sent  him  there  to  settle  a  number  of  questions  which  required 
his  personal  consideration  on  the  ground.  Perhaps  some  con- 
ception of  his  responsibilities  on  the  isthmus  may  be  had  from 
the  fact  that  since  the  actual  work  of  canal  building  began  there 
has  been  spent  on  it  upward  of  $80,000,000,  and  every  dollar 
of  that  expenditure  required  and  received  his  approval. 

Real    Self-Government  for   Cuba. 

Aside  from  the  Philippines  and  the  Canal  the  greatest  call 
that  has  been  made  upon  Mr.  Taft  since  he  became  Secretary 
of  War  came  from  Cuba.  This  was  a  case  largely  similar  to 
the  Philippine  problem.  The  American  people  have  so  long 
imbibed  the  theory  and  practice  of  self-government  witk  their 
mothers'  milk  that  they  have  developed  a  tendency  to  believe 
any  people  fitted  for  it  who  desire  it.  To  us  liberty  is  self- 
government,  but  to  many  a  people  with  neither  experience  nor 
tradition  of  anything  but  practical  autocracy  self-gdvernment 
is  only  license.  So  it  was  with  the  Cubans.  When  our  inter- 
vention had  freed  that  island  from  the  Spanish  yoke  we  deemed 
it  sufficient  insurance  of  successful  government  for  the  Cubans 
to  require  them  to  adopt  a  constitution  before  we  turned  the 
island  over  to  them.  We  ignored  the  fact  that  Cuba  had  no 
experience  of  constitutions  or  understanding  of  their  functions. 
So  when  Cuba  had  conformed  to  our  requirement  we  sailed 
away  from  Havana  and  left  her  to  work  out  her  own  salvation 
unaided  and  untaught. 

The  result  of  that  folly  was  inevitable  and  not  long  de- 
layed. The  Cubans  having  adopted  a  constitution  they  had  not 
the  slightest  idea  of  what  to  do  with  it.  They  proceeded  to 
govern  under  the  only  system  of  which  they  had  any  knowledge. 
The  proclamation  of  the  President  took  the  place  of  the  old 
royal  decree.  He  created  by  his  fiat  the  departments  of  gov- 
ernment which  should  have  been  established  by  law  of  Congress 
under  authority  of  the  Constitution.  Freedom  in  the  American 
sense  was  unknown  in  Cuba. 


WILLIAM  HOWARD  TAFT.  ISe 

Order   Out   of   Cliaoa. 

The  experiment  was  aimed  toward  chaos  and  its  expec- 
tation was  quicldy  realized.  In  September,  1906,  the  United 
States  had  to  intervene  again,  and  the  task  fell  on  Mr.  Taft. 
Fortunate  it  was  both  for  the  United  States  and  Cuba  that  it 
was  so.  With  his  experience  of  the  Filipino  as  a  guide  and 
the  magnetism  of  his  personality  as  a  lever,  Mr.  Taft  placated 
the  warring  factions  and  secured  peaceable  intervention.  Then 
he  devised  and  set  up  a  provisional  government  which  all  the 
Cubans  accepted. 

It  was  the  intention  then  to  maintain  the  government  only 
long  enough  to  give  the  Cubans  a  fair  election  at  which  they 
might  select  their  own  government  by  full  and  free  expression 
of  their  own  will.  But  almost  immediately  the  provisional 
government  discovered  the  fundamental  mistake  made  by  the 
earlier  American  administration.  It  found  that  the  Cubans  had 
been  attempting  to  administer  a  government  which  never  had 
been  organized  and  existed  only  by  virtue  of  the  President's 
will.  Patiently  the  provisional  government  set  to  work,  under 
the  direction  of  Mr.  Taft,  to  provide  the  organization  under 
the  fundamental  law  which  the  Cubans  had  never  known  was 
the  essential  of  successful  self-government.  The  work  is  now 
nearing  completion,  and  when  next  the  Americans  quit  Havana 
it  will  be  after  turning  over  to  the  Cubans  a  government  ma- 
chine properly  established  and  fully  equipped,  whose  operation 
they  have  been  taught  to  understand  and  control.  Thus,  to 
two  peoples  has  Mr.  Taft  been  called  upon  to  give  instruction 
in  practical  self-government. 

The  character  of  Mr.  Taft  is  the  resultant  of  strongly  con- 
trasting forces.  He  is  a  man  who  laughs  and  fights.  From  his 
boyhood,  good  nature  and  good  humor  have  been  the  traits  which 
always  received  notice  first.  But  all  the  time  he  has  been 
capable  of  a  splendid  wrath,  which  now  and  then  has  blazed 
out,  under  righteous  provocation,  to  the  utter  consternation 
and  undoing  of  its  object.  Because  he  is  always  ready  to 
laugh,  and  has  a  great  roar  of  enjoyment  to  signify  his  ap- 
preciation of  the  humorous,  men  who  nave  not  observed  him 
closely  have  often  failed  to  understand  that  he  is  just  as  ready 
^o  fight,  with  energy  and  determination,  for  any  cause  that 
has  won  his  support.  But  it  is  almost  always  some  other  man's 
cause  which  enlists  him.  His  battles  have  been  in  other  interests 
than  his  own.    First  of  all  he  is  an  altruist,  and  then  a  fighter. 

A  Combative  Altruist. 

This  combative  altruism  is  Mr.  Taft's  most  distinguished 
characteristic.  As  Secretary  of  War  he  has  earned  the  world- 
wide sobriquet  of  "Secretary  of  Peace."  He  has  fought  some 
hard  battles,  but  they  were  with  bloodless  weapons,  and  the 
results  were  victories  for  peace.  The  greater  the  degree  of 
altruism  the  keener  was  his  zeal,  the  harder  and  more  persistent 
his  battle.  The  greatest  struggle  of  his  career,  in  which  he 
disregarded  utterly  his  settled  ambition,  and  cheerfully  faced 
a  continuing  serious  menace  to  life  itself,  was  on  behalf  of 
the  weakest  and  most  helpless  object  in  whose  cause  he  was 
ever  enlisted — the  Filipino  people.  That  was  the  purest  and 
loftiest  altruism. 

But  although  this  is  the  dominant  trait  of  Mr.  Taft,  he  is 
well  known  for  other  qualities.  His  judicial  temperraent,  founded 
upon  a  deep-seated,  compreha»sive  and  ever  alert  sense  of  right 
and  wrong ;  his  courage,  proved  by  repeated  and  strenuous 
tests ;  his  calm,  imperturbable  judgment,  and  his  all  embracing 
sympathy  are  characteristics  that  have  been  often  and  widely 
noted.  >They  are  his  by  right  of  inheritance  from  generations 
of  broad-minded,  upright  men  and  women.  The  development 
of  his  country  has  extended  the  range  of  his  opportunity  and 
given  greater  scope  to  his  activities  than  was  enjoyed  by  Al- 
phonso  Taft,  his  father,  or  Peter  Rawson  Taft,  his  grandfather, 
but  in  character  and  intellect  he  is  their  true  descendent. 

The  American  people  know  Mr.  Taft  as  a  man  of  pervasive 
good  humor,  always  ready  with  a  hearty  laugh,  and  quick  to  see 
fun  in   any  Situation.     His   other   side  has   not  often  appeared, 


53«  WILLIAM  HOWARD  TAFT. 

but  he  is  capable  of  tremendous  wrath.  Nothing"  arouses  i» 
more  quickly  than  unfaithfulness  to  a  trust  or  an  exhibition 
of  deceit.  Injustice  in  any  form  stirs  him  to  the  bottom  in- 
stantly. He  has  a  broad,  keen,  quick,  all-embracing-  sympathy 
always  ready  to  respond  to  any  call.  His  sense  of  justice  is 
wonderfully  quick-spring-ing  and  alert.  And  he  has  a  g-enuine 
fondness  for  work,  which  enables  him  to  derive  real  pleasure 
from  his  task.  These  qualifications  are  the  endowment  of  an 
unusually  gifted  man.  The  people  know,  because  they  have  seen, 
his  ability  to  turn  off  an  enormous  amount  of  work.  They  have 
see©  him  prove  an  exceptional  executive  ability.  They  have  seen 
him  manifest  an  equipment  for  the  Presidency  such  as  no 
other  man  has  shown  before  his  election  to  that  office.  In  ex- 
perience, training  and  ability,  Mr.  Taft  has  amply  proved  his 
fitness  for  the  chief  magistracy  of  the  nation. 


Our  country  Is  grroTrlngr  better,  not  Trorse. — Hon.  C.  IV. 
Fairbanks,   at    Baldwin,    Kas.,    June    7.    1901. 

No  men  li-vinsT  are  more  -^vortby  to  be  trusted  tban  tliose 
who  toil  up  from  poverty;  none  less  inclined  to  take  ot* 
touch  augrht  which   they  have   not   honestly  earned. — Lincoln. 

Whenever  called  upon,  the  nejfro  has  never  failed  to 
make  sacrifices  for  this,  the  only  country  he  has,  and  the 
only  aas  he  loves.— Hon.  Wm.  H  Taft,  at  Plymouth  Church, 
Brooklyn. 

I  am  opposed  to  free  trade  because  it  des^rades  American 
labor;  I  am  opposed  to  free  silver  because  it  degrrades  Ameri- 
can money. — MaJ.  Wm.  McKlnley  to  Homestead  -workiuKnien, 
Sept.   12.    1896. 

This  is  an  era  of  grreat  combination  both  of  labor  and  of 
capital.  In  many  ways  these  combinations  have  worked  for 
STood;  but  they  must  work  under  the  law. — President  Roose- 
velt at  Charleston,  April  9,  1902. 

I  would  favor  a  provision  allowing^  the  defendant  in  con- 
tempt proceeding's  to  challenge  the  judge  issuing  the  in- 
junction, and  to  call  for  the  designation  of  another  judge 
to  hear  the  issue.— Hon.  Wm.  H.  Taft,  at  Cooper  Union,  New 
York    City. 

The  American  test  should  be  the  test  of  integrity,  loyalty, 
and  incorruptible  devotion,  whether  in  the  discharge  of 
public  or  private  business.— Address  of  Secretary  Cortelyon, 
at  the  annual  bananet  of  the  Auburn  Business  Men's  Associa- 
tion,  Auburn,    N.   Y.,    Wednesday,    April   22,    1908. 

Our  political  campaigns  must  be  conflncted  upon  the  higli 
plane  of  principle,  in  which  the  fullest  discussion  of  policies 
shall  be  encouraged,  but  in  -tvhlch  misrepresentation  and 
abuse  .  shall  have  no  part.- Postmaster-General  Cortelyon, 
at  the  annual  banquet  of  the  Lincoln  Republican  Club, 
Grand     Rapids,    Mich.,     Feb.     12,    1906. 

I  do  not  knovr  any  place  w^hich  thrills  one's  bosom  with 
patriotic  ecstasy  as  the  sepulchre  of  the  unknown  dead  in 
Arlington  Cemetery.  The  thought  of  the  heroism  and  sacri- 
fice of  those  vrho,  without  a  murmur  and  w^ithout  even 
hope  of  personal  credit  or  glory,  gave  up  all  to  maintain 
a  sacred  cause,  makes  all  motives  of  personal  advancement 
of  ambition  seem  small  and  sordid.— Hon.  Wm.  H.  Taft,  at 
Riverside    Park,    New    York. 

We  must  approach  every  public  anestion  with  a  deter- 
mination to  be  fair  and  just  in  its  <llscussion.  Reforms  to  be 
practical  must  be  reasonable.  They  must  begin  among  the 
people  whose  safeguard  is  the  ballot,  through  which  every 
offender  can  be  ultimately  reached.— Extract  from  address 
of  Postmaster-General  Cortelyon  on  Lincoln's  Influence  on 
American    Life. 

Taking  the  work  of  the  Army  and  civil  authorities  to- 
gether, it  may  be  anestioned  -tvhether  anyw-here  else  in  mod- 
ern times  the  w^orld  has  seen  a  better  example  of  real  con- 
structive statesmanship  than  our  people  have  given  in  the 
Philippine  Islands.— President  Roosevelt's  annual  message, 
second    session,    Fifty-seventh    Congress.  , 

Anything  that  makes  capital  idle,  or  which  reduces  or 
destroys  it,  must  reduce  both  wages  and  the  opportunity 
to  earn  wages.  It  only  requires  the  effects  of  a  panic  through 
which  we  are  passing,  or  tlirongh  which  we  passed  in 
1893  to  1873,  to  show  how  closely  uniteil  in  a  common  in- 
terest we  all  are  in  niodern  society.  We  are  in  the  same 
boat,  and  financial  and  business  storms  which  affect  on«r 
tti-e  certain  to  affect  all  others.— Hon.  W^m.  H.  Taft,  at  Cooper 
Union,  New   York   City. 


JAMES  SCHOOLCRAFT  SHERMAN 
REPUBLICAN  NOMINEE  FOR  VICE-PRESIDENT 


James  Schoolcraft  Shekman,  the  Republican  nominee  for 
Vice-President,  was  born  October  25,  1855,  in  the  same  ward  of 
the  City  of  Utica  in  which  he  now  lives.  The  house  Mr.  Sher- 
man now  occupies  is  only  a  half  a  dozen  squares  from  xae  house 
where  he  was  born. 

Mr.  Sherman  can  trace  his  ancestry  back  to  Sir  Henry  Sher- 
man, of  Dedham,  England,  in  the  sixteenth  century,  and  the 
male  succession  comes  down  through  Henry,  Samuel,  i  nilip, 
Benjamin,  Jonathan  first,  Jonathan  second,  Robert,  Willett  H., 
and  Richard  U.  "  . 

Richard  U.  Sherman's  mother  was  Catharine  Schoolcraft,  a 
daughter  of  Lawrence  Schoolcraft,  a  Revolutionary  soldier  and 
friend  of  the  Indians  of  the  Mohawk  Valley.  The  candidate 
was  named  for  his  grandmother's  brother,  James  Schoolcraft. 

Richard  U.  Sherman,  the  Congressman's  father,  was  born  in 
Vernon,  Oneida  County,  New  York,  and  was  by  profession  an 
editor,  although  a  large  portion  of  his  life  was  spent  in  public 
service.  He  was  Major-General  of  the  State  Militia,  an  alderman 
of  Utica,  a  member  of  the  Board  of  Supervisors,  Chairman  of 
the  Board  for  a  half  a  dozen  years,  Clerk  of  the  New  York  State 
Assembly,  three  times  a  member  of  the  Assembly,  author 
of  the  Manual  which  is  still  in  use  in  the  Assembly, 
and  was  a  member  of  the  Constitutional  Convention  of  the 
State  in  1867.  He  was  for  fifteen  years  President  of  the 
Fish,  Forest  and  Game  Commission,  and  very  much  interested 
in  the  preservation  of  the  Adirondacks.  He  was  Tally  Clerk  of 
the  House  of  Representatives  from  1860  to  1870,  and  in  1872  was 
the  Liberal  Republican  caiididate  for  member  of  Congress. 

After  retiring  from  active  business,  Richard  U.  Sherman  ac- 
cepted the  office  of  President  of  the  village  of  New  Hartford, 
and  also  occupied  the  position  of  Justice  of  the  Peace,  and  in 
the  discharge  of  his  duties  as  such  spent  most  of  his  time 
in  bringing  about  amicable  settlements  of  neighborhood  dis- 
putes. 

Congressman  Sherman's  mother  was  Mary  F.  Sherman,  a  lady 
of  most  beautiful  character,  whose  activities  outside  of  her 
family  cares  were  devoted  to  charitable  and  Christian  work. 
She  was  a  woman  of  fine  mind,  whose  influence  was  felt  not 
alone  by  her  family,  but  by  all  with  whom  she  came  in  contact. 
The  memory  of  her  acts  of  charity  and  kindness  and  the  pleasant 
words  and  unbounded  hospitality  is  treasured  by  all  who  came 
within  her  circle. 

Up  to  the  time  of  his  marrige,  Richard  U.,  the  father,  had 
spelled  his  name  with  an  "a,"  (Shearman).  At  the  time  of  his 
marriage  the  "a"  was  droj)ped.  The  relationship  between  the 
two  was  remote. 

When  James  S.  Sherman  was  two  years  old  his  father  moved, 
with  his   family,   to  a   farm   two  miles  south   of  the  village   of 

536a 


6job  .  ./  ii//;.s  sc)n()()L('i:Ai"r  suiiuman. 

New  Hartford.  Here  they  live<J  until  1868.  In  the  fall  of  18G8, 
Mr.  Sherman's  parents  pur<hased  a  house  in  the  villag-e  of  New 
Hartford,  where  they  continued  to  live  until  the  death  of  Mr. 
Sherman's  mother  in  1896,  his  father  having:  died  the  year  pre- 
vious.    - 

Mr.  Sli.'rin:in  IIx.mI  with  his  piii'.'iils  iinlil  ISSl.  wlu-n  lie  \\;is 
njJivried  tit  Kust  Orange,  iS'^  J.,  to  C'tirrie  Babcock,  taking  up  his 
residence  in  the  Seventh  Ward  of  the  City  of  Utiea,  two  blocks 
from  wliere  lie  now  resides. 

While  Mr.  Sherman  lived  on  his  father's  farm  he  attended 
the  district  school,  half  a  mile  from  homeland,  when  old  enouj>li 
to  4o  so,  he  assisted  in  doinji-  such  work  on  the  farm  as  a  l)oy 
of  liis  3'ears  would  be  capable  of  doing".  After  removing"  to  the 
village  of  N^ew  Hartford  he  attended  the  public  school  in  that 
town,  and  later  attended  the  Utiea  Academy,  which  was  four 
rn^iies  distant  from  his  home,  cohhected  by  a  Street  car  service. 
La.1:er'iie  attended  the  Whitestown  Seminary,  a  preparatory  school 
situated  iii  the  villjlg'e  of  Whitesboro,  four  miles  distant.  This 
was  a  eo-edncational  institution,  with  a  very  large  attendance. 
From  this  school  young-  Sherman  entered  Hamilton  College  in 
the  fail 'of  1874,  and  was  gradiilated  in  1878.  In  school  and 
college  he  was  distinguished  f6r  general  goodfellowship  rather 
than  scholarship.  He  gained  a  considerable  reputation  as  .a 
declaimer  in  both  school  and  college,  carrying  off  the  first  honors 
in  declamation  at  the  end  of  his  Freshman  year.  He  also  en- 
joyed a  reputation  as  a  debater,  and  was  one  of  six  chosen 
from  his  class  at  the  conclusion  of  his  Senior  year  to  contest 

After  leaving  college  ]\rr.  Sherman  began,  at  once,  the  study 
of  )aw  in  the  office  of  Beardslejs  Cookinham  arid  Burdick,  at 
tjt!i<?a,  N.  Y.  He  was  admitted  to  practice  two  years  later,  and 
ar,  once  formed  a  partnershij)  with  Hon.  H.  J.  Cookinham,  his 
brother-in-law,  and  former  Mayor  Joihn  G.  Ciibson.  He  con- 
tinued the  practice  of  law  in  partnership  with  Mr.  Cookinham, 
with  various  changes  in  the  personnel  of  the  firm,  until  Jan- 
uary 1,  1907,  wheii  he  withdrew  as  a  member  of '  the  law  firm. 
In*  his  law  practice  liia  Work  ^ki-took  iti^i^'  bf '^ki'  ofkce  business 
than  an  advocate:'  ■'•>''"'-'''  •'<"  •'t.,!,!;,.! ,;,  uf/,:I.i. ,->-,:!   ik;.,  ;;  i  ..; 

"in  1899,  with  other  Utiea  business  rheh,  he  organized  the 
tliica  IVust  and  Deposit  Company,  how  one  of  the  leading  banks 
o^F"  C^eiitrui 'I^ew  Yotk  and  Was  chos^'ri  as  its  President,  which 
position 'hCi  has  sin<C6occU{)ied.  Tlie  ISTew  Hartford  Canning 
Company  wa!s  orgainized  in  18^1  by  his  f^their  and  another  gentle- 
man, and  after  his  father's  death  he  became  president  of  the 
company.  He  is  also  interested,  in  various  ways,  in  many  other 
local  enterprises.     '---•'■>-     >  . 'i        .;,'...;.> 

Mr.  ^herman^s'Mt  a[ci!l^''i(/c^k'^n*-^^li'ties  was  the  year  suc- 
ceeding his  graduation  frorii  college,  whien  he  spoke  a  few  times 
ill  different  parts  of  the  county  in  advocacy  of  the  election  of 
Alonzo  B.  Cornell,  Tlepublican  candidate  for  Governor,  making 
his  first  speech  in  the  town  of  his  residence.  During  the  last 
fifteen  yeai-s  Mr.  Sherman  has  cain])aigned  in  various  parts 
of  the  fetate,  having "  spoken  in  most  of  the  important  cities, 
an|d  in  a!  great  inany  minot  places,  as  well  as  in  half  a  dozen 
or  morie  other  States.  Dtiring  various  campaigns  he  has  spoken 
in  substantially  every  town  in  Oneida  and  Herkimer  counties, 
^e  was  chosen  Mayor  of  Uticti  in  1884.  The  city  was  then,  as 
nW, "normally  i)6inoci'atic,bttl  he' w^s' elected  by  a  substantial 


JAME^   SCHOOLCRAFT   SHERMAN.  536c 

RepTi1)lican  majority.  At  the  end  of  his  tei-m,  which  was  for 
one  year,  he  declined  a  unanimous  renomination. 

lie  was  first  named  for  Congress  in  1886,  the  contest  for  the 
nomination  being  quite  a  spirited  one,  there  being  half  a  dozen 
candidates,  his  chief  competitor  being  the  Hon.  Henry  J.  Cogges- 
hall,  then  State  Senator  from  that  district. 

Mr.  Sherman  was  renominated  each  succeeding  two  years  by 
acclamation  until  1896,  when  there  was  a  contest  for  fche  nomi- 
nation, his  competitors  being  Hon.  Seth  G.  Heacock,  of  iierkimer, 
no\v  State  Senator,  and  John  I.  Sayles  of  Rome,  Oneida  County. 
Since  that  time  he  has  been  nominated  by  acclamation  each  suc- 
ceeding two  years  until  the  i^resent  time.  He  presided  over  the 
State  convention  in  1895  as  temporary  chairman,  and  over  the 
State  conventions  of  1900  and  1908  as  permanent  chairman.  He 
was  secretary  of  the  Oneida  County  Republican  Committee  in 
1882,  and  for  the  three  following  years  was  chairman  of  that 
committee.  He  was  a  delegate  to  the  Republican  National  J'on- 
vention  in  1892. 

In  1898  Mr.  Sherman  w^as  appointed  bj^  President  McKinley 
a  member  of  the  Board  of  General  Appraisers  of  the  City  of 
New  York,  and  the  nomination  was  confirmed  by  the  Senate. 
It  was  his  desire,  at  the  time,  to  accept  the  appointment,  but 
political  and  business  friends  at  home,  including  the  Chamber 
of  Commerce  and  the  Republican  County  Committee,  passed 
resolutions  and  appointed  a  committee  to  wait  upon  him  and 
urge  him  not  to  retire  as  a  member  of  Congress,  and,  in  con- 
formity with  the  desires  of  his  constituents,  he  declined  the 
a])pointment. 

Two  years  later  he  was  tendered,  by  the  Steering  Commitee 
of  the  Senate,  the  position  of  Secretary  of  the  U.  S.  Senate. 
Realizing  that  the  wishes  of  his  constituents  had  not  changed 
within  the  two  years,  he  declined  this  position. 

Mr.  Sherman  was  the  orator  o7i  the  occasion  of  the  laying  of 
the  corner-stone  of  the  building  presented  to  the  Oneida  His- 
torical Society  of  Utica.  He  was  also  the  orator  on  the  pi'e- 
sentation  of  the  Butler  Memorial  Home  by  the  laoe  Morgan 
Butler  to  the  town  of  Hartford.  The  Indian  School  of  River- 
side, Cal.,  was,  at  the  request  of  the  people  of  Riverside,  named 
by  the  then  Commissioner  of  Ridian  Affairs,  Sherman  Institute, 
in  his  honor. 

Mr.  Sherman,  early  in  his  congressional  career,  became  a 
prominent  member  of  the  House,  and  during  the  last  few  terms 
of  Congress  has  been  numbered  among  the  leaders.  His  par- 
liamentary ability  was  early  recogiiized,  and,  perhaps,  no  other 
member  has  so  frequently  been  called  to  the  chair- to  preside 
over  the  Committee  of  the  Whole.  He  was  one  of  the  closest 
friends  of  Speaker  Reed,  as  he  was  of  Sjieaker  Henderson,  and 
has  been,  and  is,  of  Speaker  Cannon. 

Mr.  Sherman  was  a  candidate  for  the  speakership  when 
Thomas  B.  Reed"  retired.  For  twelve  years  he  has  been  Chair- 
man of  the  Committee  on  Indian  Affairs,  and  his  work,  at  the 
head  of  that  Committee,  has  received  unstinted  praise  from  all 
concerned  in  the  work  of  the  Conmiittee,  without  regard  to 
party.  He  is,  at  present,  also  a  member  of  the  Committee  on 
Rules  and  of  Interstate  and  Foreign  Conimerce. 

Had  xdr.  Sherman  remained  a  member  of  the  House,  there 
is  no  doubt  whatever  that  he  would  have  been  elected  Speaker 
at  the  conclusion  of  INIr.  Cannon's  inciiiubency  of  that  office. 


536d  JAMES  SCHOOLCRAFT  SHERMAN. 

Mr.  SluMiiiaii.  besides  being  prominently  connected  with  many 
business  institutions  of  his  city  and  elsewhere,  is  a  mciubcr 
of  many  soeial  and  fraternal  organizations.  He  is  a  member 
of  the  Fort  Sehuyler  Club  of  Utiea,'  and  the  SadaqiiJida,  and 
Yahnandasi>j  (Jolf  Clubs.  Of  the  Yahnandasis  Club  he  haj  been 
Governor  for  seven  or  eight  years,  and  was  its  President  for 
two  years.  He  is  a  member  of  the  Arcanum  Club  of  IJtica, 
and  a  member  of  the  Koyal  Arcanum  and  the  Order  of  VAks,. 
He  is  also  a  member  of  the  Union  League  Club,  Transportation 
Club  and  the  Republican  Club  of  the  City  of  New  York,  and  the 
Cobmibia  Coif  Club  of  Washington.  He  is  a  trustee  of  Hamilton 
College,  which  gave  him  the  degree  of  LL.  D.  in  1905,  and 
President  of  the  Washington  Alumni  Association  of  that  college. 
In  college  he  was  a  member  of  the  Sigma  Phi  Society,  the 
second  oldest  college  society  in  America,  of  which  society  Sec- 
retary of  State  l\oot  and  the  late  Senator  Ingalls  of  Kansas, 
and  jnany  other  prominent  men  have  been  members. 

Mr.  Sherman  has  been  a  regular  attendant  at  the  Dutch  Re- 
form Church  in  Utica  since  his  marriage  in  1881.  Prioi*  to  that 
time  he  had  been  attending  the  Presbyterian  Church  at  New 
Hartford.  For  five  years  just  passed  he  has  been  treasurer 
of  his  church,  and  for  three  years,  Chairman  of  the  Board  of 
Trustees. 

Mr.  Sherman  has  three  sons :  Sherrill,  aged  twenty-five,  who 
is  note  teller  in  the  Utica  Trust  &  Deposit  Co. ;  Richard  U.,  aged 
twenty- three,  who  is  acting  professor  of  matliamatics  at  Ham- 
ilton College,  and  Thomas  M.,  aged  twenty-two,  who  is  sec- 
retary of  the  Smyth-Despart  Co.,  dealers  in  mill  supplies,  at 
Utica.  Sherrill  and  Thomas  are  married,  and  each  has  a 
daughter,  both  of  whom  are  idols  of  their  grandparen's,  in 
whose  company  they  spend  as  much  time  as  possible. 

Mr.  Sherman's  home  life  is  an  ideal  one.  A  part  of  the  house 
in  which  he  lives  is  over  a-century  old,  and  full  of  many  relics — 
not  only  of  historical  interest  in  Oneida  County,  but  gathered 
from  all  parts  of  the  United  States — particularly  Indian  relics, 
in  which  subject  Mr.  Sherman  has,  for  a  long  time,  leen  deeply 
interested  because  of  his  Chairmanship  of  the  Committee  on 
Indian  Affairs  of  the  House  of  Ilepresentatives.  With  ample 
lawn  and  garden  plots,  Mrs.  Sherman's  desire  to  cultivate  every 
possible  blossom  and  flower  is  carried  out  to  the  full,  and  during 
the  spring,  summer  and  fall,  nearly  every  room  in  tne  house 
has  its  vase  of  freshly  cut  flowers  from  the  yard  and    garden. 

Living,  as  he  does,  in  the  vicinity  in  which  he  has  made  his 
home  since  birth,  and  with  his  splendid  record  and  hign  iittain- 
ments,  it  is  no  wonder  that  James  S.  Sherman  is  looked  upon 
as  the  first  citizen  of,  not  only  Utica,  but  of  the  surround- 
ing counties.  At  his  home-coming  following  his  nomination, 
the  city  saw  its  largest  celebration  in  its  history,  and  this 
means  much  in  the  city  or  county  that  has  held  such  men  as 
Roscoe  Conkling,  Francis  Kernan  and  Horatio  Seymour.  The 
welcome  was  absolutely  non-partisan  in  character ;  in  fact,  it 
seems  as  if  the  Democrats  were  bound  to  outdo  their  Repub- 
lican neighbors  in  showing  their  appreciation  of  the  honor  that 
had  come  to  their  city. 

To  one  visiting  Utica  at  the  present  time  and  giving  his 
impr.ession  in  a  single  sentence,  it  would  be  :  "How  Utica  does 
love  Jim  Sherman,  and  how  Jim  Sherman  loves  Utica." 


ADDRESS  OF  HON.  JAMES  S.  SHERMAN 


III    KesituiiMO    to    Notiiieation    Speecli    at    Utica,    N.    Y.,    Augfust 
18,  190S. 


pe 


nator  Burrows  and  Gentlemen  of  the  Notification  Committee : 

Your  chairman,  speaking  for  the  committee,  has  notified  me 
of  my  nomination  by  the  Eepublican  National  Convention,  held 
in  Chicago  in  June,  as  the  party's  candidate  for  Vice-President. 
As  1  chanced  to  be  in  Chicago  in  June,  I  had  an  inkling  of  the 
convention's  action,  which  was  confirmed  by  a  warm-hearted 
reception  tendered  me  by  my  neighbors  on  the  occasion  of  my 
home-coming  on  July  2. 

In  Accord  With  Mr.  Taft. 

This  official  notification,  however,  is  welcome  and  the  nomina- 
tion you  tender  me  is  accepted ;  accepted  with  a  gratitude  com- 
mensurate with  the  great  honor  conferred ;  accepted  with  a  full 
appreciation  of  the  obligations  which  accompany  that  honor, 
an  honor  greater  because  my  name  is  linked  with  that  of  William 
H.  Taft,  whom  I  respect  and  esteem  highly  and  who  approaches 
the  high  office  of  President  exceptionally  well  equipped  to  dis- 
charge the  duties  and  bear  the  varied  and  weighty  responsi- 
bilities of  that  exalted  position.  My  acceptance  could  not  be 
made  with  honor  unless  I  were  in  full  accord  with  the  declara- 
tion of  principles  adopted  by  the  convention.  Not  only  am  I 
in  full  and  complete  accord  with  my  party's  platform,  but  I 
endorse  every  word  of  the  statement  made  by  Mr.  Taft  in  his 
address  of  acceptance  when  notified  of  his  nomination  as  the 
Eepublican  candidate  for  President. 

That  speech  fully  and  comprehensively  discussess  the  issues  of 
this  campaign  as  presented  by  the  platforms  of  the  two  great 
parties,  so  that  it  is  appropriate  that  my  statement  should  be 
short.  Those  not  convinced  by  the  presentation  of  Mr.  Taft  I 
could  not  hope  to  persuade.  It  is,  however,  in  conformity  w^ith 
custom  that  I  refer  at  least  briefly  to  some  of  the  important 
issues  of  the  campaign. 

A  Discussion  of  the  Tariil  Issue. 

First,  then,  let  me  say  that  I  am  a  protectionist.  I  am  suffi- 
ciently practical  to  value  the  utility  of  a  fact  higher  than  the 
beauty  of  a  theory,  and  I  am  a  protectionist  because  experience 
has  demonstrated  that  the  application  of  that  principle  has 
lifted  us  as  a  nation  to  a  plane  of  prosperity  above  that  occupied 
by  any  other  people. 

I  especially  commend  that  plan  of  our  platform  which  prom- 
ises an  early  revision  of  tariil  schedules.  That  pledge  will  be 
fulfilled  in  an  adjustment  based  in  every  particular  upon  the 
broad  princinles  of  protection  for  all  American  interests ;  alike 
for  labor,  for  capital,  for  producers  and  consumers.  The  Dingley 
Bill,  when  enacted,  was  well  adapted  to  the  then  existing  condi- 
tions. The  developments  of  industrial  prosperity  in  a  decade, 
which  in  volume  and  degree  have  surpassed  our  most  roseate 
expectations,  have  so  altered  conditions  that  in  certain  details 
of  schedules  they  no  longer  in  every  particular  mete  out  justice 
to  all.  In  this  readjustment  the  principle  of  protection  must  and 
will  govern ;  such  duties  must  and  will  be  imposed  as  will  equal- 
ize the  cost  of  production  at  home  and  abroad  and  insure  a  rea- 
sonable profit  to  all  American  interests.  The  Eepublican  idea 
of  such  a  profit  embraces  not  alone  the  manufacturer,  not  alone 
the  capital  invested,  but  all  engaged  in  American  production, 
the  employer  and  employed,  the  artisan,  the  farmer,  the  miner 
and  those  engaged  in  transportation  and  trade ;  broadly  speak- 
ing, those  engaged  in  every  pursuit  and  calling  which  our  tariff 
directly  or  indirectly  affects.     During  a  statutory  application  of 

537 


681  ADDRESS  OF  HON.  JAMES  8.  SHERMAN. 

this  principle,  prosperity  has  bided  with  us.  When  a  revenue 
tariff  has  been  the  law,  adversity  and  want  have  been  our  portion. 
Our  Democratic  brethren,  whose  memories  are  as  short  as  their 
promises  are  frail,  and  who  have  always  exhibited  a  lack  of 
capacity  to  profit  by  experience,  unmindful  of  th&  distress  and 
destruction  that  arrived  and  departed  with  the  last  Democratic 
administration,  declare  in  their  platform  that  they  favor  such 
immediate  revision  of  *  *  *  schedules  as  may  be  necessary 
to  restore  the  tariff  to  a  revenue  basis."  A  "revenue  basis,"  a 
"tariff  for  revenue  only,"  "ultimate  free  trade" — all  have  an 
identical  meaning ;  that  meaning  being  an  assault  upon  American 
industries,  an  attack  upon  the  American  wage  scale,  a  lessening 
demand  for  the  products  of  American  soil  and  American  toil ; 
less  work,  less  pay,  less  of  the  necessaries  and  comforts  of  life. 
In  the  light  of  history,  what  issue  of  the  campaign  so  vitally 
affects  American  citizens?  Experience,  that  effective  teacher — 
i>ffective  save  with  the  one-man  power  now  parading  under  the 
title  of  the  Democratic  party — has  taught  the  nation  a  valuable 
lesson  and  the  result  of  the  coming  November  election  will  once 
more  prove  the  American  people  to  be  apt  scholars.  What  the 
laborer  of  the  land,  skilled  and  unskilled,  desires  is  the  oppor- 
tunity at  all  times  to  exchange  his  brain  and  brawn  for  good  pay 
in  good  money.  A  protective  tariff  and  the  gold  standard,  both 
now  the  existing  achievements  of  the  Republican  party,  in  spite 
of  Democratic  opposition,  give  the  laborer  that  opportunity. 

Elnuctnients  of  Iiabor. 

The  Eepublican  party  believes  in  the  equality  of  all  men  be- 
fore the  law ;  believes  in  granting  labor's  every  request  that 
does  not  seek  to  accord  rights  to  one  man  denied  to  another. 
Fair-minded  labor  asks  no  more,  no  less,  and  approves  the  record 
of  the  Republican  party  because  of  that  party's  acts. 

I  have  helped  to  make  my  party's  record  in  the  enactment  of 
the  Eight-Hour  Law,  the  Employers'  Liability  Act,  the  statutes 
to  minimize  the  hazard  of  railroad  employees,  the  Child  Labor 
Law  for  the  District  of  Columbia,  and  other  enactments  designed 
especially  to  improve  the  conditions  of  labor.  I  cannot  hope  to 
better  state  my  position  on  injunctiona  than  by  a  specific  endorse- 
ment of  Mr.  Taft's  Cincinnati  declaration  on  that  subject.  That 
endorsement  I  make. 

Tlic  Colored  Race. 

As  a  nation  our  duty  compels  that  b^'^  every  constitutional  and 
reasonable  means  the  material  and  educational  condition  of  the 
colored  race  be  advanced.  This  we  owe  to  ourselves  as  well  as 
to  them.  As  the  result  of  a  course  of  events  that  can  never  be 
reversed,  they  are  a  part  of  our  civilization ;  their  propserity  is 
our  propserity ;  their  debasement  would  be  our  misfortune.  The 
Republican  party,  therefore,  will  offer  every  encouragement  to 
the  thrift,  industry  and  intelligence  that  will  better  their  pros- 
pect of  higher  attainment. 

Army   and    Navy   and   Mercliant    Marin*. 

I  believe  in  the  maintenance  of  such  an  army,  the  upbuilding 
of  such  a  navy  as  will  be  the  guarantee  of  the  protection  of 
American  citizens  and  American  interests  everywhere,  and  an 
omen  of  peace  ;  that  at  every  exposed  point  we  may  be  so  fortified 
that  no  power  on  earth  may  be  tempted  to  molest  us.  I  believe  in 
the  restoration  of  the  American  merchant  marine  and  in  render- 
ing whatever  financial  aid  may  be  necessary  to  accomplish  this 
purpose. 

I  approve  the  movement  for  the  conservation  of  our  natural 
resources ;  the  fostering  of  friendly  foreign  relations ;  the  en- 
forcement of  our  Civil  Service  Law,  and  the  enactment  of  such 
statutes  as  will  more  securely  and  more  effectively  preserve  the 
public  health. 

Adherence    to    Roosevelt    Policies. 

Our  platform,  as  it  should  do,  pledges  adherence  to  the 
policies  of  President  Roosevelt ;  promises  to  continue  the  work 
inaugurated  during'  his  administration,  to  insure  to  persons  and 


ADDRESS  OF  HON.  JAMES  S.  SHERMAN.  58fl 

property  every  proper  safeguard  and  all  necessary  strengthen- 
ing- of  administrative  methods  will  be  provided  to  furnish  efficient 
inspection  and  supervision,  and  prompt  righting  of  every  in- 
justice, discrimination  and  wrong. 

I  have  not  touched  upon  every  plank  of  our  splendid  platform, 
but  I  reiterate  my  full  and  unqualified  approval  of  its  every 
promise. 

No  CUuia  liearislation. 

I  emphasize  as  my  party's  creed  and  my  faith  that  in  legisla- 
toin  and  administration  favor  should  be  extended  to  no  class, 
no  sect,  no  race,  no  section  as  opposed  to  another.  To  foster 
class  hatred,  to  foster  discontent,  is  un-Eepublican  and  un-Amer- 
ican. Our  party  stands  on  the  declaration  that  all  men  are 
created  with  equal  rights  and  it  will  have  no  party  in  the  enact- 
ment of  execution  of  any  law  that  does  not  apply  alike  to  all 
good  American  citizens,  whatever  their  calling  or  wherever  they 
live.  It  will  allow  no  man  in  our  land  to  have  advantage  in  law 
over  any  other  tman.  It  offers  no  safeguard  to  capital  that  is 
not  guaranteed  to  labor ;  no  protection  to  the  workman  that  is 
not  insured  to  his  employer.  It  would  offer  to  each  and  to 
both  in  pursuit  of  health  and  happiness  and  prosperity  every 
possible  advantage.  ^ 

The  work  that  lias  been  given  the  Republican  party  to  do  has 
been  of  immense  importance.  Much  of  that  work  has  been  fully 
accomplished ;  some  has  yet  to  be  completed.  Eepublican  declara- 
tions once  in  our  platform  and  no  longer  there,  are  complete  be- 
cause they  have  become  accomplished  facts.  On  the  other  hand, 
Democratic  declarations  have  been  abandoned  because  the  voters 
have  pronounced  them  to  be  unwise  and  unsafe  nnd  liiisuited  to 
our  time  and  our  country. 

The    People    Rule. 

"Shall  the  people  rule?"  is  declared  by  the  Democratic  plat- 
form and  candidate  to  be  "the  overshadowing  issue  *  *  * 
now  under  discussion."  It  is  no  issue.  Surely  the  people  shall 
rule,  surely  the  people  have  ruled ;  surely  the  people  do  rule. 
No  party  rules.  The  party,  commissioned  by  the  people,  is  sim- 
ply the  instrument  to  execute  the  people's  will,  and  from  that 
party  which  does  not  obey  their  expressed  will,  or  which  lacks 
the  wisdom  to  lead  successfully,  the  people  will  withdraw  their 
commission. 

For  half  a  century,  with  but  two  exceptions,  the  people  have 
commissioned  the  Eepublican  party  to  administer  the  National 
Government;  commissioned  it  because  its  declared  principles  ap- 
pealed to  their  best  judgment ;  commissioned  it  because  the  com- 
mon sense  of  the  American  people  scented  danger  in  Democratic 
policies.  Ours  always  has  been,  always  must  be,  a  government  of 
the  people.  That  party  will,  after  March  4  next,  execute  old  laws 
and  enact  new  ones  as  in  November  it  is  commissioned  by  the 
people  to  do.  That  commission  will  be  from  an  untrammeled 
American  electorate.  Shame  on  the  party  which,  shame  on  the 
candidate  who,  insults  the  American  people  by  suggestion  or 
declaration  that  a  majority  of  its  electorate  is  venal.  The  Amer- 
ican voter,  with  rare  exception,  in  casting  his  ballot,  is  guided 
by  his  best  judgment,  by  his  desire  to  conserve  his  own  and  the 
public  weal. 


The  overshadowing  issue  of  the  campaign  really  is :  shall  the 
administration  of  President  Eoosevelt  be  approved ;  shall  a  party 
of  demonstrated  capacity  in  administrative  affairs  be  continued 
in  power,  shall  the  reins  of  government  be  placed  in  experienced 
hands,  or  do  the  people  prefer  to  trust  their  destinies  to  an 
aggregation  of  experimental  malcontents  and  theorists,  whose 
only  claim  to  a  history  is  a  party  name  they  pilfered. 

Witli  a  record  of  four  decades  of  wise  legislation ;  two  score 
years  of  faithful  administration ;  offering  its  fulfilled  pledges  as 
a  guaranty  of  its  promises  for  the  future,  the  Eepublican  party 
appeals  to  the  people  and,  with  full  confidence  in  their  wisdom 
and  patriotism,  awaits  the  rendition  of  the  November  verdict.- 


REPUBLICAN  NATIONAL  CO/V5.Wl1TTEE, 


FRANK  H.  HITCHCOCK.  Chairman. 
WILLIAM  HAYWAKD,  Secretaby. 
QEOliGE  R.  SHELDON.  Treasubeb. 


Alabama — P.  D.  Barker,  Mobile. 
Arkansas — Powell  Clayton,  Eureka  Springs.       n 
California — George  A.  Knight,  San  Francisco. 
Colorado — Charles  E.  Cavender,  Leadville. 
Connecticut — Charles  F.  Brooker,  Ansonia. 
Delaware — 1%  Coleman  du  Pont,  Wilmington. 
Florida — Jame3  N.  Coombs,  Apalachicola. 
Georgia — Henry  Blun,  Jr.,  Savannah. 
Idaho — W.  E.  Borah,  Boise. 
Illinois — Frank  O.  Lowden,  Oregon. 
Indiana — Harry  S.  New,  Indianapolis. 
Iowa — Ernest  E.  Hart,  Council  Bluffs. 
Kansas — ^^D.  W.  Mulvane,  Topeka. 
Kentucky — ^A,  E.  Burnam,  Richmond. 
Louisiana — Pearl  Wight,  New  Orleans. 
Maine — John  F.  Hill,  Augusta. 
Maryland — William  P.  Jackson,  Salisbury. 
Massachusetts — W.  Murray  Crane,  Dalton. 
Michigan — John  W.  Blodgett,  Grand  Rapids 
Minnesota — Frank  B.  Kellogg,  St.  Paul. 
Mississippi — L.  B.  Moseley,  Jackson. 
Missouri — Charles  Nagel,  St.  Louis. 
Montana — Thomas  C.  Marshall,  Missoula. 
Nebraska — Victor  Rosewater,  Omaha. 
Nevada — P.  L.  Flanigan,  Reno. 
New  Hampshire — F.  W.  Estabrook,  Nashua. 
New  Jersey — Franklin  Murphy,  Newark. 
New  York — William  L.  Ward,  Portchester. 
North  Carolina — E.  C.  Duncan,  Raleigh. 
North  Dakota — James  Kennedy,  Fargo. 
Ohio — A.  I.  Vorys,  Lancaster. 
Oklahoma- — C.  M.  Cade,  Shawnee. 
Oregon — R.  E.  Williams,  Dallas. 
Pennsylvania — Boies  Penrose,  Philadelphia. 
Rhode  Island — Charles  R.  Brayton,  Providence. 
South  Carolina — John  G.  Capers,  Greenville, 
South  Dakota — Thomas  Thorson,  Canton, 
Tennessee — Nathan  W.  Hale,  Knoxville. 
Texas — Cecil  A.  Lyon,  Sherman. 
Utah — C.  E,  Loose,  Provo  City. 
Vermont — James  W.  Brock,  Montpelier, 
Virginia — Alvah  H.  Martin,  Portsmouth,     ^ 
Washington — R.  L.  McCormick,  Tacoma.  " 
West  Virginia — N.  B.  Scott,  Wheeling. 
Wisconsin — Alfred  T.  Rogers,  Madison. 
Wyoming — George  E.  Pexton,  Evanston. 
Alaska — L.  P.  Shackelford,  Juneau. 
Arizona — ^W.  S.  Sturgis,  Tucson. 
District  of  Columbia — Sidney  Bieber,  Washingt<^i 
Hawaii — A.  G.  M,  Robertson,  Honolulu. 
New  Mexico — Solomon  Luna,  Los  Lunas. 
Philippine  Islands — Henry  B,  McCoy,  Manila 
Porto  Rico — R.  H.  Todd,  San  Juan. 


,'i40 


Republican  Congressional  Committee — 1908, 


Officers. 

Wm.  B.  McKinley,  Chairman. 
James  A,  Tawney,  Vice-Chairman. 
H.  C.  Loudenslager,  Secretary. 
Henry  Casson,  Asst.  Secretary. 
Chas.  G.  Dawes,  Treasurer. 

Executive  Committee. 

Jbmes  A.  Tawney,  Minnesota. 

Adln  B.  Capron,   Ehode  Island. 

James   K.   Mann,   Illinois. 

Nicholas    Longworth,    Ohio.  - 

James   H.   Davidson,   Michigan. 

J.   Hampton  Moore,   Pennsylvania. 

John  W.  Weeks,  Massachusetts. 

Eichard  Bartholdt,   Missouri. 

Director  of  Permanent  Literary  Bureau,  Washington,  D.   C, 
Francis  Curtis. 

California — James   C.    Needham,   Modesto. 
Ci)lorado — Eobert    W.    Bonynge,    Denver. 
Delaware — Hiram  E.   Burton,    Lewes. 
Idaho — Burton    L.    French,    Moscow. 
Illinois — James   E.   Mann,    Chicago. 
Indiana — Charles   B.    Landis,    Delphi. 
Iowa — Albert  F.  Dawson,  Preston. 
Kansas — James   M.    Miller,    Council   Grove. 
Kentucky — Joseph  B.  Bennett.  Greenup. 
Maine — JEdwin   C.   Burleigh,   Augusta. 
^Maryland — Sydnej^  E.  Mudd,  La  Plata. 
Massachusetts— John   W.    Weeks.    Newton. 
Michigan — Joseph  W.   Fordney,   Saginaw. 
ISrinnesota — James   A.   Tawney,   Winona. 
l\Iissouri — Eichard   Bartholdt,    St.  Louis. 
Montana — Charles  N.  Pray,  Fort  Benton. 
Nebraska — J.  F.  Boyd,  Neligh. 
Nevada — Senator  George   S.  Nixon,  Eeno. 
New  Hampshire — Cj'^rus  A.  Sulloway,  Manchester. 
New  Jersey — Henry   C.   Loudenslager,   Paulsboro. 
New  York — James   S.  Sherman,  Utica. 
North   Dakota — Asle   J.   Gronna,   Lakota 
Ohio — Nicholas   Longworth,    Cincinnati. 
Oklahoma — Bird   S.   McGuire,    Pawnee. 
Oregon — William  E.  Ellis,  Pendleton. 
Pennsylvania — J.   Hampton   Moore,    Philadelphia. 
Ehode   Island — Adin   B.   Capron,   Stillwater. 
South  Dakota — William  H.  Parker,   Dead  wood. 
Tennessee — Walter  P.   Brownlow,   Jonesboro. 
Utah — Joseph   Howell,   Logan. 
Vermont — Kittredge   Haskins,   Brattleboro. 
Virginia — C.  Bascom   Slemp,  Big  Stone  Gap. 
Washington — William  E.   Humphrey,  Seattle. 
West  Virginia — James  A.   Hughes,  Himtington. 
Wisconsin — James   H.'  Davidson,   Oshkosh. 
Wyoming — Frank  W.  Mondell,  New  Castle. 

Territories, 

Alaska—Thomas   Cale,   Fairbanks. 
Hawaii — Jonah   K.    Kalanianaole,   Honolulu. 
New'  Me:j{ico — William  H.  Andrews,  Albuquerque. 
541 


Rural  Free  Delivery, 


SPEECH 

OP 


HON.    ARTHUR    L.    BATES, 

OF  PENNSYLVANIA, 

IM  THE  HOUSE  OF  REPRESENTATIVES. 
Tuesday,  May  26,  1908 

Mr.  BATES  said  : 

.  Mr.  Speaker:  The  rural  free-delivery  service  has  lully  kept 
pace  with  the  growth  and  development  of  our  whole  country. 
The  farmer  is  now  reaping-  some  of  the  rewards  he  has  so  justly 
earned  in  the  past  by  the  burdens  that  he  has  borne.  He  is 
the  producer  of  wealth.  He  is  coming-  to  be  one  of  the  most 
independent  of  all  our  citizens.  No  branch  of  the  public  service 
has  been  so  well  developed  and  improved  in  the  past  few  years 
as  the  rural  free  delivery.  There  were  only  8,000  rural  routes 
in  operation  six  years  ago.  There  are  now  almost  40,005,  and 
these  are  scattered  .through  every  State  and  Territory  of  the 
country,  so  that  there  is  not  a  rural  sectifon  in  the  whole  land 
that  is  not  practically  covered.  This  entire  service  has  been  ex- 
tended from  a  small  beginning  eleven  years  ago,  during  tin- 
three  Republican  Administrations  with  which  the  country  has 
been  blessed  since  1897.  I  believe  that  the  appropriation  of 
$35,000,000  made  this  year  for  the  support  of  rural  free-delivery 
service  brings  more  direct  benefit  to  the  people  of  this  country 
whom  it  affects  than  almost  any  other  appropriation  made  by 
the  General  Governnient. 

In  1900  President  McKinley,  in  his  message  to  Congress,  in 
speaking  of  the  postal  service,  used  language  as  follows : 

"Its  most  striking  new  development  is  the  extension  of  rural 
free  delivery.  *  *  *  This  service  ameliorates  the  isolation  of 
farm  life,  conduces  to  good  roads,  and  quickens  and  extends  the 
dissemination  of  general  information.  Experience  thus  far  has 
tended  to  allay  the  apprehension  that  it  would  be  so  expensive 
as  to  forbid  its  general  adoption  or  make  it  a  serious  burden. 
Its  actual  application  has  shown  that  it  increases  postal  receipts 
and  can  be  accompanied  by  reduction  in  other  branches  of  the 
service,  so  that  the  augmented  revenues  and  accomplished  sav- 
ings together  materially  reduce  the  net  cost." 

In  his  first  message  ta  Congress  President  Roosevelt  said : 

Among  the  recent  postal  advances  the  success  of  rural  free 
delivery  wherever  established  has  been  so  marked  and  actual 
experience  has  made  its  benefits  so  plain  that  the  demand  for  its 


extension  is  oeneral  .and  urgent.  It  is  jnst  that  the  great  agri- 
cultural population  should  share  in  the  improvements  of  this 
service. 

Again,  in  his  last  annual  ^nessage,  the  President  says: 

"The  rural  free-delivery  service  has  been  steadily  extended. 
The  attention  of  Congress  is  asked  to  the  question  of  the  com- 
pensation of  the  letter  carriers  and  clerks  engaged  in  the  postal 
service,  especially  on  the  new  rural  free-delivery  routes.  More 
routes  have  been  installed  since  the  1st  of  July  last  than  in  any 
like  period  in  the  Department's  history.  While  a  due  regard  to 
economy  must  be  kept  in  mind  in  the  establishment  of  new 
routes,  yet  the  extension  of  the  rural  free-delivery  system  must 
be  continued  for  reasons  of  sound  public'  policy.  No  govern- 
mental mbvement  of  recent  years  has  resulted  in  greater  imme- 
diate benefit  to  the  people  of  the  country  district^3. 

"Rural  free  delivery,  taken  in  connection  with  the  telephone, 
the  bicycle,  and  the  trolley,  accomplishes  much  toward  lessening 
the  isolation  of  farm  life  and  making  it  brighter  and  more  at- 
tractive. In  the  immediate  past  the  lack  of  just  such  facilities 
as  these  has  driven  many  of  the  more  active  and  restless  young 
men  and  women  from  the  farms  to  the  cities,  for  they  rebelled 
at  loneliness  and  lack  of  mental  companionship.  It  is  unhealthy 
and  undesirable  for  the  cities  to  grow  at  the  expense  of  the 
country ;  and  rural  free  delivery  is  not  only  a  good  thing  in 
itself,  but  is  good  because  it  is  one  of  the  causes  which  check 
this  unwholesome  tendency  toward  the  urban  concentration  of 
our  population  at  the  expense  of  the  country  districts." 

These  indorsements  demonstrate  beyond  the  possibility  of 
question  that  under  Republican  rule  this  service,  fraught 'with 
so  much  good  to  the  people  of  the  rural  communities,  has  been 
nurtured  and  cared  for  until  it  Jias  become  one  of  our  perma- 
nent institutions,  against  which  no  political  party  will  ever  dare 
raise  a  voice. 

At  present  New  York  has  nearly  2,000  routes  in  operation; 
Pennsylvania,  2,100;  Indiana,  2,200;  Ohio,  2,500;  Illinois,  2,800; 
Minnesota,  1,600;  Missouri,  2,000;  Nebraska,  1,000.  In  fact, 
almost  all  cases  pending  during  the  past  year  have  been  dis- 
posed of,  and  wherever  an  adequate  niunber  of  people  desired 
the  service  it  has  been  established  and  put  in  daily  use. 

INCREASED  VALUE  OF  FARM  LANDS. 

The  testimony  of  those  who  enjoy  this  service  from  all  over 
the  country  proves  that  by  reason  of  the  free  rural  delivery  the 
actual  value  of  farm  lands  has  been  greatly  increased.  I  have 
had  farmers  inform  me  that  they  would  not  dispense  with  the 
service  for  $50  or  even  $100  per  annum.  It  has  been  estimated 
that  the  value  of  farm  lands  has  risen  by  this  means  as  high  as 
$5  per  acre  in  many  States.  A  moderate  estimate  would  show  a 
benefit  to  the  farm  lands  of  from  $1  to  $3  per  acre. 


BETTER  PRICES  FOR  FARM  PRODUCTS. 

A  better  knowledge  of  trade  conditions  is  always  of  g-reat  ad- 
vantage. The  farmer  is  not  only  the  producer,  but  he  is  also 
his  own  salesman,  and  it  is  essential  that  he  should  be  ac- 
quainted with  the  daily  prices  of  the  produce  he  raises  in  order 
to  know  when  it  will  be  to  his  advantage  to  market  his  goods. 
He  is  now  enabled  to  receive  a  city  daily  paper  giving  him 
quotations  and  prices  of  stock  and  produce,  and  in  fact  the 
changing  values  of  everything  he  raises  on  the  farm.  By  meani* 
of  this  better  communication  with  the  markets  l^e  is  able  to 
obtain  better  prices  for  all  that  the  farm  produces.  He  can 
also  receive  and  dispatch  mail  much  more  quickly  than  before — 
in  fact,  he  can  in  m^iny  cases  obtain  an  answer  to  his  letter  on 
the  day  following  its  dispatch.  In  the  old  days  oui;  rural  in- 
habitant was  obliged  to  send  to  the  post-office  for  his  mail,  and 
in  the  busy  season,  when  his  horses  were  busy  in  the  fields,  a 
week  would  sometimes  elapse  before  he  or  any  of  his  family 
could  reach  the  post-office.  Now  there  are  delivered  daily  in 
the  course  of  a  year  a  half  million  pieces  of  mail  on  rural  routes 
throughout  the  country  to  the  farmers  and  inhabitants  of  the 
sparsely  settled  regions. 

Increased  facility  always  brings  increased  use  and  enjoyment. 
The  increased  number  of  letters  written  and  newspapers  sub- 
scribed for  and  received  has  so  greatly  augmented  the  revenues 
of  the  country's  postal  service  as  to  make  the  rural  free-delivery 
service  almost  self-sustaining. 

Rural  free  delivery  is  encouraging  the  building  of  good  roads. 
The  farmer  desires  the  delivery  of  his  mail,  and  the  Department 
wisely  insists  that  each  locality  must  furnish  roads  easily 
traversed  if  such  a  benefit  is  to  be  bestowed.  In  many  locali- 
ties, therefore,  our  people  have  taken  the  matter  of  good  roads 
into  consideration,  and  through  their  supervisors  and  commis- 
sioners have  improved  grades,  turned  waterways,  built  bridges, 
and  thus  not  only  aided  the  delivery  of  mail,  but  have  facilitated 
general  communication  among  our  people. 

This  service  has  been  practically  established  and  built  up 
witfiin  the  last  eleven  years.  During  the  last  Administration 
of  President  Cleveland  rural  free  delivery  was  condemned  and 
rejected  by  the  Committee  on  Post-Offices  and  Post-Eoads  of  the 
House  Under  this  same  Democratic  Administration  in  1894  the 
Postmaster-General  refused  to  make  use  of  the  appropriation  of 
$10,000  offered  him  to  begin  the  service.  He  stated  that  the  pro- 
ject was  unwise  and  could  not  be  carried  oiit.  Under  the  Kepub- 
lican  Administration  it  has  been  extended  until  it  has  become  one 
of  the  most  beneficial  and  useful  portions  of  legislation  provided 
by  the  Federal  Government.  It  has  become,  under  Republican 
prosperity  and  Republican  administration  of  law,  thoroughly 
established  as  one  of  our  permanent  instilutions.  It^;  general  use 
and  benefits  are  conclusive  proof  of  the  wisdom  of  recent  Repub- 
lican progress. 


"No  men  living  are  more  worthy  to  be  trusted 
than  those  who  toll  up  from  poverty;  none  less 
inclined  to  take  or  touch  aught  which  they  have 
not  honestly  earned/'—LINCOLN. 

"The  American  system  of  locating  manufactories 
next  to  the  plow  and  pasture  has  produced  a 
result  noticeable  by  the  intelligent  portion  of  all 
commercial  nations."— GRANT. 

"A  currency  worth  less  than  it  purports  to  be 
worth  will  in  the  end  defraud  not  only  creditors  but 
all  those  who  are  engaged  in  legitimate  business, 
and  none  more  surely  than  those  who  are  de- 
pendent upon  their  daily  labor  for  their  daily 
bread."— HAYES. 

"Every  citizen  of  the  United  States  has  an 
interest  and  a  right  in  every  election  within  the 
republic  where  national  representatives  are 
chosen.  We  insist  that  these  laws  relating  to  our 
national  elections  shall  be  enforced,  not  nullified." 
—GARFIELD. 


"The  right  of  railway  corporations  to  a  fair  and 
profitable  return  upon  their  investments  and  to 
reasonable  freedom  in  their  regulations  must  be 
recognized;  but  it  seems  only  just  that,  so  far  as 
its  constitutional  authority  will  permit,  Congress 
should  protect  the  people  at  large  in  their  inter- 
state traffic  against  acts  of  injustice  which  the 
State  Qovernments  are  powerless  to  prevent."— 
ARTHUR. 

"I  believe  that  the  protective  system  has  been 
a  mighty  instrument  for  the  development  of  our 
national  wealth  and  a  most  powerful  agency  in 
protecting  the  homes  of  our  workingmen."— HAR- 
RISON. 

"To  increase  production  here,  diversify  our 
productive  enterprises,  enlarge  the  field  and  in- 
crease the  demand  for  American  workmen;  what 
American  can  oppose  these  worthy  and  patriotic 

objects?"— Mckinley. 

"The  present  phenomenal  prosperity  has  been 
won  under  a  tariff  made  in  accordance  with  certain 
fixed  principles  the  most  important  of  which  is  an 
avowed  determination  to  protect  the  interests  of 
the  American  producer,  business  man,  wage- 
worker  and  farmer  alike  "—ROOSEVELT. 


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